GETTING REAL #5: drama queen election in small offshore island set for global patsy role

Be in no doubt: Britain electing to leave the EU will get the blame for everything

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The globalist mercantile world of Frontal Lobe Onanist Propaganda (FLOP) is, as we speak, frantically searching for a fall-guy. It’s not difficult to discern who that’s going to be.

For those of you who didn’t watch US Fed boss Jerome Powell answering Congressional questions last Wednesday, I would observe that it was a ludicrously upbeat affair considering the historically parlous state of US debt (of all kinds), Developing World debt, almost zero growth in Europe, and an America sliding into recession. The eurozone is formally back into QE now, as is the US – but calling it something else. Most telling, however, was a remarkably frank interlude from Powell in which he said this [my emphasis]:

“Look, there is just no way of getting away from it – debt is now rising much faster than the economy and we have to find a way to get to a place where that is the other way round“.

Everyone spotted it, and the clip went viral. What I would say is this: for the Trump White House – the real one as opposed to the Unelected one – that statement is wildly off message. Although Uncle Jerome is far too sensible to ever do such a thing, he might just as well have yelled eeeyyyyyeeeessssberggggg dead ahead, every manjack for hisself an’ screw de women an’ children! 

Nevertheless, it was a courageous remark from a principled bloke who is clearly very concerned. And you know what? He didn’t mention Brexit once.

One man who has seen more denialist disasters than most is the American Hedge Fund legend Ray Dalio. He gave an interview last week which was his usual shtick on ‘several stages of debt cycle’, adding that this particular whirligig is now in “the final stage of the cycle”…a kind of ‘business as usual’ alternative to saying “uncharted waters”.

But he too, out of a blue sky, suddenly remarked:

“It is absolutely essential that capitalism gets back to working for the majority of people as quickly as possible”.

And you know what? He didn’t mention Brexit once.

Which is fine, except that this form of SOL traded, rigged and hopelessly over-financialised globalist capitalism cannot work for the maority: things have gone too far. Negative interest rates, huge overdependence on bourse funding, unrepayable levels of debt and – perhaps most important – the existence of a banking system, Pentagon, multinational tax evaders, NATO, ECB and powerful bureaucracies way beyond the reach of the Law together demand that reform is impossible.

Take the gold bullion market, for example. Common sense, experience, natural demand and the human instinct for safety in a storm should see gold going through the roof at the moment. I say this because, just glancing back through my contact emails and econo-financial site alerts since late August, it reads not so much like a trail of signposts to trouble as a giant portable billboard promising ‘SUICIDAL LEMMINGS THIS WAY’.

Well, the price of bullion has fallen 2.4% over the last month. If that is a market deciding, then I’m a red banana: that, ladies and gentlemen, is a sociopathic élite using faux gold ‘sales’ to depress real prices. It is an action more worthy of the USSR than a ‘free West’ committed to laissez-faire economics: it is the nationalisation of value in favour of the giga-rich.

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Who are the giga-rich most involved in this 24/7/365 con trick against over seven billion human beings? By which I mean, more specifically, the people who spent $3 trillion of our money over the last 63 days bailing out unnamed trading houses on Wall Street…the better to ease a liquidity crisis caused by ‘honour among sharks’. The same arse-savers who just launched a new asset purchase programme, buying up $60 billion each month in U.S. Treasury bills.

If you’re trying to save Wall Street and Washington Behind Closed Doors from airborne solids, there are always money trees. The largest shareowners of the New York Fed are five Wall Street banks – JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of New York Mellon.  Excepting BONYM, the remaining four of these Big Five are the largest holders of high-risk derivatives in the world. It’s pass the parcel time in the nursery, people….and we are about to get the ER Room pass.

After the 1929 unpleasantness, even at today’s values, Fed stability actions only added up to $25.5 million. The 2008 salvage operation cost $29 trillion….a real 100,000% increase in rescue costs probably involving no more than 150,000 citizens…a little under 0.05% of the US population.

Eleven years on, the cost is going to be many times more than that. I don’t share Ray Dalio’s business as usual stuff, but I do sign up bigtime to his ‘for the many not the few’ mantra.

And finally, the sting in the tail that might be the last nail in the coffin – sod it, if up is down and red is blue, let’s blend a few more metaphors here: 0% rates aren’t cheap if productivity is diving down the S-Bend on its way to the watery tunnels of nasty floaty things. Borrowing to produce a few more sales at far lower margins isn’t cheap: it’s the fast lane to bankruptcy. There may be such a thing as low rates, but there is no such thing as a free lunch.

I think it might be reasonably fair at this point to ask whether the cost of the global business and commerce format that has been sitting on our necks for the last 44 years is worth it, given that it seems to be for the very, very, very few rather than the any….one else apart from them.

In that context, one trading nation, that exports 16% of its goods to a serially underachieving trading bloc, deciding to leave said bloc in search of warmer climes is of no real consequence if the context is sound.

You don’t have to be either a neoliberal or socialist ideologue to grasp this. Infant school maths will more than suffice.

The current UK general election is yet another attempt (from those who crawl on their ample bellies to serve the people described above) to hide an obvious Truth: the rigid priests of Mammon and Marx have absolutely nothing to teach us. Boris Johnson returning to Downing Street next month is really just a disrespectful, depraved cabin rent-boy pissing on the flames of burning money.