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Sinfonia in C minor, BWV 788
Artist: Randolph Hokanson
"The deadly facts herein revealed lead me to wonder that this monster, interest, has not devoured the whole human race." ~ Napoleon Bonaparte on being shown an interest table
By Catherine Austin Fitts
Covid-19 has become the magic wand that Mr. Global waves to erase all perception of financial corruption in the public mind.
This week, Americans were told the U.S. Social Security Trust Fund will run out of money in 2029 because of Covid-19. In the official telling, this has nothing to do with engineering interest rates to near 0%, playing games with disability eligibility and funding, or using the Treasury market to fund money disappearing out of the government's back door—$21 trillion unaccountable so far. Indeed, banks can receive bailouts in the trillions, while pension funds and the Social Security Trust funds receive no such benefits—instead, they simply get the privilege of funding the bailouts with their Treasury purchases.
Covid-19 is providing the justification for a wide range of financial institutions and municipalities to transfer paper onto the Fed's balance sheet. This new round of Quantitative Easing actually started last September with intervention in the repo market. The air cover provided by Covid-19 and its support to the US dollar has been nothing short of miraculous. Indeed, the financial patterns suggest the timing is more than a coincidence.
In the face of this remarkable central bank stimulus, M2 money supply is up 21% and M1 money supply is up 33% year-over-year. But that has not translated into hyperinflation, as the demand destruction of Covid-19 has put a miraculous lid on money velocity.
Indeed, we must ask the question, "Is there anything this virus cannot do?" Can Covid-19 really provide a $60 trillion “get out of jail free card,” relieving the financial establishment of significant civil and criminal liabilities?
Some of the best coverage of the extraordinary action taken by the Federal Reserve since this new round of Quantitative Easing began is from John Titus at his channel BestEvidence. John was a successful attorney in Chicago when shocked by the bailouts in 2008-2012. He started publishing his commentary with his own videos—and the rest is history. Still a practicing attorney, John started a new round of videos when the Fed started rolling out Quantitative Easing 5.0. He has become one of the best "go to" voices on what the Federal Reserve is really doing—and what it means to you and me. Check out his channel; you will not be disappointed.
Next Thursday, John joins me on The Solari Report to talk about the unprecedented intervention of the Federal Reserve in the economy and global financial markets and—with a 2020 federal deficit approaching $5 trillion—the U.S. debt spiral. If you are sick of listening to Tony Fauci calibrate the inflation-deflation seesaw and justify Quantitative Easing 5.0 with fake science, this is one Solari Report you will not want to miss!
For Let's Go to the Movies I recommend Princes of the Yen, a brilliant documentary that describes how the global financial interests used the Japanese central bank combined with monetary policy and crisis to reengineer the Japanese economy. It is a brilliant case study on the centralization of power and a reminder that we should ask serious questions about the conduct of the current central banking system.
It's the last week of the month, so there is no Money & Markets this week. Subscribers can e-mail or post questions and story suggestions for Money & Markets for the following week here.