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Morning Munchings: The UN Calls for the Bailiff
In the face of the Fed’s intransigent hawkishness we are now on the verge of exposing the worst lies of two generations of people in power. I’ve maintained for more than a year now that the global oligarchy known here as The Davos Crowd thought they’d run the table on the US and the UK with COVID-19.
The various bailout packages — Pelosi’s CARES Act — and pending legislation — Build Back Better, etc. — would destroy the fiscal position of the US once and for all.
Yesterday, after a massive, coordinated PR campaign to start a bank run on Credit Suisse which looks for now to have failed, Davos activated the next level of their assault on any institutions possibly aligned with those who oppose them.
They used the UN to issue a statement begmanding (begging masquerading as demanding [H/T Joachin Flores for that one]) that all central banks stop raising rates to avoid a global recession.
This was promoted all across the Davos-controlled media space yesterday. Even Rupert Murdoch’s War Street Journal got in on the action to sway GOPer’s a month out from the mid-terms.
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Luongo’s Thesis keeps getting confirmed more and more. The FED vs Davos !
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Here’s the point of this. bullies know when they are caught. Bullies are also generally the worst form of liars, ones who shout down opposition rather than engage in conversation and be willing to see the other person’s point of view.
They are very easy to trap in their lies because they are so transparent. All it takes is the slightest application of the Socratic Method — using one’s own argument to find flaws in it through counter-example — and you can get them “calling for the bailiff” in a matter of minutes.
The linked video is the only one of Nasty Nancy Pelosi I can stomach to watch anymore, because Jan Helfeld crushes her on minimum wage in less than 3 minutes. I love watching her squirm here. It’s a masterclass in evasion, deception and bullying. It lays bare the depth of the malignancy of her narcissism.
It is, in short, a real, tangible benefit to humanity in its revelations about this horrific human being. Notice how when Pelosi really understands what’s happened she resorts to veiled threats, “You made a mistake!” She repeats that threat.
She became his enemy in that moment.
If you despise Pelosi as much as I do this is a treat for all the new Patrons, a thank you for joining us I’ve dredged up from my memory and the bowls of the YouTube algorithm.
I brought this out to show you how easy it is to expose the duplicity and fragility of the narratives surrounding our political and financial reality.
It was really this interview which helped crystallize for me the filter through which to view so many of these false narratives. It’s why it was so easy for me to see the Fed’s raising the RRP rate by 0.05% above the Fed Funds Rate at last year’s June FOMC meeting as a watershed moment.
It was no different than Helfeld showing Pelosi that her intern argument was nonsense. That move exposed the weak US dollar which had been created during the Trump administration as a supremely false move in historical context.
Powell raises RRP by 0.05% and the whole world begins freaking out. The euro collapses, gold’s nascent rally is snuffed out and US bond yields begin rising, forcing euro-bond rates out of the basement, e.g. at negative yields.
Since then it’s been nothing but a series of ever-escalating actions to force the Fed to pivot off Powell’s ‘Volcker-esque’ policies. I’ve chronicled all of the twists and turns of this story, beat for beat, since last June.
These last sixteen months have played out just like this simple seven minute interview with Pelosi. Jerome Powell is Helfeld and Davos is Pelosi. They kept making the case their plan for the US to spend spend spend when inflation was here here here.
The most obvious corollary to this interview and Powell was when Obama et.al. launched that insider trading scandal of the Fed governors last fall and forced three hawks off the FOMC. “You made a mistake!”
Since the death of Queen Elizabeth and the accession of Liz Truss the UK has been under immense pressure to cave. Multiple runs on the UK Gilt market forced the Bank of England to intervene last week. Then Truss had to back off on tax cut plans which would have helped revitalize the UK’s failing private sector.
Truss is a moron and clearly overmatched for the job she now has. But it goes beyond that. After the BoE fends off the attack on the pound there’s a miraculous rally. The UK has fallen to Davos’ blackmail. That much is clear today.
One non-EU European country crushed. Let’s move onto the next one. Switzerland. Last weekend’s whisper campaign against Credit Suisse was another of these operations.
I’m not saying that Credit Suisse isn’t vulnerable. Of course it’s vulnerable. All I’m saying is that I have a hard time believing that all of the EU’s continental competition coming under extreme pressure in quick succession has a strategic component to it.
Because the UN coming out and decrying the central banks all raising rates is a massive tell that the wrong people are coming under stress here. It isn’t just these two events. We had the public meltdown of Jeremy Seigel on CNBC which was amplified beyond all recognition. Jeffrey Sachs stopped CNN cold with the pronouncement that the US was behind the bombing of the Nordstreams.
These people are all close allies of George Soros and the Democratic party machine. The fear over the mid-terms is real now. Even Nate Silver at five-thirty-eight.com is worried the Democrats are about to get rickrolled.
So, now using their deep assets at the UN through UNCTAD to issue warnings against the Fed and Volcker-like policy is no different than Pelosi calling for the guard to remove Helfeld from her office.
They demanded easy money and price controls in typical Davosian communist fashion. We need to coordinate monetary policy worldwide to stop the collapse of the old system.
It was a classic appeal to the common good and for internationalism over nationalism.
This is also a moment of the purest weakness.
You can see that this call was an extension of the anti-US psy-op in process over the Nordstream bombings. There is a concerted effort here now to at once push for open war between the US and Russia while also blaming the Fed for the crash in the global markets.
The BoE pivot was done to isolate the Fed. The Reserve Bank of Australia only raised by 25 basis points this morning. Another dovish move to leave the Fed with fewer friends.
The ECB is silent during all of this.
The reward to the world is a massive rally in stocks, bonds and safe-havens. While this is clearly just a bout of short-covering in most of these markets which were stretched to the downside, it’s also timed with the global call for dovishness from the central banks from the UN.
The narrative now will be that the Fed is being petulant and rapacious, just like the US foreign policy establishment. The victim narrative is reaching a crescendo right in time for the mid-terms.
That’s why the whisper campaign against Credit Suisse didn’t materialize into a bank run. They were warned and used as a weapon to pressure the Fed. As pointed out to me on Twitter yesterday the Fed opened a new repo facility for commercial banks.
Do you notice who ISN’T on this list? Three guesses and the first two don’t count. NO Eurotrash banks. Just US, Canadian, Hong Kong and Japanese banks.
And for the Fed to call a meeting for the same day that Credit Suisse was attacked and the UN to begmand them to pivot only to comment on debit card payment systems, is a massive tell.
In fact, what the Fed did comment on was to update the new rules for debit card transactions to have at least one backup processor in place. This means, Davos can’t lean on VISA to deny your grocery purchase unilaterally because of mean tweets or because your Alex Jones.
This clearly says to me that they are fighting this crap at the foundational level. It also says that the FOMC’s silence on the UK Gilts, Credit Suisse (now rumored to be merged with another zombie UBS), etc. is deafening.
Oh, and about my recent comments vis a vis Blackrock there’s this tidbit:
https://twitter.com/unusual_whales/status/1577306453160886274
What’s hilarious right now is everyone is calling for the bailiff looking to get out of this uncomfortable place, and they are just finally realizing that he’s taken an early lunch break.
Curiouser and curiouser.
The story is lots of pretty small-scale pieces but they sure do add up.