3 Min. Gold News
You’re thinking of the future. Of changes. Of safely getting from here to there.
I read and study the Bank for International Settlements speech transcripts each day.
My purpose has been to understand how the current system works, the winners and losers, the triumphs and mistakes, and the cover-up or obfiscation of mistakes in order to try something new.
I keep in mind Jim Rickards’ statement that these are very intelligent people with wrong models as they don’t spend time in the real world of the masses who produce goods and services, travel, build their lives and make self-sovereign decisions to the best of their political abilities.
But lately, within the last year especially, the tone of the central bankers has changed.
They once said outright that inflation was due to too much free money backed by nothing being given to the wealthy and well connected, with the expectation of it to trickle down employment and spending by the masses. Now they blame it repeatedly and loudly on Russia invading Ukraine and the pandemic shutdowns.
Plus now, in the last week, they admitted they purposely shut down the global economy “mid-air” with the belief they could just turn it on again. They openly admit their mistake, say they’ve learned in hindsight, and that they directed nations to shut down their small and medium businesses. Now, they openly state that “human labour” may now have a “reduction in quantity and quality”.
Janet Louise Yellen joked that they didn’t take away the punch bowl soon enough.
This doesn’t jive with what is repeated by every central banker – that this inflation is not their fault, there’s no way they could have seen it coming, and it’s the fault of a pandemic shut down of the economy and Russia’s invasion of Ukraine solely.
The logic of the speech saying they shut down the global economy on purpose, meaning they instructed nations to lock down their citizens and close businesses, is not repeated.
Their speeches, publicly posted, now in unison are stating there is a problem. The highest level central bankers, BIS and Singapore’s central bank, along with the Fed, are switching the storyline to prepare for something bad.
The first speeches abouut three months ago hinted at stormy waters, and how they were navigating a soft landing from their mistake. Poorer nations are just hooped. Now the advanced countries are also in trouble and the central bankers know it. Angry citizens. Hungry citizens.
It’s all going down, down, down
The peasants reeling
From a game of coins and crowns
We’re all feeling.
There is no soft landing globally. Maybe a few advanced nations will skirt the worst of it – Singapore and the US.
When the General Manager of the Bank for International Settlements, Carstens, speaks they all listen and follow instructures, said as suggestions. Immediate hard interest rate hikes. Tax the citizens more as a carbon tax.
The central banks are buying physical gold quietly.
Who is on whose side? If China has been allowed to buy gold at a suppressed price for years, who arranged it? The price dropped at the end of day western time. Is the new BRICS arrangement for the central banking system to survive with more power by sharing it between a hub of players as reserve/savings currencies?
The new digital financial system doesn’t need a nation to hold savings. Cross border payments can be sent and settled in real time at low cost without holding US dollars.
By using a bridge currency, any currency or asset of any kind, can be tokenized and exchanged through that bridge currency within seconds. Settled and for less than a penny. No need for a bank in a foreign country to hold your currency for trading. No need for banks to hold US dollars for buying oil.
Where do all the US dollars go that are currently sitting in banks around the world? What does that do to inflation?
Within the last week, Carstens has said they must now quickly reset so they can get control over supply side of the global economy as well as demand side. The only hope for advanced nations to not fall off the thin ridge between depression and hyperinflation is to rush a reset and for the central banks to rush out their own currencies, CBDCs, directly to the citizens.
That way they can control what and when the citizens buy. In other words, they can control supply. ie you must spend it now and you must spend it locally.
Up to now they put in free trade, called it globalization, and just shipped supply to a new, poorer nation, willing to pay theiir citizens less and less in exchange for the orders. Emergiing nations had short term gains until the next poorer nation dropped the price of their labour. The employed emerging nation workers wanted higher wages, so all the orders left to a poorer nation. And the the nations were left to take out another loan from the IMF.
From the speech today from Singapore:
What the central bankers need is to stay on that ridge where growth and inflation don’t fall off the ridge into anti-growth/decline/depression and/or hyperinflation.
The best they can hope for is that inflation falls now or soon, and there becomes a balanced level of supply-demand.
They want/need control over supply.
Central banks don’t have any control over supply. They have no policies to increase supply of labour, goods or servies. They can only manipulate demand by increasing interest rates.
So they want to drop demand because there’s less supply. So they raised interest rates so less people will want goods because they can’t afford to pay back the higher interest rate payments.
Get it? There is no free market.
If they can be in control of how labour (humans) spend and how much, then they can be in control of supply and demand. They can make humans spend now for the good of the many (the system that benefits the central bankers and elite), at the expense of the individual’s best interest. In other words, if they take or make you voluntarily give up your self-sovereignty to them, then they can make decisions for the good of the system but at your suffering or limiited options.
Too bad for you.
For example, the central banks can make sure you only spend locally to provide a specific area’s economic development, even if the prices or quality are not in your individual best interest. They just did this in China as a test. Your spending can be limited or stopped dead if you support an unpopular opinion, or support an opposing political party. Every transaction will be permanently recorded, like a tattoo that cannot be removed. You can be shamed publically, or punished financially years aftter an indiscretion in their eyes. If you support a person or entiity that falls into disrepute in the future, you can be tiied to them forever, and puunished by freezing your funds or limiting your moovement or purchasing ability. Canada just did this to supporters of a legal protest. Your movements, transactions and affiliations are permanently recorded for life when you use CBDCs.
Carstens says he’s worried about a crisis/protests/loss of control, while tensions are being stoked and food plants are coincidentally burning down. The crashing of a financial system and inability to provide food, energy or heat for your family would inspire many to accept help.
But it’s a delicate plan they have. I’ve read in two different speeches now that the very central banking model is at stake. They are concerned. They say they have to work together.
The new system doesn’t need a central bank for the global system to run. Central banking is not that old as far as the history of commerce and trade go.
They clearly stated last week that globalization, as well as their pandemic response, widened the gap between the rich and poor. More middle class were pushed into poverty and debt, and those citizens are angry. They do not want globalization. They want to protect their own nations. Their own sovereignty. They do not want to vote politicians who support globalism into power again. They want to feed their families. And food prices are skyrocketing.
A bad outcome (for the central bankers) would be for the global economy to fall off the ridge, or the central bank’s ability to control the demand to be stifled. Then inflation will be higher for longer and they’ll increase interest rates higher for longer, there might be more people unemployed and defaults on debts would start an avalanche of foreclosures and defaults.
The Eurozone has more concerns, the BIS says, but won’t talk about it in the speech. Just that they’re watching closely. How much more will those citizens be asked to pay to keep their children warm this winter?
Singapore’s economy is doing okay now, but “the future is strongly dependent on the 3 main, final demand markets – China, ASEAN-5 and the US.”
Growth won’t come from imports. It depends on domestic production and travel.
.
That’s Singapore… and they’re one of the cleanest of the dirty shirts. They are giving the poor and working poor money directly to try to weather what is coming “through no fault of their own.” That’s at least something to alleviate a bit of pain.
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Janet Louise was spinning with ease,
queen of the ballroom scene,
but her soiree was doomed
when the punch was consumed
and free refills guaranteed.
Janet Louise eager to please,
the board (bored) of the ballroom scene,
abandoned her chair
to join the affair
and dip to their Lindy Hop dream.
Elaine~
©2022 Elaine Diane Taylor words | music
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Thank you to Jim Rickards for including me in his bestselling book The New Case for Gold.
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Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.
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Thank you to Mike Maloney for including my song Coins and Crowns in his bestselling video series Hidden Secrets of Money episode 1.
Coins and Crowns
words and music Elaine Diane Taylor
SOCAN/ASCAP
from the album Coins and Crowns
And, thank you also to Mike Maloney for including my song Helicopter Ben in his YouTube video The True Legacy of Bernanke.
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Not Much of a Holiday (Bank Holiday, Ice 9 and Media Persuasion)
words and music Elaine Diane Taylor
Single available on iTunes
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A Terrible Breeze (War and Social Media)
The news comes down
A little bluebird sings
Words of war
Fire and furious things
Of testing might
‘Til no patience knows
If keeping still
Still keeps you safe at home
It’s a terrible breeze
They speak of today
Of threats that used to live a world away
We all know wind
Can blow both ways
And a terrible breeze can blow it all away
A worldwide net
Sees our village grow
Until we all forget
What each one used to know
How a blind bird’s wings
Can reach the shore
And turn the wheel of peace and war
Village fools sinking down, down, down
Debt and gold wound in numbered shrouds
Deal of a life it’s bread and clowns
Can we afford another go around?
The news comes down.
It’s a terrible breeze. The news comes down.
words and music Elaine Diane Taylor
Single available on iTunes
Thank you to David Crosby for telling me in a Twitter DM:
“Lyrics are the hardest part and yours are excellent…music’s good to.”
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Preparing for the Fall is a live boutique album available for digital download — featuring Wag the Dog, Black Swan Dive, American Pie and Gods of the Copybook Headings. Also available on iTunes, Google Music, Amazon Music and major digital distributors.
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The Gods of the Copybook Headings
words by Rudyard Kipling and music by Elaine Diane Taylor
from the album Preparing for the Fall.
The copybooks of the early 1900s gave us all the wisdom we need. The sayings that were copied are the truths, the gods of our world. All the empires who followed the gods of the marketplace have fallen, and there’s terror and slaughter when the gods of the copybook headings return. The lyrics are by Rudyard Kipling. One of my gurus.
Another Week on Wall Street
words and music Elaine Diane Taylor
from the album Coins and Crowns.
“A little grease (Greece) is floating out to sea, and little pigs (Portugal, Italy, Greece and Spain) are bobbing up and down, they’ll send a storm and we’ll see, when the tide goes out who’s naked on the beach“. The world is changing as we know it.
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Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.
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Elaine Diane Taylor 