Submitted by Steve Brown…
After credit markets froze in the subprime crash of 2008-2009 Ben Bernanke and the Fed conjured up a number of monetary tricks to keep the system afloat. POMO, Twist, QE, TARP, repos, and currency swaps (and other monetary tricks) were used to provide liquidity to an essentially bankrupt system sporting a weaponized US dollar. Even though the monetary tricks worked – or seemed to – they were based on a deeply flawed, immoral, and unlawful prospect: the privatization of profit enabled by the socialization of loss.
So the bubble that burst in 2008-2009 was simply reinflated by the Fed/Treasury with a good bit of collusion among global players… with differences to be addressed. Trouble has been brewing among Central Banks and their dealers for years; notably HSBC, Deutsche Bank, and the Royal Bank of Scotland with many other structural defects apparent. As such monetary realists have warned for years that the coming economic collapse would be far worse than the last.
Since 2009 we’ve had trade wars, proxy wars, and punishing sanctions. Covert or overt interventionism and weaponization of the US dollar on behalf of war profiteers and economic hitmen — which Washington has blessed as being free market entrepreneurs — is not something that the rest of the world will forgive easily.
Yes, this collapse does portend to be far worse than the last and it’s a very different type of financial collapse too. The difference is remarkable in that global markets have become ever more co-dependent than they were ten years ago still largely relying on a weaponized US dollar as world reserve currency.
To add insult to injury, the egregious myth of Modern Monetary Theory has poisoned public discourse to such an extent that this Keynesian market fantasy expanded to Lewis Carroll dimensions. A deluded recipe for real world monetary disaster. Yet blaming Elites for once again slaying the golden goose on the altar of the Huxley-ized and cash-drugged masses can only go so far.
Just as wealth managers used the collapse of 2008-2009 to profit from TARP and QE this collapse is apparently targeted to do the same.