In March, the federal government passed the CARES Act to prevent economic catastrophe and it also gave unprecedented powers to the federal government. Curiously, no one knows about it, Google has made search difficult, and few are aware of the macro-economic shifts happening before COVID-19.
The Federal Reserve Bank was not nationalized but its assets were. This Bloomberg article summarizes what happened.
-- The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury.
-- In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades.
-- This scheme essentially merges the Fed and Treasury into one organization.
-- The Fed is also giving the Treasury access to its private printing press.
The markets are undergoing a Paradigm Shift. For those unaware, the macro-changes are all indicating the world is returning to a commodity-backed currency to restore commodity-value and end the counterfeiting fiat model.
Let's look at some of the pieces of the puzzle.
-- The fiat system died in 2008. It's been on life support since 2008 with varied central bank Quantitative Easing (money printing) programs to ease the ever-growing systemic risks. Yet, the banking system remains insolvent and there have been no solutions to solve the insolvency. For over a decade, the only growth in the system was debt not wealth. The illusion cannot sustain itself for much longer. In short, the fiat system is dead.
-- The 2008 crisis revealed how much the central banks manipulate markets. For example, equity markets are artificially kept high by commercial bond transactions offering advantage to favored companies during crisis and those companies can buy back stock to artificially increase value without adding any wealth to the company's value-chain.
-- The world has been moving away from the Dollar, and have been for over a decade. China and Russia created gold reserve swaps, Asia is on a different SWIFT system. Central banks and countries are accumulating gold at record rates. RMB reserves have increased globally. There are many examples.
-- China launched its very successful RMB gold-backed crude contract a few years ago with redemption rumors up to 15%. Now China is beta testing its Yuan gold-backed crypto-currency in two major cities in China with major US brands participating.
-- Central banks, nation-states, and transnational conglomerates are competing to create and earn crypto-currency market share. The race is unknown to most, but the resources allocated to moving away from the existing banking system is self-apparent.
-- Bankers have been indicted for metals market collusion to suppress pricing and the Exchange Stabilization Fund has not been suppressing Gold prices for the first time since 1934. Hence, why the price has been incrementally increasing. Gold is returning to status of money and will continue to increase in price to discover its real value.
So, what is President Trump doing? He is preparing the US for its Paradigm Shift which will shift the entire world. Since before COVID-19, among many other actions, he negotiated bi-lateral trade deals to restructure supply-chains away from China and accelerate de-globalization, thereby restoring path to sovereignty. His primary goal is to restore The People's money, but to do that, all the strings affecting sovereignty have to be cut.
He appointed Judy Shelton to the Federal Reserve Chair, still awaiting Senate confirmation. Judy Shelton is what they call a “Gold Bug” and if you follow her writings, the concepts of what's happening today with the US Treasury absorbing Federal Reserve functions is mirrored in her works. To be clear, the current Federal Reserve Chairman reports to the US Treasury Secretary, who reports to the President. In essence, President Trump controls the Federal Reserve and the US financial system, and by extension, heavy influence on the global financial markets.
The Special Purpose Vehicles in the CARES Act will provide the mechanism for the US Treasury to swap Federal Reserve assets for US Treasury debt to restore the assets to The People. All Federal Reserve Notes will be returned to the Federal Reserve, as they belong to them. Debts paid in full and remaining interest paid by affection in compliance with law. The mechanism is self-apparent!
Let's be blunt about what's happening, mindful that it is not in the federal government's interest to inform their intentions due to national security issues. Confidence in the existing system must remain to assure a smooth transition assuring limited social suffering. This has never happened before, and every-time there has been a systemic currency shift, there has been extreme suffering, usually ending in war or Depression. Currency shifts have been the cause to ending prior civilizations. President Trump inherited a dead financial system, yet he chose to avoid the central banker's planned shift that was not in The People's interest. Hence, why the media is at war with him. For those unaware of the social order and illusions of control --- all crisis are scripted. This flu crisis was scripted in 2010, by The Rockefeller Foundation.
The following is assumed based on observations and research.
The US will lead the world from the usury system to a commodity-backed system. POTUS gave public notice of his plan – remove regulations, create bi-lateral trade deals, remove taxes, and rebuild America's infrastructure and wealth creation capabilities.
The US will print fiat-Dollars and finance the re-building of America with an expected $2 trillion infrastructure bill and continue monetary assistance to The People. Sure, inflation is a concern, but the currency in circulation was greatly restricted and there was not enough for growth - blame the central bank, again. This was a problem with the Great Depression, there were goods in stores, but not enough money in circulation to buy the goods. The CARES Act is redistributing shortage to increase money velocity, which is much more important than inflation. It doesn't just help Americans, resources to re-built America will be sourced from other nations, contributing to their economic support. Not meaning to over simplify, but regarding inflation, there are two types of inflation; the real world and the manufactured discounted illusion. The illusion may hold long enough to switch over before harm to The People. It's a confidence play, and POTUS has a strong hand.
At some point in the future, a commodity-backed currency will be announced as a US Treasury redemption currency for security or commodity. Likely similar to pre-1971 US Treasury Bills. The scenario is unknown but the following is possible. If it's introduced before the Federal Reserve Notes are returned to the Federal Reserve Bank as payment in full, then it's possible that the new US Treasury Note may compete with the Federal Reserve Note until it inflates into nothingness, which may take about six months. World leaders will need to participate quietly to prevent harm to Their People. Swaps will be offered with notice or silently exchanging out of the system until a bank holiday is observed for about four to seven days, then announcing a gold/silver bi-metal fix. The last gold fix was and remains at $42.22 since 1973. There is counterfeit in the fiat system that will evaporate and balance restored with full accountability.
The US will likely re-fix the gold price if gold is chosen. To support the existing economy, it will exceed $11,000 per oz. The target price is unknown due to many variables. Yet once done, the entire global system will have to switch. This does not mean your Gold ETFs will increase to that value, if they did, it would be counterfeit in a commodity-backed world and made illegal. The entire system will shift and most will not understand the shift until well after it happens. People will have to learn the difference between limited-liability commerce and full-liability trade. The worlds are inverse and not compatible.
Commodity-backed currency can also be secured by any redeemable asset category. The US is the richest nation in the world with crude, minerals, and various other assets valued at $269 trillion (2015).
There is a technology problem. No exchange system exists in the market for the banking and settlement of full-liability trade. The existing system was built on the limited-liability fiat model with insured loss and charge-off capability. The existing banking system is antiquated and compromised. You cannot have leakage on a full-liability model. The only available market offering is called blockchain.
Blockchain has a security issue that few are aware of. Even those Stanford computer scientists don't know. Blockchain uses an analog encryption on a digital platform. Meaning, the analog encryption requires irrational numbers to assure the mathematical theory proof for high security, yet in a digital environment this encryption is subject to rounding due to data truncated into the processor. There are no irrational numbers. The ability to hijack the entire blockchain does not require much resources; only the know how, a server, and connection to the internet.
Point is, as the world is racing to create the next best blockchain crypto-currency and nation-states are sold on its use for national currency issuance, no one is talking about the national security concern and deficiencies of blockchain. Truth is, they don't know about the problem, nor do they want to know.
The problem has already been solved, but it requires capital for market-entry. That technology is called bluExchange. bluExchange offers a transition method to create private issue commodity-backed instruments to preserve wealth and benefit from the gold/fiat price arbitrage without having to own gold.
More infomation can be found at www.abundance.foundation
Welcome to the age of abundance.