Premature Death Comes to America — US Death Insurance Payouts Surge — Premature Death Comes to Australia — French Politics in Turmoil — Non Democracy in Ukraine — Russia Pays in Rubles

PREMATURE DEATH COMES TO AMERICA

US DEATH INSURANCE PAYOUTS SURGE

The big news last week was yet another revelation of huge increases in “non pandemic related mortality” by the US life insurance company, Lincoln National. It reported a 163% increase in death benefits paid out under its group life insurance policies in 2021.

“Non pandemic related mortality” means that the disease of Covid 19 was not the direct cause.

The company paid out $ 1.4 Billion in death benefit payments in 2021, compared to just $ 548 Million in 2020. And in the previous year of 2019, they paid out $ 500 Million.

This huge increase can only mean that unexpected death is becoming commonplace for young Americans over the last 12 months. There is now a term for this phenomenon — SADS — Sudden Adult Death Syndrome. The question to ask here is — what is the cause?

Here are the actual numbers for Group Death Benefits taken from Lincoln National’s annual statements for the three years:

2019: $500,888,808

2020: $547,940,260

2021: $1,445,350,949

Lincoln National is the 5th largest life insurance company in the US. Group life insurance policies generally cover working-age adults aged 18-64 whose employer includes life insurance as an employee benefit. The statistics in the annual statements do not show actual numbers of deaths, just the dollar amounts paid. However, this degree of increase must presumably indicate a large increase in deaths.

The statements also showed a large increase in ordinary death benefits over the last 3 years — those not paid out under group policies, but under individual life insurance policies.

In 2019, that number was $3.7 billion. In 2020, the year of the Covid-19 pandemic, it went up to $4 billion, but in 2021, the year in which the Covid genetic therapy, leaky vaccines were introduced, it went up to $5.3 billion. That is 43 % higher than the 2019 figure — another staggering figure.

The sobering part of this is the fact these payouts only represent death. They do not reveal the disease and disability behind the increased deaths.

It looks like many, many young, working age Americans are increasingly suffering poor health. And that health deterioration seems to coincide with the arrival of the new mRNA genetic therapy, leaky vaccines.

Full Story: https://crossroadsreport.substack.com/p/breaking-fifth-largest-life-insurance

PREMATURE DEATH COMES TO AUSTRALIA

The Australian Bureau of Statistics (ABS) has recently released its figures for Deaths From All Causes. They make interesting reading.

There was a surge of death over and above the expected average in January this year of 20.5%. In February, a similar surge of death occurred which was 17.1% above the expected average.

By end of March, there were 44,331 deaths registered which is 17.5 % more than the historical average.

The most important thing to note about these surges in death numbers is the fact that they occurred during the Summer months. That is extremely suspicious. Usually, death surges occur in Winter and are caused by the usual winter suspects of respiratory viruses and bacterial pneumonia. But Australia’s death pattern this year is starkly different to previous years and to normal epidemiological observations. This strongly suggests another cause.

Australia has been subjected to a reign of terror from its various Federal and State governments over the last 2 years in response to the Covid phenomenon. New genetic therapy Covid leaky vaccines were foisted onto an unsuspecting public as “safe and effective”. That description must now be suspected of being false. The only way to accurately determine death causation is by autopsy. Australia needs a major autopsy study as soon as possible to determine the cause of the excess deaths seen so far in 2022.

More statistical releases from the ABS reveal —

COVID-19 was the 38th leading cause of death (898 deaths).

In 2020 there was a decrease in mortality in Australia.

The five leading causes decreased, with a significant reduction in respiratory diseases.

Rates from suicide, drug overdoses and car crashes decreased.

Alcohol-induced death rates increased by 8.3%.

Total deaths registered in 2020 were 161,300 a decrease from 2019.

The Years of Potential Lives Lost analysis by the ABS is worthy of close inspection —

Suicide was by far the major cause of potential life lost with the median age being just 43.5 years. Ischemic Heart Disease was next with the median age being 84.1 years with various Cancers being the third most common cause.

Covid 19 is not even mentioned as it mainly caused deaths in elderly people, close to or above their average life expectancy. The median age of death from Covid was 86 years.

Australia descended into tyranny and panic for two years over a virus that was NOT deadly to the vast majority of its population. And that fact was well known by March 2020 from the overall 0.35 % death rate observed in the Diamond Princess Cruise ship.

FRENCH POLITICS IN TURMOIL

In France, Marine Le Pen’s National Rally Party has won 89 seats in the National Assembly. Previously, they held just 8 seats. This is a huge victory for the far right party and it means that President Emmanuel Macron cannot control the parliament.

There are 577 seats available. The Left party, Nupes Coalition won 131 seats. Macron’s alliance Together! won 245 seats. That is 44 seats below a majority as 289 seats are required to control the house.

Thus, Macron’s power is hugely diminished and it is hard to see the future for the nation. Political instability will continue.

SRI LANKA ECONOMY HAS COLLAPSED

According to the Prime Minister, the economy of Sri Lanka has collapsed with shortages of food, fuel, electricity and oil. The island nation’s tourist industry suffered enormously from the impact of Covid. Foreign tourists stopped coming and their foreign currency was no longer available to support Sri Lanka’s economy. Without foreign currency, Sri Lanka’s debt cannot be serviced and imports cannot be paid for.

From January 19th, the stock market CSE index has dropped by 50 %. It is now back to where it was in late 2014 and it will probably fall even further from here.

22 Million people are in deep trouble. They cannot grow enough food and medicines are in short supply. Starvation looks inevitable and disease will follow unless foreign aid agencies come to their rescue.

The natural partners for Sri Lanka are India, China and Russia. The US and Europe will also be expected to assist.

NON DEMOCRACY IN UKRAINE

The war in Ukraine is often referred to as a war in “defense of democracy”. That description was badly damaged by President Zelensky last week. He banned the major opposition political party and confiscated its assets.

RUSSIA PAYS DEBTS WITH RUBLES

It was reported last week that Russia made Coupon payments owing on two Bond issuances with Rubles. Notably, these were Dollar Denominated EuroBonds with maturity dates in 2027 and 2047. Investors have to open a ruble account to receive the funds.

This is a major development in the evolution of what can only be described as the EuroRuble (Rubles outside Russia). RT reported — “Moscow will now consider its obligations completed “if they are fulfilled in rubles in an amount equivalent to the value of obligations in foreign currency” at the exchange rate on the day the funds are transferred to the central depository (NSD), through which they will be paid to creditors.”

RT also reported that the BRICS nations were developing a new global reserve currency from a basket of five currencies. The currencies are from the BRICS nations — Brazil, Russia, India, China and South Africa. 

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

Read On — You are reading the BOOM BLOG which contains all Weekly Editorials ……..

Subscribe for Free at the Newspaper Website.
The Newspaper does not contain all Weekly Editorials — just the current week
The BOOM NEWSPAPER Link:
 BOOM Finance & Economics (boomfinanceandeconomics.com)

=================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

====================================================================

MOLS Denmark

Bitcoin and Ethereum Collapse — Russia Cuts Nordstream Gas by 60% — US GDP Now Forecast Reduced to Zero — US Recession Possible

BITCOIN AND ETHEREUM COLLAPSE

Over the last 12 months and previously, BOOM has long predicted the demise of the prices of Bitcoin, Ethereum and the other so-called “Cryptos”. Late last year, when the Total Market Capitalization was close to $ 3 Trillion, BOOM stated that the Total Market Capitalization of these speculative digital products would fall below $ 1 Trillion. That happened last week. The Total Market Capitalization is now below $ 850 Billion at the time of writing and appears to be showing no signs of strength. Buyers are few and far between. Bitcoin is now well below $ 20,000 and has fallen by 33% over the last 7 days. Ethereum has fallen by over 35% in the same period.

In March 2020, just 2 short years ago, the Total Market Capitalization of all Cryptos was around $ 150 Billion. BOOM can see no reason why that cannot be the next price target in this decline of a whole asset class which was based upon extreme optimism. Bitcoin’s price at that time was about $ 5,400. If that decline occurs to that price level, Bitcoin will have lost over 90 % of its highest price. A staggering loss to anyone who bought at the high and sold at the low. It is now crystal clear why these private digital inventions should never be described as “currencies”.

RUSSIA CUTS NORDSTREAM GAS BY 60% TO GERMANY

The Nord Stream pipeline from Russia to Germany via the Baltic Sea is a critical piece of energy infrastructure for Germany. Last week the flow of gas was reduced by Russia by roughly 60% after the German company Siemens failed to return pumping turbines that had undergone repairs in Canada. Gas supplies via the pipeline fell from 167 million cubic meters per day to just 67 million cubic meters.

BOOM readers will not be surprised by this turn of events. Vladmimir Putin last week expressed his exasperation with Western Europe saying essentially that they failed to listen to Russia for 8 years and ignored the Minsk Agreement over Ukraine. The Minsk Protocol and Agreement, was drafted in 2014 by the Trilateral Contact Group on Ukraine, consisting of Ukraine, Russia, and the Organization for Security and Co-operation in Europe (OSCE) with mediation by the leaders of France and Germany in the so-called Normandy Format. It was updated in February 2015 as the Minsk 2 Agreement. 

The Germans are now at last realizing the precarious position they are in with regard to future energy supplies. Olaf Scholz, the Chancellor, said last week — “It is absolutely necessary to talk to Putin,” Scholz explained, adding that he “will continue to do so, as will the French President.” They are desperate for a new settlement on Ukraine but Putin is adamant that they did not honor the last one.

Last week, the global prices of oil and natural gas fell sharply. To BOOM it looks like the war in Ukraine is over if the parties involved can agree to agree and can continue to agree. Any prospects for Ukraine to become a member of NATO or the EU will not be possible in such agreement. The future for Ukraine will be as a neutral State, similar to Switzerland. Such a situation would be beneficial to the people of Ukraine in the long run.

The diplomatic skill of all parties will be sorely tested as each nation must be able to claim “victory” in some way.

Meanwhile, the White House is effectively sending many $ Billions to the suppliers of weapons inside the US to boost their revenues. The dollars will flow. That’s for sure. The weapons may not. It is a huge fiscal boost to the US economy — plain as day.

GDP NOW FORECAST TO ZERO

FED RAISES RATES BY 0.75%

The Atlanta Federal Reserve Bank has warned that the US is on the verge of an economic recession. It reduced its real GDP growth forecast for Quarter 2 GDP growth from +0.9% to 0.0%, meaning the US could be already in a technical recession after the contraction that occurred in quarter one. Back in late May, their estimate stood at 1.9%. They swiftly reduced it to 0.9% in early June. Two weeks later, they have cut it again to Zero. With the Fed raising its key interest rate, this is all a major concern for the US economy.

As BOOM said last week, the whole globe is now anxiously awaiting the end to the hostilities in Ukraine, which should be followed by a sharp drop in energy prices. The Zero Covid Policy in China is the other major global concern. The end of that policy will break the supply chain disruptions to and from China, that most important manufacturing hub. If both events occur quickly, CPI inflation will fall in the advanced economies. Stock and bond markets will then rally and the world will return to a more stable economic and Geopolitical outlook.

CENTRAL BANK ACTIONS

Last week, various major central banks took action to stem the tide of CPI inflation. The Federal Reserve increased the funds rate by 0.75% during its June meeting. This was higher than expected. Most observers were expecting an increase of 0.5%. The US CPI inflation rate unexpectedly accelerated last month to 41-year highs. This is the biggest rate increase by the US since 1994. The Bank of England raised rates by 0.25% while the Swiss National Bank raised theirs by 0.5%. The Bank of Japan did not raise its rates.

PFIZER FALLING AGAIN

The shares of Pfizer fell by almost 7 % last week. Overall, the shares are now down 25 % since their price highs in December last year. These price falls were not unexpected by BOOM. Why? Because the company decided long ago to take a huge gamble on its new genetic therapy technology, more commonly known as its Covid vaccine. It knew the enormous risk it was taking and clearly tried to mitigate that risk by insisting that governments sign supply agreements in which the company would be indemnified against future civil legal actions. That mitigation strategy could be a source of false comfort if the vaccines are revealed over time to be faulty products damaging millions of people and future governments decide not to honor those contractual agreements. Push can turn to shove very quickly if events overwhelm.

Moderna’s share price has fallen by 75 % since August 2021. It is essentially a one product company again using the new genetic therapy technology called messenger mRNA to create its version of Covid vaccine. Therefore, the company is entirely exposed to its similar contractual agreements with governments with no other revenues to sustain it if push does come to shove.

If it can be proved that these companies understood that this new technology was potentially dangerous prior to signing the agreements, then future Governments will possibly be inclined towards denying the contracts. BOOM is certainly not a lawyer but this all looks rather tenuous to the layman. After all, even the non lawyer layman can see the rationale for the agreements in the first place was one of attempting to circumvent future bad outcomes.

Pfizer is a company whose major future revenue hopes appear to be perhaps too reliant upon the new messenger mRNA gene therapy technology. Their Covid product has generated about $ 38 Billion of revenue in the last 12 months, a spectacular performance. However, that revenue performance may not become recurrent. In the long run as the virus mutates more and more away from the original variant, the boost to revenue may only last one year or two years. Some observers argue that the product may be already obsolete. And, if that is so, then that revenue boost may have to be quarantined by the company as a cash buffer just in case the company is ever successfully challenged in a court of law by future events. In such a situation any government granted immunity encompassed in a private document may not be worth the paper it is written on if a government decides to play dirty and default on the agreement. A huge cloud seems to be forming and there is not much the company can do to render the skies blue again.

Everyone on Earth now knows that both Covid mRNA vaccines do not fully protect users from being infected with Covid and they do not fully stop them from possibly transmitting the virus to other people. So the word “vaccine” is now arguably not relevant to this product. There appears to be evidence that the companies themselves did not call the products “vaccines” during their development and in their FDA applications.

When any companies sell products that fail to deliver the promised purposes for which they were sold, then it can be argued that they may have committed a fraud and legal challenges could inevitably flow. If a company pre-sold a plane that could not fly, then the fraud would be obvious. No pre-agreement based upon the presumption of safe flight could negate this. This scenario is especially more likely if it becomes obvious over time that the Big Pharma companies knew of the product faults and dangers before release.

Pfizer’s huge cash buffer may not be enough if a determined class action is brought forward by many millions of people claiming to be damaged in some way by the product itself (adverse reactions) or by the product’s failure to protect against acute Covid infection and/or the longer term outcome now known as Long Covid. After all, $ 38 Billion ($38,000 Million) or even double that figure will not look huge in comparison to potential damages which may possibly run to many $ Millions per person. The mathematics show that a $ Million per person awarded to a Million people would generate $ 1 Trillion of damages. And $ 1 Million per person awarded to 10 Million people would generate $ 10 Trillion of damages.

PFIZER REVENUES

Pfizer’s total revenue for 2021 was $ 82 Billion. This is about double the size of Pfizer’s annual revenues during the period 2016 – 2020. The huge increase in 2021 was due to the Covid vaccine. In fact, 45% of total revenue was generated from the Covid vaccine. If that revenue has to be quarantined and cannot contribute to profits, then Pfizer’s market capitalization must be assessed on its possible future recurring revenues from its other products.

There are high hopes from the company for Pfizer’s new anti-viral treatment, Paxlovid, to generate up to $ 22 Billion in new revenue in 2022. That is Pfizer’s official guidance expectation issued in February 2022 as far as BOOM is aware. However, some observers are skeptical. The failure of the company’s Covid vaccine to live up to its promises of vaccine protection is the problem. It possibly castes doubts on the promises now being made for Paxlovid.

Many of the other major revenue earning products from Pfizer are older “me too” products. In other words, alternative products exist which are manufactured and marketed by Pfizer’s competitors. If Pfizer’s reputation is damaged severely by their Covid vaccine, it could negatively impact its sales of both Paxlovid and its other “me too” products.

A major class action legal challenge where many, many $ Billions or $ Trillions of damages could be awarded by adverse court decisions would then threaten the very existence and survivability of the company. As previously explained, any future government could theoretically renege on any immunity agreement entered into by a previous government. Such a Government default is relatively easy to imagine in such circumstances.

Of course, the future is always uncertain. Pfizer and Moderna may survive and prosper through all of these potential challenges. It remains to be seen what happens. As BOOM has often said — the Covid phenomenon is possibly the greatest economic event to have ever occurred.

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

Read On — You are reading the BOOM BLOG which contains all Weekly Editorials ……..

Subscribe for Free at the Newspaper Website.
The Newspaper does not contain all Weekly Editorials — just the current week
The BOOM NEWSPAPER Link:
 BOOM Finance & Economics (boomfinanceandeconomics.com)

=================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

====================================================================

MOLS Denmark


The Bankers Versus the Malthusians — Russia Turkey Trade Doubles — Covid Warning From Heart Surgeon — Grim Global Forecasts

THE BANKERS VERSUS MASS DEPOPULATION

The Bankers Plus India and China versus the Malthusians — a Blockbuster Conflict coming soon to Planet Earth.

There are suggestions of a mass depopulation program being used against many nations. Deaths from All Causes appear to be rising in the younger age groups 15 years – 60 years and many insurance companies have already warned us of this, especially increasing in the last quarter of 2021. We already have a name for this phenomenon — Sudden Adult Death Syndrome SADS. There now appears to be a growing epidemic of sudden death in the previously healthy, even in out top athletes and football players.

The theory is that Covid is an engineered, man made bioweapon deliberately released to infect the planet and to reduce its population dramatically. Some also suggest that the Covid leaky vaccines using mRNA genetic technology and viral vector genetic technology have been designed to accelerate and add to this process.

Thomas Robert Malthus was an English scholar and influential economist in the late 18th century. He wrote a book in 1798 titled “An Essay on the Principle of Population”. In it, he observed that an increase in a nation’s food production improved the well-being of the population, but the improvement was always temporary because it led to population growth. Taken to its extreme, the followers of Malthus — called Malthusians — predict that the Earth’s resources are limited and therefore cannot support endless growth. Thus a certain maximum level of population must exist. They believe that the total population must therefore be controlled below that level.

If such a deliberate global mass depopulation program is occurring, presumably driven by modern day Malthusians, then BOOM predicts that it must eventually come into a severe, direct conflict with the commercial banking sector of all nations and then the central banks. Why? Because banking depends upon the continual renewal and expansion of its loan books in aggregate. And if such renewal of loans and growth in loans is threatened by demographic contraction, then the banks will be faced with shrinking loan books and falling revenues. And if the available pool of borrowers shrinks, the banks will eventually become desperate and reckless in issuing loans. The insolvency of banks would then threaten as sure as night follows day.

For the purposes of this discussion, let’s assume that the mass depopulation hypothesis is correct. Current total global population is estimated to be almost 8 Billion. Some hypotheses imagine a target population of half that number for sustainability to occur. But others suggest a figure as low as 500 Million.

The Georgia Guidestones are a mysterious granite monument erected in 1980 in Elbert County, Georgia, in the United States. A set of ten guidelines is inscribed on the structure in eight modern languages and a shorter message is inscribed at the top of the structure in four ancient language scripts. One slab stands in the center, with four arranged around it. A capstone lies on top of the five slabs, which are astronomically aligned. An additional stone tablet, which is set in the ground a short distance to the west of the structure, provides some notes on the history and purpose of the Guidestones. The structure is sometimes referred to as an “American Stonehenge”. The anonymity of the Guidestones’ authors and their apparent advocacy of population control, eugenics, and internationalism have made them an object of controversy and conspiracy theories for more than 40 years.

There is a set of ten guidelines or principles engraved on the Georgia Guidestones in eight different languages, one language on each face of the four large upright stones. Moving clockwise around the structure from due north, these languages are: English, Spanish, Swahili, Hindi, Hebrew, Arabic, Traditional Chinese, and Russian.

Guideline Number 1 is to maintain humanity under 500 Million population in perpetual balance with nature. Another guideline is to “guide reproduction wisely — improving fitness and diversity”. It is all very Utopian. This all sounds hard to believe. Most people have never heard of the Georgia Guidestones but the details are easily found on any search engine.

https://en.wikipedia.org/wiki/Georgia_Guidestones

If you look around for the identity of modern day Malthusians, it is relatively easy to find the possible perpetrators. The WEF — World Economic Forum — and its many hangers-on, such as Prince Charles, its Board of Trustees, WEF’s corporate “Partners”, plus the entire Green Movement, the Climate Change Lobby, a man who started a well known global computer software company, the Club of Rome (which published a book “Limits to Growth”) and Paul Ehrlich (author of “The Population Bomb”, way back in 1968) are the most obvious. And that is not a complete list, by any means. Prophets of Catastrophe are easily identified and most preach that our population growth is the number one problem we face.

So, if BOOM is right, then all of this must eventually find an enemy in the world of banking which depends upon perpetual economic growth (or at the very least, some form of economic equilibrium).

How long will it be before the Bankers of the world work out that this is a confrontation that they cannot afford to ignore? How long will it be before they take action to stop the Malthusians and their dreams of mass de-population and mass-murder? BOOM expects that this conflict will become manifest very soon indeed.

Theoretically, governments should be opposed to mass depopulation and mass death. But they seem mesmerized by the High Priests of Gloom. They beg to be invited into the cabal and they report cap-in-hand on their progress in service to the goal of “Sustainability”.

However, not all governments will be so easily swayed. BOOM thinks that the Bankers have a natural ally in this battle — the people of China and India. Why? It is simple. They have the most to lose with 3 Billion people in their combined total population.

The Bankers, India and China versus the Malthusians — a Blockbuster Conflict coming soon to Planet Earth.

RUSSIA TURKEY TRADE DOUBLES

Turkey is a member of NATO — the North Atlantic Treaty Organization. And it has the second largest military force in that organization. NATO is (presumably) implacably opposed to Russia but the reasons for that stance remain deeply obscure. Some correspondents have said to BOOM “because Russia is Communist” when they are not. Others have said “because Russia is expansionist and wishes to recreate the USSR” when there appears little evidence to support such a statement. BOOM has to remind people that the Soviet Empire of the USSR is long gone. In fact, it fell (in tatters) over 30 years ago.

Turkey appears pragmatic in its approach. It continues to build upon its relationship with Russia. Last week, it was revealed that trade between Turkey and Russia had doubled in April compared to last April, all while the war in Ukraine has raged. Turkish Airlines is still flying into and out of Russia. Turkey also seems willing to pay for Russian goods with Russian Rubles.

A report recently explained cooperation between Russia and Turkey to clear the mines from the Black Sea shipping lanes to allow Ukrainian and Russian Wheat to be transported South to the starving nations of Africa. This is a positive development in a world gone mad with war.

Meanwhile, Russia’s Ruble continues to strengthen against the US Dollar.

COVID WARNING FROM HEART SURGEON IN JAPAN

Virology Journal has published a letter from a cardiovascular surgeon, Kenji Yamamoto, setting out the case for stopping all Covid vaccine booster programs immediately on safety grounds, calling Covid vaccines a “major risk factor in critically ill patients”. The cardiovascular surgery department at Okamura Memorial Hospital, Japan, has seen numerous complications in vaccinated patients, including deaths.

Dr. Yamamoto’s major concern is the damaging impact of Covid vaccines on the immune system. He notes that a Lancet study from Sweden found negative vaccine effectiveness (“lower immune function”) eight months after inoculation.

He hypothesizes that the decrease in immunity is caused by several factors. First, N1-methylpseudouridine is used as a substitute for uracil in the genetic code. The modified protein may induce the activation of regulatory T cells, resulting in decreased cellular immunity. He points out that the spike proteins do not immediately decay (as expected by the pharmaceutical companies) following the administration of mRNA vaccines and can exist for up to 4 months. In vivo studies have also shown that the lipid nanoparticles used in the leaky vaccines accumulate in the liver, spleen, adrenal glands and ovaries. He indicates that the vaccine payload of the Lipid Nanoparticles containing mRNA is potentially highly inflammatory, that there is evidence of vascular endothelial cells being damaged by spike proteins in the bloodstream. Additionally, antibody-dependent enhancement ADE may occur.

Dr Yamamoto states “further booster vaccinations should be discontinued”.

He states “it has been hypothesized that there will be an increase in cardiovascular diseases, especially acute coronary syndromes, caused by the spike proteins in genetic vaccines.”

Reference Virology Journal: https://virologyj.biomedcentral.com/articles/10.1186/s12985-022-01831-0

GRIM GLOBAL FORECASTS

The World Bank has issued a forecast of reduced global economic growth with continued CPI inflation. It cut its global growth expectation for 2022 from 4.1% to 2.9% with Stagflation being inevitable.

Meanwhile, the chairman of the Federation of Small Businesses in the UK, Martin McTague, warned that 500,000 small businesses in the UK will go bankrupt within weeks. “They have got literally weeks left before they run out of cash and that will mean hundreds of thousands of businesses, and lots of people losing their jobs.

Then, Christian Kullmann, the head of the German Chemical Industry Association and CEO of Evonik Industries AG, Germany’s second largest chemical company, said “the industry is deprived of the air that it needs for breathing, or rather, the gas it needs for work. The countries of Eastern Europe are almost completely dependent on energy supplies from Russia”. And “after Germany has already said goodbye to nuclear energy and coal, now there is a discussion about whether to stop gas supplies from Russia. But it is important to remember that gas is the basis of our energy supply. So calling for a gas embargo is not only unreasonable, it’s outrageous”.

Then, US President Joe Biden blamed Russia for a looming crisis in the US, saying his country might not be able to generate enough electricity to meet consumer demand, partly due to the conflict in Ukraine. He declared an Energy Emergency, saying national security and quality of life are jeopardized by potential shortfalls in power supplies. “Multiple factors are threatening the ability of the United States to provide sufficient electricity generation to serve expected customer demand”.

Gloom and Doom seems to be the dominant theme especially with annual US CPI inflation hitting 8.6% in May after two previous months at 8.5% and 8.3%. However, the annual core inflation rate in the US slowed for a second month to 6% in May and the annual “core core” inflation rate, which excludes food, shelter, energy, and used cars and trucks, was little changed at 5.8 percent. However, average hourly earnings for all employees on private nonfarm payrolls in the US rose by just 0.3%. Wages inflation appears to be subdued which suggests that CPI inflation could rapidly fall as soon as supply chain problems ease.

Peace in Ukraine and the end of “Zero Covid” policies in China are the circuit breakers to watch for. Both appear close but we must not count our chickens before they hatch.

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

Read On — You are reading the BOOM BLOG which contains all Weekly Editorials ……..

Subscribe for Free at the Newspaper Website.
The Newspaper does not contain all Weekly Editorials — just the current week
The BOOM NEWSPAPER Link:
 BOOM Finance & Economics (boomfinanceandeconomics.com)

=================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

====================================================================

MOLS Denmark

Problems with the Money System — German Inflation — Russian Bank Blocked — Indian Oil Imports from Russia Surge — Global Food Crisis

PROBLEMS WITH OUR VENETIAN MONEY SYSTEM

Our money system evolved in Venice 400 years ago. BOOM calls this our Venetian money system but, in fact, it evolved much earlier in history and probably in Babylon, an ancient city situated in modern day Iraq. In our Venetian money system, the money supply grows via new bank loans that are collateralized against assets. This means that asset owners can borrow more readily and at lower cost than people who don’t own any collateral assets. It is a wealth channel — funneling fresh new money to the already wealthy for use as they see fit. If a nation is demographically expanding with increasing numbers of working people, it works well — all boats rise. But if the opposite demography happens (a falling working age population) then it can speed fresh new money preferentially into the hands of the wealthy. They subsequently become ever more wealthy, until a handful of people possess most of the asset wealth. Social inequality then follows, the social fabric becomes torn, political instability follows as sure as day follows night. Feudalism and dictatorship awaits.

The way back to a more balanced society is to increase the proportion of cash transactions in the real economy to a much higher figure. Why? Because cash (which is interest free) is a buffer to the dominance of credit money (interest bearing). We have allowed the ratio to fall to 2 % Cash: 98% Credit in many advanced economies. This is a very dangerous imbalance for any nation. So — we simply cannot fix all of our social problems and brewing political instability until we attend to this critical issue. It is the secret money crisis bubbling away under the surface.

GERMAN INFLATION

CPI inflation in Germany has surged. Annual food inflation in Germany accelerated to 11.1% in May, the highest rate since 1992 according to current estimates. The preliminary report on Germany’s consumer price inflation rate in May climbed to 7.9 percent from 7.4 percent in April, the highest since the winter of 1973/1974. Core consumer prices are accelerating. In the first 4 months of this year, the transportation sub-index of the CPI basket in Germany rose very quickly to 128.5 points from 105 points. This is a 22 % increase — alarming. German economic officials will be anxiously awaiting the next update to that number. In Germany, transportation is 13 % of the CPI Index.

Germany’s political class seems oblivious to these realities. They are too busy looking East towards events in Ukraine which were caused by poor NATO leadership over the previous 8 years. The consequences of threatening Russia’s border were not thought through. Now, they are busy adding fuel to the fire. But BOOM is certain that the German people and German businesses are acutely aware of the increases in the cost of living and the costs of doing business.

If we look at the rest of the Euro area, the annual inflation rate has increased to 8.1% in May, a fresh record high, from 7.4% in each of the previous two months and well above market forecasts of 7.7%. Core Consumer prices have risen rapidly since January. Increased energy costs are the major impetus for those bad results. Again, the Ukraine conflict is the cause.

Luckily, in Germany, France and Italy, wages growth is anemic. For the time being, that gives some hope that the current consumer inflation numbers may soon moderate and perhaps start to decline if the war in Ukraine can be brought to a swift end.

Money supply numbers are continuing to increase in Germany, France and the Euro area. Bank loans to the private sector are notably strong in Germany and France. If the money supply does not moderate, then inflationary pressures will rise.

So the whole of Western Europe seems to be economically precarious with a pattern of developing stagflation while dependent upon continued poor wages growth to rescue them from the curse of an acceleration in CPI inflation.

Meanwhile, the Euro currency has fallen dramatically since January by 17 % against the US Dollar. The falling currency increases CPI inflation inside Europe.

The term “fiddling while Rome burns” seems to sum up the approach of Europe’s political class.

RUSSIAN BANK BLOCKED

Meanwhile, last week, Russia’s biggest bank, Sperbank, was blocked from SWIFT, the global inter-bank messaging system based in Brussels and dominated by US influence. This was announced by the European Council chief Charles Michel at the EU summit.

Just 2 months ago, the Russian Central Bank governor Elvira Nabiullina said most Russian lenders plus 52 foreign financial institutions from 12 countries had received access to the System for Transfer of Financial Messages (SPFS). SPFS is the Russian alternative to SWIFT. She revealed that the identity of payment system members would be kept secret.

RUSSIAN OIL EXPORTS TO INDIA SURGE

India has increased its oil imports from Russia dramatically. It has been reported that those imports are now 25 times higher than last years average. BOOM is not surprised by this and expects India to continue to take advantage of low prices from Russia. China will also reap the advantage of cheap oil. Unless the war in Ukraine is settled quickly, the planet is rapidly heading into a dual system of energy supplies and payment systems. Cool heads must prevail but they seem overwhelmed by hot heads driven by deluded dreams of military victory.

FOOD CRISIS

One month ago, the German Economic Cooperation and Development Minister Svenja Schulze warned about a possible looming global famine. She named the Covid-19 pandemic and Russia’s ongoing military operation in Ukraine as its causes.

“The situation is highly dramatic” she said, “affecting more than 300 million people who are already suffering from acute hunger”. Nobody else seems concerned. We are sleep walking into a nightmare. Millions could die from starvation. Again, “fiddling while Rome burns” seems to sum up the situation.

Gro Intelligence, a global company that predicts food supply trends, confirmed that the global food security crisis has intensified. The CEO was reported as saying “even if the war were to end tomorrow, our food security problem isn’t going away anytime soon without concerted action.”

Russia and Ukraine normally supply a third of the world’s wheat exports and are also major exporters of corn. Their exports of food and fertilizer are critical for millions of people worldwide.

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

Read On — You are reading the BOOM BLOG which contains all Weekly Editorials ……..

Subscribe for Free at the Newspaper Website.
The Newspaper does not contain all Weekly Editorials — just the current week
The BOOM NEWSPAPER Link:
 BOOM Finance & Economics (boomfinanceandeconomics.com)

=================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

====================================================================

MOLS Denmark

Lavrov Explains the Future — Demographics and Cash — Everything is Backwards — Hope for Sri Lanka — The Crypto Dream may be Over

LAVROV EXPLAINS THE FUTURE

Sergei Lavrov, the Russian Foreign Minister was reported last week as saying “Now that the West is taking the position of a dictator, our economic ties with China will grow even faster”.

He also said “this will give us the opportunity to implement plans for the development of the Far East and Eastern Siberia. The majority of projects with China are concentrated there. This is an opportunity for us to realize our potential in the field of high technology, including nuclear energy, but also in a number of other areas”.

These comments by Lavrov support what BOOM has been saying for some time. Russia has lost patience with the US and Western Europe. They will turn their economic attention much more now towards the South and East. And that will support China’s Belt and Road strategy and India’s economy.

Geopolitical reality reveals that three Billion people who live in China and India are awaiting assistance from Russia where abundant food and energy is produced. Payment will be made in any currency except the US Dollar with a preference for the Ruble, the Yuan and the Rupee. China has CIPS, its cross border interbank payment system, ready to facilitate payments. And Russia has its interbank messaging system — SPFS — also ready, its alternative to the US dominated SWIFT. Over half of the planet’s population will soon be using less US Dollars for trade settlements than previously as other nations in the Belt and Road program inevitably join the alternative payment network.

MEANWHILE

China is now Saudi Arabia’s major trading partner and Saudi Arabia has been increasing its investments in Russia and China for some time. In March, after a long period of negotiation, it made the final investment decision to develop a refinery and petrochemical complex in northeast China at Panjin. Panjin is a large port city North of Dalian and North East of Beijing. The Panjin facility is a US$ 10 Billion investment in total.

At the time, a Saudi representative said that China was key to their plans to expand in Asia. Another Gulf nation, the United Arab Emirates has also recently strengthened relations with Russia, China and Iran.

The world is slowly but surely turning away from using US Dollars. But the strange thing is this. As US Dollar dominance in trade and capital settlements declines, its value relative to other currencies may paradoxically rise. Certainly, over the last 5 years, the US Dollar Index has been strong. BOOM sees US Dollar strength as a consequence of its deep, sophisticated capital markets and its abundant offshore Eurodollar volumes. These factors make it convenient to use in capital movements and that convenience supports its general acceptability. Other currencies have a long journey to make before they can really threaten its dominance in this regard. BOOM has always said that 50 – 100 years is the appropriate time frame for adjustment to global US Dollar dominance.

THE OTHER MAJOR TREND

DEMOGRAPHICS AND CASH

The other major global trend is found in the decline in working age populations in the advanced economies (including China). That decline will continue to happen over the course of this century. As working age populations decline, borrower demand for bank loans will decline and that inevitably will lead to a decrease in the supply of fresh new money.

In order to maintain stability and complexity in the advanced economies, electronic cash must be created and supported by Governments to maintain the total money supply. This is now critical to understand.

EVERYTHING IS BACKWARDS

BOOM saw this quote during the week. It sums up the last 2 years of Covid madness and Governmental over reactions succinctly.

“Everything is BACKWARDS; Doctors destroy health, Lawyers destroy justice, Universities destroy knowledge, Governments destroy freedom, Major media destroys information, And Religions destroy spirituality”. ~ Michael Ellner

HOPE FOR SRI LANKA

Tourists are coming back to Sri Lanka. This is good news for the island nation. With tourists spending foreign currencies, the nation can accumulate foreign exchange reserves and pay for urgent supplies of energy, food, fertilizers and medicines.

But the tourist arrivals are nowhere near the numbers that previously visited Sri Lanka. Currently, monthly arrivals are between 50,000 – 100,000. In recent years, they have numbered up to 250,000 monthly with an average close to 200,000 since 2016.

Last month’s arrivals of 62,000 are hopeful but in December 2019, before the Covid Panic Demic hit, the arrivals numbered almost 250,000. And April’s numbers were 40 % below arrivals in March.

Last week, BOOM suggested that Sri Lanka would (probably and inevitably) look to China and Russia for assistance. A report since then indicates Russian oil has now arrived and China is in negotiations to provide financial support.

RUSSIAN RUBLE PAUSES

Last week the Russian Ruble paused in its rise against the US Dollar. It fell by 2.2 % over the week. Western mainstream media have also now reported that the Ukraine military situation may be precarious. Perhaps this suggests the beginning of peace in the Ukraine?

CONTINUED WEAKNESS IN CRYPTO PRICES

THE DREAM MAY BE OVER

Over the last week, Bitcoin and Ethereum have again looked weak with buyers unwilling to bid their US Dollar denominated prices upwards. Bitcoin has traded in a band for almost 4 weeks. It now seems to be slowly sliding over an edge.

Bitcoin started the year at around US$ 47,700. It is now struggling to move above $ 30,000 and is currently at around $ 28,850. The lowest price during the week was at US$ 28,303. Its peak price was almost $68,000 in August last year.

Ethereum, the second most popular Crypto, suffered a fall of greater than 10 % over the last 7 days of trading. Its price is now at US$ 1,750 after starting the year at $ 3,800. But its peak price was around $ 4,800 in August last year.

The entire Crypto market reached a peak of capitalization at almost US $ 3 Trillion in August last year.  BOOM has forecast its fall ever since. It is now approximately $ 1.2 Trillion and looks like it may soon dip below $ 1 Trillion.

Are the Crypto dreams over? Perhaps the promise of privately created so-called “Crypto Currencies” is a false promise? Perhaps they were never currencies at all and can never be currencies?

BOOM regards these strange inventions as digital assets (or commodities) that carry no real value. They are certainly not currencies. They have not erupted out of any great social need or demand. They are not representative of anything other than some odd theories concerning the nature of money. Gambling on them is akin to being in an exotic bar, sipping on equally exotic drinks while betting on flies climbing up a wall. The gamblers tell tales and trade lies about what makes one fly different to another. But the movement of the flies is random. There is no fundamental reason why one fly rises while another falls.

All Cryptos are US Dollar proxies — plain and simple. Their prices are always quoted in terms of US Dollar equivalents. When looked at through that lens, they are clearly an invention of the US Dollar Empire.

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

Read On — You are reading the BOOM BLOG which contains all Weekly Editorials ……..

Subscribe for Free at the Newspaper Website.
The Newspaper does not contain all Weekly Editorials — just the current week
The BOOM NEWSPAPER Link:
 BOOM Finance & Economics (boomfinanceandeconomics.com)

=================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

====================================================================

MOLS Denmark

Covid Numbers Collapsing — Ruble Rising — Gas Buyers Line Up — China Economy Hit by Zero Covid Policies — Quantitative Boosting

US COVID NUMBERS COLLAPSING

In the United States, new cases of Covid have collapsed since January. Death numbers have also collapsed.

On January 15th, just 4 short months ago, there were almost 17,000 new cases occurring per week per Million of Population. That number is now running at about 2,000 — almost a 90% decline.

The peak of weekly deaths attributed to Covid occurred on February 1st at 54 per Million. That number is now 6 per Million — again, almost a 90% decline. This is a small number of deaths which equates to 102,960 per year for the whole nation. On an average year, the total death count for all of the United States usually amounts to around 3 Million.

So 102,960 is just 3.4 % of the total.

In the United States, about 200,000 people die from accidents per year on average — double the current death rate for Covid.  The CDC tells us that 700,000 die from heart disease each year and 600,000 die from cancer. About 160,000 die from Stroke and 150,000 die from Chronic Lower Respiratory Diseases. Around 130,000 die from Alzheimer’s Disease and 100,000 from Diabetes. The CDC also tells us that up to 52,000 die every year from Influenza.

Respiratory viruses are a part of life. They come, they go (usually after peaking and then collapsing) and mostly during winter. Influenza kills and so do other viruses. Death is a part of Life. Perhaps we should leave it to the medical and nursing professions. Politicians, epidemiologists and public health officials have not covered themselves in glory over the last 2 years. BOOM suggests that they should turn their attention to something else where they may (perhaps) have some experience and expertise.

Reference: https://www.cdc.gov/nchs/fastats/leading-causes-of-death.htm

RUBLE RISING

GAS BUYERS LINING UP

As BOOM has previously forecast, the Russian Ruble currency continues to rise against the US Dollar. Over the last 10 weeks, it has risen relentlessly. There is now much conjecture about exactly how many buyers of Russian gas in Europe are actually paying for their supplies in Rubles (or Euros). Those buyers, of course, have to open Ruble and Euro denominated accounts with the Russian bank, Gazprombank in order to make payments.

Over the last week, BOOM read reports that 10 nations had opened Gazprom accounts. Then the number reported was 20. Then a report came in that stated a total of twenty European companies had opened Gazprombank accounts, with another 14 clients applying. And late in the week, a report arrived that half of Russia’s 54 European customers had already opened accounts. Who knows the real number?

Gas supplies from Russia to Poland and Bulgaria have been stopped due to refusal to pay according to the new payment terms. And, it looks like supplies to Finland will be cut very soon for the same reason.

Meanwhile, India has decided to invest in Russian energy supply assets, buying them from departing US and European forced sellers. Saudi Arabia has been steadily investing in such assets over the last few years. It will be interesting to see if they also take this opportunity to increase their stake in the Russian oil and gas industries. BOOM expects both nations to continue to invest in future energy supplies, wherever they can gain access. Russia will welcome such investments. It’s called “taking the long term view”.

SRI LANKA ECONOMIC DISASTER

BOOM wrote about Sri Lanka in the editorial published one month ago on 17th April. The nation had defaulted on its Bond coupon payments. It was simply unable to meet the payments due in foreign currencies because of the collapse of its tourist industry from the global Covid panic. The tourists stopped coming. Sri Lanka’s foreign currency holdings were in steep decline towards zero and have presumably now reached that target.

The chief problem for the nation is that at least 50 % of its energy is sourced from external nations who expect and demand payment in currencies other than the Sri Lankan currency. It also imports specialty foods and medicines. Without imported food, energy and medicines, the nation simply cannot function at its current standard of living.

Last Tuesday, the new prime minister, Ranil Wickremesinghe, announced that the nation was down to its last day of petrol. Desperate times indeed. Starvation is next. And they are now officially in default on their bonds after 30 days of grace. An emergency bridging loan of US $160 million has apparently been secured from the World Bank but this will be used very quickly to buy a few more days supply of energy and food.

In BOOM’s estimation, Sri Lanka must now decide between the IMF (a $US dominated institution) and China to ensure its future. This choice is becoming a feature of the Geopolitical landscape for many third world nations. Choosing China seems to make more sense because China has close relations with Russia and Iran. Those energy super suppliers will come to Sri Lanka’s aid if China requests such aid. And Russia can also supply food and other critical commodities over the long term. Presumably, Gazprombank accounts will be utilized to make payments in any currency other than the US Dollar.  Sri Lanka must choose and quickly.

CHINA ECONOMY CRASHES FROM ZERO COVID POLICIES

In last week’s editorial, BOOM wrote “China is making a big mistake. It is destroying its economy by attempting a Zero Covid policy”. Since then, the Chinese have desperately cut their mortgage loan interest rates for first-time homebuyers in a bid to stimulate the economy and data releases have shown that their economy contracted sharply in April. Unemployment numbers have surged, adding fuel to the fire. Factory output has dropped dramatically and retail sales have also fallen.

All of those numbers add up to a slowing Chinese economy and that will not help the global economy which is steadily sliding towards stagflation. Stagflation is a situation where the inflation rate is high but economic growth slows or stops growing. However, the good news is that a slowing Chinese economy will not add to the global CPI inflation outlook. And that means that CPI inflation could be transitory in the advanced economies and therefore may fall throughout the second half of 2022. Such an outcome would take a lot of pressure off central banks and significantly higher interest rates would be slowly taken off the agenda.

QUANTITATIVE BOOSTING BOOSTS THE MONEY SUPPLY

Socialism has good intentions and can generate good economic outcomes for the poor especially in feudal societies but, in the long run, ultimately, the old adage “power corrupts” comes into play and it destroys central command systems from within. Lack of productivity is then the inevitable death knell.

Radical capitalism, by comparison, dominated by banks and credit money supply, is not the answer because it inevitably ends with the vast majority of the wealth trapped by a tiny elite. Again, feudalism returns.

A balance is preferable between these two competing ideologies. Most advanced economies (including the US) have evolved towards such a balance in the real economy. But the financial system that we inherited from Babylon and Venice is designed to funnel wealth into fewer and fewer hands over time. The imbalance in control of collateral assets is inevitably the problem and, ultimately, this is the Achilles Heel of capitalist finance.

Since the great financial crisis of 2008, which was caused by banking insolvencies built on fraudulent loan books, the capitalist financial system has staggered onwards with much central bank support. However, it now needs urgent modification to prevent the return of feudalism and possibly fascism – the alliance of governments with corporations. We now have fresh new credit money (interest bearing) making up 98% of the money supply with only 2% cash (non interest bearing). This is dangerous to social and political stability. We need to move back towards a 50/50 balance. And that is where BOOM’s Quantitative Boosting QB reform of the money supply system comes in.

Socialism is a lie, a false promise. And so is capitalism if we continue to allow credit money to dominate over cash to such an extent  as we have today. The answer lies in the middle. Extremist views of any kind are always problematic.

QB Explained

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

Read On — You are reading the BOOM BLOG which contains all Weekly Editorials ……..

Subscribe for Free at the Newspaper Website.
The Newspaper does not contain all Weekly Editorials — just the current week
The BOOM NEWSPAPER Link:
 BOOM Finance & Economics (boomfinanceandeconomics.com)

=================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

====================================================================

MOLS Denmark

Covid Response An Economic Disaster — China Mistaken — Zero Covid is Not the Answer — Declaration by 17,000 Doctors and Medical Scientists — A Warning from the World Council for Health — Stop the WHO — Germany Headed to Bankruptcy

COVID RESPONSE IS AN ECONOMIC DISASTER

BOOM has often commented that the whole Covid phenomenon of government policies driven by fear and control will eventually be seen as perhaps the biggest economic and social mistake in world history.

CHINA MISTAKEN — ZERO COVID IS NOT THE ANSWER

China is making a big mistake. It is destroying its economy by attempting a “Zero Covid” policy. No nation can achieve that goal and those that have tried have failed. New Zealand and Australia are excellent examples. Their daily death counts per million population from Covid are now slowly but steadily climbing as they adjust to accept that they will have to live with Covid, a disease that causes a population wide death rate (at worst case) of only 0.35% (a small number in any total death toll). Their politicians have been defeated.

China, because of its central command and control system is falling for the dream of absolute control. But absolute control cannot be achieved with a tiny respiratory virus. Masks clearly don’t work, lockdowns clearly don’t work and the so called “vaccine” experiments that use new genetic technologies also clearly don’t work. None of these measures can totally stop the spread of a respiratory virus and its further transmission from person to person.

Here are two references — one lists 150 studies that show that masks don’t work. The other lists 35 studies that show lockdowns don’t work.

Masks Don’t Work — 150 Studies –
https://drtrozzi.org/2021/12/21/more-than-150-comparative-studies-and-articles-on-mask-ineffectiveness-and-harms/

Lockdowns Don’t Work — 35 Studies —
https://www.aier.org/article/lockdowns-do-not-control-the-coronavirus-the-evidence/

We need an International Treaty that bans all laboratory work on the genetic manipulation of respiratory viruses. Bioweapons facilities have run amok for too long. It is a madness that should never have happened. Many nations are guilty. We cannot tolerate this work anymore.

China must stop damaging its economy and its society. Locking people up is not going to work in the long run. The economic damage will cause more harm than good.

The answers lie in early treatment. Early outpatient treatment DOES work. — a well known Doctor in the US, Dr Brian Tyson, has already treated over 10,000 patients — with only 7 deaths. He wrote a book about this achievement with a colleague, Dr George Fareed — “Overcoming the Covid Darkness”.

This article is a summary of available treatments, most of which are most effective when used in the first 5 – 7 days of illness.

17,000 DOCTORS AND MEDICAL SCIENTISTS DECLARATION

Last week, 17,00 Doctors and medical scientists released a Declaration in the United States concerning the Covid phenomenon. Here it is. It is sober reading. Take note and pass it on to as many people as possible.

In considering the risks versus benefits of major policy decisions, our Global COVID Summit of 17,000 physicians and medical scientists from all over the world have reached consensus on the following foundational principles:

1.  We declare and the data confirm that the COVID-19 experimental genetic therapy injections must end.

2.  We declare doctors should not be blocked from providing life-saving medical treatment.

3.  We declare the state of national emergency, which facilitates corruption and extends the pandemic, should be immediately terminated.

4.  We declare medical privacy should never again be violated, and all travel and social restrictions must cease.

5.  We declare masks are not and have never been effective protection against an airborne respiratory virus in the community setting.

6.  We declare funding and research must be established for vaccination damage, death and suffering.

7.  We declare no opportunity should be denied, including education, career, military service or medical treatment, over unwillingness to take an injection.

8.  We declare that first amendment violations and medical censorship by government, technology and media companies should cease, and the Bill of Rights be upheld.

9.  We declare that Pfizer, Moderna, BioNTech, Janssen, Astra Zeneca, and their enablers, withheld and willfully omitted safety and effectiveness information from patients and physicians, and should be immediately indicted for fraud.

10.  We declare government and medical agencies must be held accountable.

Link: https://globalcovidsummit.org/news/declaration-iv-restore-scientific-integrity

WHO AND INTERNATIONAL HEALTH REGULATIONS

The World Health Organization is an unrepresentative body run by appointed individuals who essentially answer to no one. They are not subject to election or any other public scrutiny as far as BOOM can see. They are beholden, of course, to their financiers.

Here are the largest national “assessed contributions payable” to the WHO annual budget in 2021 —

China US $ 28.7 Million

France US $ 10.6 Million

Germany US $ 14.6 Million

Japan US $ 20.5 Million

USA US $ 51.6 Million

Member Nations are invoiced for a Total annually of US $ 240 Million

Source: https://cdn.who.int/media/docs/default-source/2021-dha-docs/assessed-contributions-payable-summary-2022-2023.pdf?sfvrsn=3400287b_1&download=true

However, the annual budget of the WHO for 2020 – 2021 was far greater. The “Assessed Contributions” do not make up the majority of the funding. That is left to “Voluntary Contributions”. The Total Budget for that year was US$ 5,840.4 Million. The next Source document states — Quote:

“the budget will be financed as follows:

by net assessments on Member States adjusted for estimated Member State non-assessed income, for a total of US$ 956.9 million; and from voluntary contributions, for a total of US$ 4883.5 million;

Source: https://www.who.int/publications/i/item/programme-budget-2020-2021-approval-(wha72.1)

The corresponding paragraph in the 2022 – 2023 budget statement reads —

“the budget will be financed as follows:

• by net assessments on Member States adjusted for estimated Member State non-assessed

income, for a total of US$ 956.9 million;

• from voluntary contributions, for a total of US$ 5164.8 million;”

The WHO website states the source of Voluntary Contributions thus — “voluntary contributions (VC), (are) largely from Member States as well as from other United Nations organizations, intergovernmental organizations, philanthropic foundations, the private sector, and other sources.”

Source “Contributers”:
 https://open.who.int/2020-21/contributors/overview/cvc

Some voluntary contributions are provided by some Nation State Members. However …..

“Specified voluntary contributions represent 88% of all voluntary contributions.”

The list for Voluntary Contributions Specified for the current biennium (2 years) can be found here —

https://open.who.int/2020-21/contributors/overview/vcs

Notable major contributions are —

Bill and Melinda Gates Foundation US $ 592.3 Million

Gavi Alliance US $ 413.2 Million

The Gavi Alliance Funding can be found here —

https://www.gavi.org/investing-gavi/funding/donor-profiles

However, the entire list is worthy of consideration.

Further funding comes from “PIP Contributions”, most of which are from Pharmaceutical companies.
 https://open.who.int/2020-21/contributors/overview/pip

A WARNING FROM THE WORLD COUNCIL FOR HEALTH

STOP THE WHO

The World Council for Health is NOT the WHO. It recently published this statement and an explanation on the Sources provided.

“The World Council for Health (WCH), a coalition of scientists, doctors, lawyers, and civil society advocacy organizations, opposes the World Health Organisation (WHO)’s moves to implement a power grab in the form of a global pandemic agreement.”

GERMANY HEADED TO BANKRUPTCY

Meanwhile, one of Germany’s top banking chiefs has warned that Germany is headed to mass corporate bankruptcy.

“The energy supply in Germany is at risk, supply chains are breaking down, we have high inflation,” said Commerzbank Chief Executive Officer Manfred Knof.

Knof warned that high commodity prices and badly disrupted supply chains have damaged Germany’s exports and imports. He also stated.

“We shouldn’t delude ourselves: the number of insolvencies in our markets will probably increase and the risk provisions of the banks with it.” 

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

Read On — You are reading the BOOM BLOG which contains all Weekly Editorials ……..

Subscribe for Free at the Newspaper Website.
The Newspaper does not contain all Weekly Editorials — just the current week
The BOOM NEWSPAPER Link:
 BOOM Finance & Economics (boomfinanceandeconomics.com)

=================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

====================================================================

MOLS Denmark

Communism — “You Will Own Nothing and You will be Happy” — Who Will Control Central Control? — Cash Must Become King Again

COMMUNISM — “YOU WILL OWN NOTHING AND YOU WILL BE HAPPY”

The World Economic Forum (WEF) is promising a future where “you will own nothing and you will be happy”. It is an old Communist dream. The leader of the WEF, Klaus Schwab, is making this promise, obscured by his now-familiar terms — “The Great Reset”, “the Fourth Industrial Revolution” and “Stakeholder Capitalism”. But it is far from capitalism and it is not revolutionary. In fact, it is a return to the past and Thomas More’s 500 year old dream of Utopia.

Thomas More was an English lawyer, judge, social philosopher, author, statesman and Renaissance humanist. He served Henry VIII (the Eighth) as Lord High Chancellor of England from October 1529 to May 1532. He wrote a book called Utopia, published in 1516, in which he described the political system of an imaginary island state — where everyone would be happy and where there would be no need for money.

More’s dreams of Utopia ended with decapitation but 300 years later they turned into the fevered dreams of a Frenchman, Charles Fourier in the early 19th century. His dreams became known as Fourierism and then Utopian Socialism. Fourier infected Karl Marx via his American acolyte, the newspaper publisher Horace Greeley (Marx’s employer) and the result was what we now call Marxist Socialism or Marxism — essentially a promise of Heaven on Earth — where you will own nothing and you will be happy. These ideas married to the dreams of the Eugenics movement infected Germany in the 1930’s via Adolf Hitler, the leader of a party that adopted the name The National Socialist Party. Hitler’s central banker was baptized by his parents with the name Hjalmar Horace Greeley Schacht.

In that imagined socialist Heaven, you will have no personal agency. You will not be able to exchange promises of trust between yourselves (the basis of credit). You will not even have control over your own body if the WEF transhumanists, such as Yuval Harari, have their way. The Controllers will have complete control over every aspect of your life – “for the common good”. That is always the promise and the lie. And it is always the road to servitude.

Over the last year, you may have heard this message — “You must have this experimental pharmaceutical product injected into you over and over again, for the common good”. The supposed threat was a “deadly” virus that managed to kill only 0.35 % of the people trapped on the Diamond Princess cruise ship in Japan in February 2020. Most of those people were elderly and frail but only 13 of the 3,711 onboard died, a death rate no worse than what is experienced in a bad Influenza outbreak. It was not an extraordinarily deadly threat and we knew that by March 2020.

The subsequent over-reactions by many governments and news outlets world wide to the perceived “deadly” threat generated exaggerated fear, anxiety and then hysteria . These hyper fearful reactions were driven by an imperative of Public Health and Safety — another impossible dream, a new religion — “for the common good” — and Central Control inevitably became a key element of that.

WHO WILL CONTROL CENTRAL CONTROL?

The World Economic Forum — WEF — is a private organization based in Geneva, Switzerland which holds an annual meeting in Davos every February. You can only attend by invitation. For some reason, Billionaires are preferred, flying in on their private jets. Workers are not invited. This is where the term “Davos Man” comes from. They are busy planning a world where you will own nothing.

Nobody is elected to office in the WEF. It is not a democracy. Klaus Schwab is the self appointed leader. In that regard, it is similar to all communist governments and the European Commission (the EC). Nobody is elected to the European Commission either, the most senior and most powerful organization in the administration of the European Union. The President of the EC, Ursula Von De Leyen is appointed, not elected. She is the most powerful person in the EU but the citizens of Europe did not select her in any election process. The European Parliament, whose members are subject to election, is much lower in the power structure of the EU.

All the major Non-Government Organizations (NGOs) attached to the United Nations are also essentially non-democratic. These include the IMF, the World Bank, the WTO and the World Health Organization (WHO). None of the office bearers in those NGOs are elected by the citizens of member nations. They are essentially dictatorial Central Control and Command operations.

It is important to understand all of this because, in 2 weeks time on 22nd – 28th May, the World Health Organization (WHO) is planning to become the unelected Central Control and Command center for 194 nations, effectively replacing your government if and when the WHO unilaterally declares another “Pandemic emergency”. If your government agrees to this, you will be instantly controlled by the WHO in any such “Pandemic” declared by them. They will then have absolute power over you and your body. Beware and be aware.

That is the future being planned for us and sadly many national governments appear only too willing to agree to this. Dictatorial tyranny is close, very close.

Read more about this Proposed Future here:

Background: https://www.tni.org/en/article/world-economic-forum-a-history-and-analysis

Lots of Information on the WEF — Are WEF graduates and members Foreign Agents?
 https://maloneinstitute.org/wef

And a Warning from The World Council for Health — https://worldcouncilforhealth.org/news/2022/03/pandemic-treaty/45591/

And how America has achieved the Orwellian State of Animal Farm  https://markmcdonaldmd.substack.com/p/from-animal-farm-to-1984

“The World Council for Health (WCH), a coalition of scientists, doctors, lawyers, and civil society advocacy organizations, opposes the World Health Organisation (WHO)’s moves to implement a power grab in the form of a global pandemic agreement.”

CASH MUST BECOME KING AGAIN

There is a societal trend away from using cash in many advanced economies. Some foolish governments are even encouraging this. This is not a good trend. In fact, BOOM encourages as many people as possible to do the opposite and increase their use of cash.

Cash money is a great non interest bearing buffer to the other form of money — interest bearing credit money. Because it does not cost the bearer any interest, cash provides a natural buffer to money that has interest costs attached.

Cash money is created by Treasury departments that are under the control of representative governments and the volume of cash created is in response to the volume of demand from all citizens. By contrast, credit money is created on bank ledgers when banks make new loans in response to demand from willing borrowers. Thus, its demand (and supply) is always skewed towards borrowers and more specifically, towards borrowers who already own assets that can be offered as collateral. Wealthy borrowers thus gain access to fresh new credit money before less wealthy borrowers or poor citizens gain access (if at all). This imbalance in opportunity becomes progressively worse if the cash component of the overall money supply progressively falls well below 50%.

In advanced economies today, the money supply is dangerously tilted in favor of credit money over cash money. In fact, credit money often makes up 95 – 98 % of the money supply, leaving only 2 – 5 % as cash.

Economies that become skewed this way towards credit money creation inevitably create more credit money for the already wealthy. This inevitably leads to societal inequality, social disharmony and eventual political instability as the rich become richer while the poor become poorer over time. If this continues for long enough, a small number of obscenely rich individuals will eventually own almost all the wealth of a society. Then they will meet (in Davos) to plan the future “for the common good”.

“Flashing the plastic” is convenient for day to day transactions but, ultimately, it is unwise because it tilts the money supply in favor of credit and away from cash. This must harm the non-wealthy in the long run and benefit the wealthy. There is one advanced economy where it is a little different.

Interestingly, in Germany, many people are suspicious of using debit and credit cards with most Germans carrying cash to settle their day to day purchases. This suspicion of bank issued cards probably stems from the fact that Germany has seen 6 national currencies come and go in the last 100 years. In other words, 5 currencies failed and were replaced. During such episodes of currency failure, there was huge economic turmoil with many bank failures.

If a nation’s money supply is either all cash or all credit, then the economy (and the society that supports it) will inevitably suffer. A mix of cash money and credit money is much better and, preferably, such a mix should tend towards a 50:50 ratio.

In the pure Communist system such as existed in the USSR, there was only cash money issued by central authorities. Private banks were banned and the money supply came only from the Central Planning Committee. This is an inefficient money system which cannot serve the people well over time or even the Central Planners themselves. In such a system, the Central Committee cannot possibly have any accurate idea of where the demand for extra money exists and how much money to apply to the economy as a whole or to certain regions or economic sectors. Clever committees are a rarity in human affairs, especially clever committees of economists. Such a system is prone to ride waves of excessive money creation followed by droughts of money creation. This is no way to grow a healthy economic garden. It will inevitably result in mis-appropriation and, ultimately, in a general lack of productivity. The USSR collapsed after 70 years largely due to this weakness. The workers summed it all up in the saying — “we pretend to work and they pretend to pay us”.

BOOM encourages all readers to use cash more (much more) and to encourage everyone they know to do the same.

RUSSIAN RUBLE STILL RISING AGAINST US DOLLAR

The Russian Ruble continued to strengthen against the US Dollar last week.

Meanwhile, there was a report that 10 European nations have now opened accounts at Gazprombank to pay for their Russian oil and gas either in Rubles or in Euros. Such payments bypass the SWIFT interbank messaging system based in Brussels and dominated by the United States. How? Because they are conducted inside the internal ledger of Gazprombank with Euro (or Ruble) funds lodged beforehand as deposits.

The Hungarian, Gergely Gulyas, who serves as Prime Minister Viktor Orban’s chief of staff was reported as saying “There are nine other countries using the same payment scheme, but because today the idea of being a good European also means that the leaders of those countries are not honest when speaking either in the international arena or to their own people, the other nine countries won’t say that they are doing the same thing”.

FRANCE NUCLEAR REACTORS OFFLINE

While the European Commission is rushing to avoid using Russian oil and gas, we learn that half of France’s nuclear power plants are currently offline because of “maintenance or defects”. France is Europe’s largest net exporter of power. The genius European politicians have obviously not considered this in their quest to cut themselves off from Russia.

INDIAN SUPREME COURT DECISION

The Supreme Court of India recently held that the central Government has the right to put restrictions on people’s rights as a public health safety measure. However, owing to “bodily integrity and personal autonomy”, under Article 21 of the Constitution no individual can be forced to get vaccinated. Most importantly, the Court based its decision on “emerging scientific opinion [that] appears to indicate that the risk of transmission of the virus from unvaccinated individuals is almost on par with that from vaccinated persons”. Therefore, vaccine mandates are not “proportionate”. 

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

Read On — You are reading the BOOM BLOG which contains all Weekly Editorials ……..

Subscribe for Free at the Newspaper Website.
The Newspaper does not contain all Weekly Editorials — just the current week
The BOOM NEWSPAPER Link:
 BOOM Finance & Economics (boomfinanceandeconomics.com)

=================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

====================================================================

MOLS Denmark

Western Europe Commits Economic Suicide — Trumped — Russia Profits — US Economy Contracts — Stagflation — Iceland Leads the Way to Death

WESTERN EUROPE COMMITS ECONOMIC SUICIDE

Germany’s politicians appear to be intent on committing economic suicide. They continue to believe that they can replace Russian energy supplies easily with alternative sources. They also appear to believe that the cost of those new energy supplies will be as cheap as Russia provides. And they continue to support Ukraine with promises of heavy weapons and complex machinery which will clearly prolong the conflict with Russia. The Bundestag lower house voted overwhelmingly in favor of that last week. The intent, presumably, is to turn Ukraine into a wasteland of battle while remaining safe and maybe not so warm, behind German borders. They are presuming too much and not listening to the Russian side of the argument. To BOOM, that is naïve and foolish but, as readers know, BOOM is never surprised by naïve and foolish behavior from our Western leadership.

Meanwhile, Russia has denied Poland and Bulgaria gas supplies because they will not pay for them in Russian Rubles. Russia has tried to make payments easy by requesting that all European buyers of gas establish Euro and Ruble bank accounts in Russia’s Gazprombank to deposit Euros for payment. Those Euros can then be transferred into Rubles in the separate Ruble account by Gazprombank to allow the settlement payment to be made in Rubles. This mechanism also allows payment directly in Rubles if the gas buyers choose to deposit Rubles.

Ignoring what appears to be a reasonable payment mechanism in present circumstances again appears to be some kind of expanded mutual economic suicide pact between Germany, Poland and Bulgaria. As a result, the price of natural gas in Europe has skyrocketed to yet more stratospheric heights. It is now 7 times the price it was a year ago.

Austria, Slovakia and Hungary have seen the light (quickly) and agreed to the payment terms laid out by Russia, immediately ensuring that their gas supplies will continue into the future and at a cheap, negotiated price. Mutual negotiation is clearly a superior strategy compared to prolonged conflict and they have pragmatically secured their nations economic survival in doing so. All three countries are landlocked and have no obvious source of alternative gas.

POOR WESTERN LEADERSHIP

Russia previously sold gas to Europe for many years and accepted US Dollars and Euros as settlement via the US dominated SWIFT interbank messaging system. But then, in a rush of blood following Russia’s incursion into Ukraine, European and US politicians unwisely decided that it would be a good idea to confiscate Russian external assets (including $ 300 Billion of Eurobonds and cash reserves of Euros and US Dollars) and to ban some Russian banks from SWIFT. On Friday, in response to the Russian decision to stop the gas, Poland further decided to confiscate yet more Russian infrastructure assets situated in Poland but owned by a Polish subsidiary of Russia’s Novatek. It is yet another example by the West of abandonment of the capitalist commitment to the sanctity of private property ownership.

The mechanics of these decisions by the West have left Russia effectively in the position of providing gas to Europe for no payment.

Think it through. If you were placed in such a position, would you continue to supply the gas and receive payments in Euros or Dollars just to see those consequent reserves of Euros and Dollars under threat of confiscation by your customer? The answer is no. And it is a quick and easy decision, especially if your infrastructure assets are also at risk of confiscation. Russia’s trust has now been broken, perhaps irrevocably, in the western financial system which is dominated by US Dollars and Euros. This is a Currency War.

So — as BOOM pointed out last week, Russia has decided to rapidly move towards diverting gas supplies from Western Europe to the nations South and East of Russia. It has no great need of western foreign currency which can be confiscated as it is very much self sufficient in energy, water resources and food. And it has a huge manufacturing powerhouse next door to produce any goods it requires which it cannot produce itself. That powerhouse is China and the Chinese will gladly pay for their energy with Rubles while Russia will gladly pay with Chinese Yuan for manufactured goods from China.

Then there is the rest of the world to consider. Up to 70 – 90 % of the global population is arguably in the Chinese/Russian camp via their association with the Shanghai Cooperation Organization and other mutual arrangements and agreements that exclude the US and Western Europe. As far as BOOM can tell, our naive and foolish Western politicians never seem to grasp this key fact in Geo-political assessments. They prefer to think that they can threaten minor nations into submission if and when necessary. This has been illustrated clearly with the recent alarmed and aggressive responses from Australia and the US to the Solomon Island’s decision to move closer to China via mutual agreement.

TRUMPED

All of this has its roots in the ill advised “trade war” that Trump decided to engage in with China when he was President. China won that “war” decisively but the Chinese government will never forget what Trump did. They are now wary of trading with the US and accepting US Dollars in return as payment, although they continue to do so for the time being. And they have a friendly Northern neighbor who can provide them with their energy, food and water requirements. Plus they have 70 – 90 % of the world’s population as customers for their manufactured goods.

So the outcome engineered by the Western leaders is that the US and Europe have possibly isolated themselves over NATO’s “right” to interfere in Ukraine. That rationale does not seem to justify the strategy. On Thursday, the architect of that strategy, Jens Stoltenberg, said that NATO is considering supporting Ukraine in the struggle for “months or years”. He never seems to learn.

Both Trump and Biden have adopted policies that demand the continued dominance of the US Dollar in global trade settlements. This is standard US policy — NATO dominance aligned with US Dollar dominance and backed with 800 military bases worldwide. They call it “the rules based international order”. Some comedians call it “we make the rules and you follow the orders”.

In doing so belligerently, they are actually speeding the demise of that system which has given them such a privileged position ever since it began with the Bretton Woods Agreement (in 1944) that emerged during World War Two.

RUSSIA PROFITS

Meanwhile, Russia has profited enormously from the huge surges in oil and gas prices that have occurred since the Ukraine imbroglio began. Their Current Account balance is surging upwards. If you sell less energy but for much higher prices, you win. It is as simple as that.

In total, Europe is dependent upon Russia for 40% of its gas, 46% of its coal and 30% of its oil. Russia supplies gas via pipelines to 23 European countries. It can easily reduce that total supply by half if it receives 4 times the previous price from unfriendly nations. And at the same time, it can supply its energy to friendly nations at low prices if they agree to Russia’s payment terms.

It appears to be a Win, Win situation for Russia.

The Russian Ruble has continued to strengthen against the US Dollar in the last week as per BOOM’s expectations. And, as expected, the US Dollar has continued to strengthen against most major currencies with a weekly gain of 2.33 % against the US Dollar Index. Such US Dollar strength will continue as long as this global geo-political uncertainty continues. After all, it is still the great safe haven for western wealth in times of adversity and will remain so, in BOOM’s estimation, for at least another 50 – 100 years. The dismantling of US Dollar Global Dominance will not and cannot occur rapidly because huge offshore Eurodollar volumes provide the necessary buffering role for trade and capital settlements. That buffer cannot be replaced quickly.

And, by the way, US Dollar strength reduces CPI inflationary pressures inside the US economy so the Federal Reserve is happy to see that strength continue.

The only mystery in all of this is in regard to the fact that US politicians appear so keen to accelerate the time frame. Much better leaders are needed urgently.

US ECONOMY CONTRACTS — STAGFLATION

As the Geo-political events dominate, we must not lose sight of the threat of Stagflation in the advanced economies of the world. The US economy contracted by 1.4% in the first Quarter of 2022, according to the US Bureau of Economic Analysis (BEA). This is ominous. A second quarter contraction would mean that an official recession is here for the US with CPI inflation surging.

US GDP growth has been relatively stagnant for 9 months and is now showing signs of further declines to come. BOOM expects it to continue to weaken. Combined with a trend towards a strengthening US Dollar that began in June 2021 and low wages growth, CPI inflation pressures should moderate in the second half of 2022. If that happens, interest rate pressures will also moderate and the “transient inflation” hypothesis will become reality.

ICELAND LEADS THE WAY TO DEATH

In regard to the Covid aftermath, Iceland has released Deaths from All Causes figures which show a 30 % increase in total national deaths from January to March this year. Only one third of those increased death numbers can be explained by “Covid deaths” (deaths that occurred with a positive PCR test for Covid). And we know from other nations’ experience that such Covid “positive” deaths are most likely below 10 % actually caused by Covid — in other words, the majority of the deaths were caused by other pre-existing diseases, not from Covid.

This leaves us with the fact that deaths overall in Iceland (not caused by Covid) have increased by about 27 % so far in 2022 and the question is why? And how?

This number seems to reflect what we have been told by some life insurance companies in the US where death numbers from all causes in the age groups 15 – 60 years have increased by 40% in the last quarter of 2021. Meanwhile, in Australia, the Deaths from all causes numbers for January have just been released and they are 22.1 % above expectations (historical average).

So total excess deaths are increasing since September 2021 in at least 3 nations and those increases cannot be explained (yet). This raises the suspicion that the excess deaths are being caused by the new variable — Covid vaccinations — which have been implicated in heart attacks, strokes and blood clots and which have been rolled out since December 2020.

If this hypothesis is true, then we may soon come to realize that Covid vaccinations have killed and maimed many millions of people in many nations. With many governments having branded these experimental Covid medical interventions as “safe and effective”, we could therefore see the situation where millions of excess deaths and illnesses worldwide may have been caused by negligent Governments. If so, it will be a huge scandal for the entire “public health” industry and the entire political class.

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

Read On — You are reading the BOOM BLOG which contains all Weekly Editorials ……..

Subscribe for Free at the Newspaper Website.
The Newspaper does not contain all Weekly Editorials — just the current week
The BOOM NEWSPAPER Link:
 BOOM Finance & Economics (boomfinanceandeconomics.com)

=================================

HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

Disclaimer:   All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice.The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.

Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research.  Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.

Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.

Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.

====================================================================

MOLS Denmark

Strong Ruble — Russia Diverts Energy — Pfizer and Moderna Shares Plunge — Covid Vaccine Adverse Events — Under Reporting Rate

THE RUBLE CONTINUES TO STRENGTHEN AGAINST THE US DOLLAR

The Russian Ruble continues to strengthen. In the last 6 weeks, it has doubled in price against the US Dollar. And as the Dollar has been falling against the Ruble, it has been gaining against other currencies. The US Dollar Index created against a basket of currencies — the Euro, Yen, Pound, Canadian Dollar, Swedish Krona, Swiss Franc — has risen strongly in those 6 weeks, continuing the uptrend that began way back in June last year. This makes the rise of the Ruble all the more remarkable.

So can the Ruble continue its rise against the US Dollar? Trends tend to continue because they are trends and they end when they change direction. In BOOM’s estimate, most investors cannot define either trend direction or trend change. But the Ruble is trending upwards for 6 weeks now and that will only change when something forces it to move the other way. Demand for Rubles from foreign investors should remain strong for the foreseeable future as far as BOOM can see due to the decisiveness of Russia’s leadership.

RUSSIA DIVERTS ENERGY

Vladimir Putin is preparing Russia to turn away from providing energy supplies to Western Europe, preferring instead to supply markets that are to the South and East of Russia. That includes the Eastern regions of Russia itself to stimulate the domestic economy.

Indications are that this may be done faster than Western Europe can adjust and it is therefore an ominous turn of events for the major economies of Western Europe. It also means that India and China will be the major Southern beneficiaries. Eastern European nations such as Hungary, Czechia, Bulgaria and Romania may also benefit from Russia’s decision along with Turkey, Greece and perhaps all of the Balkan nations. All of this is presumably in response to the major European nations being clearly reluctant to make payments for their energy in Rubles. And that reluctance is, no doubt, due to the heavy influence of the United States, the alternative energy supplier.

Putin has instructed his government to develop a new plan by June 1 for the further development of oil and gas infrastructure in Russia. It is reported that he said “I ask you not to delay,” to his ministers and heads of departments. He also is reported to have said “As for the export of energy resources, it is necessary to accelerate the implementation of infrastructure projects – railway, pipeline, port, which will allow in the coming years to redirect oil and gas supplies from the West to the South and East.

Such moves in Russian energy supplies would leave a massive hole in Western Europe’s energy requirements and in their ability to run fully functional economies. It is a terrible outcome for Germany and France in particular. They are facing a future of total dependence upon the US for their major energy supplies. Such a strategy is fraught with risk and uncertainty because the US is not a great energy exporter. On Friday, unsurprisingly, European stock markets fell sharply and US stock markets followed when they opened.

Deagel.com, a website that deals with weaponry and Geo-political considerations, reported thus —

Quote: “As for the gas infrastructure, the president (Putin) called for the inclusion of the Power of Siberia and Sakhalin-Khabarovsk-Vladivostok gas pipelines into the Unified Gas Supply System in order to provide gas to the eastern regions of Russia.

It is necessary to expand the program of gasification of Russian regions, to change approaches to its implementation. “The task is quite specific. Wherever possible, pipeline or liquefied gas must reach the consumer,” Putin stressed.

Regardless of the external situation, it is necessary to ensure “a sufficient supply of petroleum products on the domestic market” at prices acceptable to car owners, transport companies, businesses and the agro-industrial complex.

The President instructed the government, with the participation of business and the Institute of Oil and Gas Technology Initiatives, to ensure the transition to Russian systems of standardization and certification in the gas and petrochemical industries. “This must be done before the end of this year“.

Link:  https://deagel.com/news/n000021305

EUROPE ANNOUNCES

Meanwhile, just 4 days ago, Germany announced (perhaps in an economic suicide note) that they will stop importing oil from Russia by the end of this year. This was announced by the German Foreign Minister Annalena Baerbock on Wednesday.

I therefore say here clearly and unequivocally, yes, Germany is also completely phasing out Russian energy imports,” Baerbock said after a meeting with her Baltic counterparts.

We will halve oil by the summer and will be at zero by the end of the year, and then gas will follow, in a joint European roadmap, because our joint exit, the complete exit of the European Union, is our common strength,” she said.

Russia supplies around 40% of the EU’s natural gas and around a third its oil needs.

In contrast, one month ago, the European Commission confirmed that it expects the EU to remain dependent on energy imports from Russia for at least another five years, through to 2027. So there seems to be a rather large difference in expected timetables between what the EU Commission said one month ago and what the German Foreign Minister said early last week.

To BOOM, this sudden rush to the exits away from Russia and towards the US indicates a panic reaction from Germany which cannot end well for Western Europe in the long run. BOOM cannot see how the US can possibly provide the large energy requirements to Western Europe that are implied by this announcement by Baerbock.

THE TWIST IN THE TALE

But there is more to this story. On Friday, while the European stock markets were falling, in an interview with the German weekly publication, Der Spiegel, Olaf Scholz, the German Chancellor said that a ban on Russian gas would not stop the conflict in Ukraine. He also said that embargoing Russian gas would cost millions of jobs and crash the German economy. He also said that avoiding a military confrontation between NATO and Russia was his Top Priority.

The point is that we want to avoid a serious economic crisis, the loss of millions of jobs and the closing of factories that would never open again“.

So, who is governing Germany — Scholz or Baerbock?

Germany’s government may be confused about their future energy supplies but Vladimir Putin is not. Germany will now have to come back to Russia, cap in hand, and beg for the certainty of its future energy supplies. It has become hopelessly lost in the rhetoric of war dished out by Vlodimir Zelensky and others to the point where it is no longer acting in the best interests of the German people.

At this point, the clear loser in the Ukraine matter appears to be not just Zelensky but Germany and France.

PFIZER AND MODERNA SHARES PLUNGE

There is a growing concern globally about the fact that the so-called Covid “vaccines” from Pfizer (NY Stock Code: PFE) and Moderna (NY Stock Code: MRNA) cannot possibly be vaccines.

The question on everyone’s lips is this — if Boosters are needed every 3 months, then how can these injections be vaccines? By definition, a vaccine is supposed to provide long term protection against a targeted disease. Three months is certainly not long term, in anyone’s estimation.

Also, it is becoming obvious that the degree of “protection” offered by the Covid jabs is woefully inadequate. The newspapers are now full of stories of “fully vaccinated” people contracting Covid, being hospitalized and even dying. Some prominent politicians are affected. And everyone has heard of the professional athletes suddenly dropping dead or withdrawing from competitions. The truth is emerging, slowly but surely.

So the “safe and effective” jingoism that governments everywhere have used to justify the uptake of the jabs is now being seriously brought into doubt.

As a result of these doubts, last week, the Moderna share price continued its downtrend that began in August last year. It fell sharply 15.2 % over the week’s trade — an horrendous result for investors. Pfizer’s share price was more resilient. But it fell by 9.4 % during the week. Its downtrend began in December last year.

Plunges in share price of 9 — 15 % over a single week are ominous in any company. They usually indicate that unknown dynamics could be at play. These companies have been granted immunity by many governments against civil legal actions for any negative consequences stemming from the use of their Covid jabs.

However, the reality is that large numbers of injured people have now registered official reports on these products with Government Adverse Event Reporting systems. In the UK, Europe and the US, in total, such reports now number over 3 Million. It is not easy to make such reports and they must be made by either Doctors, victims or the families of victims. The under reporting rate of such official data sources is often quoted as being at least 10 fold or possibly 100 fold.

If the under reporting rate is 10 fold, then 30 million people may have suffered Covid vaccine injuries just in the regions of UK, USA and Europe. If the under reporting rate is 100 fold, then 300 million people may have suffered injury in those regions alone.

Source Link: https://johnplatinumgoss.com/covid-statistics-2022/

As far as BOOM is aware, criminal actions are not covered by Government granted immunity programs. It is therefore possible that preliminary criminal investigations are being discussed in regard to this matter. If so, prosecutions may follow as sure as day follows night if sufficient evidence of crime can be collected. Criminal negligence is a legal term that refers to conduct in which a person ignores a known or obvious risk, or disregards the life and safety of others. Criminal negligence is when a person acts with a disregard for obvious risks to human life and safety.

VACCINE ADVERSE EVENTS UNDER REPORTING RATE

The under-reporting rate discussion usually refers to the Harvard Pilgrim Health Care study on VAERS — The US Vaccine Adverse Event Reporting System

The Final Report to the AHRQ — Agency for Healthcare Research and Quality — is titled —

Electronic Support for Public Health–Vaccine Adverse Event Reporting System (ESP:VAERS)

Inclusive dates: 12/01/07 – 09/30/10

In the Results section of the Report, the following statement occurs — QUOTE: “Adverse events from drugs and vaccines are common, but underreported. Although 25% of ambulatory patients experience an adverse drug event, less than 0.3% of all adverse drug events and 1-13% of serious events are reported to the Food and Drug Administration (FDA).

Likewise, fewer than 1% of vaccine adverse events are reported. Low reporting rates preclude or slow the identification of “problem” drugs and vaccines that endanger public health. New surveillance methods for drug and vaccine adverse effects are needed.

Reference Link: https://digital.ahrq.gov/sites/default/files/docs/publication/r18hs017045-lazarus-final-report-2011.pdf

In economics, things work until they don’t. Until next week, make your own conclusions, do your own research. BOOM does not offer investment advice.

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HOW MOST MONEY IS CREATED

BANKS CREATE FRESH NEW MONEY OUT OF THIN AIR
(but they always need a Borrower to do so)

THERE IS NO SUCH THING AS A DEPOSIT

BANKS PURCHASE SECURITIES, THEY DON’T MAKE LOANS

BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY

Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how the banking system and financial sector really work.

How is Most New Money Created ?

LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans).

From the Bank of England Quarterly Bulletin Q1 2014    —
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

YouTube Video —  https://www.bankofengland.co.u/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and https://www.youtube.com/watch?v=ziTE32hiWdk

Paper: Money in the Modern Economy —  CLICK HERE

PDF https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models.

On 25th April 2017, the central bank of Germany, the Bundesbank, released a statement on this matter —

“In terms of volume, the majority of the money supply is made up of book money, which is created through transactions between banks and domestic customers. Sight deposits are an example of book money: sight deposits are created when a bank settles transactions with a customer, ie it grants a credit, say, or purchases an asset and credits the corresponding amount to the customer’s bank account in return. This means that banks can create book money just by making an accounting entry: according to the Bundesbank’s economists, “this refutes a popular misconception that banks act simply as intermediaries at the time of lending – i.e. that banks can only grant credit using funds placed with them previously as deposits by other customers”. By the same token, excess central bank reserves are not a necessary precondition for a bank to grant credit (and thus create money).”

Reference: https://www.bundesbank.de/en/tasks/topics/how-money-is-created-667392

The Reserve Bank of Australia (Australia’s central bank) has also contributed to the issue in a speech by Christopher Kent, the Assistant Governor on September 19th 2018.“…… the vast bulk of broad money consists of bank deposits”“Money can be created …….. when financial intermediaries make loans““In the first instance, the process of money creation requires a willing borrower.”“It’s also worth emphasizing that the process of money creation is not the result of the actions of any single bank – rather, the banking system as a whole acts to create money.”

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