BOOM as at 8th November 2020

COMMODITY PRICES RISING
US DOLLAR FALLING

As we await developments in regard to the US election with Donald Trump not yet conceding defeat, it is noteworthy that the US Dollar index has fallen over the last week. In fact, it has been falling for almost 8 months since the peak in mid-March at the onset of Covid 19. We live in an economic empire that BOOM calls the US Dollar Empire, so it is important to watch what is happening in the currency markets.

This fall in US Dollar purchasing power is driving up the prices of commodities that are most often priced in US Dollars. For example, the prices of gold, silver, base metals (such as copper, zinc and lead), aluminium, steel, iron ore, coal, basic foods (such as corn, wheat, sugar and orange juice), oil, natural gas, lumber and cotton have all risen since March. Also meat prices are rising including pork.  Even that weird digital commodity called Bitcoin has been rising.

If this continues as BOOM expects it to, then CPI inflation will rise inside the United States. And that is exactly what the Federal Reserve (the US central bank) wants.

If the Federal Reserve wants to lower the US Dollar even more dramatically, it will have to start buying assets offshore. Or it will have to arrange for secret Proxies (such as offshore banks) to start buying those assets on their behalf with US Dollars. Flooding the world with even more US Dollars and seeking assets in return makes a lot of sense if you are a protagonist of an empire built on the dominance of the US Dollar.

So BOOM now expects foreign stock markets and property markets to move ever upwards from here if the US Dollar continues to fall. Watch that space.

RECORD LOW INTEREST RATES IN AUSTRALIA

Meanwhile in Australia, the central bank is called the Reserve Bank of Australia and it lowered the official overnight interest rate to 0.1% last week. That is a record low interest rate. BOOM doubts if it will achieve anything of significance in the economy except boost asset prices.

INFLUENZA JUST DISAPPEARS?

BOOM just looked at the Australian Influenza Surveillance Report dated 05 to 18 October 2020. It is published by the Australian Government Department of Health. Stunning.

The graphs present in the report show that the disease of Influenza has almost completely disappeared this year in a nation of 25 Million people. The comparisons to previous years is striking. They show a massive collapse in calls to Health Direct concerning Influenza Like Illness (ILI), a massive collapse in Fever and Cough in Flutracking participants, a massive collapse in the rate of ILI reported from sentinel GP surveillance systems, a massive collapse in the proportion of sentinel laboratory positive tests for influenza compared to the total number of specimens tested, a massive collapse in the number of influenza hospitalizations at sentinel hospitals and a massive collapse in notifications of laboratory confirmed influenza.

The Influenza Complications Alert Network (FluCAN) conducts surveillance of severe influenza at sentinel hospitals across the country during the influenza season each year. Of the 14 people (yes — only 14) with confirmed influenza admitted to sentinel hospitals since 16 March 2020, only one has been admitted to an intensive care unit (ICU).

Of the 14 confirmed influenza admissions to sentinel hospitals — 10 were influenza A (four influenza A(H1N1)pdm09, 5 were A (unsubtyped) and one A(H3N2)); and just 4 were influenza B.

Of the 14 people admitted to hospital with confirmed influenza — 8 were children aged 15 years and younger, of which one was admitted to ICU; 3 were aged between 16 and 64 years; and 3 were aged 65 years and older.

How can a potentially fatal disease that usually causes up to 650,000 deaths per year globally almost disappear during just one Southern Hemisphere winter in Australia? How can that be explained? BOOM has a long past career history in clinical medicine, big data and medical research. BOOM cannot explain this — it is a mystery. But the question it begs is this. Could it have something to do with Covid 19 testing?

Link:  https://www1.health.gov.au/internet/main/publishing.nsf/Content/cda-surveil-ozflu-flucurr.htm/$File/flu-15-2020.pdf

CAN WE MAKE COVID DISAPPEAR?

Is this an epidemic of Covid test results?
What if the test results are unreliable indicators of active infection and contagion?
If we stop testing those not in hospital, will the disease effectively disappear?

At the height of the Covid epidemic in April, US deaths per day (attributed to Covid) were around 2,500 and reported “cases” were around 35,000 per day. The Ratio was about 7 %. Now, in November, the  US deaths per day (attributed to Covid) are around 1,200 and reported “cases” are around 125,000 per day.  The Ratio is now about 0.96 %.   BOOM asks why?

To answer these questions, this article is a good place to start.

The COVID-19 RT-PCR Test: How to Mislead All Humanity. Using a “Test” To Lock Down Society

Link: https://www.globalresearch.ca/covid-19-rt-pcr-how-to-mislead-all-humanity-using-a-test-to-lock-down-society/5728483

IS ECONOMICS A RELIGION?

BOOM always tells people that mainstream economics is a religion based upon false assumptions. It has priests, bishops and arch-bishops, maybe even monsignors. It has symbols. It has rituals. It has dogma. It creates its own reality and it all makes sense …….. but only in a classroom. Outside of the classroom, it rapidly deteriorates because the false assumptions upon which it is based become quickly apparent as false.

For example, mainstream economics rarely mentions money, debt, banks, banking, wealth, poverty and energy. Finance and energy — the base elements of all economic activity — simply do not exist in mainstream economics. It assumes them away in the first instance to create a world of “preferences” and “distorted preferences”. So outside the classroom, it has almost no utility. For example, everyone would (theoretically) prefer to drive a Rolls Royce — so the demand for them should be (theoretically) huge, thus lowering the price. But money has to be available to buy one so the lack of sufficient money distorts the preference …….. thus making it suddenly a distorted preference (in econospeak — the language of economics). Oh so easily explained. This is all very circular — an enclosed view of the world, neatly packaged, with the illusion of certainty and even amenable to mathematical proof.

Unfortunately, outside the classroom, uncertainties abound. In the real world, preferences and distorted preferences are all predicated upon the availability of finance and energy.

This is why mainstream economists make such grave errors in analysis and prediction. They are often surprised by unexpected events and just explain them as “external shocks”. Of course, anything that has been assumed away will be unexpected if it suddenly turns up. And the external shocks are often in the realms of finance and energy.

Austrian economics is even worse than mainstream economics in regard to all of these issues. It is much more didactic and dogmatic. It has a Pope — Ludwig Von Mises — and a whole panoply of saints. No “Austrian” can ever dare challenge the base dogmatic assumption — that there is such a thing as “sound” money and that such money will solve all manner of economic ills. If they do, he/she will be ex-communicated from the Austrian Church. This is despite the fact that no practical example of “sound” money can be found in history and certainly not one that has resulted in a perfect economy. It is all theoretical.

HUGE NUMBERS OF DOCTORS ASK FOR REASSESSMENT OF CORONA MEASURES

Globally, we are seeing a massive campaign of disinformation concerning Covid 19 in the main stream media. While a great number of doctors are presenting different views, unprecedented censorship by the media prevents them from making the news bulletins and headlines. Their opinions are effectively banned.

Information from different thinking experts and professionals can currently be found almost exclusively through targeted searches on the internet or alternative news sources, but not in the mainstream media. Start with THE OPEN LETTER from Doctors in Belgium  —

THE OPEN LETTER
https://docs4opendebate.be/en/open-letter/

SIGNATORIES
https://docs4opendebate.be/en/signatories/

GREAT BARRINGTON DECLARATION

Signatures:     33,904 Doctors    11,791 Medical & Public Health Scientists   
“Current lockdown policies are producing devastating effects on short and long-term public health.”

https://gbdeclaration.org/
Current Signature Count: https://gbdeclaration.org/view-signatures/

Germany

An international group of doctors has launched an extra-parliamentary inquiry into the “exaggerated and oppressive corona measures”, with a view to questioning politicians and scientists around the world.
https://acu2020.org/english-versions/

International
The initiative by Luc Montagnier, Nobel Prize winner in medicine, and Robert F. Kennedy, lawyer, among others, addresses the many inconsistencies surrounding corona policy and is addressed to the presidents of the WHO, the European Commission and the European Parliament.
https://www.internationalfreechoice.com/

United States

In the US, a group of clinician doctors, who see patients on a daily basis, united under the banner “America’s Frontline Doctors” and gave a press conference which has now been watched millions of times.
https://americasfrontlinedoctorsummit.com/

The Netherlands

In the Netherlands, doctors have come together and drafted an open letter addressed to colleagues and the government pleading for proportional measures. This letter aims to stimulate an open and frank debate on how to tackle the Covid-19 outbreak and was signed by more than 2,755 doctors.
https://opendebat.info/

An open, sharp-worded letter, was written by doctors and mental health care providers, that has been signed by more than 2500 healthcare professionals.
https://brandbriefggz.nl/

Spain

A public press conference of “Doctors for Truth” in Madrid, was attended by 400 doctors and scientists under the slogan “A world dictatorship with a sanitary excuse”. “Covid-19 is a false pandemic created for political purposes”. Doctors agree that:
Coronavirus victims did not outnumber last year’s seasonal flu deaths.
Figures were exaggerated by altering medical protocols.
The confinement of the healthy and the forced use of masks have no scientific basis.
The disease known as Covid-19 does not have a single infectious pattern, but a combination of them.
https://niburu.co/gezondheid/15385-artsen-komen-massaal-met-coronawaarheid-naar-buiten

Belgium

A Belgian initiative, which has already been signed by more than 1,500 doctors and health professionals (23rd September 2020)

http://omgekeerdelockdown.simplesite.com/?fbclid=IwAR2bJAAShAlIidjnRQPyVSoZbk1Uj-FTHAthL77hKX_Oo8aMLN3V6DdwAac

An open letter on the initiative of a group of doctors from the Cliniques Universitaires St-Luc, UCLouvain. 13,583 have signed already.

https://belgiumbeyondcovid.be/

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.
CLICK HERE FOR PODCASTS:
   OUR BRAVE NEW ECONOMIC WORLD

EMAIL: gerry {at} boomfinanceandeconomics.com

Return to the BOOM Main Website –  BOOM Finance and Economics at  http://boomfinanceandeconomics.com/

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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.
https://www.youtube.com/watch?v=EC0G7pY4wREhttp://

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.uk/quarterly-bulletin/2014/q1/money-in-the-modern-economy-an-introduction

and

https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy

Paper:  Money in the Modern Economy  PDF —  CLICK HERE

Quarterly Bulletins Indexhttp://www.bankofengland.co.uk/publications/Pages/quarterlybulletin/2014/qb14q1.aspx

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/Redaktion/EN/Topics/2017/2017_04_25_how_money_is_created.html

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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MOLS Denmark

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