The United Casinos of America — The United States of Poverty — The USSR Money System — Money Balance is the Answer — Tony Robbins No Pandemic of Death — Where is the Flu?

THE UNITED CASINOS OF AMERICA

In the United States, they are now in the speculative phase of their casino financial markets and casino economy. The punters are getting very excited as they hear of some rare but very big wins. Like a school of piranhas in a feeding frenzy, they are looking for quick easy profits. It makes Bitcoin and the Crypto markets look very boring by comparison. Gamestop GME and AMC stocks have crashed back to Earth after defying gravity for just a few days. Silver likewise. But there are fresh targets always being hunted down in the fast moving game.

The top 5 US stocks on Friday traded up on the day by 117.57 %, 67.89 %, 65.84 %, 61.54 % and 59.77 % (at the close).

However, during the day, they hit highs that registered intra-day gains of 510 %,  365 %,  160 %, 120 % and 333 % (compared to their closing price the previous day).

In such an environment, some stocks can easily double in price (or more) or fall in price by 50% (or more).  The water is foaming and can be dangerous.

THE UNITED STATES OF POVERTY

The United States of Poverty added only 49,000 nonfarm jobs in January according to the Bureau of Labor Statistics Non Farm Payrolls Report on Friday. The consensus of analysts had predicted the addition of 105,000 new jobs so this result was incredibly bad. This followed 227,000 payrolls lost in December.

22 million non farm jobs were lost in early 2020 due to the onset of the Covid scare and fear campaign. 20 million of those job losses occurred in just one month — April 2020. About 15 million Americans have said the pandemic was the primary reason why their employer had halted operations. 10 million of those jobs lost have not yet been recovered.

At the end of 2020, 40 million Americans in 20 million households were receiving food assistance from the SNAP Program (Supplemental Nutrition Assistance program — formerly known as Food Stamps).
This article by Chris Hedges sums up the current situation in the United States of Poverty quite well.

Link:  https://consortiumnews.com/2021/02/01/chris-hedges-papering-over-the-rot/

It contains fabulous rhetoric. However, no solution is offered. The author clearly has no idea how our Venetian money system actually works to funnel more and more credit money to the top strata of wealthy citizens. That fresh new money is collateralized to assets. It all occurs by design. So the rich cannot fail to get richer while the poor get poorer due to their inadequate access to credit.

Any revolution that does not understand this is doomed to repeat the mistakes of history.

THE USSR MONEY SYSTEM

Karl Marx understood this dynamic but went to the opposite extreme and banned commercial banks in favor of a central command of the money supply. He banned credit money and moved to a 100% sovereign money system. One all powerful committee of government “expert economists” created money as per their often distorted view of the economy. Of course, as regular BOOM readers know, the words “expert” and “economists” should never be used together. And the human propensity for corruption has to be considered as well.

It was a DISASTER. The USSR was doomed to fail right from the outset. Some would say that was the plan of Lenin’s masters all along? It took 70 years to reach implosion but that was entirely predictable because of the inherent weakness of the design at birth.


Without the effective, well targeted, decentralized distribution of money (as provided by a network of commercial banks), the USSR’s vast economy was doomed. Implosion eventually occurred because of lack of productivity. The workers pretended to work and the communists at the top of the tree pretended to pay them. So that system of centralized money management worked until it didn’t.

MONEY BALANCE IS THE ANSWER

The answer for the advanced economies of the world now lies in a more equal money system of credit money and cash. That is what BOOM’s Quantitative Boosting QB is all about. QB generates a form of electronic cash that originates from the banking system directly to the government. It is our best hope for a better, balanced future.

Cash has no interest cost attached. It is not created with any connection to assets as collateral or asset prices as determined in financial markets. It is a natural balance to credit money, a natural buffer to excess credit creation and demand. Cash is essential. BOOM is the only economic commentator demanding MORE PHYSICAL CASH PLEASE — or a carefully thought through electronic equivalent. The Chinese are trialing their version already in defined geographic locations and with carefully selected accepting merchants. The electronic cash was given away by lottery in the most recent trial. They are leading the world in money innovation.

Conventional central bank balance sheet “expansion” or “stimulation” policies do not and will not work to provide any balance in our money system. Both policy arms — zero interest rates and Quantitative Easing — are mediated via the prices of assets. They effect change through the bond markets, the stock markets and the real estate markets via principally boosting the creation of credit money as bank loans. Like the USSR, this system is doomed. It will work until it doesn’t. Then social unrest will erupt, driven by massive inequalities.

QB is the answer to our monetary system failures. Everything else is just whistling in the wind
.
Quantitative Boosting — An Introduction:  
https://boomfinanceandeconomics.wordpress.com/2019/12/15/boom-as-at-15th-december-2019/

and BOOM’s Perfect Economy

https://boomfinanceandeconomics.wordpress.com/2020/01/18/boom-as-at-19th-january-2020/

TONY ROBBINS — NO PANDEMIC OF DEATH

In this short video, Robbins refers to a now-deleted Johns Hopkins study on death numbers — “What it shows is the same number of people have died this year, 2020, as died in 2019, 2018, 2017, 2016 and 2015,” Robbins says, explaining the study can still be viewed using the Internet Archive’s Wayback Machine.

“The same number of old people died in 2020,” Robbins continues, adding, “The only difference is when they looked by disease. Heart disease, for the first time in 30 years, has come down. Cancer has come down – but Covid has gone up in the exact proportions!”    “Now that’s interesting isn’t it? Same number of people died.”

“By the way, in case you haven’t noticed, the flu has disappeared! It’s flatlined!”.

“What are the symptoms of the flu? And by the way, flu kills people, and especially kills older people.”

“We’re living in a world where a lot of people might be overreacting cause they’re tying to protect us cause that, at a 3% mortality rate, or a 4%, that would be a pandemic, but today depending on whose research you read it’s 0.1%, 0.2% or 0.3%, which is the same as the flu, and if you’re under 50 it’s way below that.”
“So, we live in a world that if we let people control our focus we’re just gonna live in fear” he says.

Link:  https://twitter.com/i/status/1356785837564850176

Link:  https://politicrossing.com/motivational-guru-tony-robbins-asks-some-serious-questions-about-covid-deaths/

WHERE IS THE FLU?

Influenza has disappeared — worldwide over the last 12 months. It used to kill hundreds of thousands of frail and elderly people each winter and has done so with monotonous regularity. In the Flu epidemic in Europe in the winter of 2017/2018, it killed almost as many people as Covid 19 did in March and April of last year. But nobody panicked. No government insisted upon crashing their economies with massive lockdowns, mass testing, social distancing, masks, police state regulations, track and trace telephone apps. The mainstream media took virtually no notice.

If you wish to see what has happened to the Flu, check out the graph here on the WHO website showing the global Circulation of IInfluenza Viruses as at the end of October.

WHO: https://www.who.int/influenza/gisrs_laboratory/updates/summaryreport_20201026/en/

Then check out the very latest report here:
https://www.who.int/influenza/gisrs_laboratory/updates/summaryreport/en/

You will see from both charts that Influenza disappeared as a threat on Planet Earth in the the 15th week of 2020. Maybe it went to Mars for a holiday?

Then you should read this article about the UK and wonder what the hell is going on?

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

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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 Index

http://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.”

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.

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MOLS Denmark

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