PFIZER WITHDRAWS FDA APPLICATION
BREAKING NEWS: Saturday 12th February: Pfizer has now withdrawn its application to the US FDA for authorization of its COVID vaccine for children under 5 years of age. MSNBC, in its news report of this withdrawal, described it as a “major reversal” for the company.
Doubts about the quality of Pfizer clinical trial data have recently been raised by some highly expert commentators. In particular, the World Council for Health in its “Understanding Vaccine Causation Conference” on the 6th February included an analysis from Deanna McCleod, a clinical research expert and 22 year veteran at Kaleidoscope Strategic, Inc., a company that “supports clinicians in authoring internationally recognized, high-impact, peer-reviewed articles, consensus statements and review papers”.
In her analysis of Pfizer’s Covid Vaccine trial data, one slide was headed “The Innoculations Should be Withdrawn Immediately”. It contained the following statements —
“It’s clear that Pfizer — and the agencies overseeing their trials — failed to follow established, high quality safety and efficacy protocols right from the beginning”.
“We have presented Level 1 evidence of harm from Pfizer’s own trial data. Any government which has approved these innoculations, much less mandated them, knew or should have known from the available data that harm would be caused to its citizens”
“Any government that approved this medical intervention for its citizens should have ensured that the trial had used the appropriate clinical endpoints and high quality safety science”.
“Any government official who possesses this evidence and continues to allow its citizens to be innoculated with a toxic agent is, at very least, negligent.”
Pfizer shares (Stock Code PFE) have declined in price by 18.8 % since their recent high point on 20th December to last Friday’s closing price on the New York stock exchange. BOOM suggests that readers watch PFE closely during Monday’s trading session.
Moderna shares (Stock Code MRNA) may also be worth watching. They have declined by 70% to $ 160 since their peak price of almost $ 500 last August.
https://worldcouncilforhealth.org/multimedia/deanna-mcleod-evidence-analysis-pfizer/
CHINA’s ONE $TRILLION BOOST
China boosted its money supply by 6.2 Trillion Yuan last week. This was fully expected by BOOM readers as BOOM had strongly suggested that this would happen in previous editorials. It is equivalent to an almost US$ 1 Trillion boost to China’s economy. US$ 660 Billion of that was in bank loans plus $ 20 Billion in foreign currency loans and almost $ 90 Billion was in corporate bond issuances. Equity financing amounted to another $ 20 Billion. The shadow banking system picked up the rest in the creation of higher interest cost loans to higher risk borrowers. The shadow banking system loans were 37 % of the social financing total. This is lower than their historical average share over the last decade but only marginally.
All of this amounts to the highest Total Social Financing in China’s history. Overall, the money supply grew by almost 10 % YoY. Government bond issuance slowed by 25 % on the December number.
Recently the central bank — called the PBOC Peoples Bank of China — has also cut its RRR (Reserve Requirement Ratio) and its key interest rates (Loan Prime Rates/LPR). This all adds up to a big boost in fresh new money into the real economy. BOOM approves. Also the planned increase in supply of e-CNY, China’s new digital currency (electronic cash) will speed the velocity of money. Local governments in some cities have been giving away electronic cash through lotteries to encourage citizens to try out the e-CNY.
THE FAILURE OF “FREE BANKING” AND “SOUND MONEY” IN THE UNITED STATES — FINANCIAL MAYHEM IN THE 19TH CENTURY INCLUDING THE PANIC OF 1837
From BOOM’s editorial of 6th June 2021. It is worthy of a re-read — all about banks, bank failures, “sound” money and the failure of the “Free Banking” era in the United States.
If you are a true believer in the wisdom of governments and in the concept of “hard” (or “sound”) money, you should take a good hard look at The Panic of 1837 in the United States. All of human history reveals that most Governments don’t understand money. And the idea that the concept of “soundness” can be used to somehow tame money creation is magical thinking in action. All forms of money are contracts of credit, based upon trust and enforced by social agreement. Human beings will always find ways to innovate in regard to contracts of credit. That is what the history of money tells us. Let’s look back to 1837.
It all started when the US President, Andrew Jackson, in his wisdom, effectively killed off the central bank which was then called the BUS — the Second Bank of the United States. That process started in 1833 but was not completed until 1836. The end of the central bank triggered a huge real estate boom as State based commercial banks issued credit money loans in large volumes to eager borrowers to purchase land. Is this sounding familiar?
The Government became concerned. So they issued the so-called “Specie Circular”, an executive order issued by President Andrew Jackson on July 11th 1836. He ordered that payments for the purchase of public lands be made exclusively in gold or silver. Jackson was a “hard” money man who was always suspicious of banks creating credit money loans without the “sound” backing of gold and silver. The idea of the “Specie Circular” was to squash “excessive” land speculation and the “excessive” growth of the credit money supply (bank loans).
Jackson directed the Treasury Department and banks to only accept specie (Gold or Silver) as payment for government-owned land after Aug. 15, 1836. However, settlers and residents of the state in which they purchased land were permitted to use “paper” money (bank credit) until December 15th on lots up to 320 acres. After that date, the Specie Circular effectively strangled the use of paper money. This caused a huge collapse of real estate prices. Buyers simply could not find sufficient gold or silver to settle purchases so they stopped buying. The banks had no option but to reduce credit creation dramatically and many banks then subsequently failed (as you would expect) due to loan defaults.
The Panic of 1837 started in April — one month after Martin Von Buren became President. It was an absolute economic disaster. On May 21, 1838, a joint resolution of Congress repealed the Specie Circular. The experiment with “sound” money was decisively over.
Interestingly, a central bank was not established after that debacle. During the period from 1836 – 1862, there were only State banks with no Federal Bank. This period is called the Free Banking Era. Bank notes had to be issued with gold or silver backing but loan books of credit money were allowed. More chaos ensued.
During the free banking era, state banks had an average life span of just 5 years. About half of the banks failed for the usual reason of loan defaults. But some failed because they had inadequate gold and silver with which to honor note redemptions. As a result some banks innovated and began to offer central banking services to other banks. Nonetheless, bank failures continued in huge numbers.
In 1863, the National Banking Act was passed, creating a system of Federal banks. And the office of Comptroller of the Currency was created to supervise those banks. A uniform national currency was also created. A huge bout of CPI inflation followed immediately with inflation hitting 24.6 % in 1864. By 1870, there were 1,638 national banks and only 325 state banks.
Inevitably, with no Central Bank to provide overnight support, liquidity mismatches occurred and banks lost faith in each other. Mistrust ruled. Outright deflation hit and stayed for dinner (and beyond) from 1866 right through to 1897. Per capita GDP in the US rose very, very slowly from $ 4,700 to $ 7,200 over thirty long years. Much economic hardship was manifest. As sure as night follows day, bank runs occurred when depositors panicked about the security of their deposits. There were Banking Panics in 1873, 1884, 1893, 1896, 1901, 1907. Many, many banks failed, people lost their savings and deflationary real estate crashes occurred. This is what life is like without a central bank and with cash currency backed by Gold. In other words, in such a situation, credit money — created via bank loans — rules the roost with no effective controls.
But what about the early years of the 19th century? Surely it was a golden era of “sound” money? Gold rushes in the early part of the 19th century triggered mass migrations as people desperately tried to dig money out of the ground. During the early years of the 19th century, there were banking crises in 1819, 1825, 1837, 1847 and 1857.
Almost the entire 19th century in the US were desperate times indeed. It was slowly becoming obvious that a central bank was needed to provide stability to a banking sector in which inter-bank trust was badly damaged.
The concept of “sound” money (backed by Gold) failed to protect the people in the 19th century. The fact is that humans need supervision in regard to money. Banks need to be supervised strictly and have access to overnight capital reserves. A central bank must maintain inter-bank trust and must stop excessive credit creation. Easy to say — not so easy to do. The problem is that human beings run central banks.
CENTRAL BANK OWNERSHIP
Most central banks are owned by their Governments. Private shareholders and private banks own some shares in some nations. There is a mix of ownership models.
“Around the world, central banks have a number of different ownership structures. At one end of the spectrum are central banks, like the Bank of England, that are wholly owned by the public sector. At the other end are central banks, like the Banca d’Italia, whose shareholders are wholly private sector entities. And there are central banks, like the Bank of Japan, that lie in-between.”
“The owners of central banks, mostly governments, are ordinarily responsible for making executive appointments, and receive a share of central banks’ profits. Day-to-day control of the central bank is delegated to the central bank’s senior management and policy committees”.
” .. just a handful of central banks with private sector shareholders remain”.
At the end of 2019, the central bank of Belgium had 50 % private shareholders, Greece had 60%, Italy 100%, Japan 45%, South Africa 100 %, Switzerland and Turkey 49%. The US central banks known as the Federal Reserve Banks were owned 100 % by private banks.
Reference: https://bankunderground.co.uk/2019/10/18/the-ownership-of-central-banks/
YOU CAN BUY CENTRAL BANK SHARES
You can buy shares in some of the central banks as they are listed on public stock exchanges. Dividends are paid in some years and not on others so there is dividend uncertainty. This makes the shares a questionable investment proposition. If a nation were to suffer a currency collapse (a Hyperinflation event), then the shares could collapse to Zero, so they are not without risk. The Bank of Japan shares have performed poorly over the last 20 years, falling from a price of around 100,000 Yen to just 28,000. Swiss National Bank shares have been a better investment. They have increased 7 fold from 1,000 Swiss Francs to above 7,000 Swiss Francs over the same time period.
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.
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
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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