By David Gosselin
As the façade of the World Economic Forum (WEF)Borg Cube fades, the West’s self-styled financial “elite” are now in desperate need of a new narrative pivot. As events around the trucker Freedom Convoy in Canada have demonstrated, a revolutionary spirit is emerging within the population. This spirit is manifesting itself with the kind of peaceful and creative non-linear character that lies at the heart of all truly lasting moral human uprisings, as opposed to anarchist, Jacobin, Communist, or Fascist controlled revolutions and terrorist-infiltrated “regime change.” All this has the WEF Borg Cube terrified.
As events within the West become increasingly more unpredictable, and as the establishment tries to maneuver its way out of a situation which increasingly poses an existential threat to its power, the self-styled elite are stuck using the same old formulaic and worn-out approaches to mass control. Its failed narrative matrix is making plain for the whole world just how utterly uncreative and soulless (and mindless) the financial elite are. In such a situation, the rate of mistakes committed by this decrepit Zeusian class and its managerial establishment can be expected to only increase with each new attempt to squash the numerous Promethean fires popping up across the West.
The number of emerging creative singularities and Promethean individuals is also almost certain to increase. Moreover, such singularities are likely to continue appearing in the humblest and most unexpected places. As a result, the WEF Borg Cube is rightly terrified; their creatively bankrupt brand of transhumanist evil has become painfully obvious to a majority of freedom-loving citizens. In a word: current developments manifesting themselves in the form of humanity’s rejection of the WEF “Great Reset” (of which the recent COVID-19 pandemic response is but one example), have all the markings of a true classical drama, filled with delicious ironies and beautiful paradoxes.
However, such positive developments also suggest that it is probably a good time to consider what a new narrative pivot may entail on the part of the Western financial elite. From a strategic standpoint, consider the elephant in the room: Wall Street and the City of London are sitting on the largest financial bubble in human history. A new financial crisis greater than that which unfolded in 2007-2008 is almost guaranteed. However, this article will demonstrate readily available solutions and alternative approaches.
As Wall Street on Parade has extensively documented and detailed, even before the onset of the COVID-19 pandemic, the major Wall Street banks had already received trillions of dollars (6 trillion) in emergency “repo-loans” by January 2020. Thus, even three months before the pandemic officially begun, the banks had already received 6 trillion dollars in emergency funds. Under the cover of the COVID-19 crisis, the largest financial institutions in America have only continued to receive a shocking number of emergency funds and “liquidity injections,” primarily in the form of “repo-loans.” Through this repo-loan mechanism, banks have been able to simply trade in their vast sums of worthless toxic financial paper for virtually endless amounts of hyperinflationary liquidity from the Federal Reserve and related central banks.
Such “liquidity injections” have been used to push back the looming 2007-2008-style financial crisis and the unwinding of the quadrillion dollar financial derivatives bubble on which it is built. The elite’s hope is that they can push things back to a time when the WEF Borg Cube feels its “Great Reset” chips are sufficiently in place.
So readers understand how badly positioned the transhumanist Borg crowd is, let us consider the Western financial oligarchy’s predicament in greater detail.
According to the Bank of International Settlement—the central banks of central banks—the outstanding notional value of derivatives worldwide stands at 610 trillion. However, several sources believe the total derivatives market may be well over a quadrillion dollars in notional value, whereas other estimates hover at around 750 trillion. What started to unwind in 2007-2008 was in fact this very same derivatives bubble, rather than simply the “sub-prime” mortgage markets.
While the financial crisis was framed as a sub-prime crisis, in reality the 2007-2008 crisis was not only about the fact that many people were defaulting on their mortgage payments (though this was the trigger), the real crisis was the astronomical number of derivatives contracts built atop all these mortgages, including mortgage-backed securities (MBS), credit default swaps (CDS), and various other collateralized debt obligations (CDO). In fact, these derivative markets were themselves largely an outgrowth of the attempt to prop up the then already faltering Western financial system going back to the late 1980s and the infamous “black Monday.”
MBSs were financial products in which countless mortgage debts were turned into financial “tranches” used to create new securitized debts obligations. These “securities,” composed of various mortgage debts and their future income streams were pooled together and sold as legitimate financial products. Not only that, these same speculative debt-based financial products were themselves then subjected to vast additional speculative orgies in the form of credit default swaps, interest rate swaps, and other derivatives premised on the future speculative values of these “securities.”
When the system began melting down in 2007-2008, financial behemoths like the insurer AIG and major lenders like Fannie Mae, Freddy Mac, Wells Fargo, JP Morgan, and Morgan Stanley, suddenly became bankrupt or insolvent, unable to cover all the bad derivatives bets which had to be called in as the sub-prime mortgage market house of cards began radically unwinding. Nearly overnight, massive financial black holes began surfacing on the balance sheets of the largest financial institutions in the world. As is well known today, the total emergency bailouts paid out to keep the system and the world’s largest financial institutions from being vaporized by tens of trillions of bad derivatives bets totalled 16 trillion in “quantitative easing.”
As Wall Street on Parade reported on the Government Accountability Office (GAO) audit in July of 2011 (citing Senator Bernie Sanders’ office press release):
“The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression…
“The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts. Morgan Stanley was given the largest no-bid contract worth $108.4 million to help manage the Fed bailout of AIG.”
It should be noted that virtually none of this money ever made its way to farmers, manufacturing, small business, infrastructure, health-care systems. It was purely a bailout of Wall Street and the City of London financial octopus, along with its many tentacles. Rather than cancelling the funny money and worthless speculative monopoly debts, the population and its political class were convinced and coerced into accepting the lie that the only way to stop the very real prospect of the largest financial institutions in the world being vaporized overnight was massive money-printing schemes and astronomical new debt obligations, with the population strapped with the bill through new draconian austerity programs and health-care “reform” i.e. the infamous Obama Care. The purpose was to keep the game going by looting more of the population’s income streams and withdrawing care and services from the most vulnerable.
To give readers a sense of the magnitude of the crisis, consider the graph below, which was published on ZeroHedge. It compares the notional amount of outstanding derivatives contracts compared with the US GDP, global stock market cap, domestic debt and securities etc.
Of course, the typical response by derivatives proponents is to say the notional amount of derivatives and the actual value of derivatives contracts is significantly less, and that hedging bets is a natural part of the market. However, these purported arguments overlook the fact that the 2007-2008 financial crisis was not a sub-prime mortgage crisis per se, it was the unwinding of the derivatives bubble, triggered by the sub-prime mortgage market’s implosion.
So this takes us to our present paradigm-shifting moment. The inevitable reality of the unwinding of the Western financial system has not gone unnoticed. Conveniently, in anticipation of this event, the 2010 US financial reform bill inserted a “bail-in” clause under Title II of Dodd-Frank. Said otherwise, a provision for protecting derivatives bets and derivatives counter-parties by the major banks has been on the books since January 2010. As described by Investopedia in their “Why Bank Bail-Ins Will be the New Bailouts”:
As unsecured creditors, depositors and bondholders are subordinated to derivative claims. Derivatives are the investments that banks make among each other, which are supposed to be used to hedge their portfolios. However, the 25 largest banks hold more than $247 trillion in derivatives, which poses a tremendous amount of risk to the financial system. To avoid a potential calamity, the Dodd-Frank Act gives preference to derivative claims.
The “bail-in” policy anticipates another crash, with the major Wall Street and City of London banks already having taken steps to guarantee their protection as the system melts down, with costs that will likely dwarf the earlier 16 trillion in bailouts.
In the event of a new crash, which appears inevitable, arguments will likely be framed to the effect that in order to avoid more bailouts and a complete vaporization of the financial system, depositors and investors will be given the option of either accepting a financial “hair-cut” (meaning a significant portion of people’s pensions and deposits over a certain amount will be directly seized by the banks themselves i.e. “bailed-in,” as opposed to “bailed-out”) or otherwise threatened with the very system itself imploding and everyone losing virtually everything in a systemic Trans-Atlantic banking collapse.
Efforts will likely be made to terrify the population into accepting these drastic measures under the threat of total annihilation, from threat of death by a virus to threat of death by total financial collapse—all in order to advance a “Great Reset.”
Of course, were these arguments to be made, they would be complete lies. The actual crisis can be quickly resolved in an orderly fashion, provided the crisis and its alternative are understood in clear and simple terms. If an uncontrolled collapse of the entire system occurs, it will not be the result of its inevitability, or the lack of solutions, but the absence of a vision and a misunderstanding on the part of citizens and law-makers. For, as the proverb says, “Where there is no vision, the people perish.”
If the fictitious nature of the derivatives bubble and the Western financial oligarchy’s predicament is properly understood, then the solutions become relatively simple. In clear and simple terms, the hundreds of trillions of dollars in funny money must be cancelled, followed by the restoration of a sound separation between commercial banking and investment houses (a Glass-Steagall banking standard). The latter will allow for the protection of the population’s savings, pensions, deposits, loans—all activities tied to the real productive sectors of the economy, as opposed to the Wall Street and City of London financial casino.
Having cut the financial cancer, sovereign nations would find themselves in a position to reorient themselves towards a policy of real physical economic progress and take their place within the new multi-polar world of nations committed to the healthy growth and development of their populations. Rather than a multi-polar world being framed as some kind of unstable jungle in which there is no “Leviathan,” whether Great Britain or America, to regulate all the parties and keep everyone in check, the reality of a multi-polar world should be understood as a combination of advanced diplomatic overtures and statecraft, cooperation on mutual development and major economic science and infrastructure programs that open new spectrums of economy, and a robust dialogue among the world’s civilizations. Such developments are what warmongering empires and small subversive divide and conquer financial oligarchies fear most.
This, perhaps more than any other reason, was why the “Deep State” and “Five Eyes” moved so aggressively to unseat US president Donald Trump when he sought to make serious diplomatic overtures to both the Russian and Chinese leadership. Every effort was made to drive a wedge between America, Russia, and China, so much so that even COVID-19 was framed as a Chinese bio-weapon operation, despite Western military, intelligence, and research agencies far-surpassing the bio warfare programs of all other nations combined, especially when it comes to corona viruses.
Alas, since the 2007-2008 crisis, the derivatives Jenga game has grown even larger. Everything has been done to make sure the elephant in the room, which is the real driver for the accelerated push to eliminate basic rights and freedoms across the West, remains unspoken. These are understood to be the preconditions for the imposition of a “Great Reset,” before any kind of uncontrolled unwinding (as opposed to a controlled disintegration) of the quadrillion dollar bubble occurs, in which case no one would be in control.
The MSM’s near radio silence speaks volumes. How many people know that under the auspices of a pandemic response, Wall Street and the City of London have received trillions in emergency cash and continue to receive such funds in order to stem the premature bursting of the global financial bubble? How many realize that this is the Western financial oligarchy’s real Achilles’ heel?
In order to avoid a systemic collapse, nations in the Western world should immediately take the next step of effectively cleaning up their financial systems and taking back control of sovereign credit creation in order to drive a new era of economic revitalization, one that depends on the actual everyday real hard-working citizens, just like Canadian truckers and their supporters across the globe.
Canada, the United States and most nations across the West have a Glass-Steagall standard of banking precedent. With a return to this precedent, credit mechanisms could once again be brought back into the service of the productive real economies and the general welfare, rather than the kinds of cancerous debt bubbles Wall Street and the City of London depend on for their profit and control of nation-states.
It’s time for people to call the financial oligarchy’s bluff and take back their nations.
David B. Gosselin is a poet, translator, and linguist based in Montreal. He is the founder of The Chained Muse poetry website and the founder of the New Lyre Podcast. His new collection of poems is entitled Modern Dreams.