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Nummer 45 (13 juli 2022)

Nummer 45 (13 juli 2022)

In dit nummer:

Artsen in de loopgraven
Long Covid en SADS maskeren injectieschade
De NAVO gaat zich ook met China bezighouden
De Europese Unie als antirechtsstaat
Pinautomaten op de schroothoop

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De bronnen en voetnoten per artikel.

De existentiële chantage van Servië door het Westen

https://ronaldthomaswest.com/2022/06/25/between-nato-hammer-eu-anvil-serbia-is-beaten-into-conformity/
https://www.globalresearch.ca/creating-cold-war-conditions-asia-isnt-easy/5783042
https://www.globalresearch.ca/new-american-threat-there-no-place-serbia-balanced-approach/5781529
https://www.globalresearch.ca/nato-war-against-yugoslavia-ghost-still-haunts-europe/5745787
https://www.globalresearch.ca/global-south-non-aligned-countries-are-now-fence-sitters-for-the-us-nato-and-the-political-west/5784057
https://www.euronews.com/2022/04/22/for-first-time-a-majority-of-serbs-are-against-joining-the-eu-poll
https://www.euronews.com/2022/05/31/serbian-president-commits-to-country-s-eu-membership-path-in-inaugural-speech
https://www.reuters.com/world/europe/balkans-losing-hope-progress-eu-membership-2022-06-22/
https://foreignpolicy.com/2022/04/15/serbia-vucic-election-russia-pyrrhic-victory/
https://www.euractiv.com/section/enlargement/interview/analyst-says-if-putin-was-a-candidate-in-serbia-he-would-get-over-70-of-the-vote/
https://nl.wikipedia.org/wiki/Servische_Progressieve_Partij
https://nl.wikipedia.org/wiki/Servi%C3%AB
https://www.vrt.be/vrtnws/nl/2019/03/22/20-jaar-navo-bombardementen-in-voormalig-joegoslavie/
https://www.wsws.org/en/articles/1999/02/kos-f26.html
https://en.wikipedia.org/wiki/NATO_bombing_of_Yugoslavia#:~:text=The%20air%20strikes%20lasted%20from,UN%20peacekeeping%20mission%20in%20Kosovo .
https://www.europa-nu.nl/id/vh9if1ear39f/toetreding_servie_tot_de_europese_unie#:~:text=Sinds%202012%20is%20er%20een,toetreding%20tot%20de%20Europese%20Unie .
https://rs.n1info.com/english/news/us-ambassador-hill-there-is-only-one-path-for-serbia-west-and-european-union/
https://www.theguardian.com/world/1999/jul/18/balkans6
https://www.telegraaf.nl/nieuws/1784668072/wat-heeft-erdogan-gekregen-in-ruil-voor-navo-uitbreiding-opmerkelijk-akkoord

Renteverhoging in de VS: noodsprong of bewust plan?

Why the Fed Raised 75 bps and How To Break the Davos Crowd
By Tom Luongo

I sat down for a long chat with my good friend Crypto Rich over the weekend and have just found the 20 minutes to post them here. We did a series of videos, Duran-style, on a number of topics. They are all below.
With the Fed raising by 75 bps yesterday I have to believe we’ve reached a major turning point in the War Against Davos. The deflation of asset prices and, most especially the Eurodollar markets is putting many other, over-leveraged central banks on a path towards bankruptcy.
There are a ton of moving parts, a lot of factions now warring against each other. When cartels break, the former members of the cartel always turn on each other. It was always going to be this way. Davos turned on its allies in the US commercial banking sector and they fought back.
Hard.
Everything I wrote about in my last post — SOFR/LIBOR spreads, US/German 10 year Spreads, Lagarde’s incompetence — were proven correct in the response yesterday by the markets to Powell’s hawkishness.
Davos has spent so long and so much money trying to convince us to ‘abandon all hope’ but it is they who now can do nothing but ‘enter here’ into our dragon’s den of asset deflation. The adjustment will be biblical. It will be painful.
And it didn’t have to be this way, but the solipsism and arrogance of evil people who have always known power and feel entitled to wield it in perpetuity is boundless.
Enjoy the rants and the wailing and gnashing of teeth by the very worst people in the world today.

The links below are to the videos on Odysee

Part 1 of the main talk
Part 2 of the main talk
How to Break the Great Reset
Reprinted with permission from Gold Goats ‘n Guns.
The Best of Tom Luongo


Global Planned Financial Tsunami has Just Begun
By F. William Engdahl
21 June 2022

Since the creation of the US Federal Reserve over a century ago, every major financial market collapse has been deliberately triggered for political motives by the central bank. The situation is no different today, as clearly the US Fed is acting with its interest rate weapon to crash what is the greatest speculative financial bubble in human history, a bubble it created. Global crash events always begin on the periphery, such as with the 1931 Austrian Creditanstalt or the Lehman Bros. failure in September 2008. The June 15 decision by the Fed to impose the largest single rate hike in almost 30 years as financial markets are already in a meltdown, now guarantees a global depression and worse.

The extent of the “cheap credit” bubble that the Fed, the ECB and Bank of Japan have engineered with buying up of bonds and maintaining unprecedented near-zero or even negative interest rates for now 14 years, is beyond imagination. Financial media cover it over with daily nonsense reporting , while the world economy is being readied, not for so-called “stagflation” or recession. What is coming now in the coming months, barring a dramatic policy reversal, is the worst economic depression in history to date. Thank you, globalization and Davos.

Globalization

The political pressures behind globalization and the creation of the World Trade Organization out of the Bretton Woods GATT trade rules with the 1994 Marrakesh Agreement, ensured that the advanced industrial manufacturing of the West, most especially the USA, could flee offshore, “outsource” to create production in extreme low wage countries. No country offered more benefit in the late 1990s than China. China joined WHO in 2001 and from then on the capital flows into China manufacture from the West have been staggering. So too has been the buildup of China dollar debt. Now that global world financial structure based on record debt is all beginning to come apart.

When Washington deliberately allowed the September 2008 Lehman Bros financial collapse, the Chinese leadership responded with panic and commissioned unprecedented credit to local governments to build infrastructure. Some of it was partly useful, such as a network of high-speed railways. Some of it was plainly wasteful, such as construction of empty “ghost cities.” For the rest of the world, the unprecedented China demand for construction steel, coal, oil, copper and such was welcome, as fears of a global depression receded. But the actions by the US Fed and ECB after 2008, and of their respective governments, did nothing to address the systemic financial abuse of the world’s major private banks on Wall Street and Europe , as well as Hong Kong.

The August 1971 Nixon decision to decouple the US dollar, the world reserve currency, from gold, opened the floodgates to global money flows. Ever more permissive laws favoring uncontrolled financial speculation in the US and abroad were imposed at every turn, from Clinton’s repeal of Glass-Steagall at the behest of Wall Street in November 1999. That allowed creation of mega-banks so large that the government declared them “too big to fail.” That was a hoax, but the population believed it and bailed them out with hundreds of billions in taxpayer money.

Since the crisis of 2008 the Fed and other major global central banks have created unprecedented credit, so-called “helicopter money,” to bailout the major financial institutions. The health of the real economy was not a goal. In the case of the Fed, Bank of Japan, ECB and Bank of England, a combined $25 trillion was injected into the banking system via “quantitative easing” purchase of bonds, as well as dodgy assets like mortgage-backed securities over the past 14 years.

Quantitative madness

Here is where it began to go really bad. The largest Wall Street banks such as JP MorganChase, Wells Fargo, Citigroup or in London HSBC or Barclays, lent billions to their major corporate clients. The borrowers in turn used the liquidity, not to invest in new manufacturing or mining technology, but rather to inflate the value of their company stocks, so-called stock buy-backs, termed “maximizing shareholder value.”

BlackRock, Fidelity, banks and other investors loved the free ride. From the onset of Fed easing in 2008 to July 2020, some $5 trillions had been invested in such stock buybacks, creating the greatest stock market rally in history. Everything became financialized in the process. Corporations paid out $3.8 trillion in dividends in the period from 2010 to 2019. Companies like Tesla which had never earned a profit, became more valuable than Ford and GM combined. Cryptocurrencies such as Bitcoin reached market cap valuation over $1 trillion by late 2021. With Fed money flowing freely, banks and investment funds invested in high-risk, high profit areas like junk bonds or emerging market debt in places like Turkey, Indonesia or, yes, China.

The post-2008 era of Quantitative Easing and zero Fed interest rates led to absurd US Government debt expansion. Since January 2020 the Fed, Bank of England, European Central Bank and Bank of Japan have injected a combined $9 trillion in near zero rate credit into the world banking system. Since a Fed policy change in September 2019, it enabled Washington to increase public debt by a staggering $10 trillion in less than 3 years. Then the Fed again covertly bailed out Wall Street by buying $120 billion per month of US Treasury bonds and Mortgage-Backed Securities creating a huge bond bubble.

A reckless Biden Administration began doling out trillions in so-called stimulus money to combat needless lockdowns of the economy. US Federal debt went from a manageable 35% of GDP in 1980 to more than 129% of GDP today. Only the Fed Quantitative Easing, buying of trillions of US government and mortgage debt and the near zero rates made that possible. Now the Fed has begun to unwind that and withdraw liquidity from the economy with QT or tightening, plus rate hikes. This is deliberate. It is not about a stumbling Fed mis-judging inflation.

Energy drives the collapse

Sadly, the Fed and other central bankers lie. Raising interest rates is not to cure inflation. It is to force a global reset in control over the world’s assets, it’s wealth, whether real estate, farmland, commodity production, industry, even water. The Fed knows very well that Inflation is only beginning to rip across the global economy. What is unique is that now Green Energy mandates across the industrial world are driving this inflation crisis for the first time, something deliberately ignored by Washington or Brussels or Berlin.

The global shortages of fertilizers, soaring prices of natural gas, and grain supply losses from global draught or exploding costs of fertilizers and fuel or the war in Ukraine, guarantee that, at latest this September-October harvest time, we will undergo a global additional food and energy price explosion. Those shortages all are a result of deliberate policies.

Moreover, far worse inflation is certain, due to the pathological insistence of the world’s leading industrial economies led by the Biden Administration’s anti-hydrocarbon agenda. That agenda is typified by the astonishing nonsense of the US Energy Secretary stating, “buy E-autos instead” as the answer to exploding gasoline prices.

Similarly, the European Union has decided to phase out Russian oil and gas with no viable substitute as its leading economy, Germany, moves to shut its last nuclear reactor and close more coal plants. Germany and other EU economies as a result will see power blackouts this winter and natural gas prices will continue to soar. In the second week of June in Germany gas prices rose another 60% alone. Both the Green-controlled German government and the Green Agenda “Fit for 55” by the EU Commission continue to push unreliable and costly wind and solar at the expense of far cheaper and reliable hydrocarbons, insuring an unprecedented energy-led inflation.

Fed has pulled the plug

With the 0.75% Fed rate hike, largest in almost 30 years, and promise of more to come, the US central bank has now guaranteed a collapse of not merely the US debt bubble, but also much of the post-2008 global debt of $303 trillion. Rising interest rates after almost 15 years mean collapsing bond values. Bonds, not stocks, are the heart of the global financial system.

US mortgage rates have now doubled in just 5 months to above 6%, and home sales were already plunging before the latest rate hike. US corporations took on record debt owing to the years of ultra-low rates. Some 70% of that debt is rated just above “junk” status. That corporate non-financial debt totaled $9 trillion in 2006. Today it exceeds $18 trillion. Now a large number of those marginal companies will not be able to rollover the old debt with new, and bankruptcies will follow in coming months. The cosmetics giant Revlon just declared bankruptcy.

The highly-speculative, unregulated Crypto market, led by Bitcoin, is collapsing as investors realize there is no bailout there. Last November the Crypto world had a $3 trillion valuation. Today it is less than half, and with more collapse underway. Even before the latest Fed rate hike the stock value of the US megabanks had lost some $300 billion. Now with stock market further panic selling guaranteed as a global economic collapse grows, those banks are pre-programmed for a new severe bank crisis over the coming months.

As US economist Doug Noland recently noted, “Today, there’s a massive “periphery” loaded with “subprime” junk bonds, leveraged loans, buy-now-pay-later, auto, credit card, housing, and solar securitizations, franchise loans, private Credit, crypto Credit, DeFi, and on and on. A massive infrastructure has evolved over this long cycle to spur consumption for tens of millions, while financing thousands of uneconomic enterprises. The “periphery” has become systemic like never before. And things have started to Break.”

The Federal Government will now find its interest cost of carrying a record $30 trillion in Federal debt far more costly. Unlike the 1930s Great Depression when Federal debt was near nothing, today the Government, especially since the Biden budget measures, is at the limits. The US is becoming a Third World economy. If the Fed no longer buys trillions of US debt, who will? China? Japan? Not likely.

Deleveraging the bubble

With the Fed now imposing a Quantitative Tightening, withdrawing tens of billions in bonds and other assets monthly, as well as raising key interest rates, financial markets have begun a deleveraging. It will likely be jerky, as key players like BlackRock and Fidelity seek to control the meltdown for their purposes. But the direction is clear.

By late last year investors had borrowed almost $1 trillion in margin debt to buy stocks. That was in a rising market. Now the opposite holds, and margin borrowers are forced to give more collateral or sell their stocks to avoid default. That feeds the coming meltdown. With collapse of both stocks and bonds in coming months, go the private retirement savings of tens of millions of Americans in programs like 401-k. Credit card auto loans and other consumer debt in the USA has ballooned in the past decade to a record $4.3 trillion at end of 2021. Now interest rates on that debt, especially credit card, will jump from an already high 16%. Defaults on those credit loans will skyrocket.

Outside the US what we will see now, as the Swiss National Bank, Bank of England and even ECB are forced to follow the Fed raising rates, is the global snowballing of defaults, bankruptcies, amid a soaring inflation which the central bank interest rates have no power to control. About 27% of global nonfinancial corporate debt is held by Chinese companies, estimated at $23 trillion. Another $32 trillion corporate debt is held by US and EU companies. Now China is in the midst of its worst economic crisis since 30 years and little sign of recovery. With the USA, China’s largest customer, going into an economic depression, China’s crisis can only worsen. That will not be good for the world economy.

Italy, with a national debt of $3.2 trillion, has a debt-to-GDP of 150%. Only ECB negative interest rates have kept that from exploding in a new banking crisis. Now that explosion is pre-programmed despite soothing words from Lagarde of the ECB. Japan, with a 260% debt level is the worst of all industrial nations, and is in a trap of zero rates with more than $7.5 trillion public debt. The yen is now falling seriously, and destabilizing all of Asia.

The heart of the world financial system, contrary to popular belief, is not stock markets. It is bond markets—government, corporate and agency bonds. This bond market has been losing value as inflation has soared and interest rates have risen since 2021 in the USA and EU. Globally this comprises some $250 trillion in asset value a sum that, with every fed interest rise , loses more value. The last time we had such a major reverse in bond values was forty years ago in the Paul Volcker era with 20% interest rates to “squeeze out inflation.”

As bond prices fall, the value of bank capital falls. The most exposed to such a loss of value are major French banks along with Deutsche Bank in the EU, along with the largest Japanese banks. US banks like JP MorganChase are believed to be only slightly less exposed to a major bond crash. Much of their risk is hidden in off-balance sheet derivatives and such. However, unlike in 2008, today central banks can’t rerun another decade of zero interest rates and QE. This time, as insiders like ex-Bank of England head Mark Carney noted three years ago, the crisis will be used to force the world to accept a new Central Bank Digital Currency, a world where all money will be centrally issued and controlled. This is also what Davos WEF people mean by their Great Reset. It will not be good. A Global Planned Financial Tsunami Has Just Begun.

(*) William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”


Exile on Main Street: The Sound of the Unipolar World Fading Away

Pepe Escobar • June 22, 2022 •

The future world order, already in progress, will be formed by strong sovereign states. The ship has sailed. There’s no turning back.

Let’s cut to the chase and roll in the Putin Top Ten of the New Era, announced by the Russian President live at the St. Petersburg forum for both the Global North and South.

The era of the unipolar world is over.

The rupture with the West is irreversible and definitive. No pressure from the West will change it.

Russia has renewed its sovereignty. Reinforcement of political and economic sovereignty is an absolute priority.

The EU has completely lost its political sovereignty. The current crisis shows the EU is not ready to play the role of an independent, sovereign actor. It’s just en ensemble of American vassals deprived of any politico-military sovereignty.

Sovereignty cannot be partial. Either you’re a sovereign or a colony.

Hunger in the poorest nations will be on the conscience of the West and euro-democracy.

Russia will supply grains to the poorer nations in Africa and the Middle East.

Russia will invest in internal economic development and reorientation of trade towards nations independent of the U.S.

The future world order, already in progress, will be formed by strong sovereign states.

The ship has sailed. There’s no turning back.

How does it feel, for the collective West, to be caught in such a crossfire hurricane? Well, it gets more devastating when we add to the new roadmap the latest on the energy front.

Rosneft CEO Igor Sechin, in St. Petersburg, stressed that the global economic crisis is gaining momentum not because of sanctions, but exacerbated by them; Europe “commits energy suicide” by sanctioning Russia; sanctions against Russia have done away with the much lauded “green transition”, as that is no longer needed to manipulate markets; and Russia, with its vast energy potential, “is the Noah’s Ark of the world economy.”

For his part Gazprom CEO Alexey Miller could not be more scathing on the sharp decline in the gas flow to the EU due to Siemens’ refusal and/or incapacity to repair the Nord Stream 1 pumping engine: “Well, of course, Gazprom was forced to reduce the volume of gas supplies to Europe by 20%+. But you know, prices have increased not by 20%+, but by several times! Therefore, I’m sorry if I say that we don’t feel offended by anyone, we are not particularly concerned by this situation.”

If this pain dial overdrive was not enough to hurl the collective West – or NATOstan – into Terminal Hysteria, then Putin’s sharp comment on possibly allowing Mr. Sarmat to present his business card to “decision-making centers in Kiev”, those that are ordering the current shelling and killing of civilians in Donetsk, definitely did the trick:

“As for the red lines, let me keep them to myself, because this will mean quite tough actions on the decision-making centers. But this is an area that shouldn’t be disclosed to people outside the military-political leadership of the country. Those who deserve appropriate actions on our part should draw a conclusion for themselves – what they may face if they cross the line.”

Baby please, stop breaking down

Alastair Crooke has masterfully outlined how the collective West’s zugzwang leaves it lumbering around, dazed and confused. Now let’s examine the state of play on the opposite side of the chessboard, focusing on the BRICS summit this Thursday in Beijing.

As much as the Belt and Road Initiative (BRI), the Shanghai Cooperation Organization (SCO), the Eurasia Economic Union (EAEU) and ASEAN, now it’s time for a reinvigorated BRICS to step up its game. In conjunction, these are the key organizations/instruments that will be carving the pathways towards the post-unipolar era.

Both China and India (which between them were the largest economies in the world for centuries before the brief Western colonial interregnum) are already close and getting closer to “the Noah’s Ark of the world economy”.

The G20 – hostages of the Michael Hudson-defined FIRE scam that is the core of the financialized neoliberal casino – is slowly fading away, while a potential new G8 ramps up: and that is directly connected to BRICS expansion, one of the key themes of this week’s summit. An expanded BRICS with a parallel G8 configuration is bound to easily overtake the Western-centric one in importance as well as GDP by purchasing power parity (PPP).

BRICS in 2021 already added Bangladesh, Egypt, the UAE and Uruguay to its New Development Bank (NDB). In May, at Foreign Ministry-level debates, Argentina, Egypt, Indonesia, Kazakhstan, Nigeria, the UAE, Saudi Arabia, Senegal and Thailand were added to the 5 BRICS members. Leaders of some of these nations will be connected to the Beijing summit.

BRICS plays a completely different game from the G20. They aim for the grassroots, and it’s all about slowly “building trust” – a very Chinese concept. They are creating an independent Credit Rating Agency – away from the Anglo-American racket – and deepening a Currency Reserves Arrangement. The NDB – including its regional offices in India and South Africa – has been involved in hundreds of projects. Time will tell: one day the NDB will make the World Bank superfluous.

Comparisons between BRICS and the Quad, a U.S. concoction, are silly. Quad is just another crude mechanism to contain China. Yet there’s no question India treads on tightrope walker territory, as it’s a member of both BRICS and Quad, and made a vastly misguided decision to walk out of the Regional Comprehensive Economic Partnership (RCEP) – the largest free trade deal on the planet – opting instead to adhere to the American pie-in-the-sky Indo-Pacific Economic Framework (IPEF).

Yet India, long term, skillfully guided by Russia, is being steered to find essential common ground with China in several key issues.

 

BRICS, especially in its expanded BRICS+ version, is bound to increase cooperation on building truly stable supply chains, and a settlement mechanism for resources and raw material trade, which inevitably has to be based in local currencies. Then the path will be open for the Holy Grail: a BRICS payment system as a credible alternative to the weaponized U.S. dollar and SWIFT.

Meanwhile, a torrent of bilateral investments from both China and India in the manufacturing and services sector around their neighbors is bound to lift up smaller players in both Southeast Asia and South Asia: think Cambodia and Bangladesh as important cogs in a vast supply wheel.

Yaroslav Lissovolik had already proposed a BEAMS concept as the core of this BRICS integration drive, uniting “the key regional integration initiatives of BRICS economies such as BIMSTEC, EAEU, the ASEAN-China free trade agreement, Mercosur and SADC/SACU.”

It’s only (BRICS) rock’n roll

Now Beijing seems eager to promote “an inclusive format for dialogue spanning all the main regions of the Global South via aggregating the regional integration platforms in Eurasia, Africa and Latin America. Going forward this format may be further expanded to include other regional integration blocks from Eurasia, such as the GCC, EAEU and others.”

Lissovolik notes how the ideal path from now on should be “the greater inclusivity of BRICS via the BRICS+ framework that allows smaller economies that are the regional partners of BRICS to have a say in the new global governance framework.”

Before he addressed the St. Petersburg forum on video, President Xi called Putin personally to say, among other things, that he’s got China’s back on all “sovereignty and security” themes. They also, inevitably, discussed the relevance of BRICS as a key platform towards the multipolar world.

Meanwhile, the collective West plunges deeper into the maelstrom. A massive national demonstration of trade unions this past Monday paralyzed Brussels – the capital of the EU and NATO – as 80,000 people expressed their anger at the rising and rising cost of living; called for elites to “spend money on salaries, not on weapons”; and yelled in unison “Stop NATO.”

It’s zugzwang all over again. The EU’s “direct losses”, as Putin stressed, provoked by the sanctions hysteria, “could exceed $400 billion a year”. Russia’s energy earnings have hit record levels. The ruble is at a 7-year high against the euro.

It’s a blast that arguably the most powerful cultural artifact of the entire Cold War – and Western supremacy – era, the perennial Rolling Stones, is currently on tour across a “caught in a crossfire hurricane” EU. On every show they play, for the first time live, one of their early classics: ‘Out of Time’.

Sounds much like a requiem. So let’s all sing, “Baby baby baby / you’re out of time”, as one Vladimir “it’s a gas, gas, gas” Putin and his sidekick Dmitry “Under My Thumb” Medvedev seem to be the guys really getting their rocks off. It’s only (BRICS) rock’n roll, but we like it.

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