The Killing Joke - Chapter 16 of 25

This is what happens when an unstoppable force meets an immovable object.

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Fiat money was always just a short-term global confidence game backed up by the barrel of a gun. When the guns didn’t work, up went the B-52s and down rained the bombs. That usually got the recalcitrant to go along with the virtuous cycle because you can’t go along to get along if you’re dead. But if the pretender king dollar’s fiat money system ever failed, the ICBM ultimate failsafe would get called up to duty because if the Philosopher Kings ever lost control of their money system, everyone on planet earth would pay the ultimate price. Because by now the Philosopher Kings fancied themselves as gods who could rain down their wrath and vengeance untouched from on high upon a thankless and vain profane people who dare deny them their rightful portions of the daily sacrifices to taxation, regulation, and inflation.

So everyone pretended that the pretender king dollar possessed real value so long as there was an intercontinental ballistic missile aimed at them. But despite those ICBMs, fiat money failed the Soviet Union spectacularly back in 1989 before it could be universally imposed upon the world by the communist version of the End of History. And fiat money was failing America before it could be universally imposed upon the world as the liberal democracy version of the End of History began to flounder. The fiat Euro never had a chance existing as a lowly viscount in the shadow of the pretended king dollar. And the monetary eternal recurrence of fake money would happen again with the BRICS once the shouted promises of a sound fractional reserve system are drowned out by the whispers from the sorcerers promising power and riches beyond one’s wildest dreams.

Fiat money is always meant to be the transition into the End of History that never comes – a transition into an era where money no longer exists. It is when money no longer exists when the Philosopher Kings can come out of their hiding to be worshiped as gods. The people are one, and things get done my son by virtue of divine orders at the cost of a bowl of rice a day. But the End of History is inevitably derailed by its dependence upon this fiat money and the hyperinflation kindled by greed and the lust for power by those agents entrusted with its workings. Thus it is through the inherent corruption of man that mankind receives his reprieve from the End of History. It is always a reprieve drenched in blood and filled with the lamentations of the victors who are left to their own with the task of rebuilding their world back into the way it was meant to be. And that is the great victory, when man is set free from his bondage as a cog in some grand theoretical social design, where he is free to live as an end in himself until the next coven of sorcerers convene to weave their new spell to entrap him with the joke of ultimate material riches.

And man will again fall for the joke, forsake his brothers, and gather unto only himself everything he can using the magical powers of fiat money.

But for the first time since August of 1971, fissures emerged between the Philosopher Kings and their Nexus agents. The Nexus wanted it all, and it wanted it now, and it didn’t care how. But 1971’s fiat money was just supposed to be a temporary spell to patch over the broken fractional reserve magic after the financial wizards at the US Treasury ran out of gold again. But who could have thought that the magic would be so powerful? Who could have envisioned that the free flows of credit representing non-existent gold would build an industrial society that depopulated the countryside, deprived man of his millennia of self-sufficiency, and revolutionized his existence through the hyper-specialization and devaluation of labor? And who could have fathomed back in 1971 that chits of paper and the “prosperity” they engendered would spur mankind to create another 4.25 billion of his brethren? Seven billion people added to the world in 200 years under the suzerainty of only three world reserve currencies – pound, dollar, and rouble. It was a very strong sorcery, indeed. It was a sorcery that mankind could not break free from unless the sorcery destroyed itself.

The Nexus had pushed things too far and were about to push things even further.

But when America has no more gold to steal, its people have no more money to fleece, its average citizen is capable of producing nothing of real value, and everybody in the Nexus is already super rich, the only remaining path for the super-rich to get super richer is to bilk the Nexus itself. When the point is reached where only a few Nexus agents are left holding all the fiat money, there effectively is no more Nexus. Without a Nexus, money becomes worthless and hyperinflation is kindled because it is the pursuit of money and its continuous transfer between parties that imparts “value” to it. The Nexus is the means by which the pursuit of money is forced upon society, and the wizardry is responsible for that money’s velocity.

The velocity of money never recovered from the Great Recession.

And to bilk the Nexus is to bilk the Philosopher Kings.

But it is at this point of monetary monopoly when millions in society simultaneously ask, “Why continue to pursue this unobtainable thing?” And when enough of society’s remaining productive members ask that question, society’s center no longer holds because it is the magic spell of the pursuit of money that compels and keeps the productive class nose to the grindstone. A lifetime of repetitive tasks, petty objectives and micro-function drudgery are only made possible in either a poor nation immersed in poverty or a wealthy nation alienated from its means to self-sufficiency through this pursuit of money above all other things. Without the carrot of money dangled before society, the Philosopher Kings get nothing accomplished to their ends. So without money, there can be no sorcery. And without sorcery, there can be no fiat money. The falconer loses his falcon and the kingdom of sorcery falls apart.

But the sorcery had begun to falter after the dotcom crash, and after the Great Recession no one wanted US Treasury bonds anymore. Mom and pop had long ago quit buying those US Treasury bills. The world was drowning in debt obligation. The Chinese were gorged and bloated on real estate debt and sub-economic state enterprise. The Japanese had all turned Japanese I really think so, and couldn’t procreate so they were entirely dependent upon home grown inflation to conjure their impotent economic “growth”. Europe was mired in terminal welfare dependency and wallowing in a beer soaked football club obsession symptomatic of that dependency. Half of the Middle East had been bombed to smithereens and there would be no IMF reconstruction loan forthcoming. The other half of the Middle East not bombed yet kept its mouth shut and went along with the fiat money joke to get along. And Africa still didn’t have any money and never would because it was collectively incapable of attaining the level of organization and discipline required to function as a value adding society. Things fell apart as the entire world slouched towards bankruptcy.

And things fell apart spectacularly on September 17^th, 2019.

Things fell apart because the financial singularity finally arrived. The Secured Overnight Funding Rate - that financial Frankenstein created by The Economic Science™ to overthrow LIBOR once and for all - that financial Frankenstein broke free of its lab table restraints, escaped the castle, and headed straight to the global liquidity village. A terrified SOFR spiked up 239% over only two consecutive business days. It climbed from a cheap money 2.20% on September 13^th to a not cheap but not yet really expensive either money of 5.25% on September 17^th. But the global financial system had become so collateralized, securitized, and interconnected through Nexus debt saturation that that single spike was enough to grind liquidity to a halt. That spike was the ICE-9 crystal dropped into the swirling financial ocean of global debt that transformed its currents into a solid cohesive inertial mass of illiquidity that nobody dare touch.

On September 17^th, 2019 the pursuit of money stopped, and the world as we knew it for 48 hours lost its reason for which it was created and fashioned.

It was the end of the world as we knew it.

Trillions in contracts with an interest rate referenced to the SOFR stood ready to breach. Quadrillions in derivatives would never settle as the margin loans upon which they were struck blew out. Those quadrillions in liabilities for these unsettled contracts shifted overnight to the issuers of the credit default swaps. Those credit default swaps were pooled into collateralized products of all kinds that infected everything including US Treasury bonds. The liquidity carousel had caught fire on a Friday, and come the following Monday, after it had burned to the ground, an international paper asset fire sale would commence that would instantly unwind forty eight years of fiat money sorcery. The center could not hold, and its collapse would bring forth the one thing that would put a permanent end to the financial sorcery – deflation.

So on September 17^th The Economic Science™ gathered in their coven and within a matter of hours of scribbling on their white boards had conjured up a scheme to plug the liquidity holes for the counterparty insurers, keep the primary dealers buying those US Treasury bonds, and fob the inflation off on the American productive class. Because without that counterparty insurance no one on their right mind would by US Treasury bonds and the Endless War would be forever over. So The Economic Science™ resorted to its old bag of Keynesian magic tricks to kick the can down the extra road that got financed and built from all the extra debt issuance during those previous seven consecutive years of free money. But it would be the greatest and most audacious monetary magic trick ever performed.

The Economic Science™ would conjure up the largest amount of money, in the shortest span of time, that the world had ever witnessed outside of the likes of Weimar Germany or post-whites rule Zimbabwe. And no one would ever notice because of the extra special sorcery that had been summoned up by the evil minds that plot destruction, those sorcerers of death’s construction who wait patiently in the shadows for their infrequent summons. But there was only one way to conjure up all that money and not trigger the immediate hyperinflation - the sorcery could only succeed if the money printing was soon followed by an equivalent amount of consumer demand destruction.

It would take too long to start World War III, a limited war would only produce a limited solution, and an immediate solution was required.So a crazy equation was derived whereby hyperinflation plus deflation equals just normal elevated inflation that keeps the war machine turning and the bodies burning in the fields of Endless War.But how to destroy the consumer demand of an entitled and spoiled people of the entire developed world?The theory was solid, but the application was problematic so it was left to those who waited patiently in the shadows.It was decided that for now, The Economic Science™ would conjure up money, and those in the shadows would resolve the problematic application of that conjuring at a later time.

The world had gorged on so much debt that it was eventually impossible to hold it all down while it rode the roller coaster of one manufactured financial crises after another.

And those who lurked in the shadows set the demand destruction in motion as ordered. But first came the exciting and overt part – the money conjuring, via the resurrected and long dormant New York Federal Reserve’s REPO Operation.

REPO had been all but shelved and lay quiet since the end of 2008’s big money grab but by the Mother of All Coincidences it got put back into operation on the exact same day that the SOFR spiked. It was almost as if they were anticipating something because they are not a monster, they’re just ahead of the curve.

The resurrected REPO Operation was another choreographed and conjured deception whereby The Economic Science™ manufactures a financial “crisis”, the Federal Reserve System rushed in to “fix” the staged “crisis”, and the US Treasury and their predetermined solutions saves the world again with bazillions in new debt issuance to fill those intentionally created “liquidity holes”. And the productive class gets to pay the bills again via inflation and gets blamed again when The Economic Science™ declares their consumer demand as the root cause of that inflation.

REPO gets used when so many financed junk “assets” pile up on the Nexus balance sheet that it becomes difficult to make huge sums of money the old fashioned way – by fraud, corruption, and deception. So a financial “crisis” gets triggered so the US Treasury can issue debt like a drunken Fleet Admiral. The Federal Reserve System then can fire up the printing press so it can throw bazillions in free money at the Nexus in exchange for all those junk “assets” clogging up the financial liquidity plumbing. The Nexus with its free money then goes and buys assets that make it huge sums of money again. The world gets saved again and the fraudulent system keeps humming along so long as a world exists with all those ICBMs pointed at it to keep it buying those US Treasury bonds.

But what happens to all those junk “assets”? Don’t they just clog up some pipe in the financial plumbing somewhere else? Enquiring minds want to know.

Those junk “assets” sit on the Federal Reserve System’s balance sheet until the “crisis” dies down. They then get collected up, collateralized, and jumbled together with a few viable assets and the pastiche gets reborn as AAA+ investment grade by Nexus owned rating agencies. These “investments” are then sold off to yield seeking pension funds and insurance companies whose board members are Nexus appointees that take their marching orders from Nexus financial consultants who just so happen to have a bunch of brand new AAA+ “investment” grade assets to sell. Once purchased, these “investment” grade asset bundles implode to their true value of zero just before a wave of the productive class enters into retirement. If the now insolvent pension fund is a union pension fund serving unionized .gov connected workers, it gets bailed out by some level within the .gov division of the Nexus. If the now insolvent pension fund is a Nexus corporation pension fund serving non-union workers, well that’s too bad buddy that’s just how the chips fall sometimes and the loyal employees get to retire in poverty on their Social Security payments. The insurance companies just raise next year’s premiums on the productive class to make up the losses and profit projection shortfalls and then send the quarterly dividends back to the Nexus.

So the financial plumbing gets unclogged through the combined magic of inflation, collateralization, fraudulent ratings, and a mug ultimately holding the big bag of promises to pay. It’s classic Ashkenazi genius at work again. Heads the Nexus wins, tails the productive class loses, and there is no need to use a two-headed coin to give the rigged game away.

So the Mother of All Money Grabs started with an $11.238 trillion REPO Operation undertaken almost daily between September 17^th, 2019 and July 2^nd, 2020. It shoveled freshly printed money directly into the grabbing hands of the Nexus at the most furious pace on record. And the Federal Reserve System took as collateral all the 0.75% Treasury bonds, toxic mortgage backed securities, and collateralized turds of financial excrement that the Nexus could defecate onto the American people. The total incremental excremental debt that got piled up over the following 9½ months of “crisis” was greater than all the Federal Government debt accumulated during the first 95 years of the United States of America and 149 years of The UNITED STATES of AMERICA.

Then, starting again on September 17^th, 2019 The Economic Science™ began to conjure down the EFFR to as low as 1.55% through to February 24^th, 2020. The drop to near zero was a special event courtesy of the evil minds that plot destruction.The Nexus finally got what it had been after for nearly 4 years – the return of free money for the super-rich.

Then came the whipsaw switcheroo to Reverse REPO, where the New York Federal Reserve sold back to the Nexus their junk “assets”. But nobody was buying except the pension funds and insurance companies and anything else that could effectively fob all the certain losses off onto the backs of the American people.

Through the greatest financial sorcery ever conjured up, a cumulative $11.238 trillion left the magical mystical REPO Operation, but only $2.651 trillion returned as Reverse REPO. Surely, this $8.587 trillion shortfall must have been sitting on the Federal Reserve System’s balance sheet, waiting for the Nexus to reclaim their junk “assets”, right?

Wrong. During the entirety of both the REPO and Reverse REPO operations, the Federal Reserve System balance sheet increased from $3.67 trillion to $7.06 trillion. So, where did the missing $4.83 trillion go?

That missing $4.83 trillion sat waiting on the sidelines for the signal from The Economic Science™ that the stock market was about to be crashed again. But how to crash the stock market and buy it all up at rock bottom prices with near zero margin loans without anyone suspecting anything?

But a funny thing happened as the super-rich got on their super-yachts and laughed all the way to their Cayman Island banks.

Neither LIBOR nor SONIA spiked along with the SOFR. The dogs across the pond didn’t bark as the liquidity trap was sprung on the American side of the Atlantic. There was no panic emanating from within the sovereign territory of the City of London Corporation. The Bank of England did not begin shoveling freshly printed money into British liquidity holes despite the City’s investment banking behemoth being heavily exposed to the turnings and turnings of the widening gyres of the American markets. And if the Bank of England was not frantically shoveling money into liquidity holes, that could only mean one thing – there were no liquidity holes hungry to be filled. SOFR, LIBOR, and SONIA were all heavily entwined, but their lack of reciprocal movement during September of 2019 in what was billed as a financial end of the world that only freshly minted trillions could avert could mean only one thing.

There was no financial crisis.It was all just preparation for something else.

September of 2019 was the third great act in the American fiat money charade. The Apollo 11 Show got the Philosopher Kings their nuclear armed ICBMs and the means to defeat the rouble and enforce the dollar’s imposition upon the world. The Osama bin Laden Show not only destroyed all evidence of the $2.3 trillion stolen from the Pentagon, but also kicked-off the massive global deficit spending needed to usher in the era of Endless War that would push the world over the End of History’s finish line. And now there was the Mother of All Money Grabs, a magnificent sleight of hand, brilliantly choreographed and flawlessly executed, but to what purpose? It merely made the very rich, super-rich. It made the super-rich, very super-rich. It seemed upon superficial examination to purposely light the fuse of the hyperinflation bomb and would scuttle the End of History project that the Philosopher Kings had worked so hard to bring to fruition. So - Cui bono?

With the help of a carnival barker President, the Nexus stole $4.83 trillion from the American people and the American people were none the wiser as the mop-up operations approached.

The American branch of the Nexus was who benefitted.

The SOFR “crisis” had been conjured up by The Economic Science™ so these benefactors could fill their liquidity holes before the coming hyperinflation counter-measures took effect. But after the choreographed “crisis” had been “averted” through the “skill” and “genius” of The Economic Science™ - a “science” that had conjured up the “crisis” in the first place - those benefactors were supposed to give the money back using the New York Fed’s Reverse REPO Operation, not just move it around in a game of financial hot potato. Instead, the American Nexus kept the money and smeared the Federal Reserve System – that privately owned Philosopher’s Stone of global control – smeared the Federal Reserve System with trillions in financial excrement of its own making. And given the financial failsafe counter-measures that had been set in motion and could not be retracted, this financial excrement would just fester in the septic tank of the Federal Reserve System’s balance sheet never to be digested and collateralized into the American pension and insurance systems. Without those trillions in financial turds defecated onto the heads of the productive class, the financial plumbing would irreparably clog and spill its raw sewage across the entire floor of US dollar denominated commerce. There would be no magic strong enough to cover the smell, and the disease of hyperinflation would spread across the dollar fiat empire, forcing the Philosopher Kings out of hiding to personally deal with a true existential crisis.

Like impetuous bored chimpanzees that have tired of the ogling zoo crowds, the American Nexus had thrown its own excrement into the face of the Philosopher Kings and challenged them to do something about it.

And if you strike the Philosopher Kings, you had better kill them.

The greed and lust for power of the American Nexus had upset the incremental march towards the End of History and triggered a true systemic crisis at the worst possible moment. The American fiat money system had been designed to always leave the productive class holding the bag, and once the productive mugs and dupes no longer held the bag, the system as designed would collapse. There were two paths now facing the Philosopher Kings. The first path preserved their systemic control for as long as possible through more vigorous conjuring combined with total information control whereby The Economic Science™ appeared to manage hyperinflation which at this point could no longer be contained and systemic control was inevitably lost. The second path immediately released systemic control by removing the spell and surrendering to deflation, from which the Philosopher Kings could begin anew to reassert their systemic control during the ensuing chaos. Down either path the Philosopher Kings found the End of History project dead in the water at each path’s terminus. And the end of the End of History would greet humanity with a gaping Thucydides trap awaiting to ensnare the entire the world.

The Philosopher Kings would never relinquish systemic control so the first path it was. And the incrementalism would have to be sped up to the point where things would get noticed first by some, then later by more, and then eventually by many. The magic trick was to ensure that the Tyranny of the 51% never noticed anything and only saw themselves caught up in a series of stochastic circumstances, perpetually beyond their control, that the Nexus was tirelessly and selflessly working to mitigate on their behalf. And once the hyperinflation counter-measures were implemented, the Old Television Production Crew had a captive audience to work with where the trick was to initiate an even more demoralizing and insidious form of Crushing Democracy. The trick was to force the captive audience of the United States of America into its new phase of crushing idiocy.

The American branch of the Nexus played a stupid game and America won a stupid prize.

The End of History was going to be humanity’s organized, synchronous, and incremental descent into moral, physical, and spiritual decline and that organization and synchronization needed motivation. Those Nexus agents who served the Philosopher Kings were not of the bloodlines, and they demanded compensation in return for carrying out their vicious and callous acts. To these narcissistic and egotistical agents, the End of History was not some abstract ideal to be selflessly pursued, and by no instance did it warrant martyrdom. Instead, the End of History was a self-gratifying and self-aggrandizing career endeavor. And the Philosopher Kings up to now had depended upon this narcissism and egoism to get things done on the ground.

So fiat money was the financial alchemist’s solution to the means by which to motivate these narcissists and egoists into unspeakable acts of violence, deceit, and terror. The objects of that violence, deceit, and terror need only be mesmerized into believing that fiat money was power in its self. The wizard’s trick was to hide the marionette strings that the Philosopher Kings first pulled into action in one direction, then tugged onto in another thus changing course whereby one man’s vouchsafed privilege became another man’s destiny. That perceived power held by fiat money was sold to the neo-liberal world as democracy and egalitarianism, and the neo-liberal world bought it because it vouchsafed to it the power and privilege that was sucked out of the rest of the world through the brutal extortion racket of a fiat empire. To get that power and privilege on to the shores of the Homeland, there needed to be unceasing war, violence, upheaval abroad, all under the umbrella of the constant threat of nuclear annihilation. But once privilege and power were safely within the Homeland, fiat money’s accumulation needed no special skill or ability, only the belief that its relentless pursuit could one day (no promises) bestow riches upon anyone at any time.

And the one thing that made that wizardry work was that the fiat empire fight abroad never entered the Homeland. But that all changed after September 17^th, 2019 with the Mother of All Money Grabs.

Once the neo-liberal world fell under fiat money’s spell, no one dare overthrow this benevolent means to status, privilege and the perception of power. After all, it was the impartial arbiter of everything in society, so once power and privilege were attributed to fiat money, the possession of fiat money became the perception of power and privilege. So it became that this perception of power and privilege granted to the accumulators of fiat money became the means by which to get things done. And to get the right things done, the Philosopher Kings need only cast the appropriate spells over their interlocking multimedia networks. With an unlimited supply of printed paper chits, there was an unlimited number of things that could get done. And with so many in the population enthralled by the pursuit of fiat money, no revolutionary spark would ever arise to upset the End of History project. In the hexed and spellbound neoliberal world, fiat money had become its ultimate ideal and pursuit.

But to keep this neo-liberal world from falling, the occult hand of those mortals who create, distribute, and manipulate fiat money must forever remain concealed or the spell vanishes. There can be no financial Revelation whereby the status and power bestowed by a divine fiat money is found to be in reality undemocratic, elitist in the extreme, and distributed in an entirely non-stochastic way. Fiat money flows not to those who serve best the needs of man like the productive class, but unto those who serve best the ends of the Philosopher Kings as does the conjuring class. Fiat money is created into being from nothing and controlled absolutely by these Philosopher Kings to push humanity into serving their plans – plans in which humanity has no say – plans that are entirely contrary to human nature. But hyperinflation reveals the secrets, destroys this neo-liberal world’s infallibility, and removes the mystery.

In the world of divine fiat money, deflation may be the Anti-Christ, but hyperinflation is the Devil himself.

For those that do come into the future, the End of History will not be remembered.

But when so much magic gets printed in a society that can no longer get things done on the ground, fiat money eventually becomes worthless as the Devil demands more and more of his due. When fiat money is worthless, there is nothing to motivate the Nexus to perform its vicious acts in service to the End of History. The system of reward and privilege acquisition evaporates and the impetus to collective organized brutality dissolves once the monetary bonds holding society in villeinage are removed. When those bonds are gone, society decentralizes and discretizes into a frantic Maslow hierarchy of millions of individual immediate needs which the previous systemic stability had provided for at a rudimentary level. And when the system collapses, society’s collective fear of systemic collapse is finally overcome, so obedience and compliance to the demands of the system can no longer be wielded as a cudgel for herding humanity down the bleak road of no return and across the finish line into the End of History.

Mankind received its reprieve from the End of History through the inherent greed and naked corruption of the all too human Nexus. But mankind did not realize this reprieve as the final months of the year 2019 slouched towards Bethlehem. That monumental crime - the Mother of All Money Grabs – irrevocably kicked the hyperinflation into the point of no return, and once that hyperinflation set in, it would be the beginning of the end to the End of History project. But mankind’s reprieve from the End of History by no means meant that mankind had also received its reprieve from the Philosopher Kings, as there was still the messy anachronistic matter of power and control for its own sake devoid of higher ideals. And as the Philosopher Kings began to lose control they would punish mankind and kick Endless War into a hyper-drive that would engulf the world before the hyperinflation could derailed the means of production behind the concept of modern mechanized warfare.

The ensuing financial systemic collapse and the chaos it spawns is exactly that narrow window of opportunity afforded to the productive class to end the sorcery once and for all. Only when the sorcery ends can the productive class reclaim its natural political preeminence, regain its primary status and function within society, and finally break its bondage of slavery to debt based money and the taxation, regulation, and inflation it spawns. And only once the power of conjured money is conquered can the productive class be free of the Philosopher Kings. America cannot break free of the current spell by casting a more powerful spell conjuring up the likes of monetary “reform”, a return to old fashioned “democracy”, or the invocation of God. Do as thou wilt can only be overcome when the streets run red with the fresh blood of the Philosopher Kings and their agents.

To get to the Philosopher Kings, the productive class will have to go through the Nexus. And to get to the Nexus, the productive class will have to go through the standing army of those who depend on conjuring for not only their status and privilege, but also for their daily bread and frozen pizza bestowed by the public largess of the enormous welfare rolls. And for a while, the productive class will have to stop producing, stare into the abyss, and for once start destroying. It must overcome its innate nature. If it is to fight and defeat the monsters, it must become a monster itself. It has come to the point in America where a return to producing anything useful of true value on scale represents a radical societal revolution. But the window of opportunity will not remain open for long. The productive class only has a limited amount of time to recognize its opportunity and seize upon it. And with the recognition of this opportunity must come the understanding that once seized upon, there is no turning back or its demise will be forever sealed in the expansive American network of FEMA camps.

And it would be one hell of a window of opportunity.