Connect with us

Government

2023: Fourth Turning Meets Mass Formation Psychosis, Part 2

2023: Fourth Turning Meets Mass Formation Psychosis, Part 2

Authored by Jim Quinn via The Burning Platform blog,

In Part 1 of this article,…

Published

on

2023: Fourth Turning Meets Mass Formation Psychosis, Part 2

Authored by Jim Quinn via The Burning Platform blog,

In Part 1 of this article, I laid out the mass formation psychosis theory postulated by Mattias Desmet in his book The Psychology of Totalitarianism and how totalitarian minded politicians and bureaucrats manipulated the masses by creating the covid crisis. Now I will focus on how this will impact the Fourth Turning we are currently trying to survive.

Decades of social indoctrination and degraded ability to think critically has left most people hopelessly unable to resist the vitriolic opinions of those under the spell of coronavirus mass formation. Even though they didn’t necessarily believe the covid narrative, especially when it became clear only the very old (especially when tyrant governors inserted infected patients into nursing homes) and the very obese actually died with covid, these people still went along. Even the CDC admitted only 6% of deaths were attributable to covid alone.

Based upon research like the Milgram Experiment, we know average people will obey authority without question, even when they know their actions are causing pain. The conformity research done by Solomon Asch explains why a huge percentage of the global population just conformed to what appeared to be a majority opinion. Asch’s experiment had 8 test subjects, but 7 of them worked for Asch. They asked them which line was the same length as Exhibit 1. The 7 Asch employees answered C. Only 25% of the case subjects consistently answered A. They were cowed into giving a patently absurd answer due to peer pressure and lack of faith in their own judgement.

When you have 30% of the population as true believers of the covidian religion, with their savior Fauci, prophets Walensky, Birx, Gottlieb, Biden, the pope, a slew of Big Pharma paid priests for hire, Hollywood elites, low IQ athletes, and a highly compensated mass media campaign of fear and loathing, the 40% in the middle really had no chance to not be pulled into the vortex of pandemia. From the outset they were inundated with data like Neal Ferguson’s Imperial College model of death. Putting up a scary chart, even though it was based on absurd assumptions, is considered fact by the lazy, non-thinking masses.

Shutting down the world was based on this worthless fraudulent model. Add some fake videos of dead people piling up in the streets in China, with media talking heads declaring hospitals being overrun (even though nurses had time to do coordinated dance routines on Tik Tok), and graphics on CNN, MSNBC, and Fox showing cases rising (based on a faulty PCR test set too high), and Fauci knowingly lying about the effectiveness of masks and the ineffectiveness of ivermectin and hydroxychloquine, and you’ve got panic.

Cases were not sicknesses. Covid deaths were deaths from something else, while testing positive for covid. The average age of “covid” deaths was 83. The overall survival rate was 99.7%. If you were under 70 it was 99.9%. If you were under 40 it was 99.999%. It was nothing more than the annual flu, with a multi-billion-dollar marketing budget, paid for by the same taxpayers who were locked down and out of work.

Anyone with the gall to dispute the narrative with factual data, sound reasoning, and pointing out the cure was worse than the disease, became an enemy of the state and subject to intolerant attacks, cancellation from society, and censorship on par with the worst totalitarian regimes in history. The physicians’ principle of Do No Harm was discarded for the almighty buck. The measures taken to “defeat” a relatively benign virus wreaked havoc upon the world economically, socially, and psychologically.

The damage they caused and the unintended consequences they unleashed will have a profound negative impact on the world forever. The animosity, mistrust, fear, and suffering created by those running this shitshow will fuel the coming chaos, havoc and war which always arrives during the waning years of a Fourth Turning. The 30% still firmly under the sway of their mass formation psychosis will never hold Fauci, Biden and the myriad of covid cronies responsible for their crimes against humanity. As Desmet explains, everything can be rationalized by the covidian cult.

“Another consequence, that is very typical for totalitarian states, is that people become radically intolerant for dissonant voices. Because if someone tells another story, if someone claims that the official story is wrong, then this person threatens to wake the people up and they will get angry because they’re confronted with the initial anxiety and the initial psychological discontent. So, they direct all that aggression at these dissonant voices, at the other voices. And at the same time, they are radically tolerant for their leaders, for the people who pronounce the mainstream narrative. These people can actually cheat and lie and manipulate and do everything they want, but they will always be forgiven by the crowd because the crowd seems to think that they do it for their own sake. That’s also part of the mechanism of mass formation.” 

- Mattias Desmet – The Psychology of Totalitarianism

Being wrong means nothing to those who have latched onto a narrative that gives their lives meaning. This is what explains how seemingly intelligent people could believe an utterly absurd narrative, built upon falsified data, inaccurate statistics, and irrational hype. Subjective conclusions pronounced by those who benefited from those conclusions are not objective facts. The last two years have been a far greater psychological calamity than biological catastrophe. The mental illness which has infected the masses has opened the Pandora’s box of totalitarianism and a surveillance state never envisioned by Orwell in his worst dreams.

The lockdowns and vaccines have caused more death than they prevented. Suicides, overdose deaths, deaths due to preventative healthcare not accessed, deaths by ventilators and Remdesivir, deaths due to not allowing doctors to prescribe ivermectin and hydroxychloroquine, and now sudden deaths from the Pfizer and Moderna jabs are all verifiable and factual, but no empathy from the covidian cult is forthcoming for these victims. As Desmet points out, once the mass formation began it encouraged various factions to keep it going for their own self-interest. The cult never wants it to end.

“But this is also being constructed by politicians who are under pressure from public opinion and feel compelled to act decisively, by leaders who have lost control of society and are now able to regain control because of the virus, by experts who have to hide their ignorance and choose the flight ahead, by academics who see an opportunity to assert themselves, by the inherent tendency in man for hysteria and drama, by pharmaceutical companies that sense a golden opportunity, by media that thrive on sensational stories, through testimonials of unique cases in which the course of the disease was exceptionally difficult.” 

- Mattias Desmet

So here we are in early 2023, with the mass formation psychosis still thoroughly intact, authoritarian measures still in place, anger building among all three factions, as the 30% dissenters have been proven right without being given credit, the hypnotized 30% who were wrong want more restrictions and punishments, and the go along to get along 40% are slowly realizing they were duped and experiencing massive regret. We face a multi-pronged situation which is likely to result in a tragedy of untold proportions over the next few years.

Having a major segment of your population proud of their willful ignorance and believing their opinions based on emotions and what they are told by mass media, is as valid as someone who basis their judgement on critical well researched thought and factual data, sets the stage for tragic denouement to this Fourth Turning. The superficiality of the citizenry, celebration of deviancy, financial illiteracy, unserious culture, technology obsession, and devastating level of governmental, academic, media and corporate corruption, are a perfect recipe for the fall of the American empire.

The mass formation needs an object of fear to keep its intensity at a hypnotic level. First it was masks and lockdowns. Next it was the vaccines and destroying the lives of anti-vaxxers. Next it was Putin and Russia as the evil antagonist. Then it was climate change and banning gas stoves. Everything these people believe is based on absurdities and purposeful ignorance of facts. The societal woes which allowed this to blossom have not dissipated and until our culture undergoes a wrenching reset forced upon it by an inevitable financial collapse and likely global conflict, our chances to survive as a nation are slim.

This is what must happen during a Fourth Turning. The existing social order is swept away and replaced by something better or worse. We will either continue down this path towards global totalitarianism, where you own nothing, are under government surveillance 24/7, ask permission to travel more than 15 minutes from your home, accept your regular booster shots, and are tagged like cattle through social credit scores tied to your use of their central bank digital currencies, or the minority of resisters and critical thinkers recapture control and steer this ship back towards liberty, freedom, sustainable local communities, and lives which regain meaning and purpose.

Where I disagree with Desmet is regarding his opinion the leaders (Fauci, Gates, Soros, Schwab, Biden) being followed during this mass formation psychosis event were also under a self-hypnosis driven by their ideological beliefs. He doesn’t give much credence to the “conspiracy theorists” who believe this was an engineered event to promote the Great Reset and introduce authoritarian measures upon the masses. As one of those “conspiracy theorists” I no longer believe in coincidences.

Fauci stated in early 2017 Trump would face a deadly pandemic during his term, when we hadn’t experienced a real pandemic in decades. Fauci illegally funded the gain of function research at the Wuhan bio-weapon lab. Gates, Soros, and Fauci ran the Event 201 pandemic simulation in October 2019, a few months before covid. Pfizer and Moderna already had their gene therapies (which had failed miserably in previous trials) waiting for the green light from those running the show. The Build Back Better campaign was orchestrated across the world in every western country. I could go on, but it is plainly evident this plandemic was not organic but coordinated by the global elite.

Our best hope is for the vocal 10%, who refused the jabs, have defied the overlords at every turn, and understand the dystopian path we are being herded towards, can slowly but surely convince their fellow 20% of unjabbed and the middle 40% on the fence to join them in a mass resistance to the Great Reset/New World Order being jammed down our throats by the Davos elite, shadowy billionaire globalists/satanists, the captured pliant corporate media, bought off Soros installed politicians and bureaucrats, and thousands of feckless apparatchiks around the globe, saying anything they are told for a buck.

Unless we can break this mass formation psychosis, this Fourth Turning will surely end in our enslavement to a totalitarian global state and the horrific consequences for humanity if we let it happen. Desmet’s advice for humanity reminds me of Andy Dufresne’s quote from the movie Shawshank Redemption, “It comes down to a simple choice, really. Get busy living or get busy dying.”

“Don’t let freedom – especially the right to speak freely – be subordinated to the fear of any virus. Generations and generations have fought and given their lives to realize a certain freedom. Show that you are worthy of that freedom. If you want a life worth living, you have to be able to accept a certain amount of risk. Don’t give up everything for a sense of security that may eventually turn out to be false.”

Mattias Desmet

The core elements of this Fourth Turning (debt, civic decay, global disorder) are still driving this crisis, as they juxtapose and feed on each other, creating the environment and atmosphere for the coming storm, in which the hundreds of millions still entrapped in this mass formation are perfect fodder for those seeking to capitalize on their inability to comprehend facts and reality. This is how the totalitarians hope to succeed in creating a centralized global techno-gulag, where they control 8 billion people (while culling billions to make their prison more manageable), and are arrogantly sure their “science” based pronouncements from on high will be implemented flawlessly, leading to a utopian world – for them.

It is this hubris that will lead to their downfall. Everything they do and propose makes the world a worse place. Their ludicrous ideas, assumptions, postulations, and beliefs cannot and will not succeed, either through utter failure when implemented or by armed resistance from those unwilling to bend the knee.

I find a distinct relationship between mass formation, totalitarianism, and Fourth Turnings. Evidence of mass formation and support for totalitarians among populations during the Civil War Fourth Turning and Depression/World War II Fourth Turning is obvious to me. A major percentage of the Northern population was convinced their abolition of slavery cause was just, and therefore allowed Lincoln to ignore Constitutional civil liberties and ultimately override state’s rights, while consolidating more power at the Federal level.

A majority elected FDR four times, supported his socialist New Deal programs, and patriotically died on his behalf in a war he helped provoke. Simultaneously, the German people became enthralled and mesmerized by the rhetoric of Hitler and his promise to undo the treachery inflicted upon the German people at Versailles. Stalin convinced a major percentage of Russians to kill and imprison tens of millions of their fellow citizens, and then fought Germans to the death on Stalin’s behalf.

It appears 2023 could be a tipping point year in this Fourth Turning, much like the 15th year of the last Fourth Turning (1943-1944) when the tide turned during WWII with the Battle of Stalingrad and Normandy Invasion. Biden’s corrupt administration appears to be imploding. Inflation, rising interest rates, a $31 trillion national debt, $200 trillion of unpayable obligations, a USD that has lost 97% of its purchasing power, out of control surveillance state agencies running amok, broken education system, rampant worship and promotion of deviancy, ghetto crime rampaging in every major urban city, transferring $120 billion to the Ukraine (actually US arms dealers) to instigate WWIII, provoking China over Taiwan, and allowing unelected officials at non-governmental organizations (WEF, WHO, UN, NATO, World Bank) to impose their rules, regulations and mandates on our lives, has set the table for the disintegration of our financial, political, social, and cultural institutions. The downward spiral, decades in the making, is irreversible at this point.

Will all of these lit fuses ignite their powder kegs simultaneously in 2023? Probably not, but a few will explode, producing unintended consequences and start a process of falling dominoes and chaos for the average human on this earth. Having already ruined the livelihoods of tens of millions across the globe, destroying thousands of small businesses, igniting inflation not seen in forty years, causing food shortages, and making our lives far worse, the sudden deaths of children, mothers, fathers, sisters, brothers, and friends from their mandated gene altering, spike protein inducing therapy should be the last straw and provoke a violent response from the awakening masses.

After the collapse of our warped, dehumanizing, immoral, irresponsible, greed based system, building back better is not going to mean what the Davos elite think it means. All the trappings of modernity will fall away and we will be left with the task of daily survival, based upon our hard work, strong supportive families, like minded neighbors, intelligence, wisdom, local community collaboration, and the promise of a more meaningful and useful life. Building personal relationships with people you trust, preparing for crisis now, growing food or befriending farmers, improving your health, making sure you are armed and trained in using those arms, and readying yourself for when courage, honesty, fortitude, and guile will be required to insure a better future for your children and their children, is essential.

I’m just an average guy, like most people reading this article, trying to understand what is happening, why it is happening, and what will happen next. We are three-quarters through this Fourth Turning Crisis, with the nastiest, bloodiest episode lying ahead. I’m more prepared than most, not as prepared as many, and wondering whether it will even matter if the madmen and psychopaths controlling the levers in this world decide to destroy it. All I can do at this point is to proudly count myself among the 10% vocal resisters to those attempting to destroy our society and hope my efforts and the efforts of others make a small contribution towards breaking this mass formation psychosis.

“The risk of catastrophe will be very high. The nation could erupt into insurrection or civil violence, crack up geographically, or succumb to authoritarian rule. If there is a war, it is likely to be one of maximum risk and effort – in other words, a total war. Every Fourth Turning has registered an upward ratchet in the technology of destruction, and in mankind’s willingness to use it.” 

– Strauss & Howe – The Fourth Turning

Here’s to an uneventful 2023, but I’m not counting on it. Good luck and Godspeed. Our choices will matter.

*  *  *

It is Jim's sincere desire to provide readers of The Burning Platform with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit Jim's site, he asks that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. He needs your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. 

Tyler Durden Wed, 01/25/2023 - 17:02

Read More

Continue Reading

International

Pfizer Responds After Director Says Company Is Developing Ways To Mutate COVID-19

Pfizer Responds After Director Says Company Is Developing Ways To Mutate COVID-19

Authored by Zachary Stieber via The Epoch Times (emphasis…

Published

on

Pfizer Responds After Director Says Company Is Developing Ways To Mutate COVID-19

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

Pfizer late Jan. 28 responded to comments from a director at the company about exploring ways to mutate COVID-19 as a method to “preemptively develop new vaccines.”

“In the ongoing development of the Pfizer-BioNTech COVID-19 vaccine, Pfizer has not conducted gain of function or directed evolution research,” Pfizer said in a lengthy written statement after days of ignoring queries from The Epoch Times and other outlets.

A sign for Pfizer is displayed in New York in a file photograph. (Timothy A. Clary/AFP via Getty Images)

Pfizer did say that it has conducted research “where the original SARS-CoV-2 virus has been used to express the spike protein from new variants of concern.”

“This work is undertaken once a new variant of concern has been identified by public health authorities. This research provides a way for us to rapidly assess the ability of an existing vaccine to induce antibodies that neutralize a newly identified variant of concern. We then make this data available through peer reviewed scientific journals and use it as one of the steps to determine whether a vaccine update is required,” the company added.

Pfizer did say it has conducted experiments in a level 3 laboratory.

Pfizer said, in its work developing a treatment for COVID-19, it has “engineered” the COVID-19 virus “to enable the assessment of antiviral activity in cells.”

“In addition, in vitro resistance selection experiments are undertaken in cells incubated with SARS-CoV-2 and nirmatrelvir in our secure Biosafety level 3 (BSL3) laboratory to assess whether the main protease can mutate to yield resistant strains of the virus,” Pfizer said. “It is important to note that these studies are required by U.S. and global regulators for all antiviral products and are carried out by many companies and academic institutions in the U.S. and around the world.”

Pfizer produces a COVID-19 treatment called Paxlovid, or nirmatrelvir that is authorized in the United States and some other countries.

In its statement, Pfizer did not dispute that Dr. Jordon Walker, who told a Project Veritas journalist that Pfizer is exploring how to “mutate” the COVID-19 virus, was or is a Pfizer employee.

Professional profiles for Walker, which have since been taken down, listed him as a director of messenger RNA research at the company. Pfizer’s COVID-19 vaccine utilizes messenger RNA. The profiles also listed a Pfizer email address, and an email sent to that address did not bounce back. A receptionist at Pfizer on Thursday also told The Epoch Times that Walker had an internal company profile, but a different receptionist on Friday said there was no listing for the doctor, indicating he might have been terminated after the comments were made public.

Malone

Dr. Robert Malone, who helped develop the messenger RNA technology, said that the experiments Pfizer described met the definition of “gain of function.”

Pfizer is basically acknowledging that they are doing the same type of gain of function research that Boston University was caught doing, but they are denying that it is gain of function or directed evolution,” Malone wrote on Twitter.

Malone pointed to Pfizer’s comment about taking the original SARS-CoV-2 virus and using it “to express the spike protein from new variants of concern.”

Gain of function generally describes experiments that aim to increase functions of a virus such as transmissibility and virulence. Walker had said in his comments that the work he was describing was not gain of function, but “directed evolution.”

Researchers with Boston University revealed in 2022 that they had developed a strain of COVID-19 that killed 80 percent of mice infected with it.

The U.S. National Institutes of Health (NIH) is supposed to oversee risky research conducted in or funded by the United States but has faced criticism for only reviewing a handful of projects—none since 2019—under the oversight system.

The NIH funded gain of function experiments at the Wuhan laboratory situated near where the first COVID-19 cases were identified, and officials have promised to keep funding research in China.

Sen. Marco Rubio (R-Fla.) had written a letter to Pfizer CEO Albert Bourla referring to Walker’s remarks and questioning whether the company has or is planning to mutate the COVID-19 virus.

Walker’s comments “are alarming,” Rubio wrote in the Jan. 26 missive.

YouTube Takes Down Video

In a notice sent to Project Veritas, YouTube cited its medical misinformation policy, which bars “claims about COVID-19 vaccination that contradict expert consensus from local health authorities or the World Health Organization (WHO).”

It wasn’t clear which authorities specifically YouTube was relying upon to rebut the video.

YouTube, which is owned by Google, did not respond to a request for comment.

O’Keefe noted that the claims in the video were made by a Pfizer director.

Project Veritas was given a “strike,” which prevents the organization from taking actions like uploading new videos for one week. A second strike would block such actions for two weeks and a third strike in a 90-day period would result in a permanent removal of the group’s account, YouTube warned.

Read more here...

Tyler Durden Sat, 01/28/2023 - 14:30

Read More

Continue Reading

International

Von Greyerz: As West, Debt, & Stocks Implode; East, Gold, & Oil Explode

Von Greyerz: As West, Debt, & Stocks Implode; East, Gold, & Oil Explode

Authored by Egon von Greyerz via GoldSwitzerland.com,

“The…

Published

on

Von Greyerz: As West, Debt, & Stocks Implode; East, Gold, & Oil Explode

Authored by Egon von Greyerz via GoldSwitzerland.com,

“The risk of over-tightening by the European Central Bank is nothing less than catastrophic” says Prof Kenneth Rogoff .

At Davos he also said:

Italy is extremely vulnerable. But this could pop anywhere. Global debt has gone up massively since the pandemic: public debt, corporate debt, everything.”

Rogoff believes that it is a miracle that the world averted a financial crisis in 2022, but the odds of a major accident are shortening as the delayed effects of past tightening feed through.

As Rogoff said: 

“We were very fortunate that we didn’t have a global systemic event in 2022, and we can count our blessings for that, but rates are still going higher and the risk keeps rising.”

But lurking in the murkiness is also the global financial assets/liabilities which is almost $500 trillion including the shadow banking system at 46% of the total. The shadow banking sector includes  pension funds, hedge funds and other financial institutions which are largely unregulated.

Shadow banking is not subject to the normal mark-to-market rules. Thus no one knows what the real position or losses are. This means that central banks are in the dark when it comes to evaluation of the real risks of the system.

Clearly, I am not the only one harping on about the catastrophic global debt/liability situation.

And no one knows the extent of total global derivatives. But if they have grown in line with debt and also with the shadow banking system, they could easily be in excess of $3 quadrillion.

Cultures don’t die overnight, but the US has been in decline since at least the Vietnam war in the 1960s. Interestingly, the US has not had a real Budget surplus since the early 1930s with a handful of years of exception.

But when you, like the US, live on borrowed time and borrowed money, it becomes increasingly difficult to keep up appearances. In 1971, the pressures on the US economy and currency became too great.  Thus Nixon closed the Gold Window with the dollar having lost over 98% in real terms since then. This is of course a total catastrophe and a guarantee that the remaining 2% fall to ZERO will come in the near term future, whether it takes 5 or 10 years for the dollar to reach oblivion. Remember that the final 2% is 100% from today!

The US, EU and Japan have now reached the stage when no one wants their debt. So sovereign debt of these nations is no longer a question of “passing the parcel” but keeping the parcel. When every third party holder of these debts is a seller, who will buy?

These three countries will end up holding their own debt. Japan already holds over 50% of its debt. Before the Western Ponzi scheme comes to an end, these three nations will virtually hold 100% of their own debt. At that point, the bonds will be worthless and interest rates will have reached infinity. Not a pretty prospect!

US – PERFECT RECIPE FOR DISASTER

The final phase of all empires always includes excessive deficits and debts, inflation, a collapsing currency, decadence and war. And the US qualifies perfectly in all those categories.

Ernest Hemingway stated it superbly:

The first panacea of a mismanaged nation is inflation of the currency; the second is war.
Both bring temporary prosperity;
both bring a permanent ruin.
But both are the refuge of political
and economic opportunists. 

The US has failed in every war since the Vietnam war, including the Yugoslav Wars, Afghanistan, Iraq, Syria and Libya. The results have been massive casualties and destruction of the countries, often leading to economic misery, anarchy and terrorism.

The Ukrainian war is not between Ukraine and Russia but between the US and Russia as I discussed in a previous article (Link). The clear proof that there is no desire for peace from the US is that they are sending money and weapons to Ukraine in the $100s of billions and “encouraging” an increasingly suffering Europe to do the same. But they are not sending any peace negotiators to Russia in an attempt to end the war. This is very ominous.

The geopolitical situation is now on a knife edge with two major nuclear powers fighting about a relatively insignificant country. This is how major wars normally start.

Let us hope that the current conflict does not lead to a major nuclear war since that would be the end of the world. Thus not worth to speculate about the outcome of this high risk scenario.

But the economic war and the collapse of the US dominated financial system is not just  inevitable but also catastrophic for the Western economies.

A COMMODITY DOMINATED WORLD

As the hegemony of the US is coming to an end, the dominance of the decadent West is moving quickly to the East and South. Commodity based countries like the enlarged BRICS will dominate for the next few decades and probably longer. Oil and gas will form the base of this shift but also many other commodities including gold which is now starting a new era.

It is likely that 2023 will be the first year of many when we will see a strong rise in gold just like 2000 – 2011 which saw a 7.5X gain.

The end of the Western debt based cycle and the rise of the Eastern and Southern commodity cycle is well illustrated in the graph below

OIL, GOLD TO GO UP > 9X AGAINST STOCKS

The S&P Commodity Index relative to Stocks has recently made a 50 year low. Just to return to the mean, the index would need to go up 4X. But when long term cycles turn up from a historical low, they tend to trend higher and longer than anyone expects. So a move past the 1990 high of 9 is very likely. This would mean that commodities, and especially oil and gold, relative to stocks would move up more than 9X!

This  9X move  would obviously involve a combination of falling stocks and rising commodity prices.

The expected move of the index confirms the shift from the West, based on an unsound and debt infested system, to the East & South, based on commodities.

Much of this move is based on the fossil fuels of the countries involved – to the chagrin of the climate movement zealots.

In today’s woke world, there is a tendency to believe that we can change all the laws of nature and science. This is the case both in the economy and climate.  Bankers and governments are confident that they can create permanent prosperity by printing worthless pieces of paper believing that these represent real and lasting value and wealth.

Well surprise, surprise, these people will soon have the shock of a lifetime as all that printed money returns to its intrinsic value of ZERO.

A debt based economy eventually becomes a self-fulfilling prophecy.

The higher the debt, the more the debt needs to grow in a never ending vicious circle. In the end the debt cycle becomes a perpetual motion Ponzi scheme……. UNTIL IT ALL CRASHES!

The debt feeds on itself and the more that is issued, the more needs to be issued. As inflation rises, the escalating interest cost on the debt leads to more debt. Next is defaults, both private and foreign. Then the $2-3 quadrillion derivatives, a great part of which is in the shadow banking system, comes under pressure. This leads to massive further debt creation by the Fed and other central banks, desperately trying to save the system.

This will eventually lead to what von Mises called:  “…. a final and total catastrophe of the currency system involved.”

But remember that we are here talking about the Western financial system. The economic sun in the East will rise strongly and eventually be the guiding light for the world economy.

The debt based US and West will to quote Hemingway decline “first gradually and then suddenly.”  So due to the $2+ quadrillion size of the problem, the biggest part of the decline is unlikely to take more than 10 years and it could be a lot faster, especially at the end.

But the climate zealots

 will have to wait to 2050 to learn that through their actions they didn’t manage to limit the increase in temperature to 1.5 degrees. But with a lot of luck, climate cycles might be on their side and make the weather much colder.

Personally I believe that cycles determine the climate and not humans.

The climate cycle graph below covering 11,000 years shows that there has been numerous periods with warmer temperatures than currently. At the peak of the Roman Empire 2000 years ago, Rome had a tropical climate.

Fossil fuels produce 83% of the world’s energy today. According to forecasts this percentage is unlikely to come down significantly in the next 50 years.

Partly due to the increased cost of producing energy, fossil fuel production will fall by 26% by 2048. Increases in nuclear and renewables will not compensate for this decline.

If the world stops using fossil fuels, the world economy would totally collapse. Sadly the climate activist movement does not seem to worry about such disastrous consequences.

So it seems fairly clear that for a very long time, the world will be dependent on fossil fuels in order for the economy and population not to collapse.

For the above reasons, the commodity based countries will soon dominate the world and that for a very long time.

The constellations of commodity rich nations are forming rapidly.

Firstly we have the BRICS countries which currently consist of Brazil, Russia, India, China and South Africa. Many countries are in the process of joining BRICS including Saudi Arabia, Iran, Algeria, Argentina and Turkey.

It is the enlarged BRICS aim to bypass the dollar and create their own trading currency.

Many talk about the Petroyuan replacing the Petrodollar but what would everyone do with the Chinese currency since it isn’t freely convertible. Better then to have a currency linked to several commodity countries like Special Drawing Rights. This would create more stability and usability. The Credit Suisse analyst Pozsar calls this Bretton Woods III.

There is also the EAEU or Eurasia Economic Union with Russia leading plus China, India, Iran, Turkey and UAE involved.

The SCO – the Shanghai Cooperation Organisation headquartered in China is also an important force. The SCO is a political, economic, international security and defence organisation. It includes many Eurasian nations like China, Russia, Uzbekistan, Kazakhstan etc.

All the economies involved in this important development are commodity based. For example, commodities are 30% of Russian GDP. Their target is to expand gold mining to 3% of GDP and become the biggest gold producer in the world.

Russia has the world’s largest commodity reserves at $75 trillion and produces 11 million barrels of oil per day. Russian friendly provinces produce another 14M totalling 25M. China produces 5m barrels and the Middle East Oil going through the Strait of Hormuz is 22M barrels.  So in a conflict with the US, Russia, China and Iran  could decide to close the Strait of Hormuz which means they would have control over 50% of global oil supply. As Goldman Sachs has stated, oil would then be in the $1000s.

If we take Russia, Iran and Venezuela, they control 40% of the global oil supply.

The point I am making is that these various constellations of commodity countries will be the dominant economic power of the future as the US and Europe decline.

So for Russia, gold and oil are two strategic commodities which will play an important role not just for Russia but for all of these Eastern/Southern countries.

And no one should believe that the US and European sanctions are working. Russia and Iran are selling oil and gas to China at a discount. China then exports this, including refined products, to Europe at premium.

So the sanctions are a farce which totally kills the European economy.

Interestingly, the relationship between yellow gold and black gold has been stable for decades as this chart shows:

GOLD / OIL RATIO 1950 – 2023

GOLD – THE VITAL WEALTH PRESERVATION ASSET FOR 2023 AND BEYOND

Gold was the best performing asset class in 2022 but the investment world didn’t notice since it is hanging on to the declining bubble assets of stocks, bonds and property.

Let’s look at gold’s performance in various currencies in 2022:

The chart shows gold up 15% against Swedish Kroner on the right and for example up 11.6% in pounds, 6% in Euros and virtually unchanged in US$.

Bearing in mind that most asset markets, including bonds, have fallen by 20-30%, this is an outstanding performance by gold.

But no one must believe that gold is going up. All gold does it to reflect the total mismanagement of most economies. The chart above should be turned upside down to reflect the loss of purchasing power of all paper money.

As has been the case since 1971, this trend of falling currencies will continue but not at the same steady pace.

With the debt infested Western economies collapsing, their currencies will implode one after the other.

So please firstly acquire as much physical gold as you can afford and then some more.

And when you own your gold, don’t measure the value in collapsing currencies. Just measure your gold in ounces, kilos or grammes.

Also please don’t keep it in the country where you live, especially if that country has a tendency to grab assets. I don’t need to tell you which countries you can’t trust. The problem is, there are not many you can trust.

BEWARE – A GOLD CUSTODIAN DISAPPEARED WITH CLIENTS’ METALS

Also if you store your gold with a gold custodian, ensure that only you can release it by having the Warehouse Receipt in your name. A custodian gold company disappeared last year with the major customer assets in spite of the gold being stored with a major vault company. The weakness was that the gold company could release the gold without the client’s approval. This is not an acceptable way to store your wealth preservation asset. 

Finally remember that gold is not just your most important wealth preservation asset but can also be beautiful.

TUTANKHAMUN’S DEATH MASK 1327 BC

Tyler Durden Sat, 01/28/2023 - 11:30

Read More

Continue Reading

Government

Federal Food Stamps Program Hits Record Costs In 2022

Federal Food Stamps Program Hits Record Costs In 2022

In early January, The Wall Street Journal Editorial Board warned that one peril of a…

Published

on

Federal Food Stamps Program Hits Record Costs In 2022

In early January, The Wall Street Journal Editorial Board warned that one peril of a large administrative state is the mischief agencies can get up to when no one is watching.

Specifically, they highlight the overreach of the Agriculture Department, which expanded food-stamp benefits by evading the process for determining benefits and end-running Congressional review.

Exhibit A in the over-reach is the fact that the cost of the federal food stamps program known as the Supplemental Nutrition Assistance Program (SNAP) increased to a record $119.5 billion in 2022, according to data released by the U.S. Department of Agriculture...

Food Stamp costs have literally exploded from $60.3 billion in 2019, the last year before the pandemic, to the record-setting $119.5 billion in 2022.

In 2019, the average monthly per person benefit was $129.83 in 2019, according to the U.S. Department of Agriculture. That increased by 78 percent to $230.88 in 2022.

Even more intriguing is the fact that the number of participants had increased from 35.7 million in 2019 to 41.2 million in 2022...

All of which is a little odd - the number of people on food stamps remains at record highs while the post-COVID-lockdown employment picture has improved dramatically...

Source: Bloomberg

If any of this surprises you, it really shouldn't given that 'you, the people' voted for the welfare state. However, as WSJ chided: "abuse of process doesn’t get much clearer than that."

In its first review of USDA, the GAO skewered Agriculture’s process for having violated the Congressional Review Act, noting that the “2021 [Thrifty Food Plan] meets the definition of a rule under the [Congressional Review Act] and no CRA exception applies. Therefore, the 2021 TFP is subject to the requirement that it be submitted to Congress.” GAO’s second report says “officials made this update without key project management and quality assurance practices in place.”

Abuse of process doesn’t get much clearer than that. The GAO review won’t unwind the increase, which requires action by the USDA. But the GAO report should resonate with taxpayers who don’t like to see the politicization of a process meant to provide nutrition to those in need, not act as a vehicle for partisan agency staffers to impose their agenda without Congressional approval.

All of this undermines transparency and accountability for a program that provided food stamps to some 41 million people in 2021. The Biden Administration is using the cover of the pandemic to expand the entitlement state beyond what Congress authorized.

The question now is, will House Republicans draw attention to this lawlessness and use their power of the purse to stop it to the extent possible with a Democratic Senate.

And don't forget, the US economy is "strong as hell."

Tyler Durden Sat, 01/28/2023 - 09:55

Read More

Continue Reading

Trending