First we saw the US dig out and focus on 4 year old LIBOR
manipulation stories centred around the cesspit that goes by the name of
Barclays Bank that looks set to devastate all of UK's biggest banks,
with the UK tax payer ultimately footing the bailout bill. I have
covered this story at length that illustrate that everyone knew about
LIBOR manipulation but now pretend that they only found out relatively
recently - more here - RBS Chaos and Barclays Libor Cesspit Prompts Slow Motion Run on British Banks
And this week we have seen more convenient revelations out of the US
dating back to 2007 that HSBC, Britain's biggest bank that forces
ordinary citizens to jump through hoops to transfer small amounts of
currency abroad has been engaged in systematic money laundering for the
Mexican drug cartels to the tune $7 billion with potentially far worse
across the world as HSBC affiliates apparently did business with rogue
nations and terror organisations.
The truth is that BOTH stories could equally apply to major U.S.
Banks but U.S. politicians are choosing not to investigate / hold them
to account.
Compared to the master market manipulators such as JP Morgan and Goldman Sachs, the likes of Barclays is just a mere amateur. The reasons why US politicians are looking the other way are the same that UK politicians and the Bank of England have ignored the crimes of Britain's biggest banks in that the politicians are in the back pockets of the bankster's and that the truth risks shaking the confidence of an already fragile financial system.
Compared to the master market manipulators such as JP Morgan and Goldman Sachs, the likes of Barclays is just a mere amateur. The reasons why US politicians are looking the other way are the same that UK politicians and the Bank of England have ignored the crimes of Britain's biggest banks in that the politicians are in the back pockets of the bankster's and that the truth risks shaking the confidence of an already fragile financial system.
So the real story is why are U.S. politicians not holding their own thieving criminal banks to account ?
One possible answer may be found in the records of campaign donations.
So now in the UK, HSBC takes the lead from Barclays as Britains most
criminal banking institution, the question is will Barclays fight back
for the lead with something even worse? Off course Britain's banks are
just a few amongst many that is the global banking mafia crime family.
The truth will belatedly come out though the price paid will probably
wholly be by tax payers.
Now whilst you should by now be agreeing fully with me that the
global banking system is fraudulent and possibly even start to see that
the central banks are party to this fraud by evidence of their actions
as illustrated by money printing, the whole of which has been
effectively funneled into the back pockets of the Bankster elite where
in the UK this stands to the tune of £375 billion over 3 years, all
aided by pure propaganda that central banks are pumping money into the
economy which I have repeatedly illustrated as being a PURE LIE because
it has NOT been pumped into the the economy as politicians continually
state but into the banks.
The Only Solution Governments have is Inflationary Debt and Money Printing
If the Government / Bank of England wanted to boost the economy then
they would have handed over at least some of the money that has been
stuffed into the bankster banks to the people of Britain by means of tax
refunds. The only reason why they have not done so is because it will
be highly inflationary, after all Britain being an economy in depression
for the past 4 years has still suffered Inflation of 15% as illustrated
by the Inflation Mega-trend graph below -
The inflation mega-trend is something that the mainstream press never
mentions as the journalists who think they are economists rely on
vested interest academic economists to pump out propaganda that
virtually wholly focuses on what is only the annual momentum in the rate
of change of inflation as illustrated across the media by graphs such
as below that paints a picture of relative stability when the truth is
that of an exponential inflation trend.
Quantum of Quantitative Easing (QQE) is Coming!
I am quite often asked where will future inflation come from as
disposable incomes are falling and my answer is that the government will
ignite the wage price spiral. Then I am asked how will they ignite the
wage price spiral and my answer to that is what I call the Quantum of
Quantitative Easing.
There is a crisis brewing and that crisis is political as a
consequence of the subversion of capitalism by the mafia crime family
that includes our biggest banks and central banks. You cannot shatter
the illusion that has been in force for at least 60 years and probably
much longer, and not face the consequences, the illusion has allowed
the banks to turn everyone and everything into debt slaves, they have
stolen ALL of the wealth of virtually every citizen that has debts and
even those that have never borrowed a single penny as a consequence of
the fractional reserve banking debt printing Inflation Mega-trend, and
the consequences are going to be fought with Quantum of Quantitative
Easing, which could become the big new buzz phrase in the mainstream
media in about a years time, though given the 4 year delay in waking up
to the LIBOR scandal it may take a lot longer still.
What is QQE ?
To date the central banks electronic money printing presses have been
busy for the purpose of monetizing government debt by means of the
bankrupt banks. Which as I warned several years ago is likely to
continue for the whole of this decade and will be one of the primary
drivers of the Inflation Mega-trend and in the meantime nothing has
changed this expectations. The next stage is QQE, which will involve the
UK government (same applies to the likes of the US) via a number of
mechanisms to directly spend money printed electronically by the Bank of
England without it going through the mafia banking system i.e. direct
transfer from the Bank of England to Government. The exact mechanisms
used and what they will eventually be called will only become fully
clear in hindsight but the basic outcome will be as I indicate here in
that the Government will spend money printed (electronically) without it adding to government debt!
The QQE Secret of How to Print Money Without Increasing Debt
The answer to the secret lies in the name, in that we are discussing the QUANTOM of Quantitative Easing.
This is taking place right now, completely out of the focus of the public and the mainstream press.
QQE is taking place by means of the interest earned on government debt bought by the Bank of England i.e.
the Bank of England prints money to buy government debt from the banks,
therefore the government pays the Bank of England interest on this debt
most of which then gets recycled back to the Government so in effect
the government has free money to spend that it should not have, and the
more bonds the Bank of England buys the less net interest the Government
has to pay. Imagine if all of the bonds were owned by the Bank of
England, this would mean that the net interest paid by the government on
all of its £1.1 trillion debt would be virtually ZERO! So effectively
the government has NO DEBT TO SERVICE, because without any interest to
pay it effectively ceases to exist! Yes this mechanism is QQE because it
allows the government to spend money without increasing its NET debt
burden, not only that but the government is actually REDUCING its debt
burden as the debt is actually being cancelled out. So QQE is the
quantum of QE as the net debt interest burden falls towards ZERO.
I am sure this is one secret that the Bank of England wants to keep
hidden away for as long as possible for it implies that the ramping up
of the Inflation Mega-trend is already underway with approx 1/3rd of Government debt having been effectively cancelled to date! As effectively 1/3rd of the interest the government pays on it's debts is going back to itself! And meamtime about 12% of the value of the debt has been wiped out by inflation (£132 billion) over the past 3.5 years)
This is the magic of the electronic money printing presses and
inflation, as one minute the government had £1.1 trillion of debt and
then the next minute POOF, it is all gone! A bit like Verbal Kint
turning into Kaiser Sozer!
It is economic magic that the coalition government politicians will
pull out of their hat, resulting in no increase in debt and lots of
free money to spend or give away in electioneering tax cuts!
This is just one mechanism, though probably the primary mechanism but
there will be many other schemes that will cooked up between the
Treasury and the Bank of England that will fall under the QQE banner.
Why is it Dangerous?
If QE is akin to pouring petrol onto the inflation fire then QQE is
akin to pouring rocket fuel onto the Inflation fire. It will result in
an ACCELERATION of the EXPONENTIAL Inflation Mega-trend as the
government will effectively keep writing itself blank cheque's that it
cashes at the Bank of England.
Why is it Coming?
We are approaching the mid-point of the UK election cycle which means
the coalition government will have to start to ramp up the money
printing presses that will increasingly target the general public as
they attempt to buy votes going into the election. The Mafia banking
system is allowing the government to engage in the Quantum of QE which
will increasingly allow the government to buy votes by starting to spend
monopoly money (which is what Sterling will become) directly on all
sorts of activities such as digging big deep holes that they will call
construction projects or other measures such as tax cuts, however the
key point will be that this expenditure will not have any impact on the
governments budget deficit so it won't be money added to debt! They will
deploy much smoke and mirrors to try and mask what they are doing and
where the money is coming from.
Again the consequences of QQE will be to ramp up the Inflation
mega-trend, I have tried not to mention the word Hyperinflation because
that is a latter stage panic event. But you are reading this at least a
year ahead of the curve, at a time when mainstream press pseudo
economist journalists are fully focused on the latest dip in the CPI
inflation rate to 2.4%, and are eagerly regurgitating the views of
vested interest academic economist propaganda of always imminent
deflation.
This is how the Exponential Inflation Mega-trend is likely to play out:
1. QE for the bankrupt banks to monetize government debt = High Inflation
2. QQE to buy votes by expenditure that does not add to the government deficit = Higher Inflation
3. Loss of confidence in Fiat Currency due increase in supply of currency and velocity of money = Hyper inflation panic event.
No3 is not a certainty, it is a risk, and the more QQE a government engages in the greater will be the risk.
My next in-depth analysis will attempt to map out in detail what I
expect to follow over the next few years as QE continues to give way to
QQE, to get this on completion in your email in box ensure you remain subscribed to my always free newsletter.
In the meantime try to immunise yourself against the worthless
deflation mantra in the mainstream press, because at the moment we are
experiencing the calm before the coming inflation storm.
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