Analysis of Central Banking and Economic Reset

The central bankers met in Jackson Hole in, as I said,

summer of 2019 and they reviewed a plan

from the BlackRock Investment Institute prepared by a group of

retired central bankers called the Going Direct Reset.

Now we know that the central banking system

every 80 to 120 years does a reset

and often that reset is when you evolve the currency

or you move the currency to a different currency.

So we know this happens every,

you know, at some point you sort of flush the system.

And so I assumed when that happened

that we were going into a new reset.

The Going Direct Reset, Going Direct refers to a radical change in policy traditionally

when a central bank like the Federal Reserve added money to the system.

It would add it by investing or putting money into the reserve track

and then the banks would use that reserve track to then put money in the system.

Going Direct was the Fed essentially injecting enormous amounts of money

directly without going through the reserve track but buying, among other things,

securities from the non-depository institutions.

And what happened starting that September after the Going Direct meeting,

the Federal announcement of the pandemic injected extraordinary amounts of money into the system.

Normally and different estimates are that was $5 trillion or $6 trillion invested or

injected directly.

Normally any injection like that would have extraordinary inflationary impact.

And in fact, there was one former Undersecretary of the Treasury

who was speaking with Swiss investors said,

you know, enormous inflation is baked into the cake.

We just won't feel it right away.

And the reason we won't feel it right away,

as it turns out, was the pandemic.

Many of the pandemic sort of actions of locking people down or calling certain businesses

not essential and leaving other businesses open and some not essential created an enormous deflationary offset.

If you look at what happened in the United States, we basically shut down Main Street.

Lots of small businesses left the publicly traded companies open

and shifted enormous market shares out of the small businesses into the big businesses that thus radically

consolidating enormous amounts of economic activity.

So you inject $5 trillion,

essentially grossly oversimplified into Wall Street, and you shut down Main Street and

then Wall Street has money to go shopping and Main Street is in an economic squeeze.

The last estimates I saw estimated that 35% of the small businesses in America were shut down.

And in some places, I think San Francisco was as much as 49%.

So it was very,

very successful at consolidating economic activity into the big players.

One estimate was we in the United States, we created 500 or maybe it's worldwide.

We created 500 new billionaires.

So as I said,

looking at this from the viewpoint of what was happening financially around the world,

it was pretty clear to me that much of the pandemic was

essentially designed to implement the reset and using health policy as an excuse.