The Real Reason For Covid Lockdowns
(Chaz Anon) In the final months of 2019, the financial system was on the verge of collapse. The Ruling Class, via the Federal Reserve, used the Covid pandemic as a pretext to stabilize the financial system, pumping over $9 trillion into the banking sector from September 2019 to March 2020. This amount surpassed 40% of the US GDP. Such a massive influx of liquidity is the primary cause of today's high prices.
Economist Ellen Brown, called it “another bailout”, but this time “under cover of a virus.”
The narrative around the March 2020 stock market collapse and subsequent lockdowns should be reversed: the stock market did not collapse (in March 2020) because lockdowns had to be imposed; rather, lockdowns had to be imposed because financial markets were collapsing. The lockdowns halted business activities, reduced credit demand and prevented further financial contagion. This pause allowed for the restructuring of financial systems via “extreme” monetary policies.
In June 2019, the Bank of International Settlements (BIS) warned of potential financial instability in its Annual Economic Report. It pointed out overheating in the leveraged loan market, marked by declining credit standards and a surge in collateralized loan obligations (CLOs), drawing parallels to the conditions that led to the 2008 financial crisis through a similar rise in collateralized debt obligations (CDOs). Essentially, the report indicated that the financial industry was again accumulating risky assets.
On August 9th 2019, the BIS issued a working paper calling for “unconventional monetary policy measures” to “insulate the real economy from further deterioration in financial conditions”. The paper claimed that, by facilitating “direct credit to the economy” during a crisis, central banks “can replace commercial banks in providing loans to firms.”
On August 15, 2019, Blackrock Inc., the world's largest investment fund managing around $7 trillion, released a white paper titled "Dealing with the next downturn." The paper suggests that the US Federal Reserve should directly inject liquidity into the financial system to avert a severe economic downturn. It emphasizes that an unprecedented approach is necessary once monetary policy reaches its limits and fiscal policy alone is insufficient. This approach, termed "going direct," involves ways to distribute central bank money directly to both public and private sector spenders, with caution to avoid hyperinflation scenarios like those experienced in the Weimar Republic, Argentina, and Zimbabwe.
During August 22-24, 2019: In the shadows of the Grand Tetons, G7 central banking elite gathered in Jackson Hole, Wyoming, to discuss BlackRock’s analysis and ways to avoid an impending financial collapse.
On September 15-16, 2019, a significant financial event occurred as repo rates unexpectedly surged from 2% to 10.5%. Repo, short for repurchase agreement, involves investment funds lending money against collateral assets like Treasury securities, with banks agreeing to repurchase these assets at a higher price, usually overnight. Repos are crucial as short-term collateralized loans and a primary funding source for traders, particularly in derivatives markets. A liquidity shortage in the repo market can trigger widespread adverse effects across all major financial sectors, marking the beginning of a downturn.
On September 17, 2019: The Federal Reserve, in a move that reeked of Wall Street cronyism, kicked off its emergency money-printing extravaganza. They were shoveling hundreds of billions per week into the financial sector's gaping holes, enacting BlackRock's infamous "going direct" scheme.
On September 19 2019, President Donald Trump signed Executive Order 13887 to establish a National Influenza Vaccine Task Force. The task force's goal was to develop a 5-year plan to enhance the use of advanced and scalable vaccine manufacturing technologies and expedite the development of vaccines capable of protecting against a wide range of influenza viruses. This initiative aimed to prepare for an influenza pandemic, an action reflecting a broader awareness and preparation for an imminent pandemic, with similar preparations occurring in Europe.
On October 18, 2019, in New York, the Johns Hopkins Biosecurity Center and the Bill and Melinda Gates Foundation coordinated Event 201, a strategic exercise simulating a global zoonotic pandemic.
From January 21-24, 2020, the World Economic Forum held its annual meeting in Davos, Switzerland, with discussions focusing on the economy and vaccinations among other global issues.
On January 23, 2020, in a move that was ripped straight from the pages of a dystopian sci-fi novel, China slams the doors shut on Wuhan and its neighboring urban sprawls in Hubei, effectively turning bustling metropolises into ghost towns overnight. The powers-that-be call it a lockdown, but it's more like a scene from "Contagion" made real, as the government scrambles to cage a virus that's already spreading its tentacles across the globe.
On March 11, 2020, the WHO Director General officially declared Covid-19 a pandemic. The message? Buckle up because history has taken a sharp turn down a very bumpy road.
