The Great Head Fake
How the manipulation of a cryptocurrency, the illegitimate pegging of a national currency, and a private war over resource control tell the story of a system on its way out. And with a bang.
These are wild times.
Between trade wars, proxy wars, currency wars and culture wars, we seem to be living in a scene out of the end of Babylon.
And for all intents and purposes, we are.
One might ask: What hell is really going on?
There are lots of speculators in the mix, waxing theoretical on “Bitcoin’s saving of the financial system”, a new cyber-calcavade involving China and the U.S., as well as rumblings about a duke-out with Russia.
Let’s dispense with the sensationalism and stick to logic, evidence and mechanics. Things that journalists and financial analysts tend to sorely lack these days.
First, let’s establish the details of the real financial reset. All the actual documentation you need is synthesized, with scenarios laid out.
The Real Financial Reset
While the details are complex, resetting to a “new, better normal” is a lot simpler than you might think.
Second, let’s establish the details behind how Bitcoin is being used in this reset. Its initial design and its current uses are not at all commensurate with its real value.
How Bitcoin actually trades on the market through volatility yields, and the significant risks to small investors.
Third, let’s establish why this is happening, and the players involved. The political economic backdrop for this game of global charades took flight in the early 1950s, and accelerated in the early 1970s.
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Fourth, let’s establish exactly how this reset is being catalyzed, in large part, by the wholesale shutdown of over 60 million small businesses due to a “pandemic”. For whatever it’s worth, if a virus can’t kill you, then its handlers sure will try.
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If you’re willing to connect these dots, then you’re pretty far along in understanding what the hell is really going on.
To be clear, these are not “conspiracy theories” — they are things that are really happening, and have been happening, long before any one politician or public health official entered the mix.
Now comes the really juicy part.
This part involves the mechanics of a “global digital currency” that is about as legitimate as monopoly money.
It’s the final chess piece, so to speak.
THE FAKE PEG
If you read the article above on the real financial reset, you will see that the USD is not headed into total collapse. It’s undergone a reflationary peg under Treasury, which amounts to about a 20% depreciation in value.
Readjustments like this are normal, historically speaking.
Be that as it may, there is the false premise that the USD is headed into total collapse, which is driving another false assumption that China is buying up gold bullion and pegging it to the Yuan/Reminbi, thereby crashing the USD.
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As Alastair Macleod wrote last year, it is not in China’s interest to do this, not least of which because her ownership of dollars is about $3.4 trillion, of which only $1.5 trillion is invested in Treasuries, agency, corporate and short-term debt in the US.
The balance is actively used in loan finance to China’s commodity suppliers, those involved with the belt and road initiatives and other states with which China desires to gain influence.
Also keep in mind that HK$ (Hong Kong dollar) is directly pegged to the real USD (the Treasury-backed one), and the Yuan/Reminbi is indirectly pegged to the real USD.
Because the HK$ is used to rehypothecate China’s private interbank debt, while the Reminbi is primarily used exclusively for China’s own infrastructure development.
In other words, China’s illegitimate banking system — essentially a massive money laundering vehicle — can’t possibly be a global reserve system, whether it has bullion or not.
There is, however, another system being rolled out.
A new system is emerging that, with the proper structuring, puts financial control back in the hands of the people.
You can say that any country which has operated with a central banking system is illegitimate, only that China’s is overleveraged without any real purchasing power, that is without the USD.
Prior to China’s restructuring in 1948, the USD under the Federal Reserve was already in steady decline.
And this is where Bitcoin comes into play.
Bitcoin, despite all pretenses, is being used as a pawn to attempt to devalue the real USD.
We’re not talking about the Federal Reserve note, which is separate from Treasury, but the real, Treasury-backed USD.
So-called Bitcoin “maximalists” like Peter Thiel now claim that Bitcoin threatens the dollar’s position as a reserve currency. He’s also hinting to the idea that his own company, Palantir, which has numerous government surveillance contracts, can “rein in the cryptocurrency (and others)” by automating tax debits.
Peter Thiel Hints That Palantir Could Rein In Bitcoin (Cryptocurrency:BTC-USD)
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Sounds like a veiled threat from someone who only stands to gain from the machinery of the old system. Meanwhile, Bitcoin yield arbitrage carries on, for the benefit of institutions, banks and exchange owners (Thiel is one of them).
How is Bitcoin being used to do this?
It is being hyperinflated, and consolidated onto corporate and institutional ledgers. Which is also why an exchange like Coinbase has now gone public.
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Now ask yourself: Why would a hyperinflated asset class — that is supposedly “decentralized” — want to integrate itself into the public markets, which are actually controlled by the same people who control the central banks?
If you can’t answer this question other than to say, Because… adoption! then you are overlooking the game being played here.
The fake peg being rolled out by China is akin to the integration of Bitcoin and other cryptos whose inventory is being bought up by the same players who gamed the system in the first place.
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Now there’s this…
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… And this.
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GLOBAL MOVES, GLOBAL CHESSBOARD
So what does this tell us?
For starters, it tells us that the big banks and corporations, on behalf of the central banks, are trying to set up their same old system of financial control.
This author has laid out these details in recent pieces.
For another, this tells us something way more revealing: That they are trying to redistribute inflation based on their collapsing debt system, which is the only way they can profit.
Even worse, they’re using their “funny money” instruments to buy up distressed assets from arbitrages they caused themselves. This is also an old game.
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Why are they doing this?
Because they know that the only way to hedge against their own inflationary risk is with real, fungible or physical assets.
This is a long-standing economic precept that no one, let alone the big banks and institutions, ever talk about.
And it’s perhaps the only thing that matters, especially right now.
AVOIDING THE HEAD FAKE
Now that we have a good idea of what the hell is really going on, we can ground ourselves in defensive and proactive financial moves.
This is not financial advice, per se.
If you’re going to play in the equity markets (stocks and bonds), you’d better have a lot of money to gamble with and some really good information (try to stay away from insider information, but as close to it as you can).
If you’re going to play in the crypto markets, you’d better understand the risks with arbitrage sans any real trading fundamentals.
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If you can operate without debt, own real estate outright (for cash), and you can invest in hard assets like precious metals, local agricultural goods, local energy systems, and clean water, you’ll probably be somewhat downcycle proof.
This author is obviously not the first to say this, but now you probably have a much better idea of why.
That said, real asset-backed cryptos are in fact good investments, and there are a select number of companies doing this. Here are a few.
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Whatever you choose to do, choose wisely, knowing that the only thing separating you from the rest of the pack of predators is in the ability to own, redistribute and resell your own assets.
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Despite the hype, NFTs are a gateway to a truly decentralized future for economic participants of all types.
Buckle up, folks — things are getting really interesting.