Banking On Narratives - The SUM Report 6-17 | QPOL Issue #52
BlackRock co-opting Bitcoin, Trump behind bars, and Powell's monetary jujitsu.
Black Rock ETF
Black Rock has applied for a Bitcoin ETF with the SEC. Many are bullish, others are bearish (and probably should be). The legal-speak in the ETF mentioned what BR does in the event of a hard-fork, making Bitcoiners worried that BR would sell customers BSV or something. I don’t see that happening.
There won’t be a fork. It’s not in BR’s incentive. The ETF is just to manipulate the price of Bitcoin. Just like Gensler has done with his recent lawsuits against Binance, Coinbase, and the entire crypto industry, his MO is: control to destroy.
Trad-Fi and Davos doesn’t hate Bitcoin necessarily, they just wanna control the price and prevent it from becoming an “escape hatch” as Lagarde called it. Gensler, Fink, Chrissy (Lagarde), they’re all Davos globalists that wanna control economies and governments through corporatism and destroy the notion of the nation state.
Rigging the financial plumbing and manipulating commodity prices is how they accomplish that. Only they can’t when the Fed is off the reservation and keeps raising rates/keeps them high, which forces every other nation to follow suit for preserving the credibility they don’t have and preventing capital flight out of their economy (ECB).
Davos et.al understand Bitcoin as the world’s potential supreme collateral asset. Therefore, they want as much of it as possible (after gold of course. I don’t make the rules). That’s what they hope the ETF would help them accomplish.
The ETF is also a way for Gensler to go around a democratic process of passing bipartisan legislation for crypto (the McHenry Thompson bill) from both the house and the senate. If Gensler gives this BlackRock ETF the green light, it confirms he’s just a globalist out to undermine whatever remains of the democratic process and selling out the American system. That’s what he’s done with the law suits going after Binance and Coinbase (which is odd because Coinbase is the custodian of the ETF, but Coinbase was always gonna be the state’s Guinea Pig for crypto so it makes some sense). Regardless, there’s a Deep State move afoot and it goes beyond finance…
Trump Said the Quiet Parts Out Loud
Tucker Carlson’s twitter show has taken the world by storm and grabbed the MSM by the balls. Hundreds of millions of views are being clocked in each episode while around 3-4 million views was considered a “good” night for Tucker when he was still at FOX. This phenomenon confirms the decentralization of media allows the truth to seep out to the masses (so long as they don’t get astroturfed by corporations and operatives of course).
Tucker recently covered the arrest of Donald Trump. The Deep State did him dirty basically by getting him on tape confirming that he had classified documents (as President), and implying that he was sharing said classified info. Dave Smith recently did an excellent job covering this story on his show Part Of The Problem.
What Smith pointed out was very similar to the way Victoria Nuland’s “Fuck the EU” goof in 2014 was covered in the media. The MSM highlighted that fact Nuland said a naughty word, rather than the fact she posited the US are better at overthrowing governments than their so-called European allies.
Victoria Nuland’s “Fuck the EU” moment really encapsulates the split between the Davos European oligarchs and the useful idiot American/British neocons:
We don’t wanna wait around for the Europeans to pussyfoot getting this coup in Ukraine through.
We’re America (Brits), we’re better than that. We deserve to rule the global empire.
What Trump highlighted from the documents was that the State Department wanted to go to war with Iran. Trump did not. The Deep State was clearly working against the President for their neocon agenda. Never mind that though, because the former President who had the power to declassify documents outed their globalist plot for the Heartland. So now we gotta get him behind bars, otherwise our “wannabe dictator” as Tucker put it, can’t win 2024.
This cover up for Trump exposing the neocons for what they are by putting him behind bars is great for his numbers. It’s as if they gave him another town hall and shot themselves in the foot. Neocons are so blood thirsty for WWIII against the global South that they’ll spread rumors of Russia taking out the European banking system through cyber hacks. At this rate, Europe’s economy will take out itself. No cyber hacks necessary. Russia wants nothing of the sort, and will continue their war of attrition against the West until Davos does something truly stupid…
Powell On Cruise Control…For Now
The Fed decided to pause rates for the June FOMC meeting. This came as no surprise. The market priced it in, giving markets somewhat of a relief.
Remember, monetary policy happens on a ~ 6 month lag. Even though rates aren’t higher, the benchmark is still at 5.5%. Money ain’t free anymore, and for Powell to keep things where they are now is doing plenty of “damage” in the economy. We’re of course seeing it in commercial real estate and companies are on a record hiring freeze.
So long as the market adjusts to higher rates and proper price discovery is allowed to take place, the effectiveness of the Fed’s monetary policy will continue to manifest itself. Ultimately, this “pause” does nothing to undermine the Fed’s QT policy. ~ $95 Billion is rolled off the Fed’s balance sheet each month, regardless the amount of new debt Yellen’s treasury issues. Why? We’ll get to that in a sec…
However, it’s not outside the realm of possibility that Powell raises again in July. Thanks to our neocon war-hawks, inflation is coming back in full swing. The “Biden” administration won’t be able to suppress oil prices forever and as higher rates cause credit deflation, capital will move to commodity goods. Demand will soar during war-time, or merely just because of a shortage of household goods that people need to survive.
As Luongo pointed out in a recent interview, Powell sounded like an Austrian on Wednesday admitting that interest rate policy couldn’t effectively reach the Fed’s inflation targets. This is because Keynesian Fed policy only works with demand-side, not supply-side. Powell knows this, but he has to tow the line of lunacy that Bernanke left on his plate with a 2% inflation target. Core inflation has come down, but the rest of inflation is sticky. This will send money into the real economy. You can’t tame cost push inflation rates because it’s a supply-side problem. The supply will take care of itself due to market demand. When supply chains and logistics aren’t firing on all cylinders, demand for said goods will climb even higher.
What this pause also allows for is to give the banks a break. Banks will be able to roll off their distressed liabilities and issue new loans at higher rates. This will be good for bank profits and enable them to fill the holes and repair their balance sheets. Not to mention they can also buy higher yielding treasuries. Higher “paused” rates will also flatten the yield curve for institutions and investors who want duration.
So even if Fed policy is working and inflation comes down nominally, it could fire back if the price of energy increases again. Energy is the reserve asset/commodity of the world. Everything else is dependent on it, and therefore will follow its price and demand. This is the real economy, and that’s what drives political change, which brings us to the “why” regarding the pointlessness of the treasury’s new spending of debt.
If Yellen spends more money, it only makes inflation worse. And when the economy is bad during election season when the current administration is fighting tooth and nail to jail their opponent, then they’re stuck in the Fed’s web of monetary policy. That’s the game that’s being played here. It’s NOT about inflation. Raising rates breaks the leverage in the credit markets, which is being achieved thanks to the Fed controlling the price of eurodollars through SOFR, rather than the City of London’s LIBOR (which goes extinct June 30th.). Davos can’t leverage free money anymore. Their starting point is above 5.5%. Have fun paying for an election, unless of course you plan on cheating again…
~ Phil Gibson
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