Reason for lockdowns

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Pixel8r
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Reason for lockdowns

Post by Pixel8r »

I was talking via email with Martin Geddes about this and thought I'd start a thread;

The reason for the lockdowns

I have worked out why the lockdowns have been going on, it has nothing to do with the virus, but they have been entirely necessary. We are transitioning to a new money system. The old one is broken, requiring ever-increasing amounts of fiat capital to be created. We have reached the part of this fiat money creation cycle where it is having to grow exponentially.

The velocity of money formula is;

Image

Vt = velocity of money for all transactions in a given time frame
P = price level
T = aggregate real value of transactions in a given time frame
M = total nominal amount of money in circulation on average in the economy

So I believe the reason for these lockdowns is to reduce the velocity of money. The amount of money in circulation is growing exponentially, if they didn't reduce the velocity via lockdowns it would mean massive hyperinflationary price increases.

This means as the lockdowns are eased it will either be the time the new financial system is introduced, or we will experience hyperinflation in prices of goods and services. I actually think that the whole reason for this "pandemic" scare has been to allow for the transition to a new money system. All part of the plan.

The reduction in the velocity of money has been going on since the tech boom crash in 2000. It reached the point of no return during the financial crisis of 2007/2008, but has dropped off a cliff since the start of this pandemic. Check out the FRED graph below.

I suspect that the start of the new financial year is the perfect time for this to be introduced, so watch out for the beginning of April, as lockdowns start to be lifted for the summer.

Image
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Reason for lockdowns

Post by Pixel8r »

Be interesting to see if anything happens after this 4-day bank holiday. Seems an ideal time to change the banking system, something has to happen soon for the reason explained above.

Many of us who frequent this site have been following this transition to a new financial system for a very long time, I know I have been realising it was coming for over 20 years now. Welcome to the light and the great awakening. :D :dance:
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Re: Reason for lockdowns

Post by Pixel8r »

Link to the above chart. Be interesting to see what happens when they update the data - https://fred.stlouisfed.org/graph/?g=ClfI
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Re: Reason for lockdowns

Post by Acton Boy »

I wonder if the M2 velocity numbers have been manipulated in the same way that other statistics have.
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Re: Reason for lockdowns

Post by Pixel8r »

Acton Boy wrote: Sat May 01, 2021 9:24 pm I wonder if the M2 velocity numbers have been manipulated in the same way that other statistics have.
I doubt it, the lockdowns must have caused a major slowing of money transactions. Be interesting to see what happens in the next set of figures, as the lockdowns start to lift. We are starting to see prices pick up sustainably in loads of things, house prices, copper, lumber, groceries etc.

I think that we will transition to a new financial system soon. Otherwise, we will see rampant hyperinflation as the lockdowns lift.
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Re: Reason for lockdowns

Post by Pixel8r »

This week we had Janet Yellen explaining that we would be in for "transitory" inflation. In the true meaning inflation is the expansion of the money supply, we certainly have had loads of that. As I explained above the only reason this hasn't been feeding through to prices was due to slowing the velocity of money, via enforced lockdowns. But now as the world is opening up we are starting to see rampant price increases. Janet must know this well, the only way this could be transitory is if we are moving to a new financial system or increased lockdowns (caused by vaccine transmission?).

I have heard talk that the new QFS is already in operation and the old swift system has been taken offline. Going to be an interesting summer.
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Re: Reason for lockdowns

Post by Pixel8r »

My bold.

The Inflation Monster Has Been Unleashed
The monster known as inflation has been unleashed upon the world and will not easily retreat into the night. This is reflected in soaring commodity and housing prices. Due to the stupid and self-serving policies of the Fed, we are about to experience a massive shift in the way we live. Bubbling up to the surface is also the recognition the Fed has played a major role in pushing inequality higher. This means that inflation is about to devour the purchasing power of our income and the savings of those that have worked hard and saved over the years.

Over the months we have watched Fed Chairman Jerome Powell time and time again cut rates and increase the Fed's balance sheet. This has hurt savers, forced investors into risky investments in search of yield, damaged the dollar, encouraged politicians to spend like drunken sailors, and increased inequality. The greatest wealth transfer in history has already begun and the next crisis will only accelerate the process. Sadly, the same policies that dump huge money into larger businesses because it is an easier and faster way to bolster the economy give these concerns a huge advantage over their smaller competitors...
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Reason for lockdowns

Post by Pixel8r »

"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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