australianvoice

According to the Financial Elite, Access to Vaccines Promotes Economic Growth. How Does That Work?

To understand the succession of policies which starts with vaccination and results in economic growth, we must realize this plan is really THE SOLUTION to THE PROBLEM. What is THE PROBLEM?

THE PROBLEM: Central bankers realize (privately) the current financial system cannot survive the next big economic downturn using the current monetary and fiscal policies. It will only survive if the financial elite introduce a cashless economy in which central banks can control all financial transactions using the power given them by a central bank digital currency. What is THE SOLUTION?

THE SOLUTION: Universal Vaccination, followed by Vaccine Passport, Digital ID, Cashless Economy (CBDC), Central Bank Control of Economy, Low Interest Rates & Low Inflation, Economic Growth.


FURTHER ECONOMIC GROWTH REQUIRES UNIVERSAL VACCINATION? To see how important it is for financial elite to vaccinate the world against Covid-19, listen carefully to the IMF Seminar described as a “Debate on the Global Economy”.(1) There is actually no debate, it is just a discussion of different topics related to the global economy. From the list of people taking part we see they are serious heavyweights on the world stage. There is a Managing Director of the IMF, Chair of the US Federal Reserve, the Director General of the WTO and President of the Eurogroup, an informal body made up of the finance ministers of  the Eurozone. These people are more important than the elected politicians of most countries.

Speakers in the IMF Seminar: Debate on the Global Economy, April 2021

Kristalina Georgieva, Managing Director of the International Monetary Fund 

Jerome H. Powell, Chair of the US Federal Reserve System

Paschal Donohoe, Minister for Finance for Ireland 

Dr. Ngozi Okonjo-Iweala, Director General of the WTO


If you don't want to listen to the whole discussion, as I have, you can just look at their own summary presented here:

OVERVIEW: "The recovery from the COVID-19 crisis continues, albeit with uncertainty and varying prospects across countries. Rapid and global access to effective vaccines and therapies remains critical to fostering inclusive growth."

Notice this is not a discussion among members of the World Health Organisation. Health, understood as universal vaccination, is seen as fundamental to economic growth.  

Universal vaccination is behind every action of all governments. However in the arcane and unreported discussions of the people in this IMF Seminar, for the financial elite there is an important connection between universal vaccination and economic growth. Before the Covid Emergency economic growth was a top priority as well. It is easy to see why talk of economic growth suddenly stopped after the Covid Emergency. The measures adopted by governments, not the virus itself, killed off much economic activity. Talk in the mass media about economic growth is clearly inconsistent with governments' determined efforts to damage much of the private sector of the economy. However they are still about economic growth – privately, among themselves. This shows the financial elite have never changed their desire for improving economic growth. What has occurred during the Covid Emergency was the emergence of a new policy. The world economy is being transformed to promote further economic growth.  


HOW DOES RAPID AND GLOBAL ACCESS TO VACCINES FOSTER ECONOMIC GROWTH? The answer to this question can only be found by putting pieces together in the same way we would assemble the bits of a puzzle as they fall out of a box. We know what the final picture should look like: an economic system to promote world-wide economic growth. How do the people behind the Covid Emergency plan to create greater economic growth starting with Universal Vaccination?

UNIVERSAL VACCINATION: The treatment of viral infections in undertaken in March, 2020, was almost the opposite way to treat an infectious virus like Covid-19. Infected people should be isolated from others and treated for the infection. Instead all treatments have been made illegal. Furthermore governments no longer rely on the physical medical examination to determine a person's health. Instead they use a specially devised PCR test whose result cannot be challenged medically or legally. Instead of isolation and treatment, all governments and medical experts insist that the only way people can be protected from the “deadly” Covid-19 is for all of them to be vaccinated.

VACCINE PASSPORT: The authorities insist that this is another measure is needed to insure that we are all protected by vaccination. Everyone must be able to prove they are protected by vaccination so others around them will not become infected by close contact. Governments insist vaccination is voluntary, but also suggest that in future more and more activities and locations will require a vaccine passport. Followed to its logical conclusion, everyone can be made to get vaccinated regularly and carry the appropriate documentation in one form or another.

DIGITAL ID: The idea of a digital ID has been quietly worked on for some time, but it will soon appear in the public domain, like vaccine passports. On 3 June, 2021, Finextra posted an article entitled “EU announces European Digital Identity and Wallet framework”.(2) It explains that the EU has proposed a framework for a European Digital Identity to be available to all EU citizens as early as September 2022. We also find the following statement:

“Importantly, the announcement of a digital identity and wallet may be linked to a potential decision on a digital euro. CBDC has been openly and frequently discussed by EU leaders over the past 12 months, with leaders often highlighting the need for a digital identity in order for a digital euro to be successfully developed.”

As far as I know, there has been no official announcement that a vaccine passport will eventually be connected to a digital ID, but these two pieces fit neatly together as we put our puzzle together.

DIGITAL MONEY: We already have digital money. In fact most of our money already exists in digital form in bank accounts around the world. What we think of as our money in a bank account, accessible with a plastic card, is just a file on a bank's computer. Our money is represented as a number in that file. As we spend money, the number gets smaller, as we deposit income, the number gets larger. When the financial elite speak of a digital money they mean that there is no other kind of money in existence. Thus all money is digital money, so cash is no longer considered money. Digital money means a cashless economy. That is what the war on cash is all about.

While this will be made to appear as the next logical step in the “evolution” of money, digital money has two fundamental differences from cash: Access to “your” money is completely controlled by the bank, and the bank has a record of absolutely every financial transaction in the economy. Of course this is the end of financial privacy, but people don't realize that banks have no legal obligation to give you “your” money when you want it back. Australian Voice also has three articles on this subject which are listed at the end of this blog.(3)  

If you have any doubts about this assessment of THE SOLUTION planned by the financial elite, listen to this one minute talk (above) by Agustin Carstens, introduced by John Titus.(4) Carstens is head of the Bank for International Settlements, the central bank for the central banks of all nations. This is roughly what he says: “There is a huge difference between central bank digital currency (CBDC) and cash. With cash we – central bankers – don't know who spends a $100 note and what they buy with it. The essential difference with CBDC is the central bank will have absolute control on all transactions so we can control the use (of this money). And we will have the technology to enforce our rules on transactions.”  

Augustin. Carstens is on the left. He is perhaps the most important person you have never heard about
Augustin. Carstens is on the left. He is perhaps the most important person you have never heard about

BLACKROCK'S PLAN: GOING DIRECT: Now it is time to examine what the central bankers will do with the control they will have with CBDC. People who have discussed this topic in recent years have concentrated on how banks could use this unchallenged power to control us as individuals. This would certainly happen, however this is not their sole reason for this drastic level of control. Their need for complete control has only been revealed recently.

In October, 2019, the giant hedge fund, BlackRock submitted a document to a meeting for central bankers, finance ministers, academics, and financial market participants from around the world at Jackson Hole, Wyoming,  Its title is Dealing with the next downturn: From unconventional monetary policy to unprecedented policy coordination.(5) The last downturn in 2007-8 was serious, and at the time it was said that the methods use to save the financial system would not work the next time around. BlackRock was clearly expecting another “downturn”, and in fact one occurred the next month. A very important article by the financial analyst John Titus shows that the policy BlackRock recommended in this document was implemented immediately after the meeting by the US Federal Reserve. It is a plan to create central bank money and get central bank money into private hands. Titus' basic assessment of the plan is this: “Central bank digital currency is where we are headed”. 

 

WHAT'S IN DEALING WITH THE NEXT DOWNTURN? It is important to consider each of the first few sentences in BlackRock's summary to see why the central bankers and giant investor hedge funds are worried. Their conclusion is that it is not possible to recover from the next downturn using the methods that have been used for the last 50 years. They need a new way to run the world economy.

"Unprecedented policies will be needed to respond to the next economic downturn." 'Unprecedented' means doing things that have never been done before. John Titus points out that one of these “unprecedented” actions by the Fed was putting trillions of dollars of Federal Reserve money into the money that circulates through the US economy. The Fed has never used its reserves in this way before in its almost 100 year history.  

"Monetary policy is almost exhausted as global interest rates plunge towards zero or below." Monetary policies are the policies on interest rates or money supply set by central banks. If interest rates are already at zero, then the policy of cutting interest rates is impossible.

"Fiscal policy on its own will struggle to provide major stimulus in a timely fashion given high debt levels and the typical lags with implementation." The other way to control the economy besides changing interest rates is called fiscal policy, which consists of changing government revenue collection (tax increases or tax cuts) or changing expenditure (spending more or spending less). I assume the problem of high debt levels means that increase spending to stimulate the economy will require more government borrowing, hence even higher levels of debt. They also say this method of dealing with the next downturn would be too slow to make a big difference.

"Without a clear framework in place, policymakers will inevitably find themselves blurring the boundaries between fiscal and monetary policies." What I think this means is that governments might try to spend their way out of trouble anyway, ignoring the wise advice of central bankers not to use spending as a method to fix a failing economy.

"This threatens the hard-won credibility of policy institutions and could open the door to uncontrolled fiscal spending." The hard-won credibility of policy institutions referred to here must be the credibility of central banks, the IMF, etc. (I will just ignore the questions of whether they have any credibility, or whether the credibility they do have is deserved.) Here we can see clearly that it is indeed uncontrolled government spending they are most worried about.

WHAT THIS REALLY MEANS: No central banker will ever admit this publicly, but what these five sentences add up to is this: the financial system which has been in operation for at least 100 years is a failure. According to its own economic principles, the economy can, or should, be controlled by two factors: interest rates and government taxes/expenditures. We have now gotten to the point where using either of these “levers” to control the economy will do nothing to foster economic growth. One might think that economically rational people could say: Isn't it time to try something different? John Titus puts it like this:

"Rather than scotching the fatally flawed debt-based system of pseudo-money in favor of actual money (with no debt attached), the powers that be are doubling down on the flaw because it affords them control."(6)


WHAT IS THE UNPRECEDENTED ALTERNATIVE, GOING DIRECT?  Clearly the central goal of Going Direct is to keep the current financial system going by changing from cash and digital bank deposits to CBDC without any cash. If you recall what Agustin Carstens said in his little video clip, the change to the economy they propose will mean it is no longer a free market economy. All money, which will exist only in the form of CBDC, will be centrally controlled by the policies of central banks. Here it is in their own words:

"An unprecedented response is needed when monetary policy is exhausted and fiscal policy alone is not enough. That response will likely involve “going direct”: Going direct means the central bank finding ways to get central bank money directly in the hands of public and private sector spenders. Going direct, which can be organised in a variety of different ways, works by: 1) bypassing the interest rate channel when this traditional central bank toolkit is exhausted, and; 2) enforcing policy coordination so that the fiscal expansion does not lead to an offsetting increase in interest rates."

We have seen how “enforcing policy coordination” will be carried out. Undesirable transactions will simply be blocked. Later in the document they admit that giving central bank money to public and private institutions is in effect the use of fiscal measures to stimulate economic growth..

"Any additional measures to stimulate economic growth will have to go beyond the interest rate channel and “go direct” – when a central bank crediting private or public sector accounts directly with money. One way or another, this will mean subsidizing spending – and such a measure would be fiscal rather than monetary by design."

However, since this increase in expenditure will occur under the wise policy direction of central bankers, there will not be any harmful effects on the economy. This is why they cannot allow undisciplined and ignorant politician to decide where to spend money and how much should be spent to stimulate the economy

The passage below is the only oblique reference to CBDC I can find in the document. When looking at what they call Political Challenges, we find this sentence:

"Policy responses that put money more directly in the hands of citizens might be more attractive. The rise of central bank-issued electronic money (not cryptocurrencies) might achieve these objectives in ways that were not previously possible."

Central bank-issued electronic money is of course CBDC. One of the important features of THE SOLUTION is that while different parts are revealed separately. The financial elite always make sure that there is no obvious connection to other parts of THE SOLUTION. Those in the know who read this document understand what is being proposed – a cashless economy – but the connection between BlackRock's suggestions and CBDC is casually described as central bank-issued electronic money. (And why not cryptocurrencies? Because whatever their merits, they exist independently of the financial/banking system. In fact this is what makes them attractive as an alternative to the power of private banks.)


APPENDIX: WHAT IS THE DIFFERENCE BETWEEN CENTRAL BANK MONEY = RESERVES, AND THE MONEY EVERYONE USES FOR ALL KINDS OF FINANCIAL TRANSACTIONS?

To appreciate the significance of Going Direct - central banks putting central bank money directly into the hands of public and private sector spenders – we must understand the difference between these two kinds of money. As John Titus explains it, virtually all countries have two systems in which money circulates. He calls one the private circuit, where cash and digital bank money circulate in what we all know as the normal economy. The other he calls the public circuit, where a different kind of money, reserves, circulates between the central banks, private banks, other central banks, the government and the treasury. We never see this money because (at the moment) we have no access to it, and could not spend it if we did.  

It seems its main purposes is to facilitate the transfer of private money between private banks or different countries as they settle their books with each other. In the last 100 years, it has almost been a sacred rule that there is no transfer from the public central bank reserve system and the private system where money moves between private banks, people, corporations, etc.(7) 

ECB = European Central Bank

BoJ = Bank of Japan

USG = US Government




FOOTNOTES:

1.https://meetings.imf.org/en/2021/Spring/Schedule/2021/04/08/imf-seminar-debate-on-global-economy 

2. https://www.finextra.com/newsarticle/38186/eu-announces-european-digital-identity-and-wallet-framework

3. Cash is for Criminals? No, This is Spin! Cashless is for Banks! https://australianvoice.livejournal.com/26370.html 

Can We Have Economic Freedom in a Cashless Financial System? https://australianvoice.livejournal.com/26754.html 

Penalty for Cash Transaction Over $10,000 will be 2 Years Jail + $25,200 Fine https://australianvoice.livejournal.com/40716.html

4. Found at 5:30 on John Titus' interview in “Covid Emergency is Cover for BlackRock's Plan to Introduce Central Bank Digital Currency Everywhere” https://australianvoice.livejournal.com/56341.html. As he is not a native speaker his English is not always easy to follow word for word.

5.https://www.suerf.org/docx/f_77ae1a5da3b68dc65a9d1648242a29a7_8209_suerf.pdf

6.Wherefore Art Thou Reserves? S3 E1  https://www.youtube.com/watch?v=1owSYjIT9og

7.John Titus gives a more detailed account in Wherefore Art Thou Reserves? 


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