“.. the tools of the banking establishment .. utterly shrouded in mystery for the best part of 5000 years” .. now exposed and rejected .. have hitched their wagon to another lame horse: the XC Model (global CBDC “One Ring to Rule them All” with IMF as middleman). Yeah right, keep dreaming Losers!

With thanks to our own Colin Maxwell of New Zealand.

Please see: Part 1 ; Part 2 ;  Part 3 ; Part 4 ; Part 5

1. Introduction

to the good, the bad, and the flat out ugly

It’s a lovely crisp sunny autumn day down here in the South seas antipodes – one to venture out of my cave, and once again view the world upside down.

And so I will open with what I regard as some very positive developments, as I reflect on some extremely prophetic words written back in 2009.

Mumford & Sons…

So come out of your cave walking on your hands
And see the world hanging upside down

You can understand dependence
When you know the maker’s land

Goodness knows, in these dark times we must focus on the positives in order to try to avoid descending into a state of abject hopelessness – which is precisely where the robber barons are trying to place us, as they plot their final desperate grand heist.

As each week ticks over, it becomes more obvious that the plan involved for them to achieve a comprehensive entrapment of Mainstreet, is to deploy what they view as their key tool – retail CBDCs. This is their existential desperate last ditch attempt to finally gain control over every aspect of our existence.

IMO they have blown it completely – and not the least because ever since 2015, when this CBDC plan was first hatched, the entire plot has been extremely fraught with the challenges of trying to determine the optimum timing of the main event.

A procession of weather balloons and enticing hors d’oeuvres have been deployed whilst the behaviour of the flock is observed in a plan so cunning they hoped they could pin a tail on it without us all realising that this was just another weasel.

It was always a fine line for TPTB between haste in which they risked not conditioning the flock enough, and taking so long that they gave us the extra rope to allow us to become suspicious enough that we might point blank refuse any further baiting altogether.

Just me, but I think TPTB has blown it comprehensively. Even some of the most dreadful lobby organisations on earth, case in point – the bought and paid for U$ Congress, have developed serious bipartisan opposition to this plan.

They too realise that this would be a bridge too far if they rubber-stamped retail CBDCs. Humanity would indeed be crossing the Rubicon. In effect, we would squander any chance of our species ever regaining even a moderate degree of freedom again.

If the U$ Congress can grasp this, then surely this is a sign that most people on earth should be able to rationalise the monumental dangers involved.

If Congress and other governance do see the light in sufficient quantity, then all that is left on Earth to promote the capture of what’s left of our freedom, will be the robber barons and a rapidly diminishing band of despicably treacherous uncoordinated shills. These creatures will find themselves increasingly identified and targeted and they will have to run for cover.

2. The Greatest Privilege of All – Money Creation

If we can wrap our heads around this process we can begin to understand how humanity has given a select dynasty of macabre and genocidal parasites the means to buy and control every resource they crave on the entire planet.

It shows that we have handed them trillions on a plate – enough to buy up politicians, govt agencies, media, big-pharma, academia, the banking industry, control of the labour resource, the arms industry, and the war machine – I’ll stop there – you probably get the picture.

We GAVE them the means to buy every damn thing they need that could assist them to gain absolute power and control over planet Earth.

This money creation aspect is an absolute deusey. Its also the hardest aspect to wrap our heads around, because it seems so utterly preposterous that it simply couldn’t possibly be true – how could humanity collectively allow this to happen. As a result most of us default back into our comfortably numb zone, as all of this is far too monstrous to even consider, let alone give it serious scrutiny.

As bad as the Fed central bank 100% private ownership model is, and which grew into the largest money spigot Frankenstein monster on the planet – the money creation story is even more horrendous.

Of course the Fed model is the corollary and a major coup in allowing the robber barons to concentrate their power. This is the plutocracy that is now planning to complete their coup de grace and finally entrap us all in a permanent global techno-gulag. What a tragedy to think that this power was handed on a plate to the minuscule 0.001% that makes up the robber baron cohort of the global population.

And what was on the plate? – well, in effect, it was the counterfeit printing presses, those that could not only churn out endless U$ dollars, but every single Western orientated fiat currency on the entire planet. Of course I am talking figuratively here – this printing is not actual physical printing, it is digital money created out of thin air.

3.  97% of the Money Supply is created by Banks when they make ‘Loans’

the greatest con in the history of our species

As his career progressed, Professor Richard Werner (Professor of Banking) became more and more disgruntled with the vexed question of money creation being bandied around – and especially as to how the tools of the banking establishment could possibly be so utterly shrouded in mystery for the best part of 5000 years, and remain intact without any serious challenge or empirical investigation.

Werner decided to address this situation himself, with his first step being to have some of his uni students conduct a simple random poll of around 1000 people on the streets of Stuttgart, and to ask them the question in a simple multiple choice format – “who do you think creates the majority of the money supply?”

It turned out that 84% of those surveyed, ticked the box that they thought that most of the money supply was created by the government, or the central bank. I would expect a fairly similar percentage if you asked this same question the world over to this day.

In fact, governments with a few minuscule technical exceptions, don’t create money at all.

In general Central banks only create around 3% of the money supply.

The remaining 97% is created by the banks.

Richard is far more skilled at explaining this process than I am, and so the best way is probably to just go to (9:00) and listen directly to the link – I have paraphrased the key points underneath, for anyone who would rather read than listen…

4. Paraphrased – the Three Main Theories of Money Creation

#1  This one is currently dominant – Banks are financial intermediaries that gather deposits, they then do their analysis of borrowers and lend out these deposits based on their analysis, risk management etc.

#2  The slightly older theory, which was dominant until the 1960s, is known as the fractional reserve theory of banking – this one holds that similar to #1, yes each individual bank is a financial intermediary, but in aggregate there is something mysterious that is happening in the banking system collectively, and as they interact with one another, money is being created – this one is particularly intriguing for students – hmmm , the inkling of the outrageous concept of money creation being undertaken BY BANKS – blimey!

This theory claims that this process is happening in aggregate, through some sort of complicated diffused process which is very difficult to understand as a function of the money-multiple formula.

*(I haven’t bothered to try to unravel this one – what on earth would be the point, when the entire intermediary theory is complete tripe anyway?)

#3  The credit creation theory, this is the oldest one, and which was dominant until #2 took over in the 1920s – this is the most shocking one. It holds, that banks are not financial intermediaries – not on an individual level, nor on an aggregate basis.

The credit creation theory states that banks are creators of money as individual banking entities. Each time they create a loan, the process has nothing to do with deposits per se – they are not lending out deposits – rather they are creating new money which is added to the money supply – this is what is being lent out as newly created money.

These three theories have existed for at least the last century, with eminent people supporting each of the three. Keynes and some others have at various times ducked and dived around and eventually, at different stages, supported all three.

Keynes in his early career supported #3, later changing to become a disciple of #2, and then, lo and behold, towards the end of his career he supported #1 – as Werner quips – he (Keynes), actually became ‘wronger and wronger’ in his analysis as his career ‘progressed’ (sic).

John Maynard Keynes, 1st Baron Keynes.

5.  So What Was The Natural Thing For Werner To Do?

Instead of endlessly arguing the toss about the truth of money creation, surely it was time (like at least 2000 years overdue) to actually allot the time to undertake a serious empirical trial and to prove the actual mechanism definitively once and for all.

How incredible is it that this mystery dates back 5000 years – right to Babylonian times – yes, banks made cashless loans back then too, including even distant foreign exchange deals and well before formal countries with defined borders even existed.

The banking industry was of course very keen to keep their dodgy secrets to themselves, and it suited them fine that the mechanisms were shrouded in mystery since time immemorial.

Werner, who I regard as the bravest and most principled financial contemporary contrarian, took the bull by the horns and proceeded to do something for the first time in recorded history. In doing so, he empirically proved #3, the credit creation theory, to be the correct one.

He conducted the experiment and then published his findings, welcoming critique by pundits and peers alike, in what turned out to become one of the most downloaded finance articles of all time. To this day no one has seriously challenged the validity of his findings.

6. The Unspoken Rules of The Robber Barons

As far as I can ascertain, this industry has a set of unspoken rules…

A/  Never engage on this topic in the public domain, most certainly don’t get into organised public debates, and just hope that upstarts like myself disappear quietly into the night, simply out of sheer frustration and lack of support.

B/  If the contrarians start to gain traction inform them that persisting could be extremely dangerous for both them and their family’s health.

C/  Observe, and if the dissenters self-censor, then problem solved. If, on the other hand they persist and are gaining an audience, make a decision as to whether or not to have them suicided. Delaying the decision too long could mean an opportunity lost, and the danger that excessive public outrage will occur if they have gained a large enough following.

Fortunately, I think that the number of us pesky truthers out there who are explicitly calling out the robber barons, is already enough that any attempt to shut us down would now be tantamount to engaging in a game of global whack-a-mole. In reality they have lost this battle too.

MESSAGE – the puppet-masters are largely inbred thin-skinned and gutless wonders who prefer to remain in the shadows. Even their lieutenants won’t be drawn into constructive debate – the entire network expects to maintain their power using a strategy based on overt racketeering and narrative control.

Of course this is precisely what is to be expected by a gutless privileged bunch of filthy rich robber barons – what rationale could they use to even attempt to justify the fact that humanity’s labour resource, and productive economy forks over trillions of dollars to a dynasty of parasites whose modus operandi would be the envy even of the Cosa Nostra?

IMO, they have miscalculated because of the power of social media and the simple fact that Mainstreet is exponentially more informed than any time in history.

The time to successfully enact this coup has now evaporated, especially with the trust in Western hegemonic status quo plumbing record lows. We now witness the disappearance and resignation of a growing procession of key figures and ‘leaders’.

Clearly, this is a precursor to us seeing mobs roaming the streets with ropes and pitchforks, where the criminals who have not already fled to far away places, will be begging to be locked up by the authorities, just in order to try to save their sorry skins from the ‘madding crowd’.

To these criminal ringleaders and collaborators, even seeking arrest might seem like a very attractive alternative compared to being left to the mercy of mobs of enraged vigilantes.

Bring on the Nuremberg style tribunals, only this time humanity must clean up this kleptocratic scum properly and once and for all, otherwise there will be barely a pause in their monumental business of global grand theft, human butchery, and entrapment of the masses.

7. The Empirical Test

… quoted…

“The simplest possible test design is to examine a bank’s internal accounting during the process of granting a bank loan. When all the necessary bank credit procedures have been undertaken (starting from ‘know-your-customer’ and anti-money laundering regulations to credit analysis, risk rating to the negotiation of the details of the loan contract) and signatures are exchanged on the bank loan, the borrower’s current account will be credited with the amount of the loan.

The key question is whether as a prerequisite of this accounting operation of booking the borrower’s loan principal into their bank account the bank actually withdraws this amount from another account, resulting in a reduction of equal value in the balance of another entity — either drawing down reserves (as the fractional reserve theory maintains) or other funds (as the financial intermediation theory maintains).

Should it be found that the bank is able to credit the borrower’s account with the loan principal without having withdrawn money from any other internal or external account, or without transferring the money from any other source internally or externally, this would constitute evidence that the bank was able to create the loan principal out of nothing.

In that case, the credit creation theory would be supported and the theory that the individual bank acts as an intermediary that needs to obtain savings or funds first, before being able to extend credit (whether in conformity with the fractional reserve theory or the financial intermediation theory), would be rejected.”

8. Which Begs The $64 Trillion Dollar Question

Is much of what we are witnessing in the geopolitical world simply too stupid to be stupid, and as such deliberately orchestrated in order to create enough global havoc to give TPTB what they imagine is the opportunity to stage the mother of all coups?

Methinks so – I won’t parrot what I listed as the perfect storm of events which will surely bring down the Western AAZ hegemon, in Part (v)…

eCONomics Part V: IN THE YEAR 2024 IF MAN IS STILL ALIVE

Werner also makes some important observations in the link below – particulary, at 20;00 regarding the central planner’s conflict of interests as bank regulators. This is like the umpire joining in the game – he gets to use the yellow and red cards as he pleases, but he also joins in to score the goals as well.

In fact this 52 minute discussion at The Capital Club of Dubai in October 2024, is absolutely chock full of gems.

… paraphrased…

“This also explains their mysterious policies of the last three decades, which are very anti-bank, and their long term plan is revealed all along to be to compete against the banks – this is an acute conflict of interest – they shouldn’t be bank regulators, because they can hurt the banks, which is exactly what they have done.

Since the introduction of the youngest central bank, the ECB, 5000 banks have already disappeared. the Fed has killed almost 10,000 banks in the last 35 years. They are gradually consolidating the system.”

9. The IMF’s XC Model – A Desperate Globalist Attempt To Install A Centralised Policy Based On CBDCs – it’s a Weasel!

Unification Of CBDCs? Global Banks Are Telling Us The End Of The Dollar System Is Near

Brandon Smith described the current situation beautifully…

“The Bretton Woods Agreement of 1944 established the framework for the rise of the US dollar and while the benefits are obvious, especially for the banks, there are numerous costs involved.

Think of world reserve status as a “deal with the devil” – You get the fame, you get the fortune, you get the hot girlfriend and the sweet car, but one day the devil is coming to collect and when he does he’s going to take EVERYTHING, including your soul.”

I thoroughly recommend his recent article as it describes the West’s XC Model which is essentially a centralised CBDC policy which places the IMF in the role of middleman for their digital transactions!!!

The plot is that the XC platform would facilitate the transition of the dying Western fiat currencies into this new digital paradigm. How on earth is that going to work, up against a massive revaluation of gold and BRICS+ currencies and the new trade only currencies that are all hard-backed by up to 20 commodities, including gold and almost certainly a remonetized silver?

And as the IMF noted in a discussion on centralised ledgers in 2023…

“We could end up in a world where we have connected entities to some degree, but some entities and some countries that are excluded. And as a global and multilateral institution, we’re sort of aiming to, you know, provide a basic connectivity, a basic set of rules and governance that is truly multilateral and inclusive. So, I think that is—the ambition is to aim for innovation that is compatible with policy goals and that is inclusive relative to the broad membership of, say, the IMF.”

To translate, decentralised systems are bad. “Inclusivity” (collectivism) is good. And the IMF wants to work in tandem with other globalist institutions to be the facilitators (controllers) of that economic collectivism.

Yeah right – so the leopard is finally going to change its spots – the robber barons will flick a switch and miraculously transform into amazing egalitarian focused angels. Why don’t they try pulling the other one – its got bells attached.

10. That’s a Wrap

The plutocrats are really flailing now, and with the growing realisation, on both sides, that this battle is indeed existential, these events render 2024 THE most dangerous phase of the concurrent death of an empire and its broken fiat money casino.

The cascading events of 2024 are poised to define humanity’s future in an extremely positive way.

Colin Maxwell (4 May, 2024)