Munger and China — Viral Epidemics Collapse — Look at India — Ivermectin Should be Globally and Systemically Deployed [07-11-2021]

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THIS WEEK’S EDITORIAL
MUNGER AND CHINA – Charlie Munger is Warren Buffett’s long-time partner. Some people say he is smarter than Buffett. That is a difficult task because Buffett is obviously very bright.  Last week, in an interview Charlie showed admiration for the way that China maintains control of its money system.  He said “I don’t want all of the Chinese system, but I certainly would like to have the financial part of it in my country,” “Our wonderful free enterprise economy is letting all these crazy people go to this gross excess,” while the Chinese regime “steps in pre-emptively to stop speculation.”

He was talking about the Chinese banking system and the protection of it by the central authorities against any encroachment from the Chinese billionaire entrepreneur, Jack Ma. Charlie obviously likes the central authoritarian control of the Chinese banking system and is envious of it. He is suggesting that the US can learn from the communists in this regard.

BOOM has written about this on numerous occasions, pointing out that the Chinese control of their money supply is very sophisticated and determined. If you observe that control as closely as BOOM has, you will see an extremely high level of understanding of money — how it is created, how it is destroyed and how it is best put to work in an economy.

In the advanced western capitalist economies, such sophistication in regard to money is rare. For example, it is still common to see western economists, academics and commentators refer to banks as “financial intermediaries”. This implies that banks simply act as intermediaries between savers and borrowers. And it suggests that banks cannot lend any more money than they have on deposit. This is simply not true.

From the Bank of England Quarterly Bulletin Q1 2014    — “Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.“ “Most money in the modern economy is in the form of bank deposits, which are created by commercial banks themselves”.

So here we are in 2021 — seven years later — and still the western advanced economies seem not to understand their own money system. And Charlie Munger knows it.

In the US, in particular, they have allowed their bond markets to become major providers of capital to their corporations, local municipalities, state and federal governments. In this respect, the bond markets supply old money to those entities, not fresh new money.

Almost all bond issuance involves the circulation of old money from one party to another and the total money supply in the economy does not change to any significant degree. Thus, bond markets act as pure financial intermediaries. In fulfilling this task, the money supply to the real economy where goods and services are provided does not expand and therefore, economic growth is not stimulated.

There is one obvious exception and that occurs when the central bank buys government bonds with fresh new money in Quantitative Easing programs. But that is a relatively rare circumstance. And even there, we see a lack of sophistication from our central bankers. They create the fresh new money and spend it into the real economy via the asset economy (buying bonds and other asset backed securities), distorting price discovery in the asset markets in the process. This inevitably results in asset price rises rather than rises in real economic activity in the provision of goods and services.

The Chinese know all this. They do not make the same mistake. They fund their economy overwhelmingly via bank loan creation. Bank loans create new money which fuels the money supply. And the quantity of bank loans that go into pure asset price speculation is watched very closely versus the quantity going into productive investments that will assist in the provision of goods and services. These dynamics are not left “to the market”. They are well controlled and therefore the flow of new money is directed purposefully in regard to timing, volume and destination.

The real economy concerning goods and services in China is not so rigidly controlled as the financial system. It is capitalist in its nature and competition plus entrepreneurship is encouraged.  The advanced western, capitalist economies urgently need a better understanding of money creation, money use and money destruction in their central banks. But it appears that they are slow learners. This makes sense because there is no incentive for them to change. They are well paid to maintain the status quo.

VIRAL EPIDEMICS COLLAPSE — THAT’S NORMAL — LOOK AT INDIA – In India, Covid 19 Cases and Deaths have collapsed. This surely cannot be due to masks, social distancing, lockdowns or vaccines.  All of these social measures are next to impossible to achieve in a nation of 1.4 Billion people and massive poverty.

BOOM begs you to see for yourself — Check out the graphs for cases and deaths for India at    https://www.worldometers.info/coronavirus/country/india/

Not so long ago, our TV screens were filled with horror stories of funerals in India. Every night, we were bombarded with news of the “terrible death toll in India” and how it was going to get worse, much worse. So – what has happened since then? Cases and deaths attributed to Covid have collapsed.

The fact is that all viral epidemics collapse under their own weight. The spike in deaths in Europe and the UK in early 2020 showed the exact same pattern that we see every year in Influenza epidemics. Steep rises in cases and death numbers occurred followed by equally steep collapses in those numbers.

The spike in early 2020 lasted just 8 weeks — from the 11th week in March to the 19th week in May . And that happened well before any of the social measures of masking, social distancing and hand sanitation had any time to be adopted or to have effect. Vaccines were not even available at that time.

The graphs at EuroMOMO show clearly what happened and they show that the total death numbers from all causes were not much different to any other previous year.  BOOM begs you again — Check out the graphs at  https://www.euromomo.eu/graphs-and-maps

If you look closely at those graphs, you will see that there was no pandemic of excess death in early 2020 in Europe and the UK and there is still no pandemic of excess death.

But, there was (and is) a pandemic of fear, panic and irrational government reactions. That is clear. And this pandemic of fear is becoming a major and persistent threat to our economies, our social structure, our political systems, our democracies, our trust in authorities, our trust in the mainstream media, our trust in each other. Totalitarian control is clearly NOT the correct response to such an inconsequential virus.

We have been misled by huge numbers of False Positive results from a deeply flawed PCR diagnostic test run at an excessive 45 Amplification Cycles. PCR tests should never be used to diagnose infection according to the genius inventor of it, the Nobel Prize winning, Dr Kary Mullis. And especially not at more than 30 Amplification Cycles.

We have been misled by the mainstream media who have decided to create fear and panic at every opportunity and have abandoned all respect for facts and factual analysis. We have been misled about the effectiveness of the new mRNA vaccines (that are arguably not even vaccines). Their stated “effectiveness” rates of “95 %” are Relative Risk Reductions. Absolute Risk Reduction numbers calculated from the exact same, small clinical trials done in late 2020 show a range of just 0.7 % – 1 % in absolute risk reduction.

And their stated “safety” is yet to be determined as we are still in the early stages of the world’s biggest uncontrolled clinical trial of unproven, unapproved vaccines with no idea of the long term consequences. But, worst of all, we have been misled by our governments and their so-called “expert” advisers.

It is time to stop and think clearly. Mass hysteria and knee jerk reactions are not going to save us.  The narrative that “the vaccines will protect us and so will masks and so will lockdowns, so let’s keep doing them over and over again” is false. WHEN are we going to realize this?

Doing the same thing over and over again and expecting a different outcome is the definition of madness — according to Albert Einstein.  It will take up to 10 years to fully understand the effect of the new vaccine technologies on the population. This is quite normal. The time frame for the development of new vaccines is always 8 – 10 years.

WE ARE ALL PAVLOV’S DOGS NOW – BOOM has previously discussed how Governments are now torturing their own citizens. They are locking them up, restricting their activities, forcing them to wear muzzles (face masks) and banning any debate. As a result, the citizens are at risk of developing Stockholm Syndrome – where captives become convinced of the virtue of their kidnappers’ intentions and then eventually give in to the terror. They surrender and join the terrorist mob. Patty Hearst is the most famous example.

Another terror technique perfected by the Russian biologist Ivan Petrovich Pavlov springs to mind. He terrorized captive dogs into submission using barrages of fear and anxiety. He showed that dogs could be conditioned to react in a predictable way in such situations.  WE ARE ALL PAVLOV’S DOGS NOW — This brilliant article should be read by everyone. Link:  https://www.ukcolumn.org/index.php/article/we-are-all-pavlovs-dogs-now

ROBERT CLANCY – Professor Robert Clancy is Emeritus Professor of Pathology at the University of Newcastle Medical School in Australia. He is a member of the Australian Academy of Science’s COVID-19 Expert Database.  Professor Clancy AM is a leading Australian clinical immunologist and a pioneer in the field of mucosal immunology (260 Publications). He is known for his research and development of therapies for Chronic Obstructive Pulmonary Disease (COPD), commonly known as emphysema. He was previously Foundation Chair of Pathology at the University of Newcastle and earlier in his career, was the first Clinical Immunologist at Royal Prince Alfred Hospital, Sydney.

He has written an article on how to deal with the Covid 19 phenomenon.  It is not perfect and will be criticized by some for certain aspects of this complex subject but, nonetheless, it is worthy of your consideration and is a breath of fresh air in many respects.

Link:  https://quadrant.org.au/opinion/public-health/2021/06/covid-19-where-are-we-going/

This final section sums up the vaccine dilemma. He warns about the new “genetic vaccines” being so strenuously promoted by the mainstream media and governments worldwide versus the more conventional, “antigen vaccines”.

“At this stage data and science favour antigen vaccines over genetic vaccines. Early evidence that genetic vaccines can re-model the immune apparatus, with hypersensitivity and autoimmune complications in the short term, together with localisation of spike protein in the brain, heart and other tissues, predicts possible long-term complications involving brain, heart and other tissues.” Link: https://quadrant.org.au/opinion/public-health/2021/06/covid-19-where-are-we-going/

IVERMECTIN SHOULD BE GLOBALLY AND SYSTEMATICALLY DEPLOYED From:  American Journal of Therapeutics May/June 2021 Review of the Emerging Evidence Demonstrating the Efficacy of Ivermectin in the Prophylaxis and Treatment of COVID-19 —

Conclusions: Meta-analyses based on 18 randomized controlled treatment trials of Ivermectin in COVID-19 have found large, statistically significant reductions in mortality, time to clinical recovery, and time to viral clearance. Furthermore, results from numerous controlled prophylaxis trials report significantly reduced risks of contracting COVID-19 with the regular use of Ivermectin. Finally, the many examples of Ivermectin distribution campaigns leading to rapid population-wide decreases in morbidity and mortality indicate that an oral agent effective in all phases of COVID-19 has been identified.

“In summary, based on the totality of the trials and epidemiologic evidence presented in this review along with the preliminary findings of the Unitaid/WHO meta-analysis of treatment RCTs and the guideline recommendation from the international BIRD conference, Ivermectin should be globally and systematically deployed in the prevention and treatment of COVID-19.” LINK:  American Journal of Therapeutics May/June 2021

https://journals.lww.com/americantherapeutics/fulltext/2021/06000/review_of_the_emerging_evidence_demonstrating_the.4.aspx

In economics things work until they don’t. Until next week -Make your own conclusions, do your own research.  BOOM does not offer investment advice.

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Author: Austrian Peter

Peter J. Underwood is a retired international accountant and qualified humanistic counsellor living in Bruton, UK, with his wife, Yvonne. He pursued a career as an entrepreneur and business consultant, having founded several successful businesses in the UK and South Africa His latest Substack blog describes the African concept of Ubuntu - a system of localised community support using a gift economy model. View all posts by Austrian Peter