BOOM Finance and Economics posts here: http://boomfinanceandeconomics.com/#/ and https://cmnnews.org/?utm_campaign=paper_sub&utm_medium=email&utm_source=subscription – Hat Tip to my colleague Gerry at BOOM:
BOOM seeks out the very best information from authoritative sources and strives for consistency in its quality and trustworthiness. In evidence of this, BOOM has developed a loyal readership which includes many of the world’s most senior economists, central bankers, fund managers and academics. We strive to always have good relationships with our readers. If you want a real edge in understanding the complex world of finance and economics, subscribe to BOOM as a Follower on LinkedIn or as a Subscriber (Free) to the BOOM Newspaper at http://boomfinanceandeconomics.com/#/
THIS WEEK’S EDITORIAL
RUSSIA DEMANDS MORE PAYMENT IN RUBLES: We are witnessing events of grand historical and economic significance.
Last week, Russia announced that wheat and sunflower sales will now be reserved for “friendly” nations who will have to pay with Rubles. As Russia is the biggest exporter of grains in the world, this will have a huge global impact. Just 3 months ago, they insisted that Western European purchasers for oil and gas make payments with Rubles. The EuroRuble is now inevitable and Ruble bank accounts must become commonplace.
Russia allowed those purchasers to open bank accounts with Gazprombank and pay with other currencies (except the US Dollar) but they also had to open Ruble denominated accounts at Gazprombank for exchange purposes. From now on, increasing amounts of Russian currency will be required for settlements of global trade.
The Russian currency has continued to appreciate strongly against the US Dollar, doubling in price since early March, just as BOOM predicted. Foreign exchange traders are waking up to the fact that this is not some temporary aberration.
Many nations and many corporations have reportedly opened accounts at Gazprombank to pay for their Russian commodities either in Rubles or in Euros. Such payments bypass the SWIFT interbank messaging system based in Brussels and dominated by the United States because they are conducted inside the internal ledger of Gazprombank with Euro (or Ruble) funds lodged beforehand as deposits. The Chinese and Indians will be watching these developments closely.
The decline of US Dollar dominance has begun. All the world now knows that the US recently confiscated the private property of the Russian nation and then of private Russian citizens. Such a move destroys trust in US Dollar denominated assets. This lack of respect for private property is the very antithesis of capitalism.
Then Trudeau froze the bank accounts of private citizens in Canada who were in political opposition to him and he set riot police onto them when they were clearly assembling peacefully. Does that sound like a tolerant democracy which holds private property, free speech and free assembly dear to its heart?
Recently, the US jailed Dr Simone Gold, the founder of America’s Frontline Doctors, again for daring to peacefully protest against the government. Then, the supposed defender of democracy, Volodymyr Zelensky in the Ukraine banned the major opposition party in Ukraine and confiscated their assets. A month ago, he arrested his second major political opponent.
So has Democracy become an inconvenience in the West? Is it now an obstruction to achieve and maintain power? What is meant by the term Western “values”?
THE DEATH OF DEMOCRACY AND CAPITALISM: We are witnessing the death of democracy and capitalism in the “advanced” economies. The executioners are the idiot cabal of Western politicians and their unelected advisers who are currently in power.
All of this will speed the decline of the US Dollar as the dominant currency for global trade and capital settlements. However, as BOOM has pointed out frequently, that process will still probably take 50 – 100 years because of the massive Eurodollar volumes on the ledgers of tax haven banks. It is still the currency of convenience and there are very few EuroRubles or EuroYen in existence outside Russia and China. However, that will change and it may change sooner than anyone (even BOOM ) is anticipating.
The famous quote from Churchill sums up the whole situation but it may not sum up the outcome as accurately as before — “Americans can always be trusted to do the right thing, once all other possibilities have been exhausted.”
CHINA CRITICISES THE G7: Meanwhile, China was meeting with the BRICS nations in Beijing while the G7 nations were meeting in Bavaria’s Schloss Elmau castle, near Garmisch-Partenkirchen. Schloss Elmau is just a short 2 hour drive away from the famous Hitler’s mountain lair, the Berghof, near Berchtesgarden, also in the Bavarian alps of Southern Germany. Some cynical observers suggested that the center of power in Europe has not moved much since 1945.
The Chinese pointed out that the G7 nations amounted to just 777 million people while the BRICS meeting represented 3.2 Billion people.
The BRICS are, of course, Brazil, Russia, India, China and South Africa. But China was being polite. Iran and Argentina have applied to officially join BRICS. That would add another 132 Million with Argentina’s population being 46 Million and Iran’s being 86 Million. And then there are the other Shanghai Cooperation Agreement nations to think about. They include Kazakhstan (20 M), Kyrgyzstan (6 M), Pakistan (230 M) , Tajikistan (9 M) , Afghanistan (40 M), Belarus (10 M), Mongolia (3 M), Armenia (3 M), Cambodia (17 M), Nepal (30 M), Sri Lanka (20 M), Turkey (84 M), Turkmenistan (6 M). That adds up to another 480 Million people – almost another half Billion. Then there is all of Africa to consider (1.5 Billion) plus there are other Middle East nations and Egypt to consider (about 175 Million in total).
In toto, the non G7 nations contain at least 5.5 Billion people who could be seen as possible BRICS members, and probably more. The G7 total of 777 Million looks almost insignificant in comparison. Boris Johnson and Joe Biden need to do the math if they are capable.
During the BRICS summit last week, Putin said that the group was working on setting up a new global reserve currency “based on a basket of currencies of our countries.” That is a powerful statement of intent.
FLIGHTS CANCELLED — PILOT SHORTAGES: In the United States leading up to this Fourth of July weekend, 5,700 flights were cancelled or delayed on Wednesday and 2,400 flights were cancelled or delayed on Thursday. On Friday, 7,800 flights were delayed and 586 were cancelled. The major problem is pilot and crew shortages with many pilots refusing to be vaccinated with the experimental Covid genetic therapy shots. Mass pilot retirements have clearly been driven by this issue. It is well known that pilots are already at increased risk of blood clots from being airborne for long periods. And everyone knows that the Covid jabs have been dubbed as “Clot Shots”. Germany’s top airline also slashed 2,200 domestic flights on Friday, adding to the 900 announced weeks ago.
Many questions are being asked and comments made. Here is just a sample of comments from an article on flight cancellations that BOOM saw during the week.
“How many airport and airline workers were fired or forced to retire because of the death jabs?”
“100% loss of trust in the medical establishment now as they attribute all the increased deaths of young adults to SADS.”
For those who don’t know, SADS is the acronym for the modern, recently invented condition — Sudden Adult Death Syndrome.
A recent story in The Defender magazine summed up the situation — More Vaccine-Injured Pilots Speak Out — Quote: “Sharp chest pains. Myocarditis and pericarditis. Heart attacks. Strokes and subsequent blindness. These are just some of the many COVID-19 vaccine-related adverse events reported by commercial airline pilots and by a growing number of advocacy groups representing aviation industry workers.
According to these individuals and groups, the number of pilots speaking out about their vaccine injuries is dwarfed by the number of pilots who are still flying despite experiencing concerning symptoms — but not speaking out because of what they describe as a culture of intimidation within the aviation industry.
These individuals fear they will lose their jobs and livelihoods in retaliation if they reveal their symptoms or go public with their stories.” Link: https://childrenshealthdefense.org/defender/pilots-injured-covid-vaccines-airlines-mandates/
US RECESSION IMMINENT: The US Real GDP forecast for the second quarter which is published by the Atlanta Federal Reserve at GDP Now has plunged to – 2.1 %. That negative number is announcing a US recession.
Joe Biden did not seem concerned as he met with the other G7 leaders in the rarefied atmosphere of the distant Bavarian alps, joking with the Court Jester, Boris Johnson about ….. everything. One photo showed Johnson, Trudeau and Olaf Scholz hugging each other in laughter. A jolly good show, as they say back in Eton. It brings back memories of “Oh What a Lovely War!”, a British comedy film from 1969.
THE VIRUS AND NEXTSTRAIN.ORG: It’s all OMICRON now. This is the reality of Covid. However, the so called “Boosters” are not designed to produce Omicron Spike Proteins. They are designed to produce Alpha variant Spike Proteins — from the original Alpha variant (sometimes called the Wuhan variant) — which is long gone. Western leaders in lockstep keep recommending the boosters, apparently oblivious to this fact. You can fool some of the people some of the time but……You can check out the registrations for SARS CoV2 Virus mutations (Covid) worldwide at a website called Nextstrain.org
You will discover that all the current mutations as on 28th June are of the Omicron variant. The breakdown being registered for the following Clades of the Virus from the GISAID Data set are —
- Omicron 21L 47 %
- Omicron 22A 11 %
- Omicron 22B 30 %
- Omicron 22C 12 %
The GENBANK data set shows slightly different breakdowns but they are all, again, the Omicron variant.
- Omicron 21L 27 %
- Omicron 22A 10 %
- Omicron 22B 39 %
- Omicron 22C 24 %
Despite this reality, our political masters and their “expert” advisers are still advising that people should “get their boosters” as a matter of urgency. This seems odd to BOOM as the currently available genetic therapy vaccines were designed to cover the Alpha original strain of the virus which is apparently now nowhere to be seen — worldwide. Even the Delta variant seems missing in action.
Dr Paul Alexander — a Covid-19 Consultant Researcher in Evidence Based Medicine, Research Methodology and Clinical Epidemiology — commented on this in a recent article on Substack — “Presently we are using vaccines based on the legacy Wuhan strain when we had Delta and Omicron circulating and Wuhan was long gone”. He goes on to say — “These bitches at NIH like Collins and Fauci at NIAID et al. had you vaccinating with a vaccine that could have never ever worked and they knew it. The vaccinal antibodies could not hit the omicron variants and they knew. This is why there was immune escape and vaccinated were getting infected.“
Dr Alexander has a bachelor’s degree in epidemiology from McMaster University in Canada and a Master of Science degree from Oxford University. He has a PhD degree from McMaster University’s Department of Health Research Methods, Evidence, and Impact. His Master of Science degree (MSc) from Oxford was in Evidence-Based Medicine (EBM) and clinical epidemiology. He is expert in Evidence-based medicine, research methods/design, advanced statistical analysis techniques, design and conduct of randomized controlled trials, design and conduct and interpretation of systematic reviews and meta-analysis, decision analysis, advanced research design and methods.
He comments further — “Moreover Yahi et al. has shown us the vaccinal antibodies are so worthless, they are dangerous, for they bind to the target spike antigen (receptor binding domain epitopes on the spike or N terminal domain epitopes) yet do not sterilize (neutralize) the virus and prevent infection. In fact, the binding of non-neutralizing vaccinal antibodies enhances and facilitates infection in the vaccinee, called antibody dependent enhancement of infection (ADEI).“
He gets angry in the article. Real angry. Yet, you can turn on any TV anywhere and see the politicians and their “expert” advisers urging citizens to “go get a booster”. They appear to have no understanding that the original variant of the virus is long gone. They don’t appear to care. It is “do as we say, or else”.
Why have Western politicians suddenly devolved into authoritarian tyrants with little regard for the principles of democracy? Who are their “expert” advisers and why do they have so much power? How wrong can they be in regard to Covid, their economies and the Geopolitical realities? They seem cocooned in the lap of luxury and power, completely out of touch with the people. That cannot last for long. The dream may be over sooner than they expect.
BORIS THE JOLLY JESTER: Watch these last day 50 seconds of the G7 Meeting — Boris the Jolly Jester leads only 5 leaders into the room, they sit and exchange forced smiles while refusing to answer questions about Ukraine. Representatives of the EU, Japan and Canada were notably absent. Then they call an end to proceedings. Boris Johnson makes Biden and Scholz laugh on last day of G7: Link: https://www.youtube.com/watch?v=WQaNibdm3NQ
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.
SUBSCRIBE – FREE AT BOOM: http://boomfinanceandeconomics.com/#/
CLICK HERE FOR PODCASTS: OUR BRAVE NEW ECONOMIC WORLD
BANKS DON’T TAKE DEPOSITS, THEY BORROW YOUR MONEY: LOANS CREATE DEPOSITS — that is how almost all new money is created in the economy (by commercial banks making loans). https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy
Watch this short 15 minutes video and learn as Professor Richard Werner brilliantly explains how global banking systems really work. https://www.youtube.com/watch?v=EnC1UlnFLyI
AND Watch for 4 minutes, this Bank of England explanation: Money is essential to the workings of a modern economy, but its nature has varied substantially over time. This video describes what money is today. https://www.youtube.com/watch?v=ziTE32hiWdk
Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models. EMAIL: gerry {at} boomfinanceandeconomics.com
DISCLAIMER: All content is presented for educational and/or entertainment purposes only. Under no circumstances should it be mistaken for professional investment advice, nor is it at all intended to be taken as such. The commentary and other contents simply reflect the opinion of the authors alone on the current and future status of the markets and various economies. It is subject to error and change without notice. The presence of a link to a website does not indicate approval or endorsement of that web site or any services, products, or opinions that may be offered by them.
Neither the information nor any opinion expressed constitutes a solicitation to buy or sell any neither securities nor investments. Do NOT ever purchase any security or investment without doing your own and sufficient research. Neither BOOM Finance and Economics.com nor any of its principals or contributors are under any obligation to update or keep current the information contained herein. The principals and related parties may at times have positions in the securities or investments referred to and may make purchases or sales of these securities and investments while this site is live. The analysis contained is based on both technical and fundamental research.
Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.
Disclosure: We accept no advertising or compensation, and have no material connection to any products, brands, topics or companies mentioned anywhere on the site.
Fair Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of economic and social significance. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.
Liberals blame everybody else for their own stupidity; I forgot to say every real Economist knows that if you double the money supply, you double the prices within about 2 years. If you keep printing wildly for welfare-warfare, you create hyperinflation, especially if you screw up supply like FJB and Environmentalist do.
Speaking of a pilot shortage…
Wonderful – a great film of which I never tire!
Germany had a trade deficit last month. That is the first time in 30 years. Caused by lack of natural gas to power industry. That will show those Russkies. ….and they haven’t even begun to squeeze their scrotum yet.
On 8Nov2022, the 70% of Americans who know America is headed in the wrong direction can vote all the democrats out, then the Republicans can end the Sanctions, Impeach FJB, hold Treason Trials for the 2020 Election Fraud and J6 Show Trial, hold a Nuremberg like trial for the CV-19 Genocide Shot Holocaust Criminals, and correct the fuel and food disasters caused by the democrats and environmentalist. Line by line and precept by precept we can get America headed in the right direction again. Amen.
Worthy sentiment rhs jr – sarc/off ?
Never was on Sarc; I’m really serious; can’t imagine intelligent people voting to continue heading in the wrong direction though can imagine more attempted democrat vote fraud. I’ve even got hope for my English cousins getting their act together for God’s sake and probably the Germans. It’s about do or die time if you want to eat in the future and stay warm in the Winters.
I do agree rhs jr but I just can’t imagine any power capable of overcoming the globalists – my approach has always been to go local, don’t comply and take the hits unless it all descends into mass war.
Boris’ administration just turned to dust; do y’all get to vote the globalist bastards out and a new slate in?
They are too well embedded IMHO – see Stucky’s post and my comments. There will be no election – too risky at present.
And exactly where are we going to find politicians of any political party who will go after their paymasters in Pharma? The people put the republicans in control in ’16 with the promise that 0bamacare would be repealed and replaced, but we still have 0bamacare and always will as long as we have a government in the District of Corruption. Only government dissolution will end 0bamacare.
Also, the same folks will be counting ballots in Philly, Vegas, Milwaukee, Phoenix and Atlanta. These are in states where there is a senate race that is not totally locked up for the dominant party.
Yes indeed – I have written about it this week. The EU is committing suicide. The euro = USD almost – that should tell us something.
Again, Sanctions guarantee the dollar and Euro go to zero muy pronto but it doesn’t have to be ; get rid of the democrats, get rid of the Sanctions, reduce the threat…