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THIS WEEK’S EDITORIAL
EU BANKRUPTCIES: Two weeks ago, BOOM noted that corporate bankruptcies are surging in the UK, almost tripling in number in the last quarter of 2022. The European Union is now registering a similar increase.
According to Eurostat, the number of corporate bankruptcies in the EU registered in the last quarter of 2022 was the highest since records began in 2015.
Compared to the previous quarter, they rose by 27%. And the number of business failures increased in each quarter throughout the year. Meanwhile, new company formations were stagnant. All economic sectors registered increases in the number of bankruptcies. Especially hard hit were the sectors of transportation, food and accommodation, presumably due to increases in the cost of energy.
The EU political class seems oblivious to all of this, preferring to wage war against a virus which has proven to be no more dangerous than a bad bout of influenza and against Russia which is also no significant threat to them. This poor leadership has consequences and the people of Europe are having their patience severely tested. Soon, they will lose their patience and social upheaval will manifest in large demonstrations against all the various levels of the EU control apparatus.
However, the institution which has the most power, the European Commission, is comfortably unaffected by what the people think as its members are not elected to office. They are appointed, carefully selected and promoted for their allegiance to anonymous power brokers.
EUROPEAN POWER EXPLAINED: The European Commission is made up of 27 “members” called European Commissioners and over 32,000 staff. It operates just like a Government Cabinet in a democracy with each member holding a different portfolio. Members are not called Ministers but they are essentially that. The Commission President (currently Ursula von der Leyen) is “proposed” by the European Council (the 27 heads of state/governments) and then “elected” by the European Parliament. The Council of the European Union then “nominates” the other members of the Commission in agreement with the nominated President, and the 27 members as a team are then subject to a “vote of approval” by the European Parliament.
All of this looks and sounds like a democratic process but it is not. The people of Europe have no real say in the matter. In BOOM’s opinion, this was all carefully structured by the founders of the European Union to distance the real rulers of Europe from the people. It is effectively a dictatorship of carefully selected operatives who are not answerable via any election process to the people.
Ursula Von Der Leyen’s father, Ernst Albrecht, was one of those founders. Albrecht was a prominent German politician and a senior public servant member of the European Commission in the post war period of the 1950’s. He is often regarded as one of the key founders of the European Union which emerged from the European Coal and Steel Community.
SWISS REFERENDUM ON CASH: A referendum is proposed in Switzerland to preserve physical cash in circulation as an essential part of the money supply. The referendum is proposed by the Swiss Freedom Movement with 157, 422 signatures. In Switzerland, if more than 100,000 signatures are assembled in support of a cause, then a national referendum must be held. Cash is held by citizens in Switzerland more than in any other European country.
The President of the Swiss Freedom Movement, Richard Koller, recently said — “We need to change the constitution so we can retain cash as freedom for the next generation”. Cash in Switzerland is still used for most transactions. According to the Swiss Payment Monitor study, 29% of transactions are settled with physical money. This is regarded as the highest percentage in Europe but it has declined from 48% in 2019. Thus, there is a perceived need to protect the circulation of cash in the economy.
The central bank of Switzerland, the Swiss National Bank (SNB), is a strong supporter of physical cash. Its Vice President, Martin Schlegel, has reportedly said that the shift toward cashless payments worldwide bears risks and that the SNB sees the supply and distribution of physical money as one of its key responsibilities. BOOM agrees wholeheartedly.
Physical cash is non-interest bearing. It is the People’s money, sovereign money traditionally issued by the sovereign and distributed by the banking system. It can be recalled at any time and replaced by fresh new cash. The volume of cash produced is determined by demand so the People have a strong say in its production. Because it is non-interest bearing at its source, physical cash is a strong buffer to interest bearing Credit money which is created as a bank loan for a willing borrower.
Thus, the demand for credit from borrowers and the demand for cash from non-borrowers is the key component in determining the mix of cash to credit in the supply of fresh new money.
It is the People’s responsibility to demand physical cash in order to ensure its continued production and circulation in the real economy. The people of Switzerland will hopefully soon pass a referendum which enshrines this process in the Swiss Constitution.
BOOM is looking forward to that happening and advises all other nations to follow the Swiss. Every citizen must understand the importance of using Cash in as many transactions as possible.
US DOLLAR AND PUTIN: The war in Ukraine, which has its origins in November 2013, is not really about “freedom” or “democracy” as promulgated by many western politicians. It is actually all about something that began way back in 1944 at Bretton Woods in New Hampshire in the United States — the US Dollar’s dominance in the settlement of global inter-national trade and capital transactions. The US sees Vladimir Putin as a major threat to that dominance and thus, they see that the US Dollar Empire is being placed at risk. So, seen through this lens, the war in Ukraine is not even about Ukraine.
Vladimir Putin recently stated that the share of ruble transactions in Russia’s foreign trade had doubled since the beginning of 2022, and now accounted for one third of the country’s settlements. He projected that the use of national currencies in place of the US Dollar and Euro in trade with Russia’s international partners would continue to grow.
The process of de-dollarizing the Russian economy started back in 2014, when Western nations introduced the initial sanctions against Moscow over the reunification of Crimea with Russia. The seizure by the US and its allies of US $300 billion in Russian foreign exchange and other assets is a decision that has dramatically added fuel to the fire.
So, in the Ukraine, we are now seeing the kinetic battle for and against US Dollar Dominance. That is what the Ukrainian and Russian soldiers are dying for on the front lines. They do not know this. They are not informed of this. It is all shrouded in the language of war. And in war, it is always said that the first casualty is Truth.
HONG KONG CRYPTO: Last week, BOOM was surprised by a sudden, unexpected increase in demand for Bitcoin and the entire Crypto market. However, BOOM was skeptical of this surprise price rise and held firm that it would probably not last long. Since then, over the last 7 days of trading, the Bitcoin price expressed in US Dollars has fallen by 6.2%. Ethereum has fallen by 6%. And the entire market capitalization of the Crypto market has fallen 7% back towards US$1 Trillion.
This unexpected and short lived surge in demand may have been caused by Hong Kong. On Feb. 20, Hong Kong’s Securities and Futures Commission outlined a new crypto license regime that proposed that all centralized exchanges that operate in the region must be licensed with the regulator. It called for “public consultation” on the matter (which means they are testing the matter with the ruling Central Committee in Beijing). It also proposed allowing retail traders access to licensed cryptocurrency trading platforms, saying “public feedback” highlighted that denying access to crypto markets may push Hong Kongers to trade on unregulated overseas platforms.
The new license regime will entail approved license holders to ensure the safe custody of assets, to put in place ‘Know Your Customer’ requirements and to ensure safe cybersecurity, secure accounting and auditing, risk management, Anti-Money Laundering provisions, the counter-financing of terrorism and the prevention of market misconduct.
Despite all this, BOOM expects Beijing to reject the proposal. Why? Because the entire Crypto market is simply a US Dollar Proxy operation, one which boosts global demand for the US Dollar. And that, quite simply, does nothing for the people of China.
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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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.
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.
Most economists are unaware of this and even ignore the banking & finance sectors in their econometric models. EMAIL: gerry{at}boomfinanceandeconomics.com
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Peter, what are you hearing from your contacts in South Africa? From this article, the situation does not sound good….
The collapse of South Africa
With so many things going to pieces all around the world these days, it can be difficult to keep track of them all. Particularly when so much of the global news media’s attention is riveted on the war in Ukraine, other things can slip through the cracks. For example, were you aware that the government of South Africa has basically collapsed? And it happened fairly quickly. Take a look at this lengthy Twitter thread from someone who actually lives there. The government and the police have almost disappeared, the energy grid has imploded, half of the people in the country are out of work and the nation’s infrastructure has crumbled.
https://hotair.com/jazz-shaw/2023/02/27/the-collapse-of-south-africa-n533503
LOL – it is no exaggeration unfortunately B_MC, it’s being going on for at least 20 years getting worse all the time. It’s a local joke that nothing works so you have to do it yourself. The SARS (SA Revenue Service) is about the best operator but they are also a mess and therefore paying tax is virtually voluntary.
Of all provinces (= your state), The Western Cape and Cape Town in particular is the most capable having been lead by the DA, originally a white Party but now have members of all ethnicities. Because of the mix CT is relatively stable with more than half of the residents of the city and metropolitan area being Coloured (the former official term for sensible people of mixed race), about one-fourth are white, about one-fifth are Black, and the remainder are of Asian—primarily Indian—origin.
But the true culprits in SA’s demise is rooted in Bains & Co in common with many other dark ops across the world :https://www.dailymaverick.co.za/article/2022-01-23-bain-company-the-rot-at-the-heart-of-state-capture/?utm_medium=email&utm_campaign=First%20Thing%20Monday%2024%20January%202022&utm_content=First%20Thing%20Monday%2024%20January%202022+CID_7a857a962a4f51896ebd9392ee80edfd&utm_source=TouchBasePro&utm_term=Bain%20%20Company%20%20the%20rot%20at%20the%20heart%20of%20State%20Capture
“The volume of cash produced is determined by demand so the People have a strong say in its production. ” – Seriously??? Whether there is a lot of physical cash or not means NOTHING if the creation of “money” by the central bank is out of control. Once the Swiss gave up the gold standard, it was all downhill from there…regardless of them being able to transact in physical currency. I applaud the move to retain cash, but let’s be honest about the money supply.
As I understand it, central banks don’t create cash, the Treasury does, thus it’s out of CB control, it is non-interest bearing so banks don’t make any money from it. The more people use it, the more the Treasuries have to match demand.
AND
https://www.investopedia.com/terms/c/cash.asp
With a central bank digital currency, charges can be applied to every transaction. That is the nectar the Banking Cabal crave.
Good thought Mongo, thanks – I hadn’t thought of ‘charges’ – the Cabal will always find a way I guess.
In Switzerland, they use the direct to vote like this.
They say preserving cash is key.
Get enough signatures to hold a vote.
Vote.
Rigged.
Results say people want the opposite.
Cash is banned.
Swiss people think they stood up for their “Freedoms”……
It is sad to watch this pattern happen over and over there……
Home of the BIS and home of the Zionists.
They are going after the $1000 Franc notes stored in Switzerland.
Switzerland has turned against it’s own citizens for a while now.
I have posted something here 4 times in a row and it is immediately erased by TPTB each time; Peter, please send me a back channel address ASAP. TPTB have destroyed 3 email addresses that I’ve had one after the other so I hesitate to send the one I have now; my Post Office address is rhs jr, 875 limestone rd , Monticello fl 32344-1151 , United States. I then could email or post mail you this matter. TPTB really don’t like this paragraph and unfortunately it is very timely. Thank you for what you are doing.
What is it in regards about?
If it contains a link, the link may be the problem. I’ve had that happen a few times. In those cases, I posted the text only, which showed up, and then added the link as an edit which posted everything.
OK rhs jr – first off try my Substack and add your comment – I have never had trouble posting here: https://austrianpeter.substack.com/p/eu-bankruptcies-european-power-explained?utm_source=post-email-title&publication_id=762792&post_id=105568513&isFreemail=false&utm_medium=email
If it remains a problem then try my email here: [email protected] I haven’t a problem with this.
I just sent it to your email; I want to add that States/Red Regions could also print their own currency if necessary. Here is what was repeatedly erased: ….Tom Emmer (R-Mn) has submitted a US House Bill banning the replacement of our US Dollar Currency with Federal Reserve CBDC (FedCoins) on the grounds that will violate our Constitutional Rights of Privacy. It is co-sponsored by ten other US House Representatives, including Byron Donalds (R-Fl). Please support this Bill. Please note that “The Fed” is not part of the US Federal Government but is a privately owned businesses that is part of the Rothschild Central Banking System. All 50 states should legalize silver and gold coins for trade; and legally permit the creation of State Banks and State Credit Unions (before 2024), to create state checking accounts, state savings accounts, loans, and intra-state loans. This idea is similar to the BRICS+ countries setting up their own financial system work arounds of the Rothschild Central Bank System (that stole BRICS+ deposited cash, and let Western governments use them to place Sanctions on BRICS+). The BRICS+ countries came up with their own financial systems and are now doing even better than before. State Banks and Credit Unions would allow millions of Citizens who will refuse to accept The Mark Of The Beast (TMOB, probably an individual QR Code) and who will refuse to use Rothschild FedCoins (which will outlaw all other currencies, even cryptos, and barter) when fully implemented in July2024. The States and Citizens that set up State Bank and Credit Union work-arounds and defend their Right to do so, will be able to carry on a significant amount of commerce outside the Rothschild Central Bank System; and Citizens will surely find ways around the large NWO retailers like Walmart, Costco, etc, that will only use FedCoins; until the Beast System is finally defeated, perhaps even destroyed by our Lord Himself when He returns.
Excellent assessment rhs jr – I agree that the states have to take matters into their hands, after all many of your states have economies much bigger than UK – they surely can stand alone and trade accordingly. Doesn’t N Dakota point the way with their banking system which bypassed all the crap in 2008?
I haven’t got your email yet – not in spam either. This is most unusual – it has never happened. Did you get an undelivered notice? If not, then it’s at your end ISP. You could try resending to my private email: [email protected] (which is webmail so might work). Have you tried my Substack comments, yet?
I see you have a problem somewhere. If you give me your email I could ping it and find out what’s going on?
No non-delivery notice; no surprise here. I will send you a slightly updated version to your gmail that I plan to try to deliver to 28 republican Florida state senators and 84 representatives in Tallahassee today. Posted to your Substack. I don’t understand ping but: [email protected] . Long ago I was put on their Terrorist list, followed by cops, circled by ninjas in a white unmarked helicopter, and they painted my front door maroon three times; not because I have a single bad bone but because they don’t like what I think and say as a conservative activist; I’m really on their Censorship and wreck his computer list; they usually watch every stroke. One day my screen went all blue and large orange letters said “how does it feel to be censored”. The CBs have made a disaster of Nigeria with CBDC, have tested it 12 weeks here, and are starting pilot tests in Russia, Japan and Ukraine now. When I sent it again to the UK email address, it all completely just dropped out of my computer like it never happened. Have a blessed day.
Phew – that’s real censorship – I have emailed you – try replying and see if it gets through.
Good move Switzerland ! The percentage of transactions settled in cash in the US is only 10% (Swiss 29%), however, Americans who use cash at least some of the time is 88%. Cash is our only hope to stay out of 15 minute FEMA Campland into eternity. Use CASH, starve a bankster.
Indeed BL – this group are promoting cash:
If we let TPTB impose FedCoin/BritCoins on us in Jul2024, we will have “sold our Souls” to the Devil; at best Useful Idiots will be as goners as slaves on a Rothschild Plantation; Conservatives will become gally slaves rowing to death camps. Stall the NWO as long as possible until it can be defeated; try to get political candidates to commit to anti-NWO actions, and support them when they do. MTG said Red and Blue need a divorce ( Blue keeps trying to kill Red), it’s overdue and necessary.
Iain Davis has a great chart of the NWO organisation, so that’s the HOW and WHO but still no confirmation of the WHY and the WHAT to do about it except as you suggest. And the WHEN is very much imminent as you say – no time to lose. https://bailiwicknews.substack.com/p/organizational-chart-bank-for-international?utm_source=post-email-title&publication_id=37889&post_id=105840397&isFreemail=true&utm_medium=email You could try adding your ‘lost comment’ here.
rhs jr – clearly this is important – You can snail mail to:
48, Vineys Yard
BRUTON
Somerset, UK
BA10 0EU
Hi rhs jr,
I have just successfully received your ‘comment’ on my Substack. Do you want me to publish it here?