The momentum pushing for the overhaul of the financial system from its current disorderly state of unbounded speculation (amounting to over $1.5 quadrillion of derivatives) towards a “reformed central bank-driven” system of green finance is moving startlingly fast. The fact that this momentum is both coming from “top down” echelons of the City of London as well as the “bottom up” anarchist mobs of Extinction Rebellion is also not a coincidence as it has now been firmly proven that both are coordinated by the same billionaire speculators who created the economic bubble of an economy now ripe to blow.

In the case of Mark Carney’s Bank of England, the former Bank of Canada governor/Goldman Sachs man has recently led the hectic campaign for a green digital crypto-currency to replace the bankrupt US dollar. Since his announcement of this crypto plan on August 22, the Bank of Canada quickly fell into line declaring its support of the agenda on October 15.

Carney’s colleagues in the United Nations Conference on Trade and Development (UNCTD) amplified this message on October 15 saying: “What is needed is a Global Green New Deal that combines environmental recovery, financial stability and economic justice through massive public investment in decarbonizing our energy, transportation and food systems while guaranteeing jobs for displaced workers and supporting low carbon growth paths in developing countries… through the transfer of appropriate technologies”.

Carney was joined by former Bank of England Governor Mervyn King who recently warned that a “financial Armageddon” is looming unless central banks are permitted to unleash unbounded quantitative easing once more.

The Storm now Emerging

The fact that this highly coordinated push is happening now is not unconnected to the elephant in the room: not only is it a myth that the financial system recovered after the near-meltdown of 2008, but the truth is that the crisis has only become magnitudes worse today, with many signs now pointing to an even bigger blowout that no amount of quantitative easing can solve.

Since September 17, a radical new wave of bailouts have been unleashed with the NY Federal Reserve pumping $50-$100 billion of short term loans/day into the big banks in order to fight an immanent “liquidity crunch”. Meanwhile the IMF Global Financial Stability Report of 2019 has sounded the alarm that the corporate debt of eight leading nations has grown to a record $19 trillion upon which sits innumerable trillions of derivatives bets. The IMF Report authors stated that “a sharp, sudden tightening in financial conditions could unmasks the vulnerabilities” of the system.

Derivatives and the Unreality of Modern Banking

When the 2008 crisis hit, many people woke up to the ugly fact that they had been living a lie.

Illusions had blown up so dramatically that many were able to examine their own axioms and began to think more clearly about the real principles of political economy which globalization had denied to exist. This was hard not to do when Congressmen like Brad Sherman publicized that he and others were threatened with Marshall Law in America if he did not support a bailout of “too-big-to-fails”. Sadly, as the post-2008 “bailout system” emerged, speculation only continued to grow and the west was told that “the fundamentals were sound”, Globalization and the neoliberal paradigm had proven themselves and people went back to sleep.

What was the lesson we SHOULD have learned in 2008?

Economics is not digital. It is not even monetary. Hell it is not even resource-based. Of course, resources, money and even digital currencies may play important roles in an economic system, but the system’s viability- what we may call the “cause of value”, is not premised upon any of those things. This fact was understood more widely in the thirty post WWII years among trans-Atlantic nations. But with the 1971 floating of the US dollar off of the gold standard and onto speculative markets, the new paradigm of “money-first, reality second (or never)” was unleashed and nations stripped of their qualified leaders soon also became stripped of their real assets as well as their ability to generate credit for long term infrastructure or impose protective tariffs in defense of their own interests- both practices officially banned by NAFTA, the WTO and the EURO-cage.

Throughout the 1990s derivatives increased from $2 trillion in 1992 to $70 trillion in 1999 at the height of the Y2K bubble. Once that bubble blew, many thought the “end was nigh”, and started waking up again but due to the 1999 repeal of Glass Steagall followed by the 2000 deregulation of over-the-counter derivatives now being supported with supercomputers and “high-frequency trading”, the illusion was given new life and the $70 trillion bubble became $500 trillion by 2007 when the subprime bubble blew. To put things in proportion, global GDP amounts to $85 trillion.

Where was the Resistance?

Why didn’t more people fight throughout the 1970s, 1980s, 1990s, and 2000s against this collapse of manufacturing, decay of vital infrastructure and the loss of those very practices which created the foundations first world living standards which generations unborn required to survive?

Admittedly, a few did.

Deutschebank President Alfred Herrhausen tried to revive the pro-industrial growth model as the Berlin Wall fell, but a November 1989 assassination put an end to that. American presidential candidate Lyndon LaRouche admittedly led a powerful resistance within America, but an FBI crackdown in 1988 put the man and his leading allies in maximum security prison for years. There were a few others, but for the most part the lesson learned by the political class, and citizens who should have known better was “don’t make waves”, keep your head down, and you might get material comfort while the outskirts of the empire go to hell.

New Silk Road or New Green Deal

It is no secret that Carney as well as French Finance Minister Bruno LaMaire have recently stated that if a Global Green New Deal is not imposed quickly then China’s New Silk Road will become the basis of a new post-Bretton Woods system. In the minds of an oligarchical governing class obsessed with control, this multipolar future premised on long term growth and international development projects WITH NO DEFINED ENDPOINT POSSIBLE is a horror not to be permitted- even at the cost of launching WWIII.

This is where the economic meltdown and the green digital currency “solution” are revealed in their full ugliness.

The reason why those countries led by Russia and China are jumping on board a New Silk Road is because the paradigm governing it is premised upon REAL VALUE! By lifting people out of poverty (800 million in China alone), and valuing the creative powers of mind which multiply their opportunities of action when given a pro-industrial growth-oriented paradigm, these Eurasian powers have tapped into the source of value which guided the west in the post WWII years. The problem with this paradigm which zero-sum thinking geopoliticians HATE is that once any genuine program of serious development starts, you can’t really stop. It’s an open system and since it is premised on human creative thought and free will, it is also non-linear. This fact of open-non linearity is really humanity’s saving grace.

When nations elevate their citizens to higher standards of living, rates of consumption increase, as do rates of attrition of existing resource baskets, but cognitive powers also increase which must offset that entropy with greater rates of anti-entropy through new discoveries and inventions! These must be applied in the form of industrial and technological progress. Imagine what the world would already look like if JFK’s program for a space based economy powered by nuclear fusion wasn’t de-railed over his dead body!

This entire science of physical economy is both at the heart of the Belt and Road Initiative today and its principles were discussed already many decades ago in the 1984 textbook So You Wish to Learn All About Economics and associated video the Power of Labor. It is well worth taking the time to work through this material seriously if one considers themselves a truth-seeker in today’s world.

The only reason why the Bank of England’s green digital currency is taken seriously at all today is because westerners have become so psycho-spiritually detached from reality during the years since the “consumer society cult” led people to believe that a nation could magically exist as a services economy without producing.

Just like those technocrats in 1919 who imposed impossible Versailles reparations onto a defeated Germany while simultaneously gouging the physical economic basis of the Weimar Republic’s existence, today’s technocrats are hungry for a new fascist solution to the problem of sovereign nation states. We know what almost happened in Germany when the last project funded by the Bank of England failed in 1945… but what about today?

Matthew J.L. Ehret is a journalist, lecturer and founder of the Canadian Patriot Review.

Originally published in Strategic Culture online journal. The views of individual contributors do not necessarily represent those of the Strategic Culture Foundation.

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Image by Лечение Наркомании from Pixabay 

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