The COVID-19 Economic Crisis is One Big Gay-Op
There has been sharp disagreement within racialist circles over the appropriateness of the COVID-19 lockdown and the scientific justifications behind it. Occidental Dissent has been leading the charge against opponents of the lockdown as ignorant rubes and embarrassing conspiracy theorists, and while I could not disagree more with Occidental Dissent on this front, I nonetheless appreciate the site’s take on our present monetary system as nothing more than wholesale financial fraud and simply wanted to state as much as a qualifier to the modified piece below. — Dissident Millennial
by Trey Knickerbocker
The Economic Crisis
THE UNITED STATES is not a real country. It is a giant box store with the world’s biggest HR department whose sole purpose is to maintain a Ponzi scheme for Jews to collect payments from their sheepish White ATM’s. This is why deficits, unbridled money printing, legal and illegal immigration, rampant corporate theft, exorbitant real estate valuations, and rising healthcare, rent, energy, or food prices never matter to the political classes we elect because they are in power to make sure Shlomo gets paid, which they always do. The official religion of this political class is neoliberal technocratic plutocracy, its god is the GDP, and Shlomo is the pope.
Modern Monetary Theory
The idea that money is real or that we have to worry about deficits has not been true since Bretton Woods. Modern Monetary Theory (MMT) is the economic management system currently in place in the United States.
The central idea of MMT is that governments with a fiat currency system can and should print (or create with a few keystrokes in today’s digital age) as much money as they need to spend because they cannot go broke or be insolvent unless a political decision to do so is taken.
Traditional thinking says such spending would be fiscally irresponsible as the debt would balloon and inflation would skyrocket.
But according to MMT, a large government debt isn’t the precursor to collapse we have been led to believe it is, countries like the U.S. can sustain much greater deficits without cause for concern, and in fact a small deficit or surplus can be extremely harmful and cause a recession since deficit spending is what builds people’s savings.
MMT theorists explain that the national debt is simply money the government put into the economy and didn’t tax back. They also argue that comparing a government’s budgets to that of an average household is a mistake.
While supporters of the theory acknowledge that inflation is theoretically a possible outcome from such spending, they say it is highly unlikely, and can be fought with policy decisions in the future if required. They often cite the example of Japan which has much higher public debt than the U.S.
According to MMT, the only limit the government has when it comes to spending is the availability of real resources, like workers, construction supplies etc. When government spending is too great with respect to the resources available, inflation can surge if decision makers are not careful.
Taxes create an ongoing demand for currency and are a tool to take money out of an economy that is getting overheated, says MMT. This goes against the conventional idea that taxes are primarily meant to provide the government with money to spend to build infrastructure, fund social welfare programs etc.
You can argue the merits or efficacy of this system, but MMT is what Shlomo is using now. There is no “free market” and this country is socialist. The problem is that it is only socialist for non-Whites and billionaires. Jews are only ~2% of the U.S. population and at least 30% of its richest people.
The Federal Reserve moved with unprecedented force and speed Friday to pump huge amounts of cash into the financial system to ease disruptions that have escalated since the viral outbreak.
The New York Federal Reserve Bank said it will offer $1 trillion of overnight loans a day through the end of this month to large banks. That is in addition to $1 trillion in 14-day loans it is offering every week. Banks, so far, have not borrowed nearly as much as the New York Fed is offering, and the loans are quickly repaid. None of the funding is from taxpayer dollars. Wall Street analysts say the huge number is intended to calm markets by demonstrating that the Fed’s ability to lend short-term is nearly unlimited.
The Fed is also buying Treasury bonds at a furious pace, and will soon run through the $500 billion in purchases it announced on Sunday. It is also accelerating its purchases of mortgage-backed securities. Most analysts expect they will buy more.
“The Fed has just worked with unprecedented speed,” said Steven Friedman, a former economist at the New York Fed and senior macroeconomist at MacKay Shields, an asset manager. “I think there will be no hesitation on their part about buying as many Treasuries and mortgage-backed securities as necessary.”
All the Fed’s emergency steps are intended to pump cash into a financial system that has seen a spike in demand for dollars as investors unload Treasuries, municipal bonds, and other securities. With the economy likely in recession, banks, money market funds and other institutional investors are increasingly wary about holding securities that may lose value.
Companies will see revenue and earnings plunge, while local and state governments are likely to see lower tax revenue. That makes it harder for them to borrow.
“There is a growing certainty that we’re facing an economic contraction, so it’s natural for investors to become more concerned about risk,” Friedman said. “The Fed is trying to play the role of shock absorber.”
Why are they giving trillions to banks and almost nothing to the people? Perhaps because as the system crashes banks can buy up all the hard assets for cheap while the rest of us become homeless and starve to death. This practice must end now. No one should lose their home or small business in an economic crisis through no fault of their own.
Why cheap and easy Federal Reserve money favors bankers is due to something called the Cantillon Effect:
Cantillon’s original thesis outlines how rising prices affect different sectors at different times and suggests that time difference effectively acts as a taxing mechanism. In other words, the first sectors to receive the newly created money enjoy higher profits as their pay increases, but general costs are still low. On the other hand, the last sectors in which prices rise (where there is more economic friction) face higher costs while still producing at lower prices. Because, as Friedman taught us, the real economic variables are still the same in the long run, the price of inflation is paid for by a “tax” on the sectors with more friction, which subsidizes more time-responsive sectors. In our modern economy, the Cantillon Effect is at play with a stratified socioeconomic impact, favoring investors over wage-earners.
Let’s say the Fed decides to lower interest rates (by expanding the supply of money in the economy). Soon after the Fed makes its announcement, investors anticipate new earnings from increased investment. In fact, once even a few people get wind of the Fed’s intentions, investors expect prices to rise, whether they rely on algorithms or rumors for their information. Investors flock to the financial markets, hoping to get there first; if they can buy stocks while the prices are still low, they can reap enormous profits once prices rise. This means that people who are most invested in the market are the first to benefit from inflation.
However, the sudden increased demand for stocks in the financial market bids up asset prices, and this happens rapidly. Within minutes—seconds, even—the expected increase in the price level has been factored into the financial markets. The first place where “inflation” is felt is in the financial marketplace.
This means that people who are most invested in the market are the first to benefit from inflation. They see their asset prices increasing, yet the prices in the rest of the economy are still low because this happens seconds after it’s clear the Fed is inflating the money supply.
White people need to demand Trump bucks
This country is fake and one big gay-op. White people have been the suckers holding the bag for this anti-White oppressive system for too long. What Whites are extremely bad at doing is advocating for ourselves as a collective racial group, which can no longer continue. We need to demand the government bail us all out and give us the money and resources we need to survive this pandemic. I do not know about you, but I would rather not have to sacrifice members of our families so some stupid line for the stock market keeps going in an upward direction. No way, no how.
Our government has the resources to help us, but they never will unless we demand it. Do not fall prey to the lies that the economy will fail if we do not immediately go back to work. This economy has already failed us; our racial policy should be the the economy works for us and not the other way around. All rents, mortgages, utility bills, etc., should be suspended until this pandemic is under control. It is as simple as it sounds and needs to be done immediately. Also, every citizen should be given sufficient sums of tax-free money for as long as this pandemic continues.
Shlomo does not want a good crisis like this to go to waste, but neither should we. Demanding the government recognize our rights as a racial group and people is essential for our survival. If we stand together as a White collective with self-interests, they will be unable to ignore us any longer.
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Source: Occidental Dissent