Globalism On Steroids: Financing Growth Without Having To Grow

Rush had an interesting story the other day that is getting little notice. It seems that European Globalists are fearing a giant economic downturn and in advance of such a catastrophe Globalist Corporations are issuing bonds that the government is buying at artificial rates not subject to competition. Rush makes the point that this is ass backwards to the way things are usually done.

It’s called The European Central Bank’s corporate-bond-buying program. The Central Banks are buying corporation issued bonds. The corporations are issuing the bonds, not the government and the buy is not open to everyone so that the price can be fixed by the market, the buy is only open to the government at a rate that is much better than the market would allow. This amounts to collusion between the government and Globalist corporations so that they can get their payout before the economic collapse voids everybody else’s.

Rush reports:

Nationalism vs. Globalism (Which Is Just Liberalism), and How the Worldwide Elite Take Care of Themselves

I have a story here that will give you an idea of why Europe did Brexit, why Europe is fed up, why the people of Europe are fed up, particularly with the European Union, and it is similar to what happened here with quantitative easing, but this is even worse.

Now, this is really in the weeds, so I’m just gonna read a couple paragraphs from the story and I’m gonna tell you what this means.  It’s the Wall Street Journal.  “Seller’s Paradise: Companies Build Bonds for European Central Bank to Buy.”

Now, that’s not how things work.  That’s the exact opposite of how this particular financial transaction takes place.  But here are the details.  “Two European firms have sold debt directly to the ECB through private placements, a startling example of how the market is adapting to extremes of monetary policy. The European Central Bank’s corporate-bond-buying program has stirred so much action in credit markets that some investment banks and companies are creating new debt especially for the central bank to buy.

“In two instances, the ECB has bought bonds directly from European companies through so-called private placements, in which debt is sold to a tight circle of buyers without the formality of a wider auction,” and without competition driving the prices up.  This is insiderism like you haven’t seen it.  Now, this is exactly why the Trump phenomenon exists.

Here’s the scam of this.  Connected companies, take your pick, it doesn’t matter who they are in this instance.  We’re talking about in Europe right now with their version of Federal Reserve.  Connected companies are now designing securities, i.e., investment opportunities for the central bank to buy.  It’s normally the other way around; the central bank is who prints, distributes, and finances and arranges the sale of these securities.  In this case, it is companies that are designing their own securities for the central bank to buy from them, and it’s all imaginary money.

The central bank prints and then buys whatever these securities are, bonds from these companies, and as always happens in these scams, the guys at the front, the people that are first in on this are the ones who are gonna get rich because for them it is a huge credit on the balance sheet.  But for the rest of the economy, especially people who were taught that it was responsible to save money — what is happening here is business and the central bank are reversing roles.

In other words, businesses are telling the central bank how they are gonna operate, and the central bank is saying, okay, fine, we’ll finance it for you, we’ll buy your instruments.  These companies are not innovating.  They’re not selling anything more to customers.  They are not expanding or growing.  They’re not hiring employees.  They’re simply gaming the system whereby they and the investors who get first crack at this are the ones who are gonna get rich off of it, while everybody else doesn’t even know it’s going on and by the time they catch up with it and understand, it’s too late.

What I think this actually means is that the people in Europe where this is happening understand that nothing is real, that everything’s being propped up, everything is happening via cronyism. There isn’t any real innovation. There isn’t any real economic growth. There isn’t really any real business growth.  But they all want to try to make money anyway, so they found a way to do it by conniving with the central bank, the European Central Bank.  And what’s gonna happen is, my take on this is these people understand we are in a bubble right now where nothing is real.

The economic numbers in this country are not, the unemployment numbers are not real, the economic growth numbers.  I mean, I doubt that we’re in even positive growth.  The number is, you know, 1%, one and a half percent, even if that’s right, it’s pathetic, it is anemic, and the government is growing larger and larger, meaning it’s getting harder and harder for the private sector economy to grow, and the private sector economy is where jobs are, it’s where the American dream is, it’s where the opportunity to acquire wealth is, it’s shrinking.

The number of people isn’t shrinking, the number of people is growing, or at least staying level, according to population replacement figures.  However, more and more of them are going on welfare, staying on the welfare state, putting more pressure on government. They’ve gotta come up with the money somewhere, and so they’re looking at all of these oddball ways of financing growth without having to grow.

It’s almost as though they understand that all this is gonna blow up at some point down the line, and they are taking care of themselves now before it happens.  And it’s a series of crony relationships between powerful elites at the European Central Bank and these select companies not named that are engaging in this new technique here.  And let me tell you the difference.  Quantitative easing, because when I first read this I said, “This sounds like quantitative easing” when the fed printed a bunch of money and gave it Wall Street people to buy stocks and securities and so forth.

But quantitative easing phase one was central banks buying up government debt that is printing money — printing money is buying up debt — so that they could allow connected banks and companies to buy and lend at artificially low rates.  That was phase one of quantitative easing, by virtue of printing money you are buying up government debt and then selling it to connected banks and companies at a very low interest rate so that they could then use that money to make money for themselves, to sell, to invest in the market so that the market could continue to grow no matter what happened to the general economy.

Now, in this phase that I just described in the Wall Street Journal story, the European Central Bank, what’s happening is the central banks are basically printing money directly for the connected businesses.  So instead of government issuing the bonds where anybody can have a chance to buy them and thereby create competition for prices, the corporations are doing it themselves.  They are issuing the bonds.  The government isn’t.  The central banks are buying the bonds, not issuing them.  And the central banks are buying them as if they were guaranteed U.S. government bonds.

The rich are getting richer here, the elites are taking care of themselves, is what this adds up to. And this is what Europeans, whether they know and can explain it, this is what they felt, they can sense it, they know things are not right.  Their economies are not growing.  Nothing makes any sense.  Nothing is making economic sense to the common-sensical eye.  And the same thing is happening here.

So it’s little things like this. Well, these are not little; these are big things.  But it’s things like this which are creating this dynamic in this campaign of nationalism versus globalism because in this description both of quantitative easing and what is going on in Europe with the ECB and these participating companies, national identity is irrelevant.  What nation these people happen to be from is irrelevant.  They don’t see themselves as citizens of Denmark or of the United Kingdom or France or what have you, not in these transactions.  And that’s what’s wrong with globalism.

Globalism, by definition, erases borders and replaces the whole idea of the nation state to be replaced by government functioning or globally functioning institutions, including government.  And people don’t want any part of it.  We’ll find out how many ’cause that’s what this election really is all about, as opposed to this left-right dynamic.  But the left-right dynamic is still there in the individual issues, such as Trump’s outreach to African-Americans or tax policy or economic policy, the left-right dynamic is still there, if it can be properly explained.

But the upshot of all of this is that there is now this great divide, whereby the well-to-do, the elites, the ruling class, whatever you want to call them, in the old days they’ve always existed, but they were Americans, too.  They did things not only to help themselves, but to help their country, because their companies were largely a function of the success of their countries, but now that doesn’t seem to be as important as other considerations are.

And that’s what Trump’s tapped into, that’s what all this talk about free trade. That’s what people mean when they talk about free trade. They’re talking about the unfairness, the imbalance, the lack of patriotism, the lack of concern for national concerns, about the American people and so forth. We will find out just how many Americans are up to speed on this and are upset by it.

Now, if you read this Wall Street Journal story, it’s gonna be gobbledygook to you unless you have a grounded understanding of high finance and definitions in high finance.  But the upshot of this, one of the things that I want to try to take away from this for you, “The European Central Bank’s corporate-bond-buying program has stirred so much action in credit markets that some investment banks and companies are creating new debt especially for the central bank to buy.”  That’s called creating new placements.  It’s 180 degrees out of phase.

The companies are creating debt for the central bank to buy, eliminating competition, eliminating auctions for these bonds and these instruments, which is how prices are kept low.  The people doing this, the banks, the institutions, the companies that are doing this are the same people who have already donated majestically to the Clinton Foundation.

These globalist types, out for themselves, hedging everything to be protected against any kind of economic calamity, which is what this really is, people getting theirs before the bottom falls out — if you want to know what this really is, that’s what it is — and the people running this show, some of the people in this operation are the same people, same institutions, same companies, same governments who have sent massive donations to the Clinton Foundation, meaning people who already invested in the Hillary presidency.

They have already bought Hillary Clinton and her administration on policy preferences.  And that’s how all of this works and all of these people in the elite circles and the establishment work together. They are tied together, they look out for each other, they take care of each other, and whenever there’s an economic collapse, they don’t lose their second or third or fourth home, do they?  They don’t lose anything.  And they then are the ones who end up getting bailed out, because they end up being too big to fail.

So globalism versus nationalism.  What I’ve just described to you is globalism on steroids, and they are constantly reworking the rules and redefining them all for their own self-protection and self-interest because they have the money and the power to do it.  This is artificial. There’s no real economic growth that is propping up the prices of these instruments, so at some point the bottom has to fall out.  Whether it’s big or small, you don’t know ’til it happens, but they are protected when it does, is one of the many aspects of this.  And they’ve already bought Hillary.

The key, folks, the thing that really is the easiest to understand about this is that there isn’t any real money.  The money is printed.  In the case of the European Central Banks, they are printing money that does not exist, obviously.  They are printing money and then buying these placements, these newly issued investment opportunities from these banks.  They’re printing the money.  The money isn’t real.  And this is having already negative economic impacts.

This story points out that because the money isn’t real, the currency in the European Union is being devalued at a rate of about $90 billion a month in Europe, if I’m reading this story right.  They’re flooding the market with euros.  They’re printing money and giving it to corporations under the guise of investing in them.

But they’re not taking money from stocks elsewhere.  They’re not taking money that already exists and then that money is being invested in things which will cause growth.  They’re printing money.  That’s what quantitative easing was.  They’re printing money to buy these securities.  So it isn’t real.