Tom Luongo's Theory Of Everything
OK, so you thought I took the day off? Nope. I’ve been engaged in a project that I decided on a few days ago. Tom Luongo did a super interview with Not The BBC, which you can find here:
The Global Elite Fractures
In this interview—which runs to an hour and a half—Luongo presents his theory of how we got to where we are. In other words, what’s behind all the political and financial and geopolitical and military machinations going on around us. And the good news is that he thinks the Global Elite is fracturing and is losing. He also thinks that, for practical purposes in the ‘The enemy of my enemy is my friend’ mode, Putin the the Fed are on the same team. To get into that I may have to do a Part 2, because what I’m serving up is a more or less transcript of the first less than 40 minutes. The good news is that you’ll get the overall Big Picture.
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Here’s my take. Basically, at least since the Clintons got in, the Globalist Elite have been on a roll toward taking over the world. They thought they couldn’t lose. With commercial banking unbound they were able to create enough funny money to buy off governments throughout Europe and put in place the institutions of control, both political and financial. They were also able to use this financial muscle to buy off the political and Deep State establishment in the US. They were winning so much they thought they couldn’t lose. They provided the direction, and the US military played the role of global enforcer.
But then Putin stood up for the Syrian government against the US funded ISIS and al Qaeda. The Globalists decided to teach Putin to stay in his place by overthrowing the Ukrainian government in 2014. But Putin didn’t back down—he went ahead and reunified Crimea and Russia and gave his support to the two Donbass republics. And then, to the utter horror of the Davos crowd on both sides of the Atlantic, along came Brexit and Trump. The Globalists managed to oust Trump—according to Luongo, using Covid and 12 million votes—but that gave their game of world domination away to the one force on earth that could stop them: The New York commercial banks, who would lose their clout if Davos wasn’t stopped. According to Luongo, the New York bankers, through the Fed, have stopped Davos, and Putin is turning the screws on them ever tighter.
Now, obviously there’s a lot more going on in the culture and so forth, but it seems to me that Luongo is offering a really useful frame of reference. It’s still up to us to make what we can of it.
With that, here’s the first installment:
I always knew we were heading for a crackup, so the question for years has been: which one of the booms will lead to the Crack of Doom? We've all been wrong, because we all thought it would be 2008.
So when we came into Covid, the big issue was Davos--they were apoplectic about both Brexit and the election of Trump. It was the first time that their plan--which was originally Agenda 2050 and has now been accelerated to Agenda 2030--had been derailed. "Davos" spanned both sides of the Atlantic. You had the elites in the US, including in the banking sector. Back then all the "giants" were all on the same page. They had been winning, really, starting in the aftermath of the post WW2 architecture [Bretton Woods, etc.] all the way up to when Putin took Crimea in 2014. Until then, everything had mostly gone according to plan.
Then you get into late 2012 when David Cameron lost the vote in Parliament on joining Obama's war on Syria. That's what started Cameron's downfall. That paved the way for Putin to settle the conflict over the chemical weapons attack that Obama had picked in Syria. That led to us overthrowing the government in Ukraine, which led to Russia reunifying with Crimea. Then Putin turns around and stabilizes Syria by moving in militarily in October, 2015, after the JCPOA is signed [Joint Comprehensive Plan of Action, known commonly as the Iran nuclear deal].
That sets the stage for everything--Putin is the architect for a lot of little losses for the Global Elite. It starts to give people a lot of ideas. Central Asian and Middle Eastern politics start to change. It had been very obvious that the Global Oligarchy would use the United States military to run around the world like Godzilla stamping out any opposition to their rule. The Brits through MI6 and the Foreign Service would happily set the stage with intelligence on the ground and in the media--the BBC being a big mouthpiece for this. They had been getting away with their lies about how the world works until Putin went into Syria and blew up the whole myth about ISIS in three weeks. Once that happened you could start to see the shifts in geopolitics--Erdogan started getting cold feet about all his Neo-Ottoman dreams, things started shifting within Saudi and Israeli politics, Iran became more aggressive, problems in India and Pakistan. You could see the shift everywhere.
All of a sudden these little moments become really important because the Global Elites have started losing little battles. Now we get to the BIG battles of Brexit and Trump, and now the agenda has to be accelerated. This is what brings us to Covid.
Trump had to be removed from office. Period. By hook, crook, or theft. He had to be removed from office. AND, the United States had to be accelerated towards a liquidation event.
Why the desperation to remove Trump? Trump stopped things cold for four years and actually started to reverse very important things. The Global Elites knew they'd run out of time because they owned all of these "olds" in the British Parliament, the American Congress, the Italian political system, the German system. Everything was shaping up so that all these old Boomers and all these old Silent Generation types have been in power forever--they're not gonna make it to 86 years old in power. They didn't have the next generation groomed and they had to move everything forward by a generation. So ...
They had to get rid of Trump for a number of reasons. One, Trump finally understood what the game was. He always knew what the problem was, but he hadn't realized the depth of the depravity and corruption--and it overwhelmed him. He wasn't the right person to take on that job. If he'd been a stronger character, made of sterner stuff, ... If he was made of the same stuff Putin was made of, who, when he took power, put his family in isolation and then went after the oligarchs. Trump puts his family in the frickin' White House! That's the difference between the two men.
Trump had to be gotten rid of because four more years of Trump would have derailed everything. By that point he understood what the problem was, they had run out of Neocons to fill his cabinet with, he would have swept the board with a bunch of his own people in Congress, and then they would've remade the United States politically. The bureaucracy would've been neutered, the EPA would've been gutted, the Department of Education would've been gutted, the Department of Energy would've been torn down and exposed as an off budget department of the DoD. All of this would have fallen apart.
Trump was setting up for a second term like Reagan's first term. So they had to get rid of him, and they had to manufacture a Dem majority in Congress. And there's only one way to do that. I hate to say this: They threw a virus at us. They created a pandemic. And then they blamed everything that went wrong in the pandemic--by packing the stats and pushing the narrative the way they did they bifurcated the country and made sure the split was irrevocable--and then they blamed Trump for everything. And then manufacture the nonsense that he wasn't a popular president and then they just went in and just manufactured twelve million frickin' votes. That's what they did.
The virus was absolutely a bioweapon. I wasn't convinced of this early on, but I am now. And I firmly believe that Davos has been trying to blame the Chinese for it. I think Davos released it. They released it in China and blamed the Wuhan lab, because Fauci and Birx and all those people worked for Davos. Because what's the natural fallout?
This gives you an idea of the level of ruthlessness of these people that we're dealing with. The Globalists pushed the China narrative so we wouldn't think about the Orwellian superstate they're trying to push on us. The truth of the matter is it's a bunch of old European colonialist money that wants to take over the world. And they want to implement global communism because they thought the last time they did this they only got Russia and China. They didn't get Europe and the United States, but now they think they can do it worldwide. Now we have the reverse situation, with communism embedded deeply, intellectually, in Europe and the United States while Russia and China are going, No, dude, it's not really a good idea.
Then in 2019 there's the Repo Crisis.
The Financial Crisis of 2008 was the end of the Dollar Reserve Standard. Most people don't understand it in these terms, but the Dollar Reserve Standard broke in 2008. We had two or three years of people scrambling around trying to keep the system together, and then we wound up with, in September 2011, the Coordinated Central Bank Standard, where all the major central banks coordinated a monetary policy to keep asset prices from falling. September 2011 was the top of the Gold Bull Market, but when they announced $500 billion dollar swap lines between the major central banks that broke the gold market.
That system lasted until 2019, 2021. It was all organized by Bernanke and Yellen--it was one of the 'We're winning' moments. Bernanke and Yellen were Davos through and through, selling out the United States, using China's mercantilism to hollow out US manufacturing. The Chinese sat there for 30 years going, 'Oh, wow! You're gonna let us run a mercantilist script for 30 years? OK! We expected ten, maybe fifteen, and you're gonna give us thirty? OK, we'll take it!' Because our stupid elites honestly thought they were buying influence within the CCP with all that money that was flowing into China. Their money. And then China nationalized it all or bankrupted them all, and now Soros is bitching about it and is calling Xi the devil after Soros loses billions in Evergrand.
So, the Coordinated Central Bank Standard lasts until June 16, 2021. The Repo Crisis was the first reverberation. Martin Armstrong has made this point multiple times, which is that, at the beginning of 2019 the US banks refused to accept Euro denominated debt or Euro sovereign debt as repo collateral. That was the beginning of the split between US banks and European banks. US banks were saying, 'No way are we taking this junk, yielding negative -.6%. We're not taking your German bunds, that are 75% overvalued, at par for a repo contract. You can go scratch.'
The Repo Crisis of 2019 was an outgrowth of that new effective relationship, the Coordinated Central Bank Standard. The Fed came in and did what they're supposed to do, which is to provide elastic money to help US banks support that policy. So what happens? About six months later WE GET COVID. The Fed had already been creating a stealth tightening scenario by allowing US banks to not use Euro debt as repo collateral. The Fed was already putting pressure on Eurodollar markets, it was already Eurodollar Three, or whatever. I knew that would only last about six months. We were going to get a financial crisis in March, 2020, regardless. Davos just added Covid on top of it to force the Fed to monetize trillions of dollars and use Trump as the vehicle for this. That forced Powell to go back on his stated policy of getting control of American monetary policy. He couldn't not do what Congress told him to do at that point because Congress pushed through the ridiculous CARES Act that forced the Fed to monetize all this debt. Powell was forced to do this against his will.
Ultimately, if Congress allocates and spends that kinda money, and the Treasury prints the bonds, the Fed and the primary dealers are honor bound to buy those bonds if no one else will--it's law. Davos forced the Fed to do this, and notice that the ECB didn't do this. They were creating an environment where America looked like it was in trouble financially, politically, culturally, and everything else. And Europe? They were still acting fiscally responsibly: 'We still have a current account surplus, we still have a trade surplus, our currency is strong, we're insouciant and wise Europeans--what's wrong with you people, what's wrong with the Yanks' [sarc]? This is classic Davos playing on American Europhiles. Like most of the American Left. Davos did this to stop capital flight from Europe--European assets were all way overvalued.
In the United States, credit creation mostly takes place through corporate bond issuance. Comparatively speaking, there's not a lot of direct bank loans. In Europe, it's a lot of direct bank loans, which is why the Europeans are so focused on keeping the banks from failing. The banks can be in trouble here in the US, but the corporate bond market can be OK. The ECB [European Central Bank] doesn't have the same power that the Fed has, to create unlimited amounts of elastic money. And in Europe most of the debt is direct bank debt, so that when the debt starts to fail the banks are immediately in trouble and the ECB doesn't have the mechanism to bail anybody out. They have to create a shell game whereby the member central banks pick up the debt. Mostly the Bundesbank in Germany--basically, the Bundesbank is used the way the US uses the Fed.
Now you can see the setup for where we are today. On June 16, 2021, the Coordinated Central Bank system ended, and it was ended not by a market event but by a FOMC [Fed Open Market Committee] decision. The Fed raised the reverse repo payout rate that they were paying out to reverse repos to American banks by 5 basis points above the Fed Funds rate. That ended the bull market in the Euro, turbocharged the balance on the reverse repo facility, sterilizing a whole bunch of American spending, and it drained more than $1 trillion dollars in base money from the offshore dollar markets, mostly in Europe and, to a lesser extent, in Hong Kong. That's like draining $1 trillion dollars in literal cash and savings out of the American economy. It's the kind of money the Fed prints when they do QE. It's what shores up the credit structure when it's collapsing. Who gets screwed? The kind of people who make money off money, the rentier class known as Davos.
That was the moment the Fed went to war with everyone else. They went to war with the ECB and they went to war with Davos. I firmly believe that the Covid movement was the big reveal of what the plan was, which was Davos saying, 'Oh, the commercial banks? We don't need those anymore. We can just issue Central Bank Digital Currencies [CBDC], everybody can just have an account directly with the Central Bank, and if you need a loan we can have a social credits board to decide whether or not you can buy a pizza, get a loan, buy a car, get married, etc.
The commercial banking industry in the United States is by far the biggest and most powerful lobby in the world. Not more powerful than the military industrial complex, not more powerful than anybody else. The commercial banks in the United States--otherwise known as the New York Boys--are far more powerful than everybody else, and they've proven it over the last thirteen months. Because they've engineered a massive bull market in the US dollar, they've pretty much destroyed the Eurodollar markets that took 50 years to build into an offshore dollar juggernaut, and are literally in the process of ripping apart every major political institution inside Europe--including the European Union! And they did this in thirteen months!
To put it very personally: Do you really think that a disagreeable Greek like Jamie Dimon, the CEO of JPMorgan, is going to turn over JPMorgan Chase and the commercial banking power of the United States, of New York, to a bunch of German Malthusian eugenicists? Do you really think that? Because that's what we're dealing with when you break it down. At the end of the day Dimon sits there with a 25 year old Scotch in one hand and a cigar in the other going, 'Dudes, are we really gonna do this? Are we really gonna let these German idiots run the table on us?' Of course they aren't! I've talked to too many people within the US banking system, and I get more and more traction on this idea. More people, professionals in the markets, come to me and go, 'Dude, you're absolutely right!' I see it everywhere. The problem is that JPMorgan has just as much of a bureaucratic problem as Trump had. So, at times, all of this looks really chaotic, but the truth of it is that the broad picture is very clear.