Tom Luongo's Theory Of Everything, Part 2
This next part, which contains more summary (as opposed to transcription), is very dense, getting into the mechanics of international finance. Read it carefully and you’ll come out on the other side. One thing that will become a bit more clear is, who is included when Luongo refers to “Davos.” I think you’ll see that it includes the legacy banks that up till know have run the world to a great extent: City of London, Paris, Amsterdam. There are Americans involved in this, too, because the Eurodollar system has allowed for the purchase of influence and even the purchase of governments—leading up to global government that Luongo sees as the Davos endgame fantasy. Bear in mind that Luongo is talking to a Brit, so when Luongo says “you”, that’s what he means.
Thanks for reading Meaning In History! Subscribe for free to receive new posts and support my work.
Now, another point. In the last post (Chokepoints, Diplomacy, Geopolitics) I lamented the lack of US diplomacy, and that followed on the first Luongo’s Theory of Everything post in which Luongo talks about the US military acting like Davos’ world cop enforcer. I think Luongo is offering an explanation for what we’re seeing. What were seeing is an American establishment that is, to a great extent, still controlled by Globalists and who are acting in the interests of Davos: attempting to bully Russia and China and prevent them from breaking free from the Eurocentric system that Luongo describes—and from which the Fed, too, wants to break free.
Here we go:
Davos is a group that has split into multiple factions at this point--that's how you know they're losing.
Let's be clear on this point: The commercial banks are the ones who put Jerome Powell in place at the Fed. Once Trump was in the White House the commercial banks saw their opportunity. Powell's nickname is "Private Equity Powell." He doesn't come from the same Ivory Tower as Bernanke and Yellen and all the rest. He's not an intellectual. He's a guy with money on the table who has made most of his money in private equity. It's a far different mindset and skillset. Who believes Powell would sell out the commercial banks that put him in power? Trump complained about Powell the entire time Trump was in office because Trump is a real estate developer who likes low interest rates. He's a mercantilist just like the Chinese are. He was easy to manipulate into the big budgetary expansion because he wasn't a fiscal conservative.
Once the Zhou regime took over it took six months to get Powell reelected to the Fed--it was a huge fight. Powell was supposed to be reconfirmed in October, 2021. They wanted to get Build Back Better and the infrastructure bill and the debt ceiling raised and then throw Powell under the bus. Manchin and Sinema held the line--not because they're patriots but because the New York Boys were guaranteeing that they would protect them. 'Davos won't kill you or your family. We've got your back. Vote no.'
The European banks are all bankrupt--they lost it all when the EU and ECB came into existence. The US has a far stronger constitution and rule of law, and that allows for the commercial banks to wield influence that the European banks just don't have. Europeans have no rights--they're subjects. In the US the people have sovereignty, which is what's behind the continual efforts to destroy the US constitution or to do end runs around it, and to pack the judiciary.
What Europeans don't understand about the Fed is that the commercial banks OWN the Fed. The Fed is a private institution, and the shareholders of the Fed are the New York banks. The power sharing comes in with the Chair of the FOMC, who is nominated by the POTUS and confirmed by Congress. The commercial banks own the Fed and they buy politicians to make sure things go the way they want--which is especially feasible when you have a narrowly divided Congress, like now. In Europe, the central banks are not owned by the private commercial banks. They're entirely subordinate to the government bureaucracy. The European banks all should have gone bankrupt in 2008, but the US bailed them out for 12 years. Now, Powell isn't bailing them out any more.
Re CBDC (Central Bank Digital Currency), the dream of the Globalists, every time it comes up Powell just says, 'Have a graduate student write another paper about it.' He's not serious about it. Until Powell says 'pilot project' it's not for real.
Shift to LIBOR (London Inter-Bank Offered Rate). Luongo has already explained that the US banks no longer want to accept Euro bonds as collateral--not for the last four years. The alternative to LIBOR, which was key to the previous arrangement that is now rejected by the US banks, is SOFR (Secured Overnight Financing Rate). SOFR had been bandied about for years, but went nowhere under Obama, who literally works for Davos--their Manchurian candidate. Obama put SOFR off for ten years. Once Powell and John Williams (Atlanta Fed) were ensconced, they started to implement SOFR with a four year rollout. SOFR is a market based rate, reflecting rates being paid by US commercial banks. LIBOR is a rate set by 17 European banks and JPMorgan's London office at the end of each day.
The problem was that many US rates were indexed to LIBOR, which was a non-market rate, and it was causing major problems for US monetary policy. LIBOR was controlling US monetary policy. SOFR is the mechanism by which the Fed regains control over its own monetary policy, thereby ending the primacy of the Eurodollar offshore credit creation system, shadow banking system, to set monetary policy for the Fed. Every time the Fed wanted to raise rates, they always had to pivot and bail out Europe.
LIBOR worked for the interests of the City of London, it had been in place for over a hundred years. From the moment America declared independence, ‘ya'll been trying to get your colonies back. That's the way anyone with three functioning brain cells sees it,’ with the War of 1812, and the Civil War--when Russia intervened to prevent Britain and France from breaking up the Union. ‘You've always wanted your colonies back, that's how I see the global fight now. The European oligarchs want their colonies back--all of them!’ There wasn't the technology to have a functioning SOFR market rate until the 70s or 80s, and by then you had this Club of Rome, Davos thing. The Fed had always gone along, but it was when the Europeans tried to put the US at the back of the bus, that's when the US banks resisted.
Now we're getting versions of SOFR all around the world. LIBOR is on its last legs. Even Europe wants City of London destroyed. The global coordinated bank policy where City of London and legacy Paris and Amsterdam banks run things is ending. Davos wants to keep that system and control it through CBDCs and rolling up global government to the UN, with the IMF being the World Central Bank. That's what they want and they're trying to crash the entire system and force the IMF to bail out the world, and then by extension own everything. That's their plan.
The Fed, to fight this, is engineering a sovereign debt crisis in Europe, a full on banking crisis in Europe, and a political destruction of the European Union. And the Russians want the same thing. On their side, the Russians are using an energy play, the Fed's pulling back on liquidity, Europe is stuck in the middle. The US isn't really trying to take over Europe, in Luongo's view--they simply want their sovereignty back--Davos is trying to destroy our sovereignty. The US can only regain sovereignty by destroying the Eurodollar system--that has been the mechanism for Davos control over the US. The alternatives are, European control over a global technocratic system with Russia subjugated as the world's commodity producer, the Chinese bankrupted through destruction of their export markets, and the US destroyed politically (Luongo says Davos will try to get CA and NY to secede), OR will the US and Russia and China put a stop to European colonialism?
Parenthetically—without the parentheses—we may be seeing this in the elite calls for defiance of the Supreme Court. As I keep emphasizing, the theme of this last term of the SCOTUS is the revival of federalism—which is wormwood to Globalists. The Globalist idea in modern legal circles is to subordinate to the US Constitution to Global governance, not to restore the federal system.
This next paragraph is very important as confirmation of Luongo’s theory. For Powell to speak of more than one reserve currency means that he is down with decoupling of the US from the old Eurocentric model and with the empowerment of movements like BRICS.
The Fed and the commercial banks are acting out of fear of an existential threat to their existence. They're not trying to maintain the American Empire. Powell has said: There's room in the world for more than one reserve currency. He said that a week after being reconfirmed. Powell was reconfirmed because there simply weren't the votes in the Senate to confirm any Globalist candidate. The Fed understands the problem now, but it has to work within the American political system. They're committed to busting Europe, which has been living off the US. The Fed wants to drain the offshore capital markets and start rebuilding the US. That fiscal reform process may start after the 2024 election. Ideally.
After the midterms we may see a massive capital flow into the US--which everyone in Europe is scared about. That will cause tremendous dislocation in the US economy, because the dollar will become too strong and there will be a capital outflow again. But it won't flow back to Europe because they've burned all their bridges. It'll flow to the Chinese, the Russians, the Iranians, and everyone else.
Thank you very much for expanding on this great interview to help us better absorb the information. It's so important for all of us to understand what is going on.
I've been following with interests these posts, your take on Tom Luongo and the Fed as part of the battle against Davos. I've looked at his blog the 3Gs. I don't know enough finance to fully understand all of his arguments. I appreciate your analysis. Obviously, I hope Luongo's take is correct and the Powell can destroy Europe to the extent it is in Davos/WEF's thrall and is trying to destroy us. But, just as a suggestion to you, if you do understand Powell's work and Tom Luongo's analysis and can offer more basic supporting rationale, please do. I'd prefer to understand this aspect of the struggle and believe, hope in it versus having a kind of religious faith. After everything that has happened, I, along with many others, are seeking understanding to make sense of this great struggle of our times.