A Logical, Fact-Based COVID Conspiracy Theory
While most COVID conspiracy theories involve vague and ill-defined threats of tyranny, some of the more credible conspiracy theories involve Big Pharma profits, which range in the tens of billions of dollars.
However, with just a little bit of effort you can find a series of events in mid-September, 2019, that make up actual evidence of a conspiracy that is specific and makes logical sense.
The first known case of COVID-19 was identified in Wuhan, China, in December 2019. That much you probably knew.
But did you know that three months earlier, on September 19, 2019, President Trump signed an executive order fast-tracking the development of vaccines "to protect against seasonal influenza as well as a potential pandemic flu outbreak"?
Isn't that interesting? Months before COVID even existed. Maybe you had heard of it, but I haven't seen anyone online pushing the anti-vaccine conspiracies mention it so you probably didn't know.
However, that's just the start.
Just two days before President Trump signed that executive order for flu pandemic vaccines, the Federal Reserve started an absolutely massive bailout of Wall Street, to the tune of $4.5 TRILLION.
Let me say that again - the Federal Reserve threw $4.5 Trillion at Wall Street banks BEFORE the first case of COVID touched the shores of the United States. Check out the nonchalant way that this was reported in the financial press at the time.
“They’ve managed to inject enough liquidity to provide a strong signal that they’re going to be flexible and provide further assistance to see themselves through what was going to be a very tight period,” said James McCann, global economist at Aberdeen Standard Investments. “It looks like they’re going to catch up with a problem that had quite embarrassingly gotten out of control.”
Embarrassing? $4.5 TRILLION is embarrassing.
I wish someone would embarrass me with a few trillion dollars. Do you know who wasn't embarrassed? Wall Street.
Banking analyst Dick Bove at Odeon Capital Group points out that the balance sheet expansion has coincided with a 7.6% year-over-year growth of the monetary base, compared with 3.2% a year ago. That in turn has happened alongside a violent rally on Wall Street as companies buy back stock and reduce share count.
“Money supply is expanding at above average rates and share growth is not. Consequently, share values are expanding -- not likely to stop soon,” Bove said in a note.
There's couple things worth pointing out here.
1. The amount of money in the economy was expanded 7.6%. Now we see an inflation rate in this country of over 7%. I don't think that it's a coincidence.
2. The story here and in Wikipedia is that the Fed had no choice to do this because of a liquidity problem due to corporate taxes and over-regulation.
This is a heaping pile of horse-sh*t.
For starters, the day before the Fed began this latest Wall Street bailout $2.7 Billion in credit default swaps imploded.
Remember credit default swaps? They were the "force multipliers" of the 2008 crash.
Guess who were the biggest holders of derivatives like credit default swaps in the world.
The OCC’s report for the third quarter of 2019 shows that Goldman Sachs and Morgan Stanley were centrally-clearing zero percent of their credit derivatives, the bulk of which are credit default swaps.
...In addition, Wall Street banks have moved some of their derivatives activity to their foreign units, beyond the radar of their U.S. regulators and the reporting scope of the OCC report.
Every major trading house and bank on Wall Street is aware of the black hole that exists around derivatives and this is why they ran for cover in 2008 and again on September 17, 2019. No one knew how much exposure any one derivatives counterparty had to Thomas Cook and whether it would set off a daisy chain set of defaults by the counterparties who couldn’t make good on paying out what was owed on their credit default swaps.
Ah yes. A very familiar story. So who exactly did the Fed end up bailing out?
That information was withheld from the public until three weeks ago. I'll give you three guesses who got bailed out.
among the large borrowers under the Fed’s repo loan facility in 2019 were JPMorgan Chase, Goldman Sachs and Citigroup (it was their trading affiliates) and these were “three of the Wall Street banks that were at the center of the subprime and derivatives crisis in 2008 that brought down the U.S. economy.”
Norton then asks Hudson “why was the Fed giving trillions of dollars to these large Wall Street banks. And why was there a liquidity crisis? That’s unexplained. Why did the Fed refuse to release the names of these banks? And was there a financial crisis before COVID that the U.S. government later was able to blame on COVID, but it was actually a financial crisis in the making?”
Hmmm. Why that's a very good question. I'm glad that I didn't have to ask it.
But I'm not finished with picking the official story apart.
The real kick in the pants is that there was no liquidity event.
“There was actually no liquidity crisis whatsoever. And Pam Martens is very clear about that. She points out the reason that the regular newspapers don’t report it is the loans violated every element of the Dodd-Frank laws that were supposed to prevent the Fed from making loans to particular banks that were not part of a liquidity crisis.
“In her article, she makes very clear by pointing out these three banks, Chase Manhattan, Goldman Sachs – which used to be a brokerage firm – and Citibank, that the Federal Reserve laws and the Dodd-Frank Act explicitly prevent the Fed from making loans to particular banks.
“It can only make loans if there’s a general liquidity crisis. And we know that there wasn’t at that time, because she lists the banks that borrowed money, and there were very few of them…
The Fed’s repo loan program in the fall of 2019 and first half of 2020 went to just 23 trading houses on Wall Street.
So what we are looking at is that the Federal Reserve broke the law to bail out these huge Wall Street banks when their derivatives portfolio imploded, in what was NOT a liquidity event. You would think that just maybe the news media might be interested in this. After all, it is $4.5 Trillion, but nope. It seems the news media loses interest in a story directly proportional to the increasing amount of money involved.
This is the same Federal Reserve that has been caught up in a insider trading scandal.
Lastly, we should mention the laws that were changed after COVID. Most of them were simply massive buying of assets through QE. But there was also this.
Before coronavirus turmoil hit the market, the Fed was offering $100 billion in overnight repo and $20 billion in two-week repo. Throughout the pandemic, the Fed significantly expanded the program—both in the amounts offered and the length of the loans. In July 2021, the Fed established a permanent Standing Repo Facility to backstop money markets during times of stress.
The Fed also eliminated banks’ reserve requirement—the percent of deposits that banks must hold as reserves to meet cash demand—though this was largely irrelevant because banks held far more than the required reserves. The Fed restricted dividends and share buybacks of bank holding companies throughout the pandemic, but lifted these restrictions effective June 30, 2021, for most firms based on stress test results
under the new Secondary Market Corporate Credit Facility (SMCCF), the Fed could purchase existing corporate bonds as well as exchange-traded funds investing in investment-grade corporate bonds...the Fed announced on April 9, 2020, that the facilities would be increased to backstop a combined $750 billion of corporate debt. And, as with previous facilities, the Fed invoked Section 13(3) of the Federal Reserve Act and received permission from the U.S. Treasury, which provided $75 billion from its Exchange Stabilization Fund to cover potential losses.
There is a real conspiracy here that isn't about vaccines. One that involves Trillions of dollars, and involves the two main sources of corruption in the country - Wall Street and Washington.