FED in a china store

We have recently seen a significant increase in the price of gold, which today is approaching the mark of $ 2,000 per ounce. The appreciation we predicted in the recommendations of our bulletin was largely fueled by the liquidity crisis, which was only exacerbated by the expansion of the Federal Reserve’s balance sheet and a small rate hike (25 pts) by Jerome Powell and his colleagues. It is worth noting that the market was expecting a 50 basis point hike even before the Silicon Valley Bank problems.

The Fed’s head insists that the $297 billion increase in total assets is the result of a completely unique situation related to banks’ liquidity needs. What is crucial, however, is not the reason, but the fact that further substantial funds were created out of thin air – and this is directly related to another dose of fuel for inflation, which continues to show no signs of abating. So the risk of stagflation caused by an economic slump remains.

The last notable example of an exit from stagflation in the U.S. occurred in the 1970s. In response, Paul Volcker, then chairman of the Federal Reserve, raised interest rates above 19% to restore confidence in the economy. The positive real interest rates achieved at that time (with inflation at 13.5%) are out of reach for central bankers today.

An economic crisis will happen sooner or later for one reason or another. History simply shows that. The important question, however, is what methods will be available to central bankers when that crisis occurs (if we don’t already have it). In past decades, these were based primarily on lowering interest rates and expanding the money supply. However, the above measures are now being drastically curtailed because of their impact on the rise in inflation. A further rise in inflation would probably only prompt investors to withdraw their money from financial institutions in order to protect their capital elsewhere from the increasing loss of purchasing power. Such decisions would only lead to further liquidity problems. It also cannot be ruled out that the Fed will decide to raise interest rates further. These in turn would devalue the bonds held by banks, which would also deal a severe blow to the financial system. The impact is likely to be similar in both cases: either a liquidity crisis or inflation that is likely to spiral out of control sooner or later, or a combination of both. Janet Yellen and Jerome Powell thus seem to be caught between the hammer and the anvil, and their actions resemble those of an elephant in a china store.

Also worth mentioning is the recent news about the growing risk of a Deutsche Bank default. The banking crisis seems to be coming to a head, also in Europe. Even more important than the crisis itself, however, as already mentioned, seems to be the considerably limited room for maneuver of central bankers to counter it.

Gefira 73: Between the artificial and the real, between the wicked and the sacred

It is always advisable to recognise reality for what it is. In order to better assess what is going on, one must follow the development of current trends and ask resultant – compelling if you will – questions: is globalism faltering? Have the powers that be managed or failed to bring into line more important governments without which – as Klaus Schwab openly said it – the global project is as good as dead? Can we write globalism off? What world is being born?

As for now the powers that be have not backed off from waging a war for dominance, a war that might spiral out of control and trigger a global conflict. The managers of the world stubbornly hold on to their ideas, even though the two superpowers, Russia and China, failed to appreciate the benefits of the world as a global village with a division of labour imposed from on high (you know: the West as a think-tank, Russia as a provider of resources and China as the world producer). If you look at the events leading up to the current conflict and the formation of a Sino-Russian coalition, you have to admit that Moscow and Beijing had long been poised to lash out. They were politically humiliated for a long time and practically driven into each other’s arms. Having finally seen through the many unsettling instances of the Western leaders being – to say it politely – economical with the truth (recall Macron’s and Merkel’s admissions about their dishonesty during the Minsk talks), Russians finally stood up for their interests that had been jeopardized for so many years. Overnight, the deep-seated rift and prejudice between West and East came to the fore and the two parties to the conflict have again engaged in a game of hot war: hybrid or by proxy for the time being.

While devastation is wreaked upon Ukraine (once a jewel in the crown of the Soviet Union, with a highly developed industry and over 50 million inhabitants compared to today’s 35? 30? 25?), while the stockpile of Ukrainian weapons is both systematically depleted and replenished, while the West carries out reprisals (wave after wave after another wave of sanctions), while the raving mad EU leaders dream about putting President Putin’s head on a chopping block (and executing him the way they have executed Milošević, Hussein and Qaddafi), a new world is emerging, a really diversified world dominated not by one but by a few centres of global power. This is a red rag to the Western globalist bull.

What are the necessary or at least sufficient factors that spell disaster for the collective West and its minions? Why are Washington, London, Paris and Berlin getting cold feet? Is the cooperation between Russia and China only a slap on the wrist or something more serious? How about Brazil, Argentina and Iran playing with the idea of joining the BRICS? Is this a wake-up call for the West? Or maybe the fact that the Chinese currency is displacing the US dollar? While Americans are trying to keep a straight face, Riyadh – Washington’s long-standing ally – is not willing to comply with the demands of the mentally incapacitated American president. Have the American establishment seen it coming that Saudi Arabia will resume political relations with Iran due to China’s and Russia’s diplomatic maneuvering?

The ideologically driven policymaking (climate change, promotion of sexual deviance, ethnic replacement, “gender reassignment”, moralizing globalism, policing the world under the pretext of human rights) pursued in the West by extremely ill-advised die-hards has eventually ruffled a few feathers here and there and consequently solidified a partnership and created a commonality of interests between Moscow and Beijing, between Riyadh and Tehran, between… who’s next in line? The few changes that are taking place now might have a knock-on effect.


Gefira Financial Bulletin #73 is available now

  • Between the artificial and the real, between the wicked and the sacred
  • Virtual world threatens the physical world?
  • Transition from the virtual world to the physical world
  • The American Fortress and the Russian Church

A friend in need is a friend in d*ck

Most of our readers will have heard by now that Poland and Hungary – followed by Slovakia, Romania and Bulgaria – have placed, are placing, or are about to place a ban on Ukrainian grain. Now, that’s something! You see, especially Warsaw is oh so in bed with Kiev, going so far as to erase political borders between the two states and suggesting a creation of one political entity and – all of a sudden – the Polish authorities are blocking the import of Ukrainian grain, simultaneously – to top it all – remaining the staunchest supporters and advocates of Ukraine in the European Union! Gee, you couldn’t make it up!

Why are the aforementioned countries against the import of Ukrainian grain is obvious to everyone: it comes in huge amounts and it is VERY CHEAP. Since it is cheaper than the grain produced in the said countries, their farmers are getting angry because they are losing their profit. As simple as that. 

As believed by Warsaw, Ukraine ought to receive all types of weaponry from the West (and Poland), but it ought not to sell its grain in order to finance its war effort. All this is happening in the face of the statement issued a year ago by the spokesman of the Polish Ministry of Foreign Affairs, who notoriously said (true, in a different context, but still): “We are servants of the Ukrainian people, their requests” (emphasis added). Yes, Polish leaders and society at large are very emotive when it comes to the proxy war between NATO and Russia, fought on Ukrainian territory. The words of the said minister reflect it very adequately. Many thousands of Polish homes opened their doors to Ukrainians fleeing their country. Now it turns out that neither the government nor the common people are ready to sacrifice… their grain profit to help Ukrainian farmers and through Ukrainian farmers – Ukrainian people. What a strange piece of logic… Outgoing weapons – yes, incoming grain – no!

Some time ago Polish President Andrzej Duda welcoming American Vice-President Kamala Harris in Warsaw became the butt of the joke which has been doing the rounds in the net, saying – while expressing his gratitude for American military presence in Poland – that a friend in need is a friend in deek (meaning ‘indeed’, but mispronouncing the word), which made Kamala Harris burst out laughing (though mispronounced, the word deek evoked in her mind an association with d*ck). Well, now President Zelensky might say the same in reference to Poland. Since President Zelensky’s mastery of English matches that of President Duda’s, we might all have a good laugh not only occasioned by the sloppy pronunciation, but also by the aptness of the proverb, even if warped in such a manner.

A friend in need is a friend in d*ck (have a listen)


What on earth is going on in the UK?

Whites still make up 85 or so percent of the population of the United Kingdom. Yet, when you look at the faces of the individuals who occupy (occupied, will occupy) key positions, you begin to wonder whether they are representatives of a Third World country or whether the United Kingdom has been conquered by a Third World country.

What is happening in the United Kingdom resembles the political philosophy that used to be pursued and enforced in former communist countries, in which there was an official semi-religious cult of the working class people and the peasantry and, consistently, such people were positioned in places of power. Today in Western countries (ideologically taken over by the Trotsky branch of communism) the cult of the people of colour supplanted the cult of the working class people and the peasantry, and consequently such people are placed in positions of power.

There is a world of difference, though. The number of working-class people together with that of the peasantry was in the neighborhood of 70-80 percent of the post-war – that is the beginning of the communist political takeover in Eastern Europe – population of Poland, Romania, Hungary or Yugoslavia, and perhaps even a bit more in Russia after the 1917 Bolshevik revolution.

The other enormous difference is that educated children of workers and peasants became doctors, engineers, journalists, teachers etc. and they could no longer be regarded as or recognised as or identified as workers or peasants. The people of colour in the United Kingdom will remain people of colour for generations to come. Notice also, that though the ideology elevating workers and peasants was initially unfriendly towards or somehow discriminating against people with a university education, once the sons and daughters of the same workers and peasants joined the ranks of the educated cohorts of society, the unfriendliness or discrimination automatically disappeared. Now, the children of people of colour will remain people of colour – they cannot biologically join the ranks of whites – so the prejudice, mistrust, unfriendliness or hate on their part towards whites (and reversely) is not likely to disappear.

Notice also, that while workers and peasants of Eastern Europe shared their Christian heritage with people with a university degree, some of the people of colour (with the number being on the rise) are – unlike white residents of the United Kingdom – Muslim or Hindu.

Though the white majority of the residents of the United Kingdom may have been thoroughly brainwashed into accepting it all (though the correct term for the current behaviour of the whites ought to be termed negative or enforced acceptance), one of these days they will certainly recoil and lash out; they surely will. In the long run it has always been so in world history, with absolutely no exceptions. The powers that be are playing with fire, yet they are blinded by metastasized Trotskyism. To think of it: just as Eastern Europe along with Russia ditched Stalinism three decades ago, the Western world remains in the firm grip of Trotskyism and that of the Frankfurt School. What disaster does that spell? Go figure. 

The West: a reincarnation of Midas gone wrong?

Holy smoke! says Blinken, Holy smoke! says Biden, Holy smoke! says (von der) Leyen. Are we a reincarnation of Midas? With this huge difference, though, that whatever we touch turns into shit rather than gold…!

The United Kingdom announced providing the Ukrainian military with depleted uranium missiles, and so Vladimir Putin decided to deploy tactical nuclear weapons to Belarus. Gee, how can we ever now so much as dream about a regime change in Minsk? Once Russians have their nukes there, they will go out of their way to suppress any what of we call peaceful protests.

Holy smoke! The American president – the American president, mind you! – wanted to call the Chinese leader and was – can you imagine that? – snubbed! For all practical purposes Xi Jinping told Joe Biden – through one of his secretaries! – I am busy now. Can’t it wait? Maybe some other time.

The leader of the Kiev regime also demanded a meeting or at least a telephone conversation with Xi Jinping and his plea fell on deaf ears, but that was a puppet! President Biden himself would not stoop so low as to talk to a Zelensky, but to snub the American president?

Holy smoke! What are the Saudis doing? They are burying the hatchet and began a process of reconciliation with Iran? The Saudis, our besties in the Middle East (second only to Israel, of course) are doing it through Chinese intercession and with Russia’s blessing? They are not complying to American wishes anymore concerning oil extraction? Worse, they are playing with the idea of switching from the dollar to the renminbi while trading in oil?! Hey, you old chap Kissinger! Could you not give us a hand with it? You brokered excellent relationships with the Saudis and China, look what it came to pass now!

Now France. Millions are taking to the streets and they’ve been rioting for weeks now. What has come over those people? Have we not tried hard enough to mix them up with Third Worlders so as to break their national or social coherence and to avoid having people protesting in the streets like this? No expected effect? Gee… Maybe we have injected too few immigrants…

Now the Netherlands, now Belgium, now Brussels – the political centre of Europe – of all the places! Dutch farmers are blocking the highways and streets with their trucks and tractors. Why can’t they understand that nitrogen kills us all? Have we not pumped enough money into the cardboard cutout Greta Thunberg to make people believe in the man-made climate change story and consequently make them follow our leadership in this respect?

Look at small Georgia. They are about to apply for membership in the European Union and NATO, and despite that their prime minister has dared to issue a nationwide warning about the Ukrainization of Georgia. What does he mean? We know what he means. Yeah, he does not want to have his country turned into another war zone between the West and Russia. ok, but wait a minute, mister prime minister! Do you not remember Madeleine Albright, who (in)famously said in an interview that the lives of thousands of children were a small price for the abolition of communism? Can Georgia not sacrifice itself in the crusade against Russia? Can’t three and a half million Georgians – what a laughable number! – sacrifice themselves on the altar of the good of humanity? Hey, you Georgian prime minister! Do not worry! We will take care of you, the way we will take care of Mr Zelensky!

Now the worst of it all is the dedollarisation. Holy smoke! If we lose that global leverage, we are done. Done once and for all. We have had such a wonderfully effective stranglehold on all nations in the world: just printing dollars or freezing a nation’s deposit made nations prostrate before us and lick our boots. What now? Will we need to go to actual war with all the disobedient countries whose number is rising?

Holy smoke! Mexico, Brasilia, Saudi Arabia, Argentina – who else? – they all drift away from us and swerve towards BRICS. What’s that? How could they spurn our values of human rights and democracy and LGTB rights and the fight for the climate agenda, and, instead, look to dictators and regimes as a political, economic and cultural alternative?

Holy smoke, even as small a country as Hungary or Slovakia are rebellious: the leader of the former does not understand the importance of doubling down on the military and economic war effort with Russia, while the people of the latter protest against NATO! Against NATO – of all the organizations – that protects them against the Russian bear? Are they insane? No, these must be Putin’s agents operating there. Mentally healthy people would never ever protest against NATO, the European Union or the United States!

Holy smoke, by now we have agreed on the eleventh set of sanctions against Russia and… we are running out of them! What is more there to sanction? Yes, Russian music, art, films, literature… That would be the twelfth wave of sanctions. When then? What will we sanction? Russian personal names? Yeah, Boris Johnson would have to drop his… How about that? This will ultimately break the Russian bear. 

Would you not go mad?

France is being torn apart by protests against the government’s plans to raise the retirement age from 62 to 64 years. The French authorities appeal to the citizens to understand the problem and the citizens somehow refuse to understand. Why? Here’s why:

It was during the presidency of Francois Mitterrand that the retirement age was lowered. What was the argumentation then? Ah, elderly employees would make jobs available to younger people, i.e. unemployment would be lowered. Why does this mechanism not operate anymore? Why was it beneficial then and is not beneficial now?

(We will mention only briefly that promising people an earlier retirement age and reducing unemployment were mere political manoeuvres to win more votes. That’s what democracy is all about: you need to play up to your electorate.)

The retirement age needs to be raised because there are not too many working people to support the pensioners. Why then did consecutive governments and the powers that be discourage people from having children, claiming that the world was overpopulated?

Today’s citizens might well understand the economic necessities of raising the retirement age, but why should they believe that the government is running out of money:
    (a) if it always has an inexhaustible source of finances to accept, accommodate and take good care of the endless influx of Third World people? and
     (b) if it funnels millions or billions into Ukraine where – to top it all – all that money is being invested in a non-win game?

The French authorities are oh so angry with the popular unrest in Paris or Lyon, but why are they so much happy about similar popular protests in Minsk or Kiev?

We all know the answer to the last question: protests in other countries are – yes! – legitimate while protests in the country that we are running are not. It’s as simple as that.

To reiterate: the government has money for the influx of immigrants and the government has money to support the Zelensky regime in Ukraine, but it somehow does not have money to pay the retirees. Isn’t it strange?

Picture to yourself that you live centuries ago, when there was no state-run support for the elderly. You are dependent on your son for your survival. You are an elderly person and your son tells you that he will cut down on his support for you because… well, because he plans on accommodating a couple of drifters and he also needs to lend some money to an acquaintance living God knows where who in turn needs this money to cover the costs of his advocate in a legal dispute with someone else. Would you not go mad?

Uganda sends moral shock waves

Tee-hee and ha! ha! Uganda’s bill banning, prohibiting, criminalizing, punishing, stamping out homosexuality flies in the face of two idols of the liberals: homosexuals and black people. Ugandan parliament with but one abstainer adopted a law that challenges everything the West has thought about progress and Africans and freedom and modernity, and, and, and. What an event! Ugandan parliament, packed with all black MPs (Why are there no whites? Is diversity not Uganda’s strength?) in a debate and in a place both modelled on the British parliamentary debate and parliamentary venue has made homosexuality a grave sin. The black man (and woman!), so much worshipped by Western liberals, has challenged the liberal articles of faith and joined ideologically – how shall we put it? – white extreme far-right movements? White fascists? Gee… What an event!

The BBC is flabbergasted! “Life in prison for saying you’re gay”! In certain cases also death penalty is envisaged. This is “deeply repressive legislation” that will “institutionalize discrimination, hatred and prejudice against LGBTI people” (notice the I added to LGBT; the initialism keeps growing!)”. The law is condemned by UK’s Africa Minister Andrew Mitchell, a white man! (how dared he condemn a sovereign decision of blacks, him being white?) and the US Secretary of State Antony Blinken (not black either!). How could that ever happen? It is not white, far-right, catholic, regressive, suppressive, dark forces that came up with such an abominable and deplorable act but the most celebrated race among the races (of course there is only one race, the human race, but still for the sake of argument… and fun), the black race, a moral paragon held for whites around the globe, a moral paragon that they are supposed to emulate, pray to and genuflect to. Shame on them, really…

Shame on whom, actually? On the blacks? God forbid! The event will be readily explained away by – yes! yes! you guessed it right! – white racism! How? There you are! The ancestors of black Ugandans and in fact the ancestors of blacks everywhere in the world suffered such enormous trauma at the hands of whites (slavery then, “systemic” racism now) that it still manifests itself in their collective psyche. Never mind that present-day blacks in Uganda have had nothing to do with white oppression: it is enough that a handful of their ancestors suffered SLAVERY some two hundred years ago to make their distant descendants still psychologically troubled. Criminalizing homosexuality might be just a manifestation of their resentment against the injustice of whites from two centuries ago, a resentment that today’s Ugandans take out on… their black brothers and sisters who indulge in same-sex relationships. White psychologists and other experts will readily concoct an explanation like that and white gullible, impressionable men and women and those who identify as neither, in Europe and America, will readily believe it wholesale. You wanna bet? Before you do, recall all the crackpot ideas that Sigmund Freud churned out for the consumption of the educated people and how those educated people bought it lock, stock and barrel!

Or it will be explained away by the suppressive, oppressive Christian faith which whites, WHITES! – the eternal culprit! – brought to Africa, to Uganda, imposed it on blacks, forced it upon them and through it taught them extreme intolerance stemming from far right European political ideas. You see, Ugandans copied one-to-one the British parliamentary system, complete with wigs worn by the Speaker of the House of Commons and Hansard – the name for the official written record of everything that is said in the parliament, so similarly they must have imbibed the poisonous far-right European ideology of former centuries. Now they need to be cured of it. But then… are whites to cure them of it? Does that not smack of racism and colonialism, of adopting a patronizing attitude to Africans… again? Yikes! What a vicious circle…

Ugandan MPs debating the new law. No whites or at least Hindus among them?

Do Ugandans not know that ethnic diversity makes nations stronger? Yikes!