Hello fellow Rebel Capitalists, George Gammon here, bringing you a groundbreaking revelation that will challenge everything you thought you knew about the global monetary system. Brace yourselves, because I'm about to expose a truth that the mainstream narrative conveniently overlooks.
In a recent podcast by BlockWorks, I had the pleasure of listening to Robert McMcauley, a former insider at the BIS and the New York Fed. His insights shed light on how the system truly works; let me tell you, it's a game-changer.
The conventional narrative places the Federal Reserve at the center of the global monetary system, with the belief that the Fed controls the dollar. But here's the twist: it's not the Fed, but the commercial banks that hold the real power. Yes, you heard that right. Jamie Dimon, the CEO of JPMorgan Chase, holds more sway over the dollar than Jerome Powell ever will.
This revelation, based on the Eurodollar system, reveals an interlinked network of balance sheets spanning the globe. The dollar, being the indispensable currency, plays a pivotal role.
The system operates with trillions upon trillions of dollars, far exceeding the textbooks' explanation of how the Fed creates and multiplies money through bank reserves.
The truth is, the dollar escaped the confines of the Fed's control generations ago. It has become the second language of currency worldwide, with the dollar dominating international portfolios. And here's the kicker: this invisible, off-balance-sheet component of the dollar system is massively underappreciated.
So, every time you tune in to CNBC or browse through the financial news, pay attention to the obsession with the Fed's balance sheet. It's time to open your eyes and see the bigger picture. The global cartel of banks, not the Fed, holds the key to providing unlimited dollar liquidity. It's not about bank reserves, but about cash.
Imagine a car burning oil at an alarming rate. The solution isn't simply pouring more oil into the engine.
Similarly, the problem isn't a lack of bank reserves in the system, as many believe.
Instead, it's the excessive consumption of oil (liquidity) that needs addressing. And that's where the real power lies – in the network of interconnected banks, not the Fed's balance sheet.
This newfound understanding allows us to predict probabilities more accurately. No longer confined by the traditional narrative, we can navigate the financial landscape with clarity.
For instance, when concerns arose about Janet Yellen filling up the Treasury General Account (TGA), draining liquidity from the market, I reassured you that it was a non-issue. Why? Because the market can provide liquidity independently of bank reserves.
So, the next time you come across experts or media outlets discussing the Fed's injection or withdrawal of liquidity, take a step back and question their perspective.
Remember, it's like claiming to add liquidity to the vast Pacific Ocean by pouring a small beer into it. The ocean's power far exceeds that insignificant contribution.
Now, armed with this knowledge, we can challenge the mainstream narrative and unravel the true workings of the global monetary system. Join me in this pursuit of truth and understanding.
I encourage you to leave a comment below, sharing your thoughts and experiences.
Together, let's continue to rebel against the conventional narrative and embrace a new perspective on finance and economics.