For Whom the Globalist Bell Tolls: The Fed’s Management of the Economic Transition to the American Gig Labor Market. August 10, 2022.

Laurie Thomas Vass, The CLP News Network www.clpnewsnetwork.com

“None of this is being done accidentally.  All of this is being done with forethought and implicit intention.” Sundance, The Last Refuge, July 21, 2022.

In one of his recent columns on the New World Order, Sundance asks what the Biden administration officials mean by their phrase, “managing the transition.”

Sundance explains that what they mean is the Green New Deal transition from a fossil fuels energy infrastructure to a climate change agenda, which is being managed by the central bankers in the West.

“The central bankers are trying to support western government policy.  Unfortunately, the government policy they are under obligation to support is the fundamental energy shift, or what the World Economic Forum (Davos Group) has called the “Build Back Better” climate change agenda.”

We extend and supplement the analysis of Sundance by explaining that the economic transition being engineered by the Fed for middle and working class citizens can be understood by looking at the divergence in data on the labor market between the establishment survey and the household survey.

We place the economic transition in the American labor markets into the much bigger framework of the New World Order, which consists of a institutional network of very powerful banks, and very wealthy people who will benefit by the transition.

As Sundance correctly points out, none of the transition is happenstance. The transition is a deliberate, well-thought out, well financed plan to convert the world economy into something that looks like the monarchies of the 15th century, with royalty at the top, and serfs on the bottom.

All the political and economic events, since 2016, are connected to the New World Order agenda, when Trump unexpectedly upset the globalist agenda.

The Russia hoax, the George Floyd riots, the Covid biochemical attack, the economic lockdown, the death vax, the Fed’s manipulation of the money supply, the 2020 stolen election, the LGBT agenda in public schools, ending with the FBI assault on Trump’s home in Florida, are all part and parcel of the New World Order strategy.

The Fed’s role in this strategy is to create the conditions of a boom-bubble economic collapse every ten years, which benefits the wealthy classes in America, and most recently, since 2008, the Ruling Class, around the world.

As Richard Fisher, formerly the head of the Dallas Fed, told PBS:

“Cheap money is the fuel for a financial speculator and for a financial investor. With prices skyrocketing on Wall Street, bond markets, and in the housing sector, the end of that cheap money could cause asset bubbles to burst, with potentially significant consequences.”

As we describe in our recent book, America’s Final Revolution, the U. S. economy, since 1992, has entered a permanent boom-bust-bubble economy, managed by the Fed, for the benefit of the American Ruling Class.

We write,

“Since 1947, the Fed has manufactured a series of asset bubbles, caused by a sequence of easy money, followed by a policy of tight money, primarily by raising the rate of interest on overnight bank deposits, that are held at the 12 regional Fed banks. Our argument concludes that the Fed’s economic performance has resulted in a systematic series of boom-bust cycles, where the financial welfare of common citizens is devastated, while the privileged wealthy elite bankers escape unharmed. We conclude that the Fed’s arbitrary discretion to manipulate the economy by setting interest rates and manipulating the supply of money, must be taken away from them.”

The evidence of the success of the Fed’s strategy lies in an examination of what is happening to the middle income and working classes in the American labor market.

On a macro economic level, the population of American citizens in the middle classes has been shrinking since 1971, while the top 1% of the population is increasing.

The reason for the decrease in the middle classes is related to the loss of permanent high-wage jobs, beginning with the transition to a global economy in 1992, which exported manufacturing jobs to Latin America, and later to China.

At the same time that high-wage permanent jobs, with internal career ladders disappeared, the  gig economy labor market of unstable, low-wage jobs in the six service sectors exploded.

Jobs in the gig economy make up about 70% of all U. S. jobs, and the service sector gig economy accounts for about 80% of total U. S. GDP.

According to Tyler Durden’s article in ZeroHedge, “Something Snaps In The Job Market: Multiple Jobholders Hit All Time High As Unexplained 1.8 Million Jobs Gap Emerges,” [August 6, 2022], the American labor market is shedding full time jobs, and adding jobs for people working two jobs.

Durden writes,

“But wait, there’s more, because digging in even deeper, we find that this drop in Household Survey employment is the result of both full-time and part-time jobs. In fact, as shown below, since March, 2022, the US has lost 141K full-time employees and 78K part-time employees.

This job loss in full time permanent jobs in the U. S. is not an accident.

The increase in the number of people holding two jobs to make ends meet is intentional. Both are related to the Fed managing the transition to the New World Economy, of a boom-bust-bubble economy, where the rich get richer, and the middle classes become serfs.

Beginning with the collapse of 2008, the Fed began paying commercial banks interest on the money reserves that the Fed pumped into the banks. Currently, the rate of interest on idle reserves is around 2.5%, risk-free.

In the Covid collapse of 2020, [intentional] the Fed pumped more reserves into the banking system. The reserves at commercial banks increased from around $1.6 trillion to around $4 trillion.

The Fed’s fake logic of pumping up the reserves for commercial banks was that the banks would make business loans to stimulate economic growth.

Rather than making loans to private companies, the banks sat on the money to earn risk-free interest from the Fed.

Because, after all, if you are a banker sitting on reserves, why on earth would you loan out money to risky private companies, when you can make 2.5% risk-free?

At the same time that banks were sitting on the reserves, gross private capital investment in companies collapsed. Capital investment in private companies went from about $580 billion to around $420 billion.

Part of the explanation for the collapse of private capital investment in the U. S. economy is that great investment opportunities in high-tech manufacturing sectors were shipped over to China, and capital investments in the service sector gig economy do not generate a rate of return greater than the 2.5% risk-free returns in banks.

At the same time that commercial bank lending collapsed, and private capital investment collapsed, the Fed and the U. S. Treasury starting handing out free money to middle class and working class citizens.

According to Paul Kupiec, writing in The Federalist, [The Fed Misses The Biggest Threat To Financial Stability: The Federal Reserve, May 17, 2021],

“During the COVID recession, 17.3 million jobs were lost.[intentional] In 2020, the CARES Act added $260 billion in enhanced unemployment benefits, a Pay Check Protection Program (PPP) that ultimately provided nearly $700 billion in small business grants (administered as forgivable loans), and authorized $376 billion in stimulus checks of $1,400 for individuals in nearly 160 million households.In April 2020, the first round of CARES Act stimulus checks resulted in a 10.5 percent increase in personal income. Despite a recession that reduced 2020 nominal GDP by 2.3 percent, one estimate suggests that, because of federal transfers, median household income rose more than 8.5 percent.[bubble]. But the spending did not stop in 2020. In late December, the Consolidated Appropriations Act of 2021 added new stimulus payments of $600 per adult, $300 per month in federal unemployment supplemental benefits, and new funding for PPP. In March 2021, President Biden signed another $1.9 trillion spending package that includes $1,400 in additional stimulus checks to most American adults and extends $300 monthly supplemental unemployment payments until September 2021. Thus far, all in, the government has spent $6 trillion, or almost $42,000 per taxpayer, on COVID-labeled increased spending.”

The economic effect of the free money was to anesthesize the American work ethic in young people. After all, if you are a 30-something living in your parent’s basement, and the government gives you $8,000, tax free, why go to work in the gig economy?

The reason there is a discrepancy between the household survey and the establishment survey is that young people have left the labor force, permanently. The gig economy establishments are begging for workers, and the working class young people in the household survey are saying, “Maybe later, Dude.”

This outcome is not an accident. Part of the strategy of the New World Order is to transition  citizens into the permanent welfare rolls, to become dependent slaves to the globalist State.

In the gig labor market, real hourly wages are declining, and a rational economic choice for young workers is to collect welfare payments rather than work for declining wages.

In June, 2022, real average hourly earnings fell by 0.5 percent for the month. In other words, a worker earning $50,000 at the beginning of the month could purchase goods worth only $49,750 by the end of the month, because prices rose faster than wages.

Based upon the Household survey, the number of eligible workers no longer in the workforce increased by 239,000.  The total labor force is shrinking as unemployment drops because the labor force participation rate is declining.

No one wants to work anymore in America, especially young workers under 35.

On the last business day of June, 2022, the number and rate of job openings, based upon the Establishment survey, decreased to 10.7 million (-605,000) and 6.6 percent, respectively.

The largest decreases in job openings were in retail trade (-343,000), wholesale trade (-82,000), and in state and local government education (-62,000). [Gig labor market].

In July, 2022, 303,000 part-time jobs were added. These workers are working in the part-time gig economy because the U. S. economy is not creating full-time permanent jobs, with internal career ladders.

In the New World Order labor market, there are no longer good, permanent jobs with health benefits and upwardly mobile, career ladders. In the New World Order, you are born into the gig economy, and you stay there the rest of your life, just like a serf in feudal times.

The Brookings Institute report on the Feds actions during Covid describes another part of the globalist agenda being managed by the Fed. Beginning around 1997, the Fed began changing its focus from stability in the domestic U. S. economy to a a focus on the stability of the global economy.

This change in focus accelerated with the Feds bailouts of foreign banks and corporations in the 2008 crash, and increased in volume and scope in the Covid pandemic [intentional].

Eric Milstein and David Wessel, in their Brookings report, “What did the Fed do in response to the COVID-19 crisis?” [Brookings Institute, December 2021], cite examples of how the Fed is targeting financial aid to foreign banks and private corporations.

They note,

“Foreign and International Monetary Authorities (FIMA) Repo Facility: Sales of U.S. Treasury securities by foreigners who wanted dollars added to strains in money markets. To ensure foreigners had access to dollar funding without selling Treasuries in the market, the Fed in July 2021 established a new repo facility called FIMA that offers dollar funding to the considerable number of foreign central banks that do not have established swap lines with the Fed. The Fed makes overnight dollar loans to these central banks, taking Treasury securities as collateral. The central banks can then lend dollars to their domestic financial institutions.

International swap lines: Using another tool that was important during the global financial crisis, the Fed made U.S. dollars available to foreign central banks to improve the liquidity of global dollar funding markets and to help those authorities support their domestic banks who needed to raise dollar funding. In exchange, the Fed received foreign currencies and charged interest on the swaps. For the five central banks that have permanent swap lines with the Fed—Canada, England, the Eurozone, Japan, and Switzerland—the Fed lowered its interest rate and extended the maturity of the swaps. It also provided temporary swap lines to the central banks of Australia, Brazil, Denmark, Mexico, New Zealand, Norway, Singapore, South Korea, and Sweden. In June 2021, the Fed extended these temporary swaps until December 31, 2021.”

The seemingly odd behavior of the Fed supporting foreign corporations and banks is better understood when placed into the framework of the New World Orders social class awareness of the financial interests of the global Ruling class.

The Fed is a private bank, authorized by Congress. It is staffed and managed by people from Eastern Elite universities, who share a social class consciousness of wealthy families. The staff and executives of the Fed operate the bank in the interests of the Ruling Class, both in the United States, and beginning around 1997, the Ruling Class in Europe.

The staff and leaders do not have some scientific formula to guide them in making financial decisions to benefit the common good of middle and working class citizens. They are not connected to the consent of the governed and no citizen elected any of them.

In the absence of any elected control of citizens, the Fed represents the interests of the bankers, who make up their shareholders.

Jerome Powell is a wealthy investment banker, as are most of the Board of Governors, and the executives of the Regional Fed banks.

At his recent press conference, Powell stated,

“The Fed’s goal is to return the labor market to where it was before the start of the pandemic, when unemployment was at historic lows, inflation was much lower, and workers with lower incomes were enjoying sizable wage increases for the first time in decades…That’s where we want to get back to,”

Who authorized Jerome Powell to decide where he wants to take the labor market?

The citizens in America are stuck with a Fed that operates outside the control of the representative republic, with no way to rein in Powell’s march to the New World Order gig labor market.

The citizens are also stuck with an illegitimate, unelected imbecile President, with no way to get rid of him.

The rule of law, and the rules of the free market are being violated every day, and it is silly propaganda for Powell to suggest that “we can go back.”

That part of American history ended on November 3, 2020.

The better path for middle and working class citizens is to embrace a new entrepreneurial capitalist future, in a new constitutional democratic republic, where the mission of government is the protection of individual liberty.

For American workers, the New World Order bell is tolling for Thee.

There is only one path back to liberty.

 

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GABBY is short for The Great American Business & Economics Press. The political ideology of Gabby books is natural rights conservative. Rather than dwell upon the daily news of “he-said, she-said,” between Democrats and Republicans, our mission is to describe a pathway to the future for natural rights conservatives.

We believe there is only one path back to liberty.

In our new book, America’s Final Revolution, we argue that the differences between conservatives and Marxist Democrats are irreconcilable because the two visions of the American Dream are incompatible. No cultural or ideological values bind the two sides into a shared common understanding on the mission of the nation. We believe that a better idea, for conservatives, is to start over at the point in history of Jefferson’s document of 1776.

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In our second new book, Updating Schumpeter’s Gales of Creative Destruction, we explain why the New World Order economic system is vulnerable to regional metro technological innovation and new venture creation.