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Tuesday, June 30, 2020

The Financial Phase of Mystery Babylon


THE FINANCIAL PHASE OF MYSTERY BABYLON

By Dr. Stephen Jones

Blog Post Date:  6-30-2020

The Central Banking system, led by the Federal Reserve Bank, was never meant to last forever. The very fact that it usurped the right to create money from the US Treasury and then loaned it to the government at interest meant that the loans could never be repaid. Why? Because the government always had to repay more money than was being created.

The day would come when the debt load reached the tipping point, where the government either declared bankruptcy or the system was replaced or there was a slave revolt.

As it was, the US government went bankrupt in 1933, just 20 years after the Fed was created. When the government went into receivership, the big banking families owned the government, and the people got to choose which presidents would be the best bank employees.

So the US dollar was made the world currency in 1944 in the wake of World War 2 and was given the responsibility to balance the books on international trade through its gold reserves. But the Vietnam war caused us to spend too much, and the gold began to shift to other countries. President Nixon then stopped the flow of gold by closing the “window” in 1971, so no one could convert their paper money (or digital claims) into gold.

The dollar was decoupled from gold and attached to oil instead, creating the petrodollar.
We have now come to the end of that system as well. It came to an end on April 20/21, 2020, when the price of oil dropped to negative $38 on the oil futures contracts. We then entered a new era that few understand even today. Financial experts, however, knew that the old system had to be replaced, one way or another.

I believe that this is the real reason behind shutting down the world economy and the lockdown. The covid-19 pandemic was the cover story, and I believe it was planned long in advance. This was not a random event in history, nor was it an accident. The only real question is which direction will the financial system go? That is what is behind the political battles today.

For years I have studied the new rules of the so-called Basel 1, 2, and 3 bank reserve requirements in the wake of the crash of 2008. Banks were given “stress tests” and were told that they had to increase their monetary reserves in case of panics or bank runs. These rules were phased in over a period of many years until suddenly they were thrown out the window.

In April 2020 the reserve requirements suddenly were dropped to ZERO. See the chart below.


What does that tell us? First of all, such a drastic change means that the central banking system is unstable and could really collapse at the slightest push. On September 11, 2019 the banks began to experience severe liquidity problems, so the Fed began its program of overnight lending to resolve that problem.

They call it the “repo market.” It started out with about $30 million in overnight loans, paid back the next day and then re-loaned immediately until the next day, and so on. Each week the amount of money the banks needed grew, first to hundreds of millions, then to billions, and then hundreds of billions. Who knows when the bank liquidity problem will turn into insolvency and then bankruptcy? All seems well on the surface, but there is a lot of turmoil underneath.

Meanwhile, JPMorgan Chase has been investigated for fraud, and some of its traders have been indicted for their manipulation of gold and silver prices. Under the leadership of Jamie Dimon, JP Morgan has already been fined $43 billion in the past 20 years for illegal activities. But they made trillions on those illegal activities, so they considered $43 billion in fines to be part of the cost of doing business. That is what happens when crime pays.


WASHINGTON (Reuters) - When the U.S. Department of Justice charged a handful of JP Morgan Chase & Co (JPM.N) traders in 2018 and 2019 with alleged commodities futures manipulation, it wasn’t the first time the government had probed the bank’s metals trading activities.

The Justice Department’s commodities crackdown has recently targeted “spoofing,” whereby futures traders falsely create the impression of strong demand or supply and then capitalize upon the market reaction.

Congress identified spoofing as market manipulation following the 2008 financial crisis. But it wasn’t until years later, when Zink joined the team investigating the 2010 “Flash Crash” which briefly wiped nearly $1 trillion off U.S. stock markets, that the fraud division learned how widespread the practice was and decided to go after it.

The article notes how hard it is to prosecute cases dealing with these levels of finance, because jurors do not understand how the system works. Nonetheless, ‘new tools” are now being used to combat this fraud and manipulation. If successful, this has the potential of letting gold and silver prices find their real market prices instead of being squashed to make the US dollar look better.

Ever since the Exchange Stabilization Fund was created in 1933, markets have been manipulated or “stabilized” by the government. The takeover by the bankers in 1933 created a “managed economy,” that was “managed” to the advantage of the super-rich. Hence, the rich got richer, and the poor got poorer. Not understanding the underlying problem, the people were convinced to ask the government to “manage” things even more, rather than to re-establish a free market.

So the government, controlled secretly by the bankers, was given more and more power, and the people themselves became more and more enslaved without realizing it. Government was seen as a benefactor of the poor, rather than as the entity creating more poor people. Politically speaking, America (and most other countries as well) were turned into Socialist Democracies. Socialism was created by the rich and powerful who paid their shills to sell it to the poor.

This has been the final financial phase of Mystery Babylon, described in the latter half of Revelation 13. There is no further extension (or “horn”) of the Iron Kingdom after this. Its time has expired, and it is now imploding. That’s the good news. The bad news is that we could see some serious turmoil ahead as the Central Bank system collapses. I believe we will get a new system soon, one that they have been working on for many years in anticipation of the collapse. But even that will be a transitional system that will soon evolve into a Kingdom economy that will be permanent.

What does that look like? Who knows? I just know it will not be based on usury.

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