The Matrix (2014 version)

February 25, 2014

Few noises emitted by the U.S. (and Western) mainstream media have been as shrill or as sustained as the endless accusations that “China is a currency-manipulator”. Every time the renminbi falls in value versus the dollar (and sometimes merely because it doesn’t rise); we hear the U.S.’s political puppets burst into a familiar chorus. China is (supposedly) deliberately manipulating the value of the renminbi lower (versus the dollar) in order to make its own exports cheaper – and thus steal U.S. jobs.

This, in turn, has led to endless saber-rattling by the same puppets, threatening to punish China with assorted economic sanctions . We’ve seen so many episodes of this farce that those who follow U.S. political theater closely should have that script memorized.

First, the moment the renminbi slides by any significant amount; we have Republican drones hurling accusations at China because – true or not – it makes them appear “strong” when it comes to “protecting U.S. jobs”. Then we have the Democrat drones chiming-in with their agreement. Because whether or not they actually believe what they are saying; if they don’t echo the accusations, they know they will be painted by Fox “News” and the rest of the lunatic-fringe on the Right as being soft on protecting U.S. jobs.

Yet, incredibly, the moment the calendar clicked-over from 2013 to 2014, we see a brand-new paradigm. As “the Matrix (2013 version)” becomes the Matrix (2014 version); suddenly the mainstream media has new propaganda priorities. In this new paradigm, where the Federal Reserve is pretending to begin its long-promised Exit Strategy; portraying China as “a currency manipulator” is against the interests of the Master of Ceremonies, the One Bank.

Here’s how the Matrix (2014 version) works. For four years we were told by this same mainstream media that U.S. bond and equity markets were being (literally) “pumped up” by the exponentially increasing money-printing of the Federal Reserve. This was nothing more than stating the obvious. If you pump air into a tire, it will inflate.

But now with the Federal Reserve pretending to let the air out of the tire(s), it needs to sell two, new, huge lies. First it must convince the Sheep (and the brain-dead “experts”) that “tapering” is actually taking place. This is a challenge, because back in September, this same Federal Reserve (and same, media propaganda machine) acknowledged that it could not throttle-back its money-printing – at all – because merely talking about doing so was putting too much upward pressure on U.S. long-term interest rates.

So three months later, at the end of 2013; the One Bank made a second attempt to sell the lie that the Fed could “taper”, reducing the principal fuel of the Treasuries market Ponzi-scheme (and U.S. equities market bubbles), without those bubbles bursting. What changed as the One Bank launched a second version of the same propaganda campaign, timed to coincide with the New Year?

The One Bank created a distraction this time: the (supposed) “crisis with Emerging Market currencies”, and the plunge in the markets of those nations which was (supposedly) caused by the crash in those currencies. How did the One Bank prevent U.S. interest rates from spiking as it made its second attempt to sell the lie of “tapering”? It did so by sabotaging confidence in all the other markets of the world – with the exception of its few, remaining friends in the Corrupt West.

With this economic, Reverse Beauty Contest, where (by default) the U.S. can be successfully depicted by the propaganda machine to the Sheep as the safest/strongest market; it can again attempt what is mathematically impossible. It claims it is removing (some of) the fuel for its equities market bubbles, its Treasuries market bubble, and its housing market mini-bubble – without all of those bubbles imploding.

Of course what is actually taking place here is that for every dollar of money-printing which the Federal Reserve pretends to “taper”; it is secretly counterfeiting at least as many dollars (if not more). This is why the Federal Reserve hides its books from any/all audits. This is why the Treasury Department suddenly found it necessary to change the auction process for U.S. bonds, so that no one could see who was buying this worthless paper (at the highest prices in history).

Counterfeiting was the only way in which the Federal Reserve could not merely prop-up the Treasuries bubble, but dramatically increase its size the last time that the One Bank crashed the markets/economies of Emerging Markets: the Crash of ’08. At the same time the U.S. government was doubling the supply of Treasuries and jacking-up prices, it was choking-off the economies of the best “customers” for that market – yet the bubble survived. Now, in 2014; we have the One Bank playing a different game of “market crash”.

Proof that this is precisely the Script which the One Bank has fed to its U.S. political puppets is the deafening silence. The U.S. dollar is rising while China’s renminbi is falling – and yet there is not one peep from the U.S. puppets about “currency manipulation” (by China). Instead; the Puppet Master pulls its strings and gets the same puppets to say “strong dollar”.

Of course, one might argue that the reason why the U.S. puppets aren’t doing any finger-pointing about “currency manipulation” is because it is Western bankers who are already being investigated for serially manipulating all of the world’s currencies. But then if one raised that point, it would also become necessary to ask why no one in the mainstream media is shouting out “currency manipulation”, as the currencies of all these other nations suddenly collapse for no reason at all.

It’s not Emerging Market nations that are bankrupt. It’s not Emerging Market nations that have printed such ridiculously excessive quantities of their own currencies that they are already worthless. It’s not Emerging Market nations which have massive, permanent unemployment – on a scale never before seen in the world. All of those titles belong exclusively to the West, and most particularly, to the USA.

The only rational/legitimate direction in which Emerging Market currencies could “fall” versus the ridiculously debauched currencies of the West is upward. The sudden “collapse” of these currencies is not merely obvious/conclusive evidence of another, gigantic financial crime, but the Prime Suspects for this crime were already under investigation even before the crime took place.

Yet suddenly the entire Western media, and entire Fourth Reich have been stricken dumb when it comes to enunciating the words “currency manipulation” (and the so-called regulators are now also, suspiciously, silent). Worthless currencies of bankrupt nations can surge in value. Meanwhile (relatively) strong, healthy economies can see their currencies and markets crumble. And yet the worst financial criminals in the history of humanity can whistle a happy tune as they walk down the street, without a single finger being pointed in their direction.

Most of that is simply “business as usual” in the Corrupt States of America. However, what is not “usual” and what cannot be explained, with any rational explanation (or even plausible lie) is why the same, political Pavlov’s Dogs who bark “currency manipulation” every time the renminbi falls in value have not let out a single “yip” in the Matrix (2014 version).

This is the logical disconnect which proves not only massive FX market fraud to prop-up the dollar, but a massive conspiracy which extends across both halves of the Two-Party Dictatorship. When Pavlov’s Dogs fail to bark, that is nothing less than a glaring, logical flaw in the Matrix.

What is the current objective of the new Matrix? It’s very simple: the Liars need to change the appearance of this chart:

As regular readers know; any exponential function this extreme can only end in utter catastrophe. In this case the two possibilities are an explosion (hyperinflation) or an implosion (deflationary collapse and hyperinflation) – no other possibilities are mathematically/economically possible. So how does the One Bank change the picture of a Ponzi-scheme which is obviously about to burst?

Simple. It shifts (as rapidly as possible) the out-of-control money-printing from being legal and official to illegal and unofficial – i.e. counterfeiting. By counterfeiting the same quantity of dollars it was previously printing officially, the Ponzi-schemes can be propped-up (a little longer), while yet another U.S. economic statistic becomes permanently falsified.

Welcome to the Matrix (2014 version)! It just keeps getting better…

Jeff Nielson

Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is

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