Source – zerohedge.com
- “…If Covid lockdowns cannot be used as an excuse to enforce the types of draconian lockdowns in Shanghai that justify the continuance of low Central Banker interest rate policy decisions, then as long as a different scapegoat can be used to produce the exact same low-interest rate policy consequences…some type of charade will have to be used until 2024/2025 to strip a large portion of global citizens of our freedoms until that time. That much is nearly a fact”
The Untold Global Financial Truth Behind the Shanghai Covid Lockdowns
I’m sure many of you have seen this viral video of residents of Shanghai screaming into the night after just a few days of being locked down inside their residences starting on 21 March of last month, with the filming Chinese citizen providing rolling commentary and stating:
“If this persists, bad things will happen. The root cause of this is nobody knows how long [the lockdowns] will last. [The authorities] should give a detailed explanation…[People have been] cooped up at home for 7 days unable to step out of their doors. It’s not even that they weren’t able to leave their neighborhoods. This cannot last.”
Unfortunately, it can and it will last. In fact, almost a year ago, I predicted that the same draconian measures in Asia/Australia/NZ to which I was subjected would continue at least until 2023 in this piece: “Covid lockdowns will not end until 2023 (at the earliest)” and even detailed the rationale for my prediction. Furthermore, my patrons know that even as Western mass media celebrated “the end of Covid lockdowns” during Q1 this year, I doubled down on my mid-2021 prediction and repeatedly informed them of the ridiculous municipal, region and nation-centric focus of that narrative that ignored regions that contained more than half the world’s population (Asia and the Pacific rim). Given that the draconian lockdown measures that I knew would be coming to that region this year has now materialized, I reviewed the latest data I quoted is the true reason behind the latest ridiculous charade of Covid lockdowns. Since I’ve discussed that data multiple times already (hundreds of trillions of USD and Euro based interest rate derivative contracts bet upon continuing low Central Bank interest rates), and in detail in the referenced link above, I’m not going to repeat that discussion here. However, unfortunately the latest BIS reports that discuss such data reveals that global lockdowns, whether Covid or some other lame excuse is the basis to enforce them, are likely to continue not just until 2023, but likely into 2024/2025.
Other Reasons, Other Than My Own, Given for Continuing Covid Lockdowns
US hedge fund manager Kyle Bass has a different spin for the reason behind the CCP’s latest round of Covid lockdowns in Shanghai. Mr. Bass speculates that the PBOC’s continuation of extremely draconian lockdowns is linked to the CCP and PBOC’s desire to temper soaring commodity prices, as lower prices obviously benefit China’s huge consumption rate of various commodities. But this will only be a temporary benefit to China of these lockdowns, and commodity prices, after a temporary pullback in prices, will once again resume their path higher. As we all know, commodity prices had been soaring for a very long time before the CCP locked down Shanghai, and Shanghai’s lockdown will not prevent them from continuing to soar higher.
I don’t disagree with Kyle Bass regarding immediate-term reasons for the Shanghai lockdowns, because I knew the lockdowns were coming before they were imposed. However, as the real reason behind the Shanghai lockdowns, because they will only have a temporary effect, it holds no weight. The fact that I knew more lockdowns were coming this year was precisely the reason that drove me to inform my patrons to lock in very significant profits on 27 commodity stocks that we had been holding on 11 March 2022, just 10 days before the Shanghai lockdowns. I provided selling guidance to skwealthacademy patrons on all open commodity positions on 11 March not because I didn’t believe that commodity prices would continue to soar higher this year, but solely because I believed a strong possibility existed of a global lockdown event that would have strong negative consequences on the prices of our open commodity positions held at that time. Indeed this happened, and since then, we’ve already purchased/re-purchased a handful of other commodity stocks. As my referenced podcast above indicates, I always felt that more draconian lockdowns were going to afflict Asia at some point in 2022.
However, long-term, I strongly feel that the reasons I provided in my podcast above, released in mid-2021 continue to be the real reasons for ongoing draconian Covid lockdowns although I’ve not heard a single other person propose a similar theory. With over 35% (or even more) of all global fiat-currency denominated interest-rate derivative contracts whose value is likely based upon the persistence of extremely low Central Banker interest rates not maturing for another 2 to 4 years, and whose implosion is near guaranteed with any semblance of higher Central Banker interest rates, global Covid lockdowns, or some other excuse to continue the consequences of such lockdowns for another few years is necessary to prevent an implosion of the global financial system and an extreme loss of wealth by very wealthy institutional investors. In fact, the entire war-blaming supply chain disruption perfectly fits into my “other excuse to continue the consequences of such lockdowns for another few years” narrative.
In other words, if Covid lockdowns cannot be used as an excuse to enforce the types of draconian lockdowns in Shanghai that justify the continuance of low Central Banker interest rate policy decisions, then as long as a different scapegoat can be used to produce the exact same low-interest rate policy consequences of Covid lockdowns, then Covid lockdowns won’t necessarily have to be the scapegoat used to continue this charade until 2024/2025. But some type of charade will have to be used until 2024/2025 to strip a large portion of global citizens of our freedoms until that time. That much is nearly a fact.
Thus, if you understand anything about the above paragraph, then you will also understand that the major supposition about the tyranny of the Shanghai lockdowns being repeated over and over again in the mass media, in that the CCP decisions are stand-alone decisions of the Chinese government, is likely to be completely wrong. If the massive hundreds of trillions of low-interest rate based derivative contracts in the global derivative market are indeed a primary driver of the Shanghai lockdown decisions, then the decisions to lockdown Shanghai necessarily have to be a collaborative decision between Western and Eastern banking interests, and the likelihood of it being a stand-alone decision of the Chinese government is almost zero. Just as those have been repeatedly fooled into thinking that PBOC decisions about how to manage their gold reserves and markets are not heavily influenced by Western banker interests and meddling but are insulated PBOC decisions, I believe that CCP Covid lockdown decisions are also heavily influenced by global interests, and Western banking interests in particular (BOE, BIS, IMF, Fed Reserve, and the World Bank).
After living in Asia for over fifteen years and having spent considerable time in nine different Asian nations, including China, there are things you can learn about how such nations operate on a financial level that simply cannot be learned, and will never be learned, from reading hundreds of pages of analysis about Eastern economies written by biased Western policy analysts that have grown up in an echo chamber for the entirety of their analytical lives and have never learned how to consider any other possibilities that dwell outside of their immediate political spheres. One of my biggest takeaways from living in Asia is that Western bankers have significantly more influence over Asian capital markets, especially in those Asian nations dependent upon US military support and protection from outside hostile influences, than will ever be realized without spending many years of life on the Asian continent.
Furthermore, from my personal experiences of suffering through Covid lockdown hell in Vietnam from a two-week planned holiday that turned into an unplanned 2-year imprisonment (that included five cancelled flights to return home and multiple multi-week periods in which we suffered house arrest, more or less, due to an inability to step foot outside of our homes without the risk of incurring hefty fines), I can assure the Shanghai resident that stated “this can’t last” that it can and will last. Nations in the Asia/Australia/New Zealand regions have served as testing grounds by governments for what can and cannot be enforced against millions of human beings, and after successful draconian measures were already deployed in other Asian nations that were more severe than what is currently happening in Shanghai right now, the CCP has been informed that they can deploy more severe measures than that which they’ve already currently deployed without mass pushback arising. Only those people naïve to believe that Australian premiers Dan Andrews and Gladys Berejiklian and NZ Prime Minister Jacinda Ardern were enforcing Covid lockdowns on their own without the consultation and guidance of other more powerful members of the global Military Industrial Banking (MIB) complex are those naïve enough to believe that the CCP has likely enforced their latest round of draconian Shanghai lockdowns without any outside consultation and guidance.
Chinese residents should have uprooted their families at any point since early 2020, when they still had the opportunity to seek freedom. To view my 145-hour journey to freedom last year, including photos of how our neighborhoods were made to feel like open-air prisons, click here. Residents of Shanghai, if they had been following my analysis, would have known that what is happening in Shanghai now was an inevitability at some point in 2022. I empathize with those that didn’t, made no provisions to leave, and are now subjected to ongoing tyranny against their liberties at the current time. However as a warning to anyone that lives in Asia/Australia/New Zealand, I have no doubt that should further lockdowns be necessary in this region to achieve the global goals of the MIB complex, that they will be enforced later this year