Eureka!... Eureka!! ….. I Found it!..... I Found It!!.

???????????????No. No. I am not running in the street without clothes.

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In my book `IT Killed Capitalism. Thank You Mr. Gates’, I wrote the following:

-?????????Thanks to the emergence of `IT’, the premise of `Capitalism’ got killed.

-?????????A new paradigm, which I called as `Equi-Prosperitism’ is emerging and at the moment we are in phase of transition to the new paradigm.

-?????????In the new paradigm, everyone will be equally prosperous. I also said that people will not sell but share.

-?????????There will be no money as a medium of transaction.

-?????????This change would happen sooner than people think.

-?????????In the interim, governments can print any amount of `Helicopter money’ to mitigate the problems faced due to credits that they have availed. I even suggested that the government should transfer all the loans against individuals to its account and mitigate the citizens’ misery of having to find money to service the EMIs.

-?????????In the new paradigm, India would become the leader and act as `Spiritual Guru’.

My worries were about the transition, the mess and chaos that today’s `Powerful’ would create. Yes, we are in a messy world now. Though I had given my prognosis as to how the new paradigm would evolve, I could not predict the transition path. As I was viewing various videos on the current affairs, I stumbled on an excellent video on a YouTube channel called `Parallel Systems’. I found my answers. Before I get into the contents of the video, let me discuss the current status of the global economy.

Economists are shouting at the top of their voices that the American economy and along with it, the global economy, is on the brink of collapse. None of the economic indicators are consistent with any economic theory that all the so-called economic experts were propounding all these days.

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Last week, the American GDP number for the 3rd quarter was released. It showed a growth of 2.6% Normally, when the GDP number is released, there will be at least some noise on the internet. This time there was stony silence. Only Mario of manaco64 channel discussed it. He was derisive about it. He said that the GDP had 40% as Government investments. He could not find out what those investments were. Got it?

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OPEC+ announces cut in production by 2 million barrels a day. Biden calls it betrayal. Western media accuses the Saudi Foreign Minister that Saudi Arabia is siding with Russia. The Foreign minister assures them that the cut was to ensure price stability. Nobody buys his statement. What they don’t see and report is that the Foreign Minister was right. Truly, the price of oil dropped post the cut. The reason for that is the fall in demand in general. I have written about it several times. No mainstream media reports that there is consistent, month on month, drop in the sale of gasoline at the petrol stations in America. This means Americans are not taking their cars out much. Incidentally, as an aside, the Gasoline and Diesel that Americans are using in their vehicles is actually oil from Russia, imported and refined by India, and exported to Europe and America. Be that as it may.

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There is high inflation in America. That means that the purchasing power of the Dollar is weak. At the same time, the Dollar is very strong in the global market. Incongruent situation. Andrew Hecht, the economist, says “The Dollar Index, in my eyes is a myth”. Myth or otherwise, other countries, particularly India, are taking massive advantage of this contrived situation. To keep the Dollar high, the prices of Silver and Dollar are artificially suppressed. Till June this year, India imported 5600 tons of silver. In July, another 1000 tons and in August, 3 million ounces of silver. The story of Gold is even more interesting. Every country’s central bank is replacing its Dollar reserve with Gold. So much so that in September, there was a $50 premium per ounce of physical gold in the Shanghai market. As a result, India could not get its allocation of Gold in the London or New York markets. So, India imported 200 tons of Gold from Dubai. Ill-informed politicians, media and the so-called experts are making meaningless noise about India’s foreign exchange getting depleted. India does not import much in Dollar these days other than Gold and Silver. India is converting it’s Dollar reserve to gold reserve. India is not alone in this. Every central bank is doing the same. Therefore, measuring any economic parameter in Dollar will lead to an erroneous understanding. Also, the reader must know that China has already launched the Digital Yuan. India has started a pilot program to test the Digital Rupee.

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Jeff Snider talks about the US Treasury bills inversion. It is a strange situation. The 3-month bills have an yield of about a percent more than the yield of a 10 year bond. For a layperson to understand, let me explain this. This means that an investor will earn more return if he invests today in a 3-month bond than if he invests in a 10 year bond. Ludicrous. The reason, as Jeff analyses it, is that in America, the Dollar is weak. Foreign investors see in this anomaly, an opportunity to make some quick, arbitrage money in the short term. They expect FED to stop raising the interest rates and pivot back to reducing the interest rates when the yields (earning) reduce. This is helped further by the artificial suppression of the prices of bullion metals, making short-term investment in bullion unattractive. So, the foreign investor is thus directed to buy the short-term treasury bills which makes the Dollar strong in the global market. As Jeff states, this is unbelievable. Yes, but true.

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Peter Schiff calls the current American economy as a phony economy. Alasdair MacLeod calls the Fiat currency (Dollar as reserve currency) as a fraud on the global system. I heard a Vietnamese channel stating that `American pirates were living on the hard work of the rest of the world’. Almost everyone is in a chorus saying that America has been bullying the world using its defense might, to import all their luxurious consumption and in return, exporting the paper called Dollar. Americans are living beyond their means. All these are the naked truth. I have been saying these since at least 2017. Factually, Americans were indulging in this since 1971. What were all these experts doing all this while? Didn’t they enjoy, along with others, all the comforts such piracy brought to them? They along with other crooks, have all along conspired against humanity at the bidding of the `Super Rich’. What is the use of shouting now? These experts are equally culpable.

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Today, there is this realization among the non-western countries, that injustice is being perpetrated on them by the west and particularly by America for a long time. They have resolved to stand up against America. Like I wrote earlier, America today is a weakened country both economically and militarily. Countries representing by more than 85% of the world population are united today and are ready to show America its place in the comity of countries. These countries are now moving out of Dollar centric world trade. Russia and China are doing business in Ruble and Yuan. India and Russia are doing business in Ruble and Rupee. Saudi Arabia is billing in Yuan and other currencies. China has launched the Digital Yuan. India has, a few days ago, launched the Digital Rupee for a trial in 9 selected cities. These digital currencies are expected to be backed by Gold and are believed to align with the new currency to be floated by BRICS.

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Many countries like Saudi Arabia (This means most of the Arabic countries), Argentina, Iran, Turkey, and so on have shown interest in joining BRICS. Besides, all the African countries have shown interest in staying friends with China and Russia. To put it in Alexander Mercouris’s words, the rest of the world are determined to destroy the Dollar. No Dollar, no America.

The striking aspect of these occurrences is that the mainstream media of America is keeping the American citizens ignorant of all these. When the Dollar sinks, which looks imminent anytime, the American citizens are the ones who will be affected the most. Isn’t it their responsibility to bring these events to the knowledge of the citizens?

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While this confusion is on, I stumbled on this video by `Parallel Systems’ posted yesterday. In this, he plays a video of the interview given by the Dutch central banker Hans G to a Dutch TV channel. In this interview, Hans lets the cat out of the bag. He says that many governments have borrowed to unsustainable levels and to correct this crisis, they would revalue their Gold reserves and use the differential value to set off against borrowings in the countries’ balance sheets. This really takes me back to 1984. Reliance industries revalued their legendary assets like land and buildings and showed the differential value as `Revaluation Reserve’ under shareholders funds in their balance sheets. Those days, Reliance would propose and the government would implement. Accordingly, the company law board amended the rules for the presentation of balance sheets of the companies. This revaluation was done to make the balance appear more healthy. Reliance was making several public issues (today’s IPO) in the form of convertible debentures. I was the head of finance and accounts of my company at that time. I saw what Reliance did and I too beefed up my company’s balance sheet. In fact, so did many other companies. Now, coming back to the revaluation of gold by the governments of the world, this would entail lifting of the current artificial suppression of values of the bullion. What does this mean? It means the countries with maximum gold reserves would become the most powerful. Got it?

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In the same YouTube video by Parallel Systems, the presenter (I apologise, I could not get the name of the presenter) brought out another interesting event. He showed an article written about a year ago by Glapnisk, the Central Banker of Poland. Since he is the central banker of Poland, probably what he wrote failed to attract attention. Let us not forget that, he is the central banker of a country. Glapnisk wrote that governments would soon shift to digital currencies. The reason given by him is quite intriguing. If the power is cut off to the digital currency systems, all the transactions would get erased, meaning thereby all loans of everybody, every government would be made `Nil’. In that situation, like they did during `Bretton Woods’ they would reelect the leader country and new reserve currency. What would be the basis for this choosing? Who holds maximum gold? India and China hold the maximum gold. Every farmer in India holds tons of gold. Got it?

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Ho! Ho! Ho! I deserve a chocolate.

Sarvam Mangalam.

(Everything will be fine).

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J Prakash

Author `IT Killed Capitalism. Thank You Mr. Gates’

+91 9840459595

[email protected]

www.jprakashconsulting.com