Last week, Rockefeller Foundation President Rajiv Shah appeared on Bloomberg Television to state that a “massive, immediate food crisis” is on the horizon.
Shah went full Putin excuse and said global fertilizer supply disruptions caused by the Russian invasion of Ukraine would have an “even worse” impact on the crisis, slashing crop yields worldwide. He then delivered the connecting punch line (aka narrative). Shah said debt relief and emergency aid for emerging market countries are needed to mitigate the effects of the food crisis. “Debt relief” is code for plying more debt, typically by extending duration terms and thereby controls. This is classic Washington Consensus.
Of course, the Rockefeller Foundation is an echo chamber and advocates for “sustainability” and such tasty morsels as less meat and more insects and soy in our diets. Benefits are controlled through the infamous social score scheme.
Tucked into the corner of the general large scale bond market whacking of the last several weeks is a particular crisis developing in emerging market debt. This is tied into the aforementioned food crisis, China’s Covid shutdown and the taking away of the zero interest punch bowl.
Note that the last time emerging market debt was whacked like this was just before the Covid stimulus bazookas and money printing rampage that started in March 2020.
Kyle Bass has a theory 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.
This policy depends on demand driven measures in lieu of tighter money to counter inflation and resource scarcity. It is only a stop gap temporary measure- and at high cost.
The actual fundamental and causa proxima is supply-driven inflation, a product of years of investment neglect and over focus on financialization. Of course, the scamdemic has amplified this capex neglect even further.
The globalist Crime Syndicate is desperately in need of a convincing narrative to cover for the hundreds of trillions of USD and Euro based interest rate derivative contracts bets on continuing low Central Bank interest rates. Basic consideration: Over 35% (or even more) of all global fiat-currency denominated interest-rate derivative contracts are valued based upon the persistence of extremely low Central Banker interest rates. $60 trillion in debt needs to be rolled over each year, and the majority of corporate debt has a 3 to 5 year maturity. This part of the yield curve has already bulged.
So the central banks have been forced to break the inflationary fever by acting like they carry a big stick. Accordingly the markets now project the following interest rate structure in the US, starting with a 50 bps Fed funds increase on May 3. However, “something” will break (most likely in the derivative or debt rollover space) well before this expected path plays out, and probably early rather than late. I seriously doubt that even the median dot of around 2.5% is ever reached by the Fed.
But the issue that is never addressed by analysts discussing the bond market correction are credit ratings. A series of downgrades of the US, Germany, France, UK, Japan, China, et al is the 800 pound gorilla in the room. That’s what blows interest rates through the Fed’s plot and blows up the debt rollover scheme.
The food crisis and Covid lockdowns are just the excuses needed to justify sustaining the debt rollover and money printing orgy. This won’t be your standard Dementia Joe economic stimulus and loot. It will look different and more in line with the Reset promoted by the Rockefeller Foundation hack. The premise will be to save billions from starvation worldwide.
Elements of what this looks like is also being hinted at. We discussed the formulas used to reduce society to primitive states in our post “Another Plot Against Civilization.”
Now, by sheer cowinkydink, we learn that the FBI is warning against some vaguely defined cyberattack threats by “actors” on agricultural facilities. This comes at a time when a string of fires and explosions damaged major food processing plants across the country.
The notice reads, “Ransomware actors may be more likely to attack agricultural cooperatives during critical planting and harvest seasons, disrupting operations, causing financial loss, and negatively impacting the food supply chain.”
The notice states ransomware attacks on farming co-ops could affect the current planting season “by disrupting the supply of seeds and fertilizer.” Whodathunk?