The year 2019 witnessed a repo crisis, where overnight repo rates surged, threatening to unravel the financial system. Former Blackrock executive Ed Dowd believes the COVID pandemic provided central banks and politicians with the opportunity to inject an unprecedented amount of money into the economy, temporarily saving the system. Nevertheless, the current state of affairs was predicted as an inevitable consequence of a global sovereign debt collapse.
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In November 2022, an event occurred that had not taken place since 1930 — a negative year-over-year growth rate of the money supply (M2). The four previous occurrences since 1868 were associated with financial panics, which were preceded by a time of great inflationary speculation.
In Dowd’s opnion, despite the stock market reaching new all-time highs in January 2022, it is now beyond the control of the Federal Reserve or governments. The critical question is whether they can manage the implosion.
In Dowd’s book, “Cause Unknown: The Epidemic of Sudden Deaths in 2021 & 2022,” he details the mRNA vaccine and describes COVID as a “very clever way to introduce a control system.”
“You shut down the ability to travel. You shut down the ability to gather. You shut down the ability to communicate and you bring in censorship so everyone’s confused and addled, while the financial system collapses. You can blame a virus. Now, we have wars coming and they’ll blame those.
“The bottom line is the system is collapsing and everything lays at the feet of central bankers and politicians. They’re going to do everything in their power to point the finger at something else. The system is at it’s end and they want to control that collapse and usher in a new system where their on top. It’s a consolidation of wealth and power.”
Dowd believes that the central banking system is a multigenerational Ponzi scheme that relies on constant credit creation and continuous growth. Without these conditions, the system will implode.
The Federal Reserve, established in 1913, has not witnessed a panic since 1930, and the money supply has not gone below zero since then. The World War II and the delinking from gold in the 1970s have provided lifelines to the system.
The fiat currency world reserve system is now present in every corner of the world, leaving no alternative for the dollar. However, the dollar is collapsing due to simple mathematics, and the collapse is inevitable, according to Dowd. The crucial question is whether the implosion will be fast or slow. It is suspected that the authorities will aim for a gradual process to seize power. However, if it happens too quickly, control will be lost.
The implosion of the financial system poses a significant threat to society. If it happens too quickly, there is a likelihood of widespread panic. It is hoped that the implosion will occur slowly, allowing people more time to oppose those in power and get a seat at the table. The global financial system needs to be restructured to provide stability and sustainability, preventing a recurrence of a collapse.
The current state of the global financial system is fragile, with the implosion being inevitable. Whether the implosion will be fast or slow remains to be seen. It is imperative to restructure the financial system to provide stability and sustainability, safeguarding the interests of society.
Dowd is currently a Founding Partner of Phinance Technologies, a global macro alternative investment firm.
Dowd has worked on Wall Street most of his career, spanning both credit markets and equity markets. Some of the firms he worked for include HSBC, Donaldson Lufkin & Jenrette and Independence Investments.
Most notably, he worked at Blackrock as a portfolio manager where he managed a $14 billion Growth equity portfolio for ten years. After BlackRock, he founded OceanSquare Asset Management with two former BlackRock colleagues.