In March alone 21,000 more UK businesses collapsed than the same month in 2019.
On March 17th UK Chancellor Rishi Sunak (who is a former Goldman Sachs banker) unveiled a £330 billion ‘care package’ to help businesses furlough staff. Increased borrowing surged to £62 billion in April alone and may reach £200 billion by the end of 2020, taking total government debt to £2 trillion.
The source of this debt and the destination of the interest paid is a network of private banks that create money out of thin air and lend it out at interest.This network has majority ownership of the mega-corporations that are the primary beneficiaries of the ‘care package’, with the debt interest being paid by the public. Smaller and medium-sized businesses are having to wade slowly through bureaucratic red tape whilst in a state of lockdown, with limited or no earnings. This network looks to buy out struggling businesses and consolidate more power and control.
It is the same around the world, as wealth is transferred from the lower tier of the disrupted economy into the pockets of the few financial institutions that sit at the top of the pyramid.
The International Labour Organisation has warned that 1.6 Billion people risk losing their livelihoods due to the coronavirus and the lockdown.
A spokesperson for the International Monetary Fund stated the loss to world gross domestic product could amount to $9 Trillion, more than the economies of Germany and Japan combined.
In the US, in late February, the S&P 500 Index dropped by more than 20% from its high. This was the fastest stock market crash to happen in the United States at any time in the last century, surpassing even the speed of the great stock market crash of 1929.
The US Federal Reserve added over $1 Trillion to its balance sheet of debt, in under a month. James Turk of GoldMoney stated in April that the Fed was now leveraged 148 – 1.
For comparison, at the peak of QE in the financial crisis of 2008-09, the Fed bought $120bn of Treasuries every month. In April they were buying $70bn EVERY DAY.
The U.S. budget deficit this year is projected to hit $3.8 trillion, which would be more than double the previous record set during the financial crisis ($1.41 trillion in FY2009). Meanwhile, the Fed has announced “open-ended” asset-buying programs to support the economy, which will add even more to its current $7 trillion balance sheet.
In the midst of all this, American billionaires have become richer by $434 billion during the pandemic, with the top 5 billionaires gaining $75.5 billion.
It is now more clear than ever which end of the puppet strings the financial oligarchs find themselves and which end the government minions.
‘Governments do not govern, but merely control the machinery of government, being themselves controlled by the hidden hand’.
– Benjamin Disraeli, British Prime Minister