The next world financial crisis – a huge opportunity for humanity!

German economist Ernst Wolff discusses the financial crisis the world is facing since the outbreak of Covid-19, which he thinks was preplanned.

The situation in which we currently find ourselves is unique in the history of mankind. Never before has the entire world been subjected to such a global regime of coercion as in our time.

Ernst Wolff

American President Franklin Roosevelt once said, “Nothing in politics happens by accident. When something happens, you can bet it was planned that way.” When you look at what has happened in the past year and a half, that phrase seems particularly frightening. Can it really be that everything we have experienced was planned? Let me say one thing up front: I cannot provide definitive proof of such a plan, for example in the form of verified documents. But having studied it in great detail for more than sixteen months, I have to say: there are an overwhelming number of signs and indications pointing in that direction. And it is these – and their consequences that I would like to talk about today.

The situation in which we currently find ourselves is unique in the history of mankind. Never before has the entire world been subjected to such a global regime of coercion as in our time – And never before have so many measures been taken that at first glance seem so incomprehensible, in part so nonsensical and in many cases so contradictory.

We are officially dealing with the most serious health crisis in living memory. However, the measures that have been taken against it have not improved the situation, but continuously worsened it. Any doctor can confirm: The health condition of the majority of people is worse today than it was before the crisis.

Even from the perspective of those who ordered the measures, we are facing a shambles: After all, the alleged threat of a Fourth Wave and the announcement of the need for third and fourth vaccinations mean nothing other than that the measures taken so far have failed to achieve their purpose, which was to contain the disease.

But that is far from all. As a result of the lockdowns, we are currently facing a severe global economic crisis. Production is down around the world, logistics are at rock bottom, supply chains are broken, we are facing crop failures, food shortages, and a shortage of semiconductors that are vital to large parts of the economy.

But here, too, no countermeasures are being taken; on the contrary, the money glut continues and is even being intensified. Since the beginning of the crisis, states and central banks have injected almost 20 trillion dollars into the global money cycle, with no end in sight, and the International Monetary Fund (IMF), the world’s most powerful financial organization, is issuing 650 billion on August 23, the largest amount ever of its own currency, the Special Drawing Rights.

The social situation looks no better. Just one example: In the USA, the economically strongest country on earth, almost 4 million people are threatened with eviction because they cannot pay their rents or service their home loans. More than ten times that number are unable to support themselves on their incomes.

And what the deliberate breaking of the economy and the stoking of inflation have failed to achieve, politicians have achieved: a cross-national division of the population the likes of which we have never seen before.

And now, to crown it all, the U.S. has deliberately brought about a change of power in Afghanistan, leaving the Taliban with military material worth twenty billion dollars and a complete air force, including eleven air bases. One foreseeable consequence is that Europe will experience the next great wave of refugees this fall.

Why, one wonders. Why are measures being taken around the world that are bringing about one disaster after another and dragging the majority of people deeper and deeper into the abyss instead of pulling them out of their misery?

To answer this question, one must ask two more questions, namely: who has an interest in this global agenda? and: Who benefits from it?

Watch the Video: Speech by German Economist 

The answer to both questions is clear: The biggest profiteer of the current crisis and the most important mastermind behind the scenes is the digital-financial complex – a kind of community of interests headed by the biggest IT companies and the biggest asset managers of our time.

The most important IT companies include Apple, Alphabet, Amazon, Microsoft & Facebook. The stock market value of these companies alone is currently $9.1 trillion. Just for comparison, the combined gross domestic product of Germany, France and Italy is $8.6 trillion.

In addition to these digital companies, there are also the major asset managers, namely BlackRock, Vanguard, Fidelity and State Street. They all have significant stakes in all IT companies, and not only that: these four alone currently manage a total of $22.6 trillion. By comparison, the GDP of all 28 countries in the European Union was $15.7 trillion in 2020.

But it’s not just the immense financial power of all these companies that makes the digital-financial complex so powerful.

Let’s take the IT corporations: Not only do they have tremendous market power themselves, they also control hundreds of thousands of other companies because they organize their digitization and thus have constant insight into their data flow. The IT industry is basically like a tumor that has metastasized into all sectors of the economy over the course of the past few years, making them dependent on it and now completely dominating them.

The situation is no different for asset management companies: They have stakes in every major company in the world and the ability to move any market in any direction. The largest of them, BlackRock, has the largest repository of financial information the world has ever seen in the form of Aladdin, a data analysis system that is more than forty years old, and uses this knowledge to advise the world’s largest central banks in the background. Given the huge information advantage BlackRock has through Aladdin, it should be clear who is dependent on whom here.

We are therefore dealing with a historically unique mixture of concentrated financial power and the power of disposal over an unimaginably huge pool of data. Since the beginning of the crisis, this combination has given IT companies a boost like never before. And not only that, this upswing is continuously accelerating: In the last quarter (April, May, June 2021), these corporations recorded the highest profits in their history.

Given these facts, it doesn’t take much imagination to conclude that the Digital-Financial Complex is THE global powerhouse around which everything revolves. It stands far above all governments and is capable of bringing any cabinet in the world to its knees and making it compliant at any time.

However, one has to wonder all the more about the methods the digital-financial complex has been using since the beginning of the current crisis, because it almost looks as if it is undermining the very system from which it profits.

Just a few examples: If it destroys the middle class, then it is destroying its own livelihood, after all, the middle class pays the most taxes and creates the most jobs. And if he fuels inflation, then that also harms him. And if it destroys social peace by exploding inequality, it also destroys the ground on which it does business.

These are all justified objections, but they ignore reality. The reality is this: The digital-financial complex has no choice but to do what it is currently doing. What we are currently witnessing is not a desk-bound agenda to acquire even more money and power so that it can enjoy the fruits of its efforts in peace. What we are currently witnessing is a gigantic act of desperation, probably the greatest in the entire history of mankind.

This act of desperation has its cause in the fact that the system to which the digital-financial complex owes its existence can no longer be kept alive with the previous means. This system was already facing its end during the world financial crisis. If governments had not mobilized huge amounts of taxpayers’ money at that time and instructed central banks to create vast amounts of money out of nothing, the system would have already collapsed in 2008.

However, the rescue was only temporary: The money supply had to be continuously increased over a period of years and interest rates had to be lowered time and again, thus making the system increasingly unstable. This could not go on for long, and last year the time had come: in March 2020, the next collapse loomed.

This collapse was postponed for the very last time by a final show of strength, namely by lowering interest rates to zero and injecting trillions instead of billions. But this has created a qualitatively new situation: Another postponement would require interest rates to be lowered into negative territory, thus destroying the very foundation of the banking system, because banks cannot live with negative interest rates in the long run.

In other words, there will be no further deferral with the means used so far. In the current situation, the most that can be done is to inject trillions and trillions more into the system – but with the consequence that inflation, which is already rising sharply, will be further fueled and turned into hyperinflation. (Continues) 


Speech by German economist Ernst Wolff at the Summer WEFF in Davos on August 21, 2021 [Translation from German]

Received from Mr. Elias Davidsson by e-mail

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