“We’re going to win so much, you’re going to get tired of winning…I’ve always won, and I’m going to continue to win. And that’s the way it is.” – Pres. Donald J. Trump (note: fiat money-created inflation makes super billionaire winners at the expense of everyone else)
“Deflation creates a great number of losers…but also many winners…and (especially) punishes political entrepreneurs who thrived on their intimate connections and those who control the production of fiat money” – Jorg Guido Hulsmann, Deflation and Liberty (Von Mises Institute) p. 28.
In his definitive 1966 book on the world’s power structure, Tragedy and Hope: A History of the World in Our Time, historian Carroll Quigley discusses the suppressed concept of global monopoly Capitalism and the parasitical fiat money system that is used as a scapegoat for the rise of authoritarian, militaristic fascism and unnecessary wars: the “Deflationary Gap”. Quigley emphasizes that the Deflationary Gap is the “key to the twentieth century economic crisis and one of the three central cores of the whole tragedy of the twentieth century” economics (i.e., “innovation, savings and investment”) p. 546.
In his book Grand Deception (2018), commodities economist Alex Krainer defines Deflationary Gap as an imbalance in the economy where there is a surplus of goods because of dearth of money supply for consumption of goods due to retention of household savings such as for retirement plans.
Fascist “austerity” policies during economic contraction are thus designed to reduce government spending from crowding out capital for unsold goods and services, curiously except for money spent on wars (see Clara Mattei: The Capital Order: Austerity as a Way to Fascism, 2022). Deflation means prices are falling, often below the price a producer can recover his costs and make a profit.
The Deflationary Gap can be reduced by lowering supply, by increasing demand and/or by increasing natural resources and hard assets to serve as collateral for fractional interest lending. This last option can be accomplished by piracy wars to exploit natural resources of other countries by regime takeovers via color revolutions and getting mercenary proxy nations to fight banker’s wars for them (e.g., Israel vs. Gaza Palestinians and Ukraine as US proxy versus Russia on behalf of London Bank and the New York Federal Reserve Bank). All world wars since 1900 have been proxy wars fought by mercenary nations for the bank of London (see B. Woolfolk, Great Red Dragon, or London Money Power, 1890 and E.C. Knuth, The Empire of the City: The Secret History of British Financial Power, 1944).
Manifestations of the Fascist austerity policy to reduce the Deflationary Gap beginning in 2020 were:
- Corporate medicine suddenly morphed into a mass depopulation industry by vaccinations, quarantines, overkill drug dosages as the standard of care, continued medieval cancer treatments of debulking surgeries and chemotherapy with effectually zero cure rate, and deadly acute hospital care of anyone with any kind of respiratory issue (but stemming from root cause of autointoxication by sepsis blood poisoning from waste buildup – i.e., constipation from insoluble fiber that interferes with calcium metabolism).
- Mysterious fires of food processing plants serving luxury food markets disguised as accidents so that corporate agriculture could collect insurance before they eventually faced bankruptcy from the coming depression/recession.
- Militant Antifa, BLM mobs carried out riots, arson, and vandalism of minority-owned small business district in “Blue” cities with legal impunity, funded by 25 Silicon Valley corporations and scofflaw George Soros to capture the customer base of small businesses concurrently with COVID lockdowns of small businesses.
- Religious-based NGOs were funded by Soros and former presidents Bush and Obama to fund relocation of millions of South American un-naturalized, unskilled migrants to provide a cheap labor pool especially for apartment builders in California (displacing skilled American workers). But the apparent trick of fascism is to portray it as an organic worker’s revolt and insurrection, just as elitist-benefitting Communism was mis-portrayed as a proletarian movement.
- Under fascism a policy of privatization was also adopted to transfer wealth from the working class to new privateers to compete with socialized global Chinese corporations of the Communist Party. Ergo the public-private partnerships in the US such as Space X replacing NASA, electronic mail, Fed Ex, UPS, unconstitutionally replacing the post office, Amazon e-commerce replacing the mom-and-pop-stores and local niche businesses by selective COVID lockdowns targeted at small businesses.
- Government austerity was selectively targeted to reduce or eliminate non-essential jobs program bureaucracies such as the federal Education Department, EPA, FEMA and the infamous congressional USAID programs.
- Social Security and Medicare were adjusted upward for politically induced hyperinflation but with the proviso the entire programs would be phased out around 2035. Immigrants are being banned from using these programs, including hospital birthing and citizenship.
- However, Defense Department funding was increased to continue supporting regime changes and unnecessary wars in the Middle East designed to capture the natural resources of foreign countries, so that globalist London banks would have sufficient hard assets to continue collateralizing usurious fractional lending. Afghanistan was abandoned abruptly by the Biden administration to fight wars in Gaza and Ukraine. The US left behind an enormous amount of war equipment. Now it comes to light that the London bank possibly wants to use Afghani troops to fight insurrections in Britain and elsewhere. There was a method to the Afghanistan madness and, like everything else, it leads back to London.
Effectually, in 2020 the COVID crisis served as legitimate government cover for fascist economic civil war waged on the Working Class and Small Business Class by banking and the luxury high-tech industries. This was effectually an undeclared mass regulatory taking of private property to benefit private interests without paying just compensation to those plundered for their losses as provided under the Fifth Amendment to the Constitution.
Amazon made no profit in its early years but now makes a profit mainly by replacing goods and services of small and medium size small businesses with layers of luxury services. Cheaper kinetic-analogue retail services were replaced by more expensive e-commerce, web services, web advertising, surveillance capitalism, mass home drone delivery, etc. Consequently, the concept of Market Value shifted from the lowest priced product in a competitive open transactional market in contrast to the highest price good to benefit the digital middlemen and Silicon Valley oligarchs in a rigged monopoly market.
This is especially seen in non-market goods such as mandated rooftop solar power and e-vehicles that require massive tax subsidies to enrich stock-owning oligarchs. The so-called air quality health dividend from solar power is fraudulent as only California has topographical smog traps. Concurrent with the shift to solar and wind power, in California asthma rates have not declined, lung cancer rates have declined but due to fewer smokers, TB is a bacterial disease spread through intimate contact, and Chronic Obstructive Pulmonary Disease (COPD) is related to poverty not air quality. In California, smog is mainly a blight on the tourist industry. Income inequality also soared during the COVID crisis as the number of billionaires and Knowledge-Class jobs grew at the expense of the Working Class and small business.
But as of 2025 both London banks and Israel are about to fail as the Ponzi banking scheme they imposed on the entire world after WWII is crashing, leaving the US with a ginormous $31+ trillion debt for unnecessary wars that furthered no interests of the American people (Iraq War I, Iraq War II, 9/11 War on Terror, Afghanistan, Gaza, and Ukraine wars). Moreover, former HUD official Catherine Austin Fitts has revealed audits showing $21 trillion was stolen from the US Department of Defense Budget over a 15-year period and apparently diverted to the London banking system and spread to offshore tax havens. Included was a raid on the giant Cal-PERS retirement system which is only 75% funded. London bankers have been parasitically skimming 3% to 15% fees for international money exchange transfers since the end of WWII and the Bretton-Woods System.
Moreover, the London Bankers want to be paid back for the American artificial inflationary fiat money debt accrued from their unnecessary wars. Money deflation offers the prospect of freedom from London debt oppression (see Jorg Guido Hulsmann, Deflation and Liberty, Mises Institute, 2008, and Fox King, Cleanse Society of Governmental Parasites Through Monetary Deflation, 2025). “Bad” inflationary money has driven out “good” labor-based money, but the lenders of the bad money want paid back in sound money. And the US Congress is willing to oblige them apparently partly through the passage of the Genius Act (aka Stable Coin Act) and a legislative system of bribery. The Genius Act will continue funding the national annual budget deficits to fill the gap of Japan and China no longer buying US T-bills to finance that debt. Stable Coins do nothing to stop out of control government fiscal profligacy or fighting more banker’s wars.
However, government combining bitcoins and artificial intelligence system to pay down the national debt potentially abrogates privacy provisions under the Constitution. Stable Coins have alarmed conservatives Catherine Austin Fitts, Mike Adams of Brighteon.com and the La Rouche Organizationas fraud and the potential start of a totalitarian surveillance system. Fitts says Trump was put in the presidency by the Silicon Valley AI lobby and can’t be depended on to bring about proper reforms.
However, Austrian economist Tom Luongo says Stable Coin under the Genius Act is not necessarily or principally designed for use by citizens but mainly by banks through a block chain to circumvent the charges of the intermediary London exchange bank and the requirement of banks to hold double reserves. This would free up a bank’s balance sheet to issue more loans and at a lower interest rate. Luongo says Pres. Trump’s advocacy of Stable Coin is an “ingenious system” that cuts out the central bank middleman.
Luongo says the old system was like buying dinner on your credit card at 21% interest every night without having any income, but having to put up 200% collateral of your car and home, as opposed to borrowing from the Fed Reserve at 4% under the new system with no collateral because Stable Coin will be backed by Treasury Bills, bitcoin, gold, etc. Mortgages under the new stabler Stable Coin system can also be underwritten with bitcoin and gold as well as savings.
This would reverse the old system of buying cheap imported goods and being left with debt with a new system that we will eventually be producing our own goods with debt backed by gold and stabilized bitcoin with debt we owe ourselves. But a Stable Coin system is no panacea as it would still be inflationary and would continue to fund unnecessary and illegitimate wars.
Alex Krainer says that despite Pres. Trump’s bombastic misdirection style of speech, he has an ad hoc strategy designed to abandon London’s totalitarian money dominance, pursue a multipolar world of many currencies with Russia, China and Iran (BRICS), and divorcing the dependency of Europe on the US for foreign aid the mercenary US military to fight proxy wars for the London bank.
In sum, domestic corporate fascism, contrived hyperinflation, domestic terrorism, weaponized immigration and medicine, and wars fought to reduce the “Deflation Gap” do not have to be inevitable. But the future cannot be predicted especially now that the London-Israel axis has been incentivized to deploy atomic weapons out of a desperation of last resort.
