The Fed as VC of the Crisis Industrial Complex

The Role of the Federal Reserve in Financing Crises

In this section, the speaker discusses how the Federal Reserve plays a role in financing new crises and how it manufactures consensus to sustain itself as a permanent parasite.

The Venture Capital Life Cycle of a Crisis

• The Fed plays venture capitalist to the crisis industrial complex by financing each crisis in its vulnerable early stage.

• This bridge financing is important in that early stage when the product is not really off the ground yet.

• The Venture stage manufactures consensus and identifies and censors dangerous conspiracy theories.

• The Fed buys up government bonds to hide the deficit so that voters might not be up for paying for it yet.

Historical Context

• Throughout American history, crises have tipped the balance to ever-growing government.

• World War I was kicked off just months after the Fed was founded, which bumped federal take from about 2% to 6% of GDP.

• Wars such as World War II, Korea, Vietnam, Middle East all drove federal take up past 20%.

Recent Crises

• In 2020, lockdown measures drove government spending up by nearly 7% of GDP leading to potentially catastrophic economic and financial disruption.

• Central banks will continue to finance crises as long as they exist.

Conclusion

In this section, the speaker concludes that crises will keep going as long as central banks exist and warns about an endless ratchet taking our freedoms, prosperity and social peace.