The Deep State Strikes Back – Episode 1493

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The Deep State Strikes Back
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The velocity of money is hit the bottom, the inflation indicators are off the charts. The stock market has declined by another 1000 points, the stock market wars are in full swing. The battle wages on, the system is on the brink of disaster, the central banks want to bring it down, the transition is not complete, this is why they need to bring it down now. More and more evidence is being produced that implicates the Clinton’s, Obama and many others. We are now seeing the deep state strike back to create distractions in the US and around the world. The deep state will not push another false flag. We are now at the point where the system could come down if the deep state wins the battle, if the deep state loses the transition can be completed and we will have a soft landing. Either way be prepared.

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Current News – 02.08.2018


  • Forget the Trump tax cuts, the Senate budget deal, the Fed’s Quantitative Tightening and the collapse in foreign buying of US Treasuries: after years of dormancy, the biggest catalyst for a sharp inflationary spike has finally emerged, and it is none of the above. Behold: the velocity of money.


  • Over the past decade we have shown this chart on numerous occasions and usually in the context of failed Fed policy. After all, based on the fundamental MV = PQ equation, it is virtually impossible to generate inflation (P) as long as the velocity of money (V) is declining.
  • None other than the St. Louis Fed discussed this  in a report back in 2014:
  • The regional Fed went on to note that during the first and second quarters of 2014, the velocity of the monetary base was at 4.4, its slowest pace on record. “This means that every dollar in the monetary base was spent only 4.4 times in the economy during the past year, down from 17.2 just prior to the recession. This implies that the unprecedented monetary base increase driven by the Fed’s large money injections through its large-scale asset purchase programs has failed to cause at least a one-for-one proportional increase in nominal GDP. Thus, it is precisely the sharp decline in velocity that has offset the sharp increase in money supply, leading to the almost no change in nominal GDP (either P or Q).”
  • So why did the unprecedented monetary base increase created by years of QE not cause a proportionate increase in either the general price level or GDP? The answer, according to the Fed at least, was in the private sector’s “dramatic increase in their willingness to hoard money instead of spend it. Such an unprecedented increase in money demand has slowed down the velocity of money, as the figure below shows.”
  • In light of the recent collapse in the US savings rate to just shy of record lows, that explanation makes zero sense, and what the St. Louis Fed meant to say is that of spending (or saving) freshly created money was immediately invested into risk-assets, almost exclusively by members of the 1% who were “closest to the money” . This explains why there was almost a 1:1 correlation between the increase in the Fed’s balance sheet and the S&P for years. 


  • Many people do not realize that America is not only entering a new year, but within the next month we will also be entering a new economic era. In early February, Janet Yellen is set to leave the Federal Reserve and be replaced by the new Fed chair nominee, Jerome Powell. Now, to be clear, the Fed chair along with the bank governors do not set central bank policy. Policy for most central banks around the world is dictated in Switzerland by the Bank for International Settlements. Fed chairmen like Janet Yellen are mere mascots implementing policy initiatives as ordered.  This is why we are now seeing supposedly separate central banking institutions around the world acting in unison, first with stimulus, then with fiscal tightening.
  • However, it is important to note that each new Fed chair does tend to signal a new shift in action for the central bank. For example, Alan Greenspan oversaw the low interest rate easy money phase of the Fed, which created the conditions for the derivatives and credit bubble and subsequent crash in 2008. Ben Bernanke oversaw the stimulus and bailout phase, flooding the markets with massive amounts of fiat and engineering an even larger bubble in stocks, bonds and just about every other asset except perhaps some select commodities. Janet Yellen managed the tapering phase, in which stimulus has been carefully and systematically diminished while still maintaining delusional stock market euphoria.
  • Now comes the era of Jerome Powell, who will oversee the last stages of fiscal tightening, the reduction of the Fed balance sheet, faster rate increases and the final implosion of the ‘everything’ bubble.
  •  . The public is being subtly conditioned to view Powell as if he is an extension of the Trump administration.
  • So, why is the media insisting on misrepresenting Powell as some kind of Trump agent? Because Trump, and by extension all the conservatives that support him, are meant to take the blame when the ‘everything’ bubble vaporizes our financial structure. Jerome Powell is “Trump’s guy” at the Fed; so any actions Powell takes to crush the recovery narrative will also be blamed on the Trump administration. 




  • Undercover FBI informant William Campbell has given written testimony to Congressional investigators after an “iron clad” gag order was lifted in October
  • Campbell was a highly valued CIA and FBI asset deeply embedded in the Russian nuclear industry while Robert Mueller was the Director of the FBI
  • Campbell was required by the Russians, under threat, to launder large sums of money – which allowed the FBI to uncover a massive Russian “nuclear money laundering apparatus”
  • He collected over 5,000 documents and briefs over a six year period, some of which detail efforts by Moscow to route money to the Clinton Foundation
  • Campbell claims to have video evidence of bribe money related to the Uranium One deal being stuffed into suitcases.
  • The Obama FBI knew about the bribery scheme, yet the administration still approved the Uranium One deal.
  • To thank him for his service, Campbell was paid $51,000 by FBI officials at a 2016 celebration dinner in Chrystal City
  • When it emerged that Campbell had evidence against the Clinton Foundation,  slammed Campbell as a “disaster” potential witness
  • An undercover FBI informant embedded in the Russian nuclear industry who was made to sign an “illegal NDA” by former Attorney General Loretta Lynch has finally given his testimony to three Congressional committees. 
  • First, Campbell discovered that Moscow had compromised an American uranium trucking firm, Transport Logistics International (TLI) in violation of the Foreign Corrupt Practices Act – which bribed a Russian nuclear official in exchange for a contract transport Russian-mined U.S. uranium, including “yellowcake” uranium secured in the Uranium One deal.
  • Second, Campbell says that Russian nuclear officials told him of a scheme to route millions of dollars to the Clinton Global Initiative (CGI) through lobbying firm ARPCO, which was expected to funnel a portion of its annual $3 million lobbying fee to the charity.

“The contract called for four payments of $750,000 over twelve months. APCO was expected to give assistance free of charge to the Clinton Global Initiative as part of their effort to create a favorable environment to ensure the Obama administration made affirmative decisions on everything from Uranium One to the U.S.-Russia Civilian Nuclear Cooperation agreement.“ –William Campbell

  • An extremely important aspect of Campbell’s timeline is that the Obama FBI , headed by Robert Mueller, knew of the bribery scheme with the transportation company before approving the Uranium One deal 
  • .
  • Since his undercover work in Russia, Campbell has undergone 35 intensive radiation treatments after being diagnosed with brain cancer and leukemia.


Propaganda Alert: Top U.S. official says Russians penetrated U.S. voter systems

  • The U.S. official in charge of protecting American elections from hacking says the Russians successfully penetrated the voter registration rolls of several U.S. states prior to the 2016 presidential election.In an exclusive interview with NBC News, Jeanette Manfra, the head of cybersecurity at the Department of Homeland Security, said she couldn’t talk about classified information publicly, but in 2016, “We saw a targeting of 21 states and an exceptionally small number of them were actually successfully penetrated.”Jeh Johnson, who was DHS secretary during the Russian intrusions, said, “2016 was a wake-up call and now it’s incumbent upon states and the Feds to do something about it before our democracy is attacked again.”

    “We were able to determine that the scanning and probing of voter registration databases was coming from the Russian government.”

  • Comment: The fear mongering continues. It seems that in the wake of the Nunes memo release, the liberal MSM are ramping up the ‘Russian threat’ in an effort to distract.


War not likely with North Korea

  • US Defense Secretary James Mattis has denied that the probability of war with North Korea

As far as the situation with Korea, it is firmly in the diplomatic lane,” said Mattis while addressing reporters at the White House on Wednesday.


Details from the US bombing of pro-government forces in Deir Ezzor

  • The U.S. Coalition carried out an alleged ‘defensive’ attack against the pro-government forces in the northeastern countryside of the Deir Ezzor Governorate last night.
  • While the U.S. claimed “100 pro-regime fighters” were killed in the attack, a Syrian military source reported that approximately 25-30 tribal fighters were dead and many more severely wounded by the Coalition assault.
  • According to the military source, the pro-government forces that were attacked by the U.S. Coalition were members of the large Al-Baraka tribe, who have fought the so-called Islamic State (ISIS) in the Euphrates River Valley for years.
  • The U.S. alleged that the tribesmen had carried out a large attack against the Coalition-backed Syrian Democratic Forces (SDF) near the imperative town of Khasham in northeast Deir Ezzor.
  • However, the attack was believed to be minuscule and possibly accidental because the tribesmen often search the eastern bank of the Euphrates for potential Islamic State hideouts and sleeper cells.


  •   Syria on Thursday described a strike by the U.S.-led coalition overnight in east Syria as a “war crime” and called for the coalition to be dismantled, Syrian state news agency (SANA) said.
  • “We demand (that the international community) condemn this massacre and hold the coalition responsible for it,”



  • Overnight Tuesday Israel again launched a major attack on Syrian government locations near Damascus in what seems a monthly exercise that many analysts now openly recognize as an Israeli attempt to provoke war with Syria. For at least the third time since the start of the 7-year long war in Syria, Israeli jets attacked a site just outside of Syria’s capital city called Jamraya – believed to be a military research facility related to chemical weapons. 
  •   Israeli jets are reported to have fired from over Lebanon, with a Syrian military media statement saying that its air defenses intercepted most of the inbound missiles,



Mattis Calls Attack in Syria on U.S.-Backed Forces ‘Perplexing’

  • “It’s perplexing,” Mattis told reporters, adding initial information did not reveal any Russian forces among the attackers. “Why they chose to initiate this attack, you’ll have to ask them.”


Moscow Raises Questions About US Attack Against Pro-Damascus Forces in Syria

  • The pro-government Syrian militiamen have come under attack by the US-led coalition while they were conducting an operation against Daesh terrorists north of the city of Deir ez-Zor. The information about the incident contradicts US claims that the Syrian militias attacked Washington’s allies.
  • “First of all, how can a 500-strong unit attack a headquarters with the support of tanks and artillery and injure only one of the attackers?” Zakharova stressed during the weekly briefing on Thursday. “How could the people inside the headquarters be able to survive in these conditions for at least half an hour that is needed for aviation to arrive at the scene? How could a decision to open a massive fire to defeat the Syrian militiamen be made in such a short period of time?
  • US Version of the Events
  • According to the United States Central Command (CENTCOM), the incident occurred eight kilometers to the east of the demarcation line between the areas controlled by Damascus and the Syrian Democratic Forces (SDF), allies of the US.
  • The US-led coalition has described the attack as retaliation for an “unprovoked attack” by pro-government armed militias on the headquarters of the Syrian Democratic Forces (SDF).
  • US Department of Defense spokesperson Dana White announced that the US-led coalition had informed Russia of its actions in advance.
  • ABC news reported later citing an unnamed US official that as many 500 militiamen were reportedly hit during what he described a coordinated attack against US allies. He added that 100 Syrian militiamen were killed as a result of the incident.
  • Russian MoD: US Seeks Control Over Syria’s Economic Assets
  • The Russian Defense Ministry said on Thursday that one of the units of pro-government Syrian militia was carrying out a reconnaissance operation near the former Al-Isba oil refinery in Deir ez-Zor province when they were attacked by the US-led coalition’s aircraft.
  • “While carrying out the task, militiamen were subjected to sudden mortar shelling and artillery rocket fire; after that the helicopters of the US-led international coalition struck them,” the statement reads, saying that a total of 25 militiamen were wounded in the attack.The ministry pointed out that the incident occurred because the operation of Syrian militiamen “was not coordinated with the command of the Russian task force,” adding that there are no Russian servicemen in that area of Deir ez-Zor. The militiamen launched the operation to deal with the attacks on the posts of the Syrian government forces by one of the Daesh cells in the area, the statement added.
  • US Military Presence in Syria Remains a Challenge to Peace Process
  • The US military presence in Syria presents a serious challenge to the peace process and thwarts the protection of the country’s territorial integrity, Russian Foreign Ministry spokesman Maria Zakharova said Thursday. 


Russia: US Safe Zone Helps ISIS To Hide From Syrian Forces

  • A safe zone created by the US in Syria helps ISIS terrorists to escape from government forces, Foreign Ministry spokeswoman Maria Zakarova said during the weekly briefing on February 8. She added that the US military presence is a serious challenge to a peace process in the war-torn country.
  • “A 55-kilometer zone unilaterally created by Americans around their military base near al-Tanf is being used by the scattered units of Daesh [ISIS] terrorists,” Zakarova said.
  • He said that the terrorists use this zone to hide from government forces as well as to regroup and prepare for new attacks.
  • He added that Washington is pushing for more anti-Syrian sanctions via the United States, the move that would violate the Syrian sovereignty.