America vs the Old European Elites, the Fed Could Be Our Friend w/ Tom Luongo
David Gornoski
Deep Dive
Why does Tom Luongo argue that getting rid of the Federal Reserve overnight might not be wise?
Luongo argues that the Federal Reserve, despite its flaws, is currently the most powerful central bank in the world. In a global war for control over the value of money, eliminating the Fed immediately would benefit its opponents, particularly European and globalist banking systems. He suggests that the Fed, under Jerome Powell, is actively working to counter globalist agendas, making it a strategic asset in the current financial landscape.
What significant change did Jerome Powell make in June 2021 that impacted global markets?
In June 2021, Jerome Powell raised the reverse repo payout rate five basis points above the Fed funds rate, which disrupted the global financial structure. This action caused the reverse repo facility to balloon from $450 billion to $2.5 trillion by Jackson Hole, signaling a major shift in market dynamics and liquidity.
How does Tom Luongo view the transition from LIBOR to SOFR?
Luongo sees the transition from LIBOR (London Interbank Offer Rate) to SOFR (Secured Overnight Financing Rate) as a pivotal moment in U.S. monetary policy. Unlike LIBOR, which was controlled by 18 City of London banks, SOFR is a market-driven rate based on U.S. repo and money markets. This shift allows the U.S. to price its own dollars, reducing reliance on foreign entities and strengthening its financial independence.
What is the significance of SOFR in the context of U.S. monetary policy?
SOFR represents the first time the U.S. has full control over its monetary policy. It replaces LIBOR, which was controlled by foreign banks, with a market-driven rate based on U.S. repo markets. This shift allows the U.S. to determine the price of its own dollars, reducing external influence and enhancing financial sovereignty.
Why does Luongo believe the Federal Reserve is currently doing 'God's work'?
Luongo believes the Federal Reserve, under Jerome Powell, is actively working to counter globalist agendas and weaken European banking cartels. By raising interest rates and implementing SOFR, the Fed is asserting U.S. financial dominance and undermining the power of old European elites, which Luongo sees as a positive development for American sovereignty.
What role does Luongo think the COVID-19 pandemic played in global financial strategies?
Luongo argues that COVID-19 was used as a tool by globalist forces to freeze the global economy and force the Federal Reserve back to zero interest rates. This was an attempt to counteract the Fed's tightening policies and maintain control over global financial systems, but it ultimately failed due to the resilience of the U.S. economy and the Fed's strategic actions.
How does Luongo view the relationship between Trump and the Federal Reserve?
Luongo believes that Trump understands the strategic role of the Federal Reserve under Jerome Powell and supports its efforts to counter globalist agendas. He suggests that Trump and Wall Street are aligned in using the Fed's power to assert U.S. financial dominance and weaken European and globalist banking systems.
What is Luongo's perspective on the future of the Federal Reserve?
Luongo advocates for a gradual phasing out of the Federal Reserve over time, rather than an immediate abolition. He believes the Fed, in its current form, is a necessary tool in the global financial war against European and globalist banking systems. However, he supports long-term reforms to reduce its power and transition to a more market-driven monetary system.
Why does Luongo argue that the U.S. is in a 'war for the control of the value of money'?
Luongo argues that the U.S. is engaged in a global financial war where the Federal Reserve is a key player. By asserting control over the dollar through policies like SOFR and raising interest rates, the U.S. is countering the influence of European and globalist banking systems, which seek to dominate global financial markets and undermine U.S. sovereignty.
What does Luongo suggest is the ultimate goal of the old European elites?
Luongo believes the old European elites aim to destroy the U.S. and its constitutional republic to prove that free-market individualism doesn't work. They seek to reestablish a feudal system where governments are superior to the people, and they view the U.S. as the primary obstacle to achieving this goal.
- Luongo's background as a chemist and his transition into writing about finance and geopolitics.
- His initial approach to Austrian economics and its limitations regarding actionable advice.
- His shift in perspective after observing the impact of Jerome Powell's actions in June 2021.
Shownotes Transcript