As you know that global markets are lead by USA that tend to dictate the trends for all the markets especially the one’s in developing countries like Pakistan. This article takes a deep dive into the economical noise and see what are the goals? How is inflation going to be controlled? Why are currencies deflating against Dollar? Why is Dollar deflating against consumer products? And the most important question, where are we heading, are we in a doom loop?

The goal of the world powers through their pets such as Federal Reserve, WEF, BIS, IMF, World Bank, SEC and others want to have everything under their control no matter what the cost is, everyone knows it, but this is actually the cause of the problem that we have at our hands today. Markets generally have cycles and courses but the intervention of these power hungry institutions never let them complete their natural cycles, for example, markets such as NASDAQ, S&P500 and DOW had completed there bull cycle around September 18’and were about to go in a bear cycle, when Federal reserve intervened. They started printing money and injected it into the markets creating debt, which would eventually cause inflation anyways, but with the capitalist economic structure in place, wealth would be created only for the rich while poor gets poorer under the debt that was created. Later on the Pandemic came along resulting in a panic sell crashing the markets. This lead to immense money printing again by FED taking trillions of Dollars on their balance sheets in order to save the markets. How much you ask? Well, only 70% of the entire monetary supply of the US Dollar ever created. YES, absorb that. Results? 15 months of bull market and trillions of Dollar in debt were created. Why you ask? To put it in a simple and honest way, no head of state wants a bear cycle or down markets in their time in power and to keep US markets in the leading position.

Inflation is one of the many beasts that is a by product of these policies. How will they control it? Well, the correct question should be, can they control it? NO, Do they want to control it? again a simple NO should suffice. These answers will surface many questions in your head like, then why are they increasing interest rates to slow down the economy in order to control inflation? It’s a mirage, you see economy is portrayed to have a face called “markets” which is not true. This is done through main stream media linking ‘down or up’ cycles with events. The main reason to do so is to make one believe that inflation is correlated to markets and the interest rates indicate the health of the markets. This makes increasing or decreasing interest rates a tool for them to control the markets BUT not inflation. So, if they can not control it why would they do it? It’s true that they cannot control it but they can definitely push it down the road but that is not the main goal. They don’t care about inflation! All they want is to prop US Dollar at all costs. They want to strengthen it. Why you ask? Simply because a weaken Dollar would not be good for international trading and settlements between countries especially OIL, if you remember one of the many names for the Dollar is Petro-Dollar from where it gathers a huge strength for the currency and USA. This gives them the power to control countries and put sanctions on them if they don’t obey them. With a weak US dollar they won’t be able to do it! So the western system is only as strong as the ability to force people to use the Dollar and that comes under pressure when the markets are allowed to run freely.

Printing money and adding it in such huge amounts which is 70% of the total monetary supply in 15 months caused inflation. The only true method to to roll back inflation is to roll back a huge percentage of the monetary supply but that would crash everything, weaken US dollar and its monopoly. Consumer products are not getting expensive its the ‘currency’ that is getting cheaper and a common man who is trying to make a living is too busy doing it that his understanding on the matter is no more than a ‘rat in a maze.’

A big change is at the door step in coming years, if you go through the course of history you would know that every economic system previously in this world has lasted about a 100 years. The current economic system is about to reach its maturity and large organizations and institutions are preparing to jump out of it BUT into what?

I’ll be explaining this in another article soon, hope this was a good read!

ALI

ALI

Experienced Senior Research Analyst

SIKANDER RAZA

SIKANDER RAZA

Sikander Raza, a Senior Technical Analyst

HAMZA SALEEM

HAMZA SALEEM

Hamza Saleem, a Senior Business Analyst

IRSA

IRSA

Irsa Sajjad, as a Research Analyst for Equities

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