For over 40 years, Western bond markets (and primarily the U.S. Treasuries market) have been totally fraudulent.


The Wonderland Matrix



Summer 2015

One of the principal traits of sound analysis is that it begins with “definition of terms”. It is only minimally productive (if not totally pointless) to attempt to analyze a particular subject matter without first explaining/defining that subject matter. Thus one of the Cardinal Sins of sound analysis is the failure of an analyst to start at the beginning.

In this respect; my own work has been lacking. Numerous recent commentaries have referred to “the Wonderland Matrix”, and some previous efforts have even been made in tangentially defining this label. However, nowhere has a full definition/description been provided of what is now one of the most important analytical concepts of the current Western paradigm of fraud and corruption.

Regular readers will know that the name itself is derived directly from the popular cult-classic: The Matrix. In my use of this metaphor; the word “wonderland” was added for a very important reason. In the (fictional) movie-version of “The Matrix”; that fantasy-world was deliberately constructed to be as realistic as possible, in order to prevent the minds of the (human) drones physically “plugged into” this Matrix from rebelling.

Conversely, in our (real world) Wonderland Matrix, practically no effort at all is made to make this Matrix even plausible, much less rational. Rather, our Wonderland Matrix is now a realm of ludicrous perversity. The reporting of the mainstream propaganda machine is not merely wrong, it is absolutely opposite to what is transpiring in the real world. Absolute perversion of the news.

“Up” is down. “Black” is white. “Bad” is good. And the epicenter of this perversion is the epicenter of the One Bank’s empire: the United States. The faster the U.S. economy shrinks, the more we’re told it’s “growing”. The more jobs the U.S. economy loses, the more jobs we’re told have been “created”. Numerous other examples of this absolute perversion abound.


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Perhaps the longest/most-extreme of these perversions is that for over forty years in the Western world there has been no correlation between “credit ratings” and interest rates. Here further explanation is helpful. Decade after decade, we were told by the Corporate media that nothing in the entire realm of economic analysis was more important than the ratings of the major Western ratings agencies. It was (is) their sole raison d’etre.

One of the primary functions performed by these credit ratings agencies is to “rate” (i.e. assign risk to) the debt of Western governments. Here the fundamentals are simple. The greater the “risk” (i.e. the lower the credit rating) the higher the interest rates Western governments should have been forced to pay on their growing debts.

Given the (previous) extreme reverence of these credit rating agencies, we would have expected to see near-perfect correlation between those credit ratings and interest rates (bond prices). Instead, we see exactly the opposite: zero correlation. For over 40 years those credit ratings have been totally irrelevant to Western debt markets.

Let me be more explicit here. For over 40 years, Western bond markets (and primarily the U.S. Treasuries market) have been totally fraudulent. This “zero correlation” between credit ratings and interest rates is absolutely conclusive evidence that there has been no connection – at all — between bond market fundamentals and bond market prices. The Wonderland Matrix is not new.

Though the targets of the Wonderland Matrix propaganda are Western inhabitants, the (perverse) “reporting” that comprises this fantasy-world is global. Western nations don’t (can’t) exist in a vacuum. Thus the propaganda machine must deal with the enormous dichotomy between the corrupt/fraudulent/dying economies of the West versus the (relatively) healthy/solvent economies of what the Corporate Media has labeled “the Emerging Market economies”.

This has previously been dubbed in several of my previous commentaries as “a Reverse Beauty Contest”. It’s no longer possible (even with the propaganda-numbed minds of Western sheep) to make the sickly, decaying economies of the West appear even remotely attractive (to investors). So, instead, the propaganda machine seeks to make Western economies (and the U.S. economy, in particular) simply look least-ugly.

It conducts this permanent Contest in two ways. On the one hand; we’re bombarded with more crude, perverse lies. With China being the “heir apparent” to the U.S. as the distributor of the world’s new reserve currency; it is the most-frequent target of such absurd lies. Previous attempts at China-bashing revolved around attempts to twist particular pieces of data, and thus were at least quasi-rational.

However, as the Corporate media has descended from mere exaggeration/distortion to simple (and absolute) perversion, so too has the China-bashing descended from the implausible to the absurd. A recent article devoted entirely to detailing (and criticizing) China’s territorial expansion into the South China Sea was titled as a “retreat”.

The second prong of this Reverse Beauty Contest is the overt sabotage of these other economies, perpetrated through the absolute control (i.e. absolute illegality) which the One Bank exerts over all of the world’s markets. Here the most-glaring example concerns the fraud of the Federal Reserve’s mythical “tapering”.

In September of 2013; after six, solid months of Bernanke-babble that (minor) “tapering” of the Federal Reserve’s extreme, exponential, and totally insane money-printing was on the way, Bernanke was forced to do an embarrassing about-face. He confessed it was no longer possible for the Fed to reduce its money-printing, because merely talking about tapering had already caused serious harm to the U.S.’s Ponzi-scheme economy, primarily via soaring interest rates on U.S. debt.

What was the One Bank’s response to this embarrassing propaganda failure, and rare market defeat? It tried again, but this time it first conducted its most-ambitious Reverse Beauty Contest. It sabotaged the currencies of all of the world’s nations outside the Western bloc. It then pronounced this campaign of criminal, market-sabotage of these currencies as “a crisis in Emerging Markets”.

Then the Federal Reserve made its “tapering” pitch a second time. This time (with nothing having changed within the U.S. economy itself) the lie of “tapering” succeeded – i.e. the Federal Reserve’s lackeys were able to pretend to engage in minor reductions of U.S. money-printing without catastrophic consequences to the U.S. bond market (and U.S. economy). It succeeded solely because (after crippling all of the world’s other economies) it could once again depict the U.S. as least-ill, and thus least risky.

The irony/outrage is that this campaign of global currency-sabotage occurred at precisely the same time that Western market regulators were (supposedly) “investigating” the serial manipulation of global currency markets by Western bankers. It was like a career arsonist setting fire after fire, while a legion of “arson investigators” stood around watching.

This brings us to the final element of insanity and perversity of the Wonderland Matrix: the death of the Rule of Law. Much like this fantasy-realm pretends to have “growing” and “solvent” economies in the West as these economies spiral downward toward implosion; the Corporate media also continues to propound the myth that Western nations are societies of laws.




The “law” is allowed to exist in our societies purely for the purpose of illusion, and whenever/wherever the interests of the Oligarchs are not at issue. But the moment that the Rule of Law conflicts with the crimes and pillaging of these Oligarchs (and primarily the One Bank) we see there are no laws. Indeed, our governments assist the bankers in committing their mega-crimes. The Attorney General of the United States is now nothing but a prostitute for these bankers, publicly vowing never to prosecute them for their crimes – no matter how numerous or egregious.

Unlike the movie, where “the Matrix” was a realm of relative stability and sanity; our Wonderland Matrix is just as unstable as it is insane. Dealing with ever-greater economic problems by simply telling ever-larger lies and committing ever-larger crimes is not a strategy which promotes long-term success. Rather, it represents the final acts of desperation in attempting to prop-up a dying system.

An old cliché promotes the mantra “believe none of what you hear, and half of what you see.” In our Wonderland Matrix of the 21st century; it’s hard to produce a piece of better advice.