Thursday, February 4, 2021

Ultimate Proof: Covid-19 Was Planned To Usher In The New World Order

 From Humans are Free:

1. Medical Doctors Declare That The Pandemic Was Planned

A group of over 500 medical doctors in Germany called ‘Doctors for Information’ made a shocking statement during a national press conference: (1)

‘The Corona panic is a play. It’s a scam. A swindle. It’s high time we understood that we’re in the midst of a global crime.’

Covid 19 Coronavirus New World Order

This large group of medical experts publishes a medical newspaper on 500,000 copies every week, to inform the public about the massive misinformation in the mainstream media.

They also organize mass protests in Europe, like the one on August 29, 2020 where 12 million people signed up and several millions actually showed up.

Why do these 500+ medical doctors say the pandemic is a global crime? What do they know, that we don’t?

Planned Pandemic Protest Berlin 1

One of the many protests against the “plandemic” that you will not see in the mainstream media

2. Hundreds Of Spanish Medical Doctors Say The Pandemic Is Planned

In Spain a group of 600 medical doctors called ‘Doctors for Truth’, made a similar statement during a press conference.

Doctors For Truth Spain Pandemic Planned

Doctors for Truth, Spain

‘Covid-19 is a false pandemic created for political purposes. This is a world dictatorship with a sanitary excuse. We urge doctors, the media and political authorities to stop this criminal operation, by spreading the truth.’ (2)

Germany and Spain are just two examples. Similar large groups of hundreds of medical experts exist in countries across the world.

In the USA a documentary called PLANDEMIC, which exposes COVID-19 as a criminal operation, is supported by over 27,000 medical doctors!

Why are these thousands of medical professionals worldwide saying the pandemic is a crime? What information do they have access to, that we are not getting from the mainstream media?

I invite you to look at the following facts with an open mind and then come to your own conclusions…

3. In 2015 A Testing Method Was Patented For… COVID-19

In 2015 a ‘System and Method for Testing for COVID-19′ was patented by Richard Rothschild, with a Dutch government organisation.

Did you catch that? In 2015 – four years before the disease even existed – a testing method for COVID-19 was developed. (2B) You can read the article here.

Rothschild Patent Covid 19

Take a deep breath and let that sink in for a while…

4. Millions Of COVID-19 Test Kits Sold In 2017 And 2018

As we know the new COVID-19 disease appeared in China towards the end of 2019. Therefore it was named COVID-19 which is an acronym for Corona Virus Disease 2019.

Data from the World Integrated Trade Solution, however, shows something astonishing:

“in 2017 and 2018 – two years before COVID-19 – hundreds of millions of test kits for COVID-19 were distributed worldwide.”

Covid 19 Test Kits Export WorldwideCovid 19 Test Kits Export Worldwide 2

‘Quick! Hide It!!’

This baffling data was discovered by someone on September 5, 2020, who posted it on social media. The next day it went viral all over the world.

On September 6 the WITS suddenly changed the original designation ‘COVID-19’ into the vague ‘Medical Test Kits’.

This is not allowed in trade, because you always have to be specific. There are many types of test kits for different diseases.

The fact that they removed the specification ‘COVID-19’, after this data became known worldwide, proves that they don’t want anyone to know about it.

They however forgot to delete one detail: the product code for these ‘Medical Test Kits’ is 300215 which means: ‘COVID-19 Test Kits’.

Covid19 Product Code

Their cover up came too late: this critical information was uncovered and is being revealed by millions worldwide. You can download a PDF that shows the original data of this website.

Two years before the outbreak of COVID-19 the USA, the EU, China and nations around the world started exporting millions of diagnostic test instruments for… COVID-19, a disease that supposedly didn’t even exist back then.

6. The COVID-19 ‘Project’ Is Planned Until 2025

The World Bank shows that COVID-19 is a project that is planned to continue until… end of March 2025! So the intention is to continue it for another FIVE YEARS. (2C)

Covid Program 2025 1

7. Anthony Fauci Guaranteed A Pandemic Within The Next Two Years

In 2017 Anthony Fauci made a very strange prediction, with an even stranger certainty.

With complete confidence Fauci announced that during the first term of President Trump a surprise outbreak of an infectious disease would surely happen.

Here’s what he said: (3)

“There is NO QUESTION there is going to be a challenge for the coming administration in the arena of infectious diseases.

“There will be a SURPRISE OUTBREAK. There’s NO DOUBT in anyones mind about this.”

How could Fauci guarantee a surprise outbreak to happen during the first term of the Trump administration? What did he know, that we don’t?

Anthony Fauci quote - coronavirus prediction

8. Bill And Melinda Gates Guaranteed An Imminent Global Pandemic

In 2018 Bill Gates publicly announced that a global pandemic was on it’s way that could wipe out 30 million people. He said this would probably happen during the next decade. (4)

Melinda Gates added that an engineered virus is humanities greatest threat and also assured this would hit humanity in the coming years. (5)

‘A global pandemic is ON IT’S WAY. An ENGINEERED VIRUS is humanities greatest threat. This will happen in the NEXT DECADE.’ – BILL GATES, in 2018

Bill Gates about coronavirus in 2018

Let their choice of words resound into your mind for a moment…

They claim that the dense population of the world guarantees this imminent global pandemic.

But let’s be honest: most of the earth is uninhabited. Just fly over America in an airplane and look out the window. You see empty space most of the time, with a few cities here and there. Most of the United States is still wide open and empty.

The same goes for the rest of the world.

Australia, Russia, India, China, America, Africa… it’s wilderness for the most part. Our planet isn’t nearly as populated as Bill Gates wants us to believe. This world map shows it clearly…

Empty Earth

Most of the earth is totally void of any human presence. So the idea that the world is vastly overpopulated and is therefor bound to give rise to an imminent global pandemic is a lie.

[The powers that shouldn’t be also use this excuse to justify a reduction in the world’s population – i.e. depopulation.]

The Gates also claimed that air travel was sure to create a global pandemic. But countless people have been traveling in airplanes the past century.

Did that give rise to constant outbreaks of global pandemics? Of course not!

Their arguments why they guaranteed a global pandemic in the next few years are lies. So what is their real basis to make such guaranteed predictions?

9. Practicing For A Pandemic

A few months before the outbreak, Bill Gates – the world’s nr 1 vaccine dealer – organized an event in New York City. Guess what the event was all about? It was a ‘coronavirus pandemic exercise’.

Yes, you read that right:

Bill Gates organized a coronavirus pandemic exercise, right before it happened!

Event201 Planned Pandemic

On the large display in the auditorium, you see the text printed: ‘We need to prepare for the event that becomes a pandemic.’ This pandemic exercise was called Event201 and took place in October 2019, literally right before the outbreak.

Their conclusion was that all of humanity must be vaccinated…

Event 201 coronavirus

10. Excitement About Selling Vaccines In The Next Year

Shortly after this ‘exercise for a coronavirus pandemic’ Bill Gates tweeted:

“I’m particularly excited about what the next year could mean for one of the best buys in global health: vaccines.” – Bill Gates, Dec. 19, 2019

Tweet Bill Gates Single

Think about this: the world’s nr 1 vaccine dealer guarantees a global pandemic to occur in the next few years, and his wife said we should all fear an engineered virus that is ‘on its way’. Then they organize an exercise for an imminent global pandemic and say vaccines will be the only solution. Next Bill Gates tweets how excited he is about selling vaccines in the next year. Immediately after that, the announced pandemic breaks out.

Indeed, right away Bill Gates proclaims that the only solution for humanity is to buy his vaccines…

11. 2020 Coronavirus Pandemic Predicted In 2013

Back in 2013 a musician wrote a song called PANDEMIC. In his lyrics he described a global pandemic that kills millions, shuts down economies and gives rise to riots.

His song literally described in great detail what we are seeing in our world today, seven years later.

He even mentioned the exact year of the pandemic: 2020, and the specific type of virus: a coronavirus. (6)

This is a line in his lyrics from 2013:

‘2020 combined with CoronaVirus, bodies stacking.’

This song also predicted the riots that are now raging throughout America:

‘The State is rioting, using the street outside. It’s coming to your windows.’

How could this musician have known in 2013 that a coronavirus pandemic would break out in 2020, and that during this pandemic riots would erupt? He explains:

‘I did research back in 2012, and read the so called “conspiracy theories”. You know, those investigations the media doesn’t want us to look into. According to those theories pandemics were bound to happen in the decade of 2020 – 2030. So I wrote the song Pandemic about it.’

12. Global Preparedness Monitoring Board In Sept. 2019: ‘Get Ready For A Global Coronavirus Pandemic’

In September 2019 – also right before the outbreak – the Global Preparedness Monitoring Board released a report titled ‘A World At Risk’.

It stressed the need to be prepared for… a coronavirus outbreak!

Preparing Pandemic

On the cover of the report is the picture of a coronavirus and people wearing face masks.

In the report we read the following interesting paragraph:

‘The United Nations (including WHO) conducts at least two system-wide training and simulation exercises, including one for covering the deliberate release of a lethal respiratory pathogen.’

Did you catch that?

They have been practicing for a deliberate release of a lethal respiratory pathogen.

13. Outbreak From China Announced

Pandemic Simulation

In 2018 The Institute for Disease Modeling made a video in which they show a flu virus originating in China, from the area of Wuhan, and spreading all over the world, killing millions. They called it ‘A Simulation For A Global Flu Pandemic.’ That is exactly what happened, two years later.

Why did they say it would come from China? Why not Africa, where far more diseases are present? Or why not South America? Or India? How could they know there would be a flu virus coming from China and even show Wuhan as the originating area, that would infect the whole world?

Was This Coronavirus Engineered?

Where did the virus come from? One of the world’s leading experts in bioweapons is Dr. Francis Boyle. He is convinced it originated from a bioweapon lab in Wuhan, the Bio Safety Lab Level 4.

This facility is specialized in the development of… coronaviruses!

They take existing viruses and ‘weaponize’ them, meaning they make them far more dangerous, to be used as a biological weapon.

In the following two minute video clip you see a spokesperson for the Trump administration, bioweapon expert Dr. Francis Boyle and president Trump talk about how this virus came from the lab in Wuhan.

Dr. Li-Meng Yan, a Chinese virologist (MD, PhD) fled the country, left her job at a prestigious Hong Kong university and became a whistleblower. She appeared on British television where she claimed SARS-CoV-2, the virus which causes COVID-19, was created by Chinese scientists in a lab – and she offered evidence to support her claims. You can read more on the subject HERE.

Now comes the most interesting part:

14. In 2015 Anthony Fauci Gave This Very Lab 3,7 Million Dollars.

Figure this: the same man who guaranteed a surprise outbreak of a virus in the next two years, gave almost 4 million dollars to a lab that develops coronaviruses.

In the short clip below you can see a journalist ask president Trump about this grant given by Fauci to the Wuhan lab.

There are however more options in Wuhan where this virus could have originated from. Some believe it came from the Wuhan Virology Institute, where they also work on weaponizing coronaviruses.

15. Chinese Biological Experiments To Infect Humans With Coronavirus Exposed In 2015 By Italian State Media

Five years ago, Italian state owned media Company, RAI – Radiotelevisione Italiana, – exposed dark efforts by China on viruses.

The video, which was broadcast in November, 2015, showed how Chinese scientists were doing biological experiments on a SARS connected virus believed to be Coronavirus, derived from bats and mice, asking whether it was worth the risk in order to be able to modify the virus for compatibility with human organisms.

Below is a transcription of the Italian broadcast translated in English:

Chinese Biological Experiments

Chinese scientists have created a pulmonary supervirus from bats and mice only for study reasons but there are many questionable aspects to this. Is it worth the risk? It’s an experiment, of course, but it is worrisome.

It worries many scientists: It is a group of Chinese researchers attaching a protein taken from bats to the SARS virus, Acute Pneumonia, derived from mice.

The output is a super coronavirus that could affect humans. – (Source here, were you can read more)

16. Movies Predicted The Coronavirus Pandemic

Predictive programming is the process of informing the population about events that are soon to occur.

The past years several movies and television series were produced, about… a global coronavirus pandemic!

The film ‘Dead Plague’ depicts a global pandemic with a coronavirus and even mentions hydroxychloroquine as the cure.

Another film called ’Contagion’ shows how a coronavirus spreads globally with social distancing, face masks, lock-downs, washing of hands etc. as a result.

Literally everything we see now, is predicted in detail in these movies.

17. Pandemic Depicted During Olympics Summergames In 2012

Talking about predictive programming: during the opening show of the Summer Olympics in 2012, a coronavirus pandemic was played out for the eyes of the whole world.

Dozens of hospital beds, large numbers of nurses becoming puppets of a controlling system, death lurking about, a demonic giant rising up over the world, and the whole theatre was lit up in such a way that seen from the sky it looked like a coronavirus.

Coronaviru Solympics 2012

Olympics Summergames In 2012. 2

Olympics Summergames In 2012

Why did the Olympic Games show a coronavirus pandemic, in their opening show?

18. Worldwide Lockdown Predicted In 2008

Robin coronacrisis

The author and investigator Robin de Ruiter predicted in 2008 that there would come a global lockdown.

He said the purpose of this would be to create a new world of authoritarian control.

Because much of what he wrote back in 2008 is now happening right in front of our eyes, this book has been republished.

19. Journalists Predicted Planned Pandemic

In 2014 the investigative journalist Harry Vox predicted a planned global pandemic and said why the ‘ruling class’ would do such thing:

‘They will stop at nothing to complete their toolkit of control. One of the things that had been missing from their toolkit is quarantines and curfews. The plan is to get hundreds of thousands of people infected with it and create the next phase of control.’ (7)

coronavirus nwo

20. ‘Scenario For The Future’

This renown researcher refers to a famous document by the Rockefeller Foundation in which everything we see happening now is literally predicted in great detail: the global pandemic, the lock-downs, the collapse of the economy and the imposing of authoritarian control.

It’s all described with terrifying accuracy… ten years before it happened!

Rockefeller Document 2010

The document is titled ‘Scenario for the Future of Technology and International Development’. (9)

That says it all: a scenario for the future. It has a chapter called ‘LockStep’ in which a global pandemic is reported as if it happened in the past, but which is clearly intended as a rehearsal for the future.

scenario for the future -rockefeller

Rockefeller Foundation’s Operation Lockstep: ‘Under The Guise Of A Pandemic, We Will Create A Prison State’

The ‘Scenario for the Future’ continues with comparing two different responses to their predicted pandemic: the USA only ‘strongly discouraged’ people from flying, while China enforced mandatory quarantine for all citizens.

The first response is accused of spreading the virus even more, while the imposing of a suffocating lock-down is praised. Then it goes on to describe the implementation of totalitarian control:

“During the pandemic, national leaders around the world flexed their authority and imposed airtight rules and restrictions, from the mandatory wearing of face masks to body-temperature checks at the entries to communal spaces like train stations and supermarkets.”

Clearly the flexing of authority is the desired response. But it gets worse, according to this ‘Scenario of the Future’:

‘Even after the pandemic faded, this more authoritarian control and oversight of citizens and their activities stuck and even intensified.’

‘In developed countries, this heightened oversight took many forms: biometric IDs for all citizens, for example, and tighter regulation of key industries whose stability was deemed vital to national interests.’

Rockefeller Foundation - coronavirus NWO

Handbook For Global Control

Now that the announced pandemic is indeed here, the same Rockefeller Foundation came forward with step two: a handbook on how to implement new control systems during this pandemic. Only when all the required control networks are in place, can the world open up again.

 

Rockefeller Document Covid 1

When you combine the two Rockefeller documents, you see the plan:

1) First they announce a global pandemic with a coronavirus and say what it should lead to: a whole new level of authoritarian control.
2) Secondly they give practical steps on how to apply this control system.

These are illustrations and quotes from their guide:

Global Control

‘Digital apps and privacy-protected tracking software should be widely used to enable more complete contact tracking.’

‘In order to fully control the Covid-19 epidemic, we need to test the majority of the population on a weekly basis.’

Digital Id

According to their ‘Scenario of the future’ the entire world population should get a digital ID that indicates who has received all the vaccines. Without sufficient vaccinations, access to schools, concerts, churches, public transport etc. will be denied.

Now in 2020 that is exactly what Bill Gates and many governments are calling for.

21. Bill Gates Negotiated $100 Billion Contact Tracing Deal With Democratic Congressman Sponsor Of Bill Six Months BEFORE Coronavirus Pandemic

The shocking revelations were unveiled on the Thomas Paine Podcast and the Moore Paine Show on Patreon by the two investigators.

nine months after the meetings with the Gates Foundation in Rwanda — Bobby L. Rush, a Democrat from Illinois, introduced the $100 BILLION H.R. 6666, the COVID-19 Testing, Reaching and Contacting Everyone (TRACE) Act.

Everyone’s Contacts Must Be Checked

In a leaked government video (10) we see a conversation between former American president Bill Clinton and Andrew Cuomo, the governor of the state of New York.

They discuss how to set up a large control system to test the entire population and check all their contacts. They discuss how to build an army to carry out this control system.

Anthony Fauci and Cuomo

A Whole New Level Of Global Control

Bill Gates also made it clear that only people who have been vaccinated against Covid-19 should be allowed to travel, go to school, attend meetings and work. (11)

Digital vaccine ID’s are already being developed (12) and Gates has a patent on the technology that makes it possible to trace an individual’s body anywhere. This technology is called WO2020-060606 (13).

Also very interesting to note: An Enzyme Called LUCIFERASE Is What Makes Bill Gates Implantable Vaccine Work

In addition, Gates wants to set up a global monitoring network, which will track everyone who came into contact with Covid-19 (14).

The Plan: Inject Mankind With DNA Altering Vaccine

The famous investigative journalist Anthony Patch did years of research concerning the plans to control the world, by means of created pandemics and mandatory vaccines. During an interview in 2014 this researcher predicted the following:

‘They will release a man-made coronavirus. As a result the people will demand a vaccine to protect them. This vaccine will add a third strain of DNA to a persons body, essentially making them a hybrid.

‘Once a person is injected, almost immediately their DNA undergoes a transformation. This genetic change will cause people to loose the ability to think for themselves, without them even being aware this happened. Thus they can be controlled easier, to become slaves for the elite.’

Of course that sounds insane and it is insane indeed. Yet we have to be aware that this professional investigator is no fool. He has done years of research and this is what he discovered over the years.

We must be careful not to reject sound knowledge, based on years of research, simply because of our own lack of insight in these topics.

20 Years Of Research Say: The Vaccine Will Change Our DNA

Doctor Carrie Madej directed two large clinics in Georgia, before she went to the Dominican Republic to do humanitarian work. She studied DNA and vaccines for the past twenty years and made an urgent video in which she warns that there is a plan to inject humanity with very dangerous vaccines for Covid-19.

The purpose of these new vaccines will be twofold:

1) reprogram our DNA and make us hybrids that are easier to control.

2) connect us to artificial intelligence through a digital vaccine ID, which will also open a whole new realm of control.

This medical expert says she has observed multiple times how diseases were spread over populations by air craft. Because of satefy reasons she is not able to share more details about this in public.

Depopulate The Earth By Means Of Organized Epidemics

Dr. John Coleman is a famous Intelligence Officer from the CIA who wrote a book titled ‘The Committee of 300‘.

In it he explains how secret societies manipulate governments, health care, food industries, the media and so on. This book can be found on the website of the CIA. (15)

One of the primary goals of the many secret societies, that control governments and the media, is to depopulate the earth.

You can find a list of 32 ‘elites’ who support and promote (according to their own claims) depopulation HERE.

DR. JOHN COLEMAN, CIA INTELLIGENCE OFFICER

Dr. Coleman says the following about their strategy:

‘At least 4 billion useless eaters shall be eliminated by the year 2050 by means of limited wars and organized epidemics of fatal rapid acting diseases…’ – DR. JOHN COLEMAN, CIA INTELLIGENCE OFFICER

Maintain Humanity Under 500,000,000

In 1980 a granite monument was erected in Georgia, called the Guidestones. A set of 10 guidelines is inscribed on the structure in eight modern languages and a shorter message is inscribed at the top of the structure in four ancient language scripts.

Georgia Guidestones

The first guideline goes as follows:

1. Maintain humanity under 500,000,000 in perpetual balance with nature.

The CIA officer Dr. Coleman revealed that one of their methods to ‘maintain humanity’ is to cause ‘organized epidemics of fatal rapid acting diseases’.

Using Vaccines To Reduce Humanity

During a TED talk Bill Gates echoed this goal, when he literally said that new vaccines can be used to reduce the world’s population with 10 – 15%! (16)

Bill gates - depopulationist and vaccine dealer

‘There are now 6.7 billion people on earth and soon there will be 9 billion. However, we can reduce that number by ten to fifteen percent if we do a good job with new vaccines, health care and birth control’. – BILL GATES, VACCINE DEALER

Covid19 Vaccine For Population Control?

Mike Adams is a published food scientist, author of the popular science book Food Forensics and founder of ISO-accredited CWC Labs.

Years ago he said the following:

“An engineered bioweapon will be released in population centers. There will be calls for massive government funding for the vaccine industry to come up with a vaccine. Miraculously, they will have a vaccine developed in record time. Everyone will be required to line up and take this vaccine shot.”

There is indeed a release of an engineered bioweapon, followed by a vaccine mandate, massive government funding for the vaccine industry and a vaccine that is being developed in record time.

The rest of his message is that this vaccine will slowly begin to kill millions – if not billions – of people over the course of a few years. It will be a kill-switch vaccine, designed to reduce the world’s population.

SUMMARY: WAS THE PANDEMIC PLANNED?

Thousands of medical doctors call the pandemic a global crime, and a world dictatorship with a sanitary excuse.

Two years before Covid-19 came to the global scene, the European Union, the USA, China and other nations suddenly started exporting tens of millions of test kits for Covid-19.

In 2013 a musician predicts a global pandemic with a coronavirus and says this will happen in 2020. He knew this because of personal investigation of so called ‘conspiracy theories’.

In 2017 Anthony Fauci guaranteed a surprise outbreak of an infectious disease during the first term of the Trump administration.

Right before the outbreak of a coronavirus pandemic, Bill Gates organized a global coronavirus pandemic exercise: Event201.

Right before the outbreak the Global Preparedness Monitoring Board told the world to be ready for a coronavirus pandemic.

In 2018 the Institute for Disease Modeling announced a global pandemic with a flu virus, originating in China in the area of Wuhan.

In 2018 Bill and Melinda Gates announced that in the coming years there would be a global pandemic of an engineered virus.

The coronavirus SARS-CoV-2 was created in the Bio Safety Lab Level 4 in Wuhan, which received millions of dollars from Anthony Fauci.

Several movies depicted the coronavirus pandemic with great detail, and even mention hydroxychloroquine as the cure.

The Summer Olympics in 2012 played a pandemic of a coronavirus during their opening show.

The investigative journalist Harry Vox predicted in 2014 that a global pandemic would be caused, so the ‘ruling class’ could implement a higher level of authoritarian control.

The investigative journalist Anthony Patch predicted a global pandemic with a man made virus, that would be used to force a DNA altering vaccine on humanity.

Dr. Carrie Madej studied DNA and vaccines for decades and says the plan is to use the Covid-19 vaccine to start the process of transhumanism: reprogramming the human DNA.

The CIA officer Dr. John Coleman studied secret societies and says their goal is to depopulate the earth by means of organized pandemics of fatal rapid acting diseases.

In the state of Georgia a huge monument was erected in 1980 with ten guidelines for humanity, in eight languages. The first of these ‘Ten Commandments’ is that humanity needs to be reduced to half a billion people.

Bill Gates said during a TED talk that new vaccines can be used to reduce the world’s population with 10-15%.

The ‘health ranger’ Mike Adams predicted years ago what we see happening now: the release of an engineered bioweapon, followed by a vaccine mandate, massive government funding for the vaccine industry and a vaccine that is being developed in record time. He also predicted that this vaccine will kill innumerable people over the course of a couple of years.

In 2010 the Rockefeller Foundation published the ‘Scenario for the future…’ in which they describe a coming global pandemic, that should result in the implementation of authoritarian control over the people, which will then intensify after the pandemic.

In 2020 they publish a handbook on how to create this world of control, with a step by step guide. They say life cannot return back to normal, until the world has become ‘Locked Down’ with this top down control from authoritarian governments.

We indeed see that Bill Gates and many others worldwide are right away seizing control in unprecedented ways, with enforcing vaccine ID’s, microchips that will be implanted into people, mandating the wearing of face masks, social distancing, forced lock-downs, extreme contact tracing, and so on.

Part of this top down control is extreme censoring of every single voice from doctors, scientists or other experts that criticize what is going on.

All Predictions Were Done Shortly Before It Happened

Note that every single prediction of this pandemic was announced a few years or even months before it happened. That is significant.

Gates and Fauci lie to their audience when they say ‘history tells us this will happen’, but there is no historic basis for guaranteeing a global coronavirus pandemic to occur within a few months or years.

Never in history did anything like this occur, on such a global scale.

The fact that such a historically unique event was predicted in great detail – by movies, shows, investigators, medical doctors, those who finance labs that develop these viruses, those who earn billions from these pandemics, those who want to create a whole new level of control in our world, etc. – shows it was planned.

Are There Signs That The Pandemic Is Being Manipulated?

So far we have looked at indications that the pandemic was planned beforehand. If it is indeed orchestrated, then that should also be obvious during the pandemic. A planned pandemic is also a controlled pandemic.

The Plan To Control The World

You may have heard the word ‘globalists’ before, but for those who aren’t familiar with it: these are people around the world who plan to create one global government, so they can have total global control over health, religion, finances – everything.

Main players in this are the United Nations, the World Economic Forum, the World Health Organization, the European Union, the International Monetary Fund, and many others.

They recently came together in an event called DAVOS, where they expressed how the pandemic will be used to deploy their plans.

Here are some of the statements they made: (18)

‘Now is the historic moment in time, not only to fight the virus, but TO SHAPE THE SYSTEM.
The pandemic represents a window of opportunity to RESET OUR WORLD.

The world must act jointly and swiftly to REVAMP ALL ASPECTS of our societies and economies, from educational to social contacts and working conditions.

EVERY COUNTRY, from the United States to China, must participate, and every industry, from oil and gas to tech, must be TRANSFORMED.’ – Klaus Schwab, Funder of the World Economic Forum

A major leader of gobalism, is the World Economic Forum, founded by Klaus Schwab. He created a ‘spinning wheel’ with all their objectives. On it we can see the following three ‘projects’: Covid19 followed by Global Governance, and Internet Governance.

Global Reset

Global reset - internet governance

Good read: The Response To Coronavirus Is The New World Order / Agenda 2030

Nobody Wants These Organizations

Not a single human on the earth has voted for these organizations to even exist, let alone take full control of our lives, families, communities, jobs, health, industries, etc. Yet they present themselves as our ‘world leaders’ who are planning our entire future.

The World Health Organization presents itself as the global boss over our health, without anyone of us having chosen for them.

They apply a tyranny in mainstream media and social media, where no expression of medical or scientific expertise is allowed, unless it is in line with the guidelines of this ‘World’ organization.

Tens of thousands of medical doctors and scientists have been censored all over the world, by Facebook, Youtube and Twitter. Why? Because these social media giants state that ONLY what the World health Organization says, is true.

All of humanity must submit to these people who have positioned themselves over all of us, without ever asking our opinion or even consulting with other medical experts.

In fact, every single medical expert speaking out against their decisions is censored.

This means complete loss of medical freedom, loss of freedom of speech, loss of true science, loss of true journalism and an imposing of dictatorships by organizations that nobody voted for, lead by people nobody wanted and yet they simply seize ownership of our world.

They are the big fat mean bully on the playground, that plays boss over everyone.

World Health Organization Is Run By A Terrorist

The head of the Word Health Organization, Tedros Adhanom Ghebreyesus, is a member of a violent revolutionary communist party in Ethiopia, Tigray People’s Liberation Front. (19)

Who Terrorist

The Department of Homeland Security clearly states:

“The TPLF qualifies as a Tier III terrorist organization… on the basis of its violent activities…”

Let this get through to you: the man directing the World Health Organization is literally a communist terrorist, who has been involved in murdering thousands of innocent people, trying to impose communism on Ethiopia.

And this man is bullying the entire world, telling all of us what we can and cannot do, censoring every medical professional who has a different opinion, demanding blind obedience from all of humanity, while imposing mandates to be vaccinated by their number one financial sponsor: Bill Gates.

Is this the world you want to live in, from now on?

More And More Pandemics, Untill Mankind Submits

These globalists even threaten humanity with more suffering, if we don’t submit to their total control. Prince Charles recently joined DAVOS and publicly stated:

“There will be more and more pandemics, if we don’t do ‘the great reset’ now.” (18)

Bill Gates already calls this ‘pandemic one’ and is talking about ‘pandemic two and three’.

The investigator who back in 2013 predicted a coronavirus pandemic to occur in 2020, followed by riots, said the plan is to create series of pandemics during 2020-2030.

This decade is the selected timeframe to turn the world into one big banana republic, run by mad powerhungry men, who depopulate the earth, and enslave the rest of humanity.

They are planning to cause as many pandemics as needed, in order to break the back of humanity, until everybody submits to their global control.

Are you beginning to understand why more than 500 medical doctors from Germany, 600 doctors from Spain, thousands of medical experts from the USA and many more all over the world are calling this pandemic a ‘global’ crime’?

Leaders Of Catholic Church Warn Humanity

An archbishop and several cardinals of the Roman Catholic Church wrote a letter to humanity, to warn us for gloval tyranny under the guise of Covid-19.

This is an excert of this historic message, that has been translated in many languages and was sent to leaders all over the world. (20)

“We have reason to believe, on the basis of official data on the incidence of the epidemic as related to the number of deaths, that there are powers interested in creating panic among the world’s population with the sole aim of permanently imposing unacceptable forms of restriction on freedoms, of controlling people and of tracking their movements. The imposition of these illiberal measures is a disturbing prelude to the realization of a world government beyond all control.”

Is There Hope? What Can We Do?

Is there any hope for our future, or are we surrendered to the merciless hands of these wicked mega-billionaires who want to depopulate the earth and seize total control over humanity?

Hope 1

Yes, there is hope. The future is brighter than we can even imagine!

This is not a doom and gloom scenario, but a wake up call for humanity to stop blindly believing the mafia-media and perverse politicians, and rise up as one for a future of freedom.

I invite you to join a unique and historic movement of Global Freedom Fighters, who will lead humanity into a new era of hope, restoration and more freedom than we have ever known.

Source: StopWorldControl.com / References:

1: German group of Doctors For Information

2: Spanish group of Doctors For Truth

2B: Richard Rothshild patented a testing method for COVID-19 in 2015

2C: World Bank shows planned end date of project COVID-19

3: Fauci guarantees an outbreak with the next two years.

4: Bill Gates announced a global pandemic

5: Melinda Gates says humanities greatest threat is an engineered virus

6: Lyrics of 2013 song that predicted coronavirus pandemic in 2020

7: Harry Vox predicted the global pandemic

8: Robin de Ruiter predicted lockdowns

9: Scenario for the future described global pandemic

10: Andrew Cuomo talks with Bill Clinton about authoritarian control

11: Bill Gates talks about a digital ID to control people

12: Linking vaccines to a digital ID

13: Gates has pattent on technology to trace a body anywhere

14: Gates wants a global monitoring system

15: Download the book of CIA officer Coleman

16: Gates talks about reducing world population using vaccines

17: Tens of millions of Covid-19 test kist were exported by the EU, USA, China etc in 2017 and 2018

18: DAVOS and the gathering of the globalists

19: The head of the World Health Organization is member of violent terorrist group

20: Letter from archbishop and cardinals to humanity

From GOAT To Scapegoat: Redditor Who Made Millions During Gamestop Chaos Already Being Set Up To Take The Fall

 From Zero Hedge:

Reading about how YouTubers and Redditors with screennames liike "RoaringKitty" and "DeepF*ckingValue" contributed to last week's financial mania with posts and videos expounding the virtues of GME, AMC, BBY, BBBY, NOK, KOSS and the other "Wall Street Bets" stocks has been a big part of the drama in the aftermath of last week's trading chaos.

For the last week, a parade of financial analysts, academics, regulators and bankers have warned that the capital markets sickness that sent GME shares to nearly $400 can be blamed on a handful of rogue charlatans hawking an absurd "stick it to the man" narrative on social media (and not the hedge funds trying to short GME into oblivion with naked short positions so large, they amounted to more than 100% of GME's float before the explosion).

With Janet Yellen and the rest of the top financial markets regulators in the country meeting on Thursday, we learned last night via the New York Times, and via an interview with House Financial Services Committee Chairwoman Maxine Waters, that a key player in the Feb. 18 House committee hearing/media circus will be Keith Gill, the former MassMutual employee known alternatively on Reddit and YouTube as "DeepF*ckingValue" and "RoaringKitty".

As we've reported, Gill seemingly minted millions of dollars trading GME and other stocks, at one point displaying a screenshot of a brokerage account balance with almost $50MM in it. While that number appears to have declined substantially in the ensuing selloff, more recent screenshots suggest Gill has amassed quite a substantial fortune from his trading, just like another former scapegoat we can think of.

Of course, small-time traders like Gill aren't the only ones who profited from the chaos, and while Tenev and other witnesses will be appearing in a professional capacity, Gill is being painted as some kind of financial terrorist, and it's already becoming clear that - just like regulators did with Nat Sarao after the May 2010 "flash crash" - they will once again find a small-time trader to scapegoat, regardless of whether their actions actually had a major impact on the market volatility in question.

But not only is Gill being dragged in front of the Committee (though Waters couldn't say whether he was "confirmed", only that she was trying to "get" him for the hearing), but regulators in Massachusetts are taking aim at him, and it looks like they have found an excuse to punish and scapegoat Gill, due to the fact that, technically, he was still employed by a major insurance firm, and was a registered securities broker, while carrying on his anonymous social media persona and pitching stocks online. Some might construe that as a conflict, and regulators are reportedly - according to the NYT - putting pressure on both Gill and his former employer, MassMutual, one of the biggest financial services firms in the state of Massachusetts.

MassMutual has reportedly told regulators that it was unaware of Gill's extracurricular social media activity. Nevertheless, according to federal regulations, the firm is responsible for monitoring the activity of its employees.

Here's more from the NYT:

Moonlighting under the name Roaring Kitty, Keith Gill became something of an online folk hero for his dedication to GameStop, the struggling video-game retailer at the center of a trading frenzy that sent its share price into the stratosphere.

But now a regulator in Massachusetts wants to know more about Mr. Gill, a registered securities broker, and his former day job as a financial wellness education director at an insurance company based in Boston.

Inspired in part by Mr. Gill’s cheerleading, thousands of small investors pushed stock in GameStop to as high as $483 a share and made Mr. Gill fabulously rich on paper. A picture he posted last week on the Reddit WallStreetBets forum showed his GameStop investment was worth $48 million, though his actual returns could not be independently verified.

But Mr. Gill’s former employer, MassMutual, has told securities regulators in Massachusetts that it was unaware that Mr. Gill had spent more than a year posting about GameStop on social media, online message boards and YouTube. The insurer also told regulators that had it known about Mr. Gill’s outside activities, it would have asked him to stop or possibly fired him.

William Galvin, the Massachusetts secretary of the commonwealth, has already sent letters to MassMutual asking to learn more about Gill's employment at MM, where he reportedly served as a "financial wellness education director," a position that required him to be a licensed broker. Though Gill reportedly put in his notice on Jan. 21, he was still technically an employee of the firm. And this apparently opens him up to liability for breaking rules set by his employer, or any regulations or laws.

In a statement to the NYT, Galvin said: "I am not trying to inhibit anyone’s ability to access the marketplace,...the issue here is transparency."

On Friday, Mr. Galvin’s office sent a letter to MassMutual’s general counsel seeking information about Mr. Gill’s employment status and whether the company was aware of his outside activities promoting GameStop.

The letter also sought details about the firm’s “process for identifying undisclosed business activities” and for monitoring an employee’s use of social media.

Debra O’Malley, a spokeswoman for Mr. Galvin’s office, said much of MassMutual’s response was confidential because the inquiry is open. But she confirmed the date of Mr. Gill’s departure and reiterated the company’s contention that it was unaware of his activities.

Ms. O’Malley said MassMutual had told securities regulators that it previously denied a request by Mr. Gill to perform side work managing an investment portfolio for a family friend after he joined the company in April 2019.

Paula Tremblay, a MassMutual spokeswoman, said in an emailed statement that Mr. Gill was no longer employed by the company and that the matter was under review. She declined to comment further.

An outside lawyer quoted by the NYT said that while it's too soon to say whether Gill may have violated securities laws, but it's certainly possible that he might have violated rules set by his former employer if he was posting without their knowledge, which it looks like he was.

Andrew Calamari, a lawyer with Finn Dixon & Herling and a former director of the Securities and Exchange Commission’s New York office, said it was too soon to determine whether Mr. Gill had violated any securities regulations. But Mr. Gill could have violated company rules if he did not receive permission for his posts on Reddit and YouTube.

“Firms don’t allow employees to go out and make predictions on stock,” he said of employees who aren’t analysts. Many financial firms also require employees to disclose if they have brokerage accounts with other firms to monitor their trading activities, he added.

But as we noted above, state regulators in Massachusetts might be the least of Gill's worries.

 

In an interview with Cheddar yesterday, House Financial Services Chairwoman Maxine Waters confirmed that Robinhood co-founder and CEO Vlad Tenev was on "her list" of prospective witnesses for the Feb. 18 hearing before the House Financial Services Committee, along with Gill, representatives from the hedge fund community, representatives from Reddit - even representatives from GameStop, whom Waters is inviting to essentially pitch their business model. Waters added that she wants "all the big boys here".

"I understand that they are working on turning it around and there is a real possibility that they could be successful at this, so I want them here, too. I want to know a little more about GameStop, I want Robinhood, I want Reddit and I want the big boys here."

As for the Redditor's "stick it to the man" narrative, and its consequences for financial stability, Waters said she's not taking sides. The Democrats are simply trying to bring all the parties to the table, and listen to what they have to say (albeit with a few aggressive "gotcha" questions, grist for reelection in just under 2 years).

We also can't help but wonder, if Waters is truly trying to gather all the parties involved, who else might be called to testify? Dave Portnoy? Chamath Palihapitiya? Steve Cohen?

Monday, February 1, 2021

How FinTech F**ked Financial Market Structure, Exposed The Social Contract, & What Comes Next

 Via The FinTech Blueprint,

Despite its best efforts to the contrary, Robinhood did end up stealing from the rich and giving to the poor.

Melvin Capital, the $8 billion hedge fund that didn’t find GameStop funny, lost 53% of its portfolio in January ($7 billion) trying to short against the rallying cries of the Reddit Capitalist Union. Gabe Plotkin also faces the embarrassment of having to get bailed out by your old boss.

Speaking of, New York Mets owner and former name-on-the-door of SAC Capital, known most recently for its insider trading fine of $1.8 billion, Steven A. Cohen, put $2.8 billion of capital into Melvin’s fund.

Ken Griffin, owner of the Citadel hedge fund (an investor in Melvin), and Citadel Securities (a massive market maker and buyer-of-order-flow for Robinhood), is seeing capital losses in the former and Washington cries for scrutiny into market structure in regards to the latter.

Robinhood itself — which for goodness sake is *not Wall Street*, but as *Silicon Valley* as it possibly gets — raised $1 billion immediately to protect itself from class action lawsuits, DTCC capital calls, and a now-rapidly-closing IPO window. That means Yuri Milner of DST Global chipping in yet again.

That’s at least 4 people that have had a very bad, no good day.

The Reddit Wallstreetbets army has 8 million members. Robinhood has 13 million users. These are the opposing force. They are, loosely speaking, having a pretty good day.

But there are other billionaires who are having way more fun with this too. World’s richest man Elon Musk is raising the crypto rallying flag, and ex-Facebook billionaire Chamath Palihapitiya is trading along with Reddit for quick profits. Decentralized hedge fund and allThis isn’t how much money you have. This is about a mindset, and a framing of the world. It’s about who you are, and who you are not. And it’s about what you did and did not do.

Do you side with the Internet’s gamer heroes, wearing Nyan cat shirts and crying out sarcastically for “moar Stonks, money printer go brrrr, number go up”! A post-Gawker-4chan swirl of human vectors, coalescing into one giant middle finger to every Karen and Ken? Dopamine splashing out from our pituitary glands into a vortex tornado of well-earned resentment.

Or, do you like your finance suited, ministerial, administrative, and gated? Do you think that it is storied, respectable, and *important*. That you have to go to HYP, and then do your “two and two” at Goldman and HBS, before hopping to KKR or Tiger or SAC and then into your own cozy fund. All that work, all that sweat for the GMAT and the SAT and the bootlicking, to be undone by someone literally making fun of you in the language of money.

It’s not about some truth about Wall Street, or Silicon Valley, or the Internet, or Bitcoin, or DeFi, and least of all about GameStop. Those are just flags of our armies. And we are at war with ourselves.

Market Structure on Display

GameStop is a mall shop that sold video games. The mall shops that rented videos (Blockbuster) or sold books (Borders) are bankrupt and rightly dead. The Internet, and its children Netflix and Amazon, killed them. And yet, their names are etched into the collective childhood memories of millions. GameStop has no chance against Steam or Epic — both brands that are also deeply loved by nerds all over the world. We say this as self-incrimination. And yet, GameStop is a symbol, a feeling, a reminiscence.

The person building financial models and analyzing this stuff according to economics is “right” to point out bad things about “fundamentals” of the business. Within the game of financial capital markets, the fundamentals are the gears of the economic machines that you evaluate with capital decisions. You buy good fundamentals, says Warren Buffet, and you sell bad ones. Another Warren, Elizabeth Warren, also believes in fundamentals. She believes in them so much she wants government to regulate them into the market to protect consumers from losing a traditional approach to value, and “fair, orderly, and efficient function”.

All that might be right, and we are not doubting the wisdom of Keynes, or the animal spirits. But Warren Buffet is no longer number one. It’s an Elon Musk world now.

Fundamentals are what the financial doctors will tell you that you have. Do you think the Internet cares about their diagnosis? No. The Internet cares about being patronized by people in coats. Musk and Chamath are the mushrooms of the Internet. It is in their DNA.

The GameStop trade itself is worth a pause. While some of the original thinking by DeepF*ckingValue that led to his $30+ million capital gain reflected on the GameStop business, the core insight was market structure. The trade was not about GameStop beating its analyst estimates, or any of that boring-play-by-the-rules stuff. It was about a short squeeze. It was about restricting the supply of the stock in such a way as to blow up a levered short bet that Melvin Capital was putting into play.

In other words, we are talking about the metagame, not the grunt Excel spreadsheet game. SAC, Tiger, Point72, Melvin Capital and every other hedge fund worth its salt plays the metagame. That’s the whole point. You get a PhD in financial instruments by doing the work and testing the levers, rather than believing in them blindly. And Wallstreetbets dared to play the metagame as well. Retail investors aren’t supposed to self-organize into a hivemind of levered derivatives strategy driven by spite. And here we are.

To go short, Melvin has to borrow. To borrow, you have to pay an interest rate. To cover your short, you have to buy back the stock. You’re paying an interest rate and have to buy back the stock. Nobody is selling you the stock, because they hate you. Everyone is buying, to troll you specifically. They are levering up with options. And you keep raising your bids until you cover your position.

Robinhood is a broker/dealer. They came into being in Silicon Valley, a place where consumer services are free, because they are actually not services, but honeypots that aggregate user demand, package it at large scale, and re-sell attention to advertisers. Such is Facebook and Google. Our lives are better because of these services, but also compromised and profoundly insane.

Robinhood uses this playbook to aggregate consumer demand with the honeypot of free trading, and then sends it to market makers like Citadel Securities and gets paid $600 million for the orders. TD and eTrade and other discount brokers do this too! But Robinhood does it most, and does it best. Check out our prior explanation with Paul Rowady here.

There is nothing unusually nefarious going on — it is just American capital markets structure and a clever lead-generation arbitrage. That is if customers are still getting best-execution with Citadel. But the structure is ancient by modern technology standards, and far from real-time. It takes 2 days for a trade to settle, and this among other reasons leads to a requirement of capital to be placed with a “clearing house”, in this case the DTCC. Given the volatility in GameSpot caused by the Internet trying to break a hedge fund the way Soros broke the Bank of England, capital requirements skyrocketed ten-fold.

Robinhood, as well as TD Ameritrade, ended up restricting trading in the instrument as a result of this capital call. If you are burning and raising a USD billion per year, you probably don’t have a “tenfold” of cash lying around to give to the DTCC to make them feel comfy. So, you know, they just removed the “Buy” button for a whole bunch of crusaders on a mission, with their capital on the line. They didn’t remove the “Sell” button, and threw fire on the Internet conspiracy meme machine.

Was this done on instruction from Citadel billionaires? Was this the banksters colluding against the common person? Was “Wall Street” trying to take away our constitutional freedom to trade on a mobile app? Even Ted Cruz and Alexandria Ocasio-Cortez found common ground in finding someone to blame!

If it caused losses in reliance, then damages will come. They will follow the class action lawsuits and the rioters.

The New Social Contract

It’s not a lot of rioters yet.

But remember, Fintech — including Robinhood, Revolut, SoFi and the rest — is supposed to democratize access to financial services. That meant very little a decade ago, and "dumb money” was disorganized and uninformed. Now, information is free and available to all. Equities trading is largely costless and frictionless. And the scariest part, for the suited part of finance anyway, is that strength lies in numbers and can now self-organize.

In addition to this, we have the crypto currency ecosystem. Unlike Fintech, which went after distribution, blockchain goes after manufacturing. If you are a trader or market-maker on Ethereum, there is no clearing house. There is no broker/dealer. There is only you, and the distributed machine with its smart contracts, automated rule sets, and software-enforced property rights. All data is real time. The blocks click into being one after another without a single lawyerly piece of paper in sight. Hundreds of millions of people in the world have touched this asset class, and it renders financial intermediaries unnecessary in their imagination.

Now don’t get us wrong. A trade on Ethereum is going to cost you $10 to $100 today, and another 1% in slippage. It is going to cost you some immeasurable but ever-present probability of cyber risk and regulatory overhang. But you nobody can take away your “Buy” or “Sell” button, and the speed and scale issues are mere technical problems to be solved by the entrepreneurial gods.

Here’s the rub. Post-fintech-crypto-democratization and all.

Humans are social animals. It is on our bones. The concept of fairness has been selected through the evolutionary filter, and fueled a cooperation-based multi-billion person civilization. We’ve shared the below video before, but check out again what it means for our monkey relatives to experience unfairness. After a minute of injustice, you can see the monkey occupying Wall Street.

Redditors are monkeys in the same way that we at the Fintech Blueprint are monkeys.

Democracy is not oligarchy. Democracy means that each person has one vote. If you were to vote according to assets under management, which is how finance has done it to date, you get very different outcomes than when you vote person-by-person. James Madison is deeply eloquent around these points in the Federalist Papers, talking of the dangers a democratic majority will impose on its minorities. Unintentionally funny is the mention of an unchecked power to sacrifice the obnoxious individual, i.e., Melvin Capital.

So we now have a set of promises and representation from companies like Robinhood that suggest a democratic empowerment of individuals to access the storied products of finance. Most people don’t know, or want to know, how the actual machine works. When the promises have a gap to reality, because of whatever reason, this creates kinetic energy for Twitter and Reddit.

It creates energy for people in position of leverage who understand the machine, and want it to change. Elon Musk hates short-sellers for their dampening, and perhaps manipulating, effect on his promises of Tesla greatness. Certainly Chamath, having launched endless SPACs to take Silicon Valley Fintech distributors like SoFi public, understands the machine as well. For them, this tear in the fabric of reality is a power. It is a rallying cry.

If we really want to put this into dystopian, let’s at least reference the theory of overcrowding elites from Peter TurchinThe historian eerily predicted the 2020 rioting and disaffection back in 2010, suggesting that too societies fall apart when they over-produce members of the ruling class. Education has minted PhDs, MBAs, and entrepreneurs who have no seat to inherit from a retiring predecessor. As a result, they take on the populist mantle, and position themselves as outsiders to attack the insiders, while of course being fabulously gifted. Thus Donald Trump and all the rest.

If you are holding power today, you probably don’t want everything to fall apart just because Redditors hate a caricatured notion of hedge funds. So you tweak things at the edges. Edit out the glitches in the current Matrix. It is through this lens that we see Google deleting 100,000 negative Robinhood reviews for being “inauthentic”.

Of course they were coordinated. But they were very authentic to the people that wrote them. They were, however, “inauthentic” to the current rule-set of the game. Based on fundamentals, market structure, and a variety of other “this is how things work” explanations, Robinhood did nothing wrong. Nor did Melvin, really, as far as we can tell from the media coverage. They just played a game that has become a cartoon that millions of people despise. Google’s app store is also an incumbent, a rule-set as well of what constitutes good behavior and what you should do according to its Terms, and so on. Protecting Robinhood’s reputation because it did not fundamentally err is what you do when you believe the current system works.

What’s also notable is that TD and other brokers that couldn’t support trading didn’t get such a backlash. The answer as to Why? is obvious — the brand promise of Robinhood is to bring in a new world, which it simply can’t do using old world tools.

Who wins and who loses?

This is a rich vein, but we’ve got to wrap up. How does this all shake out?

In the short term, it’s a bit of a mess. Robinhood is getting amazing publicity, and like Facebook, will flourish in growth despite repeated calls to “cancel it”. It will IPO a year late, but with 10 million more pragmatic users who don’t care about Internet culture. Its Fintech competitors, Public and WeBull, will pick up disenchanted users who still want to trade stocks.

Crypto/Fintech bridges like FTX or Synthetix will get some of that spill over as well, by creating trading pairs in Reddit darling stocks with derivatives. Coinbase will win, as more people start to believe in the underlying philosophy of crypto assets. They will win so much that their websites will break under new volume.

Regulators have an urgency here, and scapegoating will be important. It’s possible that order-flow payments are restricted as a result, like they are in Europe, even though that has little to do with collateral calls from the DTCC. Or perhaps, they finally see the benefits of blockchain-based capital markets infrastructure, and open up the gate to stronger innovation in clearing and settlement, however improbable that sounds. We don’t see how the traditional finance world benefits from this at all — as increased scrutiny usually lead to more regulation and downward fee pressure.

Longer term, the people will win.

We are in an age of anarchic, capitalist collectivism. This philosophical word soup is important to understand. The populism that seeped out of Donald Trump’s presidency, with roots in the right-wing Internet, and the anarchic trolling pleasures of Anonymous, 4chan, and Crypto Twitter, will continue to put focus on and find leverage in the needs of the “people”. This is at the expense of “those in power”, despite such words holding little meaning but lots of emotion.

This reactive population is increasingly cohering into decentralized communities with pointed power. We see this as the rise of a type of unionism or collectivism in the Internet age. Unlike unions of the past, which protected against participation in an unfair employment arrangement, our new unions are collectivist digital farms. For example, Google is seeing the organization of its workers according to ethical issues. Or, blockchain-based decentralized autonomous organizations are running financial ecosystems with broad-based governance. And do we have to mention Reddit partnering with the Ethereum foundation?

Even longer term, however, is where there is a thick fog. As we move more of our economic activity onto decentralized software and participate in DAOs, as decentralized finance eats traditional finance, there is a redistribution of value. Early adopters of the crypto paradigm earn asymmetric returns for the risk they take — the risk of being entirely wrong, and being perceived as anti-social psychopaths.

This all evens out once the new machine and its digital property rights enforcement mechanisms are up and running. But collectivization is no cakewalk. It can become a tragedy. Taking the crown from Silicon Valley and Wall Street is not a friendly game, as we can already see with something as silly as GameStop. Also, collectivization often fails; it loses to free market capitalism in the annals of history.

A good answer eludes us. For now, we hold dearly the question.

Sunday, January 31, 2021

How GameStop May Make Hedging Cheaper

 From Zero Hedge:


"ROBINHOOD WILL HAVE TO BREAK INTO MY WIFE’S BOYFRIEND’S HOUSE IF THEY WANT TO FORCE ME TO SELL MY GME" - r/WallStreetBets meme.  

An Inverse Of 1987

One of the more interesting takes on the GameStop (GME) saga last week came from Bloomberg's Joe Wiesenthal, drawing on the work of Emanuel Derman. For those unfamiliar with Derman, he was one of the first physicists to make the transition to quantitative finance in the '80s, moving from Bell Labs to Goldman Sachs (full disclosure: we've corresponded and met with Dr. Derman in the past, and he was kind enough to offer some feedback on our security selection algorithm). 

Wiesenthal referred to Derman's memoir, My Life As A Quant. 

In that book, Derman observed that after the 1987 crash, put options permanently became more expensive. Wiesenthal speculated on Twitter that in the wake of the GameStop melt-up, the same might happen to call options. Derman agreed. 

Image

More Expensive Calls, Less Expensive Collars

All else equal, more expensive calls would be good news for investors looking to hedge with collars. We haven't seen that with GameStop itself yet, but we did get a preview of it with one of the other meme stocks last week, Nokia (NOK). In our previous post (WallStreetBets Versus The Crackdown), we presented an extraordinary collar on Nokia:

A Hedged Bet On Nokia

Nokia offers an even better setup than BlackBerry did earlier this week in terms of upside potential versus downside risk. Let's say you picked up a 1,000 shares of NOK on the dip Thursday. This was the optimal collar, as of Thursday's close, to hedge your 1,000 shares of NOK against a >25% drop over the next month while capping your upside on the stock at 100%.

Screen capture via the Portfolio Armor iPhone app.

It's rare that you're able to cap a collar this high, which makes for the attractive risk-versus-reward setup here. Also, note the negative hedging cost.

That hedge was as of Thursday's close; using the same parameters, you could have found a similar optimal collar on Friday as well. 

Still Too Risky For Some

For at least one reader, that Nokia hedge, with its 25% maximum downside, was too risky. Our regular commenter "propaganda4u" wrote,

Your worse case loss should never be more than 5%. Didn't you learn anything from William O'Neill?

William O'Neill, the founder of Investor's Business Daily, is of course known for his trading rules, including those regarding cutting losses. His rule is to sell when a stock drops 7%, not 5%. 

My philosophy is that all stocks are bad. There are no good stocks unless they are going up in price, if they go down instead, you have to cut your losses fast. The key is to lose the least amount of money possible when you're wrong. I make it a rule to never lose more than 7% on any stock I buy. If a stock drops 7% below my purchase price, I will automatically sell it without any hesitation.

This rule does not limit your potential losses on a stock to 7% though. Stocks can gap down much further on bad news. It's not unheard of for a stock to open down 20% or more from its previous close after an earnings miss or other bad news. Here's an example of Snap (SNAP) doing that a few years ago (there are more recent examples, but this chart was handy). 

Screen capture via YCharts.

If you had a stop order to sell this after it pulled back 7%, that wouldn't have helped you there. Hedging, unlike trading rules, can actually protect against drops of more than 7%, or more than 5%, if you're that risk averse. 

Investing Without Risking A >5% Loss

The good news for our extremely risk averse readers such as "propaganda4u" is that it is possible to invest without risking a drop of more than 5%. Our system can construct hedged portfolios designed to maximize returns for investors only willing to risk a 5% decline.

The Tradeoff Of Risking Only A 5% Decline

The tradeoff is that hedging against such small declines narrows the universe of securities available. To quantify that, consider this. Our universe includes about 4,500 securities with options traded on them in the U.S. On Friday, 1,860 of them passed our initial screens and were hedgeable against >9% declines. Only 231 of those were hedgeable against declines of >5%.

Whenever you ask our system to construct a hedged portfolio, it populates your portfolio with names that it estimates have the highest potential returns, net of hedging cost, out of the ones that fit your risk tolerance and portfolio size. If you indicated you were only willing to risk a decline of >5%, on Friday, it would have started with those 231 names that were hedgeable against a >5% decline. If you indicated that you had $100,000 to invest, our system would have filtered out names like Amazon (AMZN) that were hedgeable against >5% declines, but had share prices too high to fit a round lot in your portfolio. This is the hedged portfolio it would have presented you: 

Screen capture via Portfolio Armor.

As you can see in the portfolio summary, the max drawdown there was a decline of 4.86%. That's how much the portfolio would be down if every security in it went to $0 just before the hedges expired. 

Another Approach For The Risk Averse

Although the portfolio above limits your downside risk to a drop of 4.86% in the worst case scenario, its expected return over the next six months is fairly modest: 3.72%. Another approach for a risk averse investor would be to keep most of his money in cash and then take more risk in a hedged portfolio. For example, instead of investing 100% in a portfolio hedged against a >5% decline, invest 25% in a portfolio hedged against a >20% decline with the rest in cash. Our guess is that the second approach may do better. Let's check back in six months and see.