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Plandemic 2 - Why are Barrett and Chossudovsky not covering it? Digest from Peter Myers

(1) You can watch Plandemic 2 at(2) Kevin Barrett (Veterans Today) & Michel Chossudovsky (Global Research) no hits on "Plandemic 2"(3) Plandemic, Part 2 - Analysis by Dr. Joseph Mercola. CDC owns the patent for SARS-CoV(4) COVID is a *Psychological* weapon; Fauci could also allow use of known remedies(5) Huge Eurodollar deficits in wake of Covid-19(1) You can watch PLANDEMIC 2 – INDOCTORNATION atPLANDEMIC 2 – INDOCTORNATION Kevin Barrett (Veterans Today) & Michel Chossudovsky (Global Research) no hits on "Plandemic 2"by Peter Myers, August 27, 2020About August 22, the Plandemic 2 video was released. It portrays Sars Covid 19 as a conspiracy made in the USA - and in China.One might have thought that Kevin Barrett (Veterans Today) & Michel Chossudovsky (Global Research) would have covered it.But when I did searches, I found No Hits.Wed Aug 26, 6.50pm AEST"plandemic 2" site:https://noliesradio.orgPast month: no hits"plandemic 2" "site:https://kevinbarrett.heresycentral.isPast month: no hits"plandemic 2" site:https://www.globalresearch.caPast month: No hits"plandemic 2" site: hit. But a search in that webpage for "Plandemic" had no hits Here it is: Mask? Vaccine?! Microchip?!! You Gotta Draw the Line Somewhere!By Kevin Barrett -August 1, 2020 ==But Why are Barrett and Chossudovsky not covering it?Because they have run many articles & programs saying that Covid-19 is a US attack on China.Whereas, Plandemic 2 says:- China has bought the WHO- Fauci funded research at Wuhan Institute of Virology to bypass US restrictions on Gain of Function Research- China CEC was part of Event 201 (Oct 18), the simulation which went live.(3) Plandemic, Part 2 - Analysis by Dr. Joseph Mercola. CDC owns the patent for SARS-CoV, Part 2 - Analysis by Dr. Joseph MercolaAs an important preface to the viewing/study of the new, not-for-profit documentary that clarifies COVID-19 and indicts a number of guilty parties, read this summary by Dr Joseph Mercola - then watch it - tonight!!.Gary Kohls <>Plandemic, Part 2Analysis by Dr. Joseph Mercola - August 25, 2020 (2363 words)STORY AT-A-GLANCE"Plandemic II — Indoctornation" reveals the driving forces behind the vaccine agenda. It looks at the roles of the World Health Organization, Bill Gates, Tedros Adhanom, Dr. Anthony Fauci, mainstream media, Silicon Valley tech giants, Big Pharma and many others, connecting the dots between them. The not-for-profit documentary can be viewed at U.S. CDC owns the patent for SARS-CoV (the virus responsible for SARS) isolated from humans. In 2007, the CDC filed a petition with the patent office to keep their coronavirus patent confidential. They also own patents for detection methods, and for a kit to measure the virusBy law, one cannot patent naturally-occurring DNA. If SARS-CoV is natural, then the patent is illegal. If the virus is manmade, the patent is legal, but the creation of the virus would be a violation of biological weapons treaties and laws. So, either way, the CDC has engaged in illegal activityBecause the CDC owns the patent on SARS-CoV, it controls who has the ability to make inquiries into it. Unless authorized, you cannot look at the virus, you cannot measure it or make tests for it, since they own all those patents. This means the CDC has a major profit motiveThe University of North Carolina at Chapel Hill owns a patent describing methods for producing recombinant coronavirusesLate in May 2020, media producer Mikki Willis released the first part of his documentary "Plandemic," featuring Judy Mikovits, Ph.D., a cellular and molecular biologist1 whose research revealed many vaccines are contaminated with gammaretroviruses, due to the viruses being grown in contaminated animal cell lines. The 26-minute film was banned on every social media platform after going viral.2 August 18, 2020, Part 2, titled "Plandemic — Indoctornation," was released.Plandemic — IndoctornationPart 2 is a full-length feature, revealing the driving force behind the vaccine agenda. It looks at the roles of the World Health Organization, Bill Gates, Tedros Adhanom, Dr. Anthony Fauci, mainstream media, Silicon Valley tech giants, Big Pharma and many others, connecting the dots between them. Willis interviews a variety of individuals, including:Activist and journalist Theo WilsonResearcher Dr. Aaron LewisBoard-certified primary care physician Dr. Jeff BarkeAttorney, science teacher and author Kent HeckenlivelySherri Tenpenny, D.O.Dr. Rashid Buttar, medical director for the Centers for Advanced MedicineAuthor Curtis CostAttorney David J. FollinAuthor and winner of the Doctors Who Rock Truth in Journalism Award 2017, Erin ElizabethNJ state representative Jamel C. HolleyDr. Colin Gonsalves, senior counsel, Supreme Court of IndiaLegal researcher Travis MiddletonMary Holland, vice chair and general counsel for the Children’s Health DefenseEducator and activist Peggy HallKevin Jenkins, CEO of Urban Global Health AllianceProfessor John Oller, researcher in theoretical and experimental biosemioticsEngineer and Google whistleblower Zach VorhiesDr. George Zabrecky, physician, medical educator and researcherDr. Pamela Popper, president of Wellness Forum HealthScientist Denis Rancourt, Ph.D.Dr. Meryl Nass, physician, researcher and writerProfessor Dolores J. Cahill, Ph.D., a molecular biologist and immunologistProfessor Luc Montagnier, a Nobel Laureate, medical researcher and virologistFree supplemental footage, including a follow-up interview with Mikovits, as well as links to additional resources provided by all of the interviewees are supposed to be available on the film’s website, 201The film starts out by reviewing Event 201, a pandemic preparedness simulation hosted by the Johns Hopkins Center for Health Security, the World Economic Forum and the Bill and Melinda Gates Foundation in October 2019 — 10 weeks before the COVID-19 outbreak first began in Wuhan.This scripted tabletop exercise included everything we now see playing out in real time, in the real world, from PPE shortages, lockdowns and removal of civil liberties to mandated vaccination campaigns, riots, economic turmoil and the breakdown of social cohesion. A highlight reel of the predictions put forth during this event is included in the documentary.At the time, they spent a great deal of time discussing ways to limit and counter the spread of expected "misinformation" about the pandemic and the vaccines that would have to be developed. In addition to outright censorship, their plan included the use of "soft power," a term referring to stealth influencing using celebrities and other social media influencers.I discussed this in "The PR Firm Behind WHO’s Celeb Endorsements." Just as in real life, one of the pieces of "misinformation" that had to be countered was rumors that the virus had been created and released from a bioweapons laboratory.Operation Mockingbird Never Ended, It Just Got PrivatizedThe film also reveals how SARS-CoV-2 has been turned into a profit center, the possible origins of SARS-CoV-2, and how Silicon Valley tech giants are controlling the narrative, pushing fearmongering and censoring differing views.What we’re seeing is straight out of the Operation Mockingbird playbook, a clandestine CIA media influencing campaign launched in the 1950s. During the Cold War, the CIA used it to spread propaganda. It recruited journalists to pen fake stories that disparaged communist ideologies.Today, they’re doing the complete opposite, promoting radical socialist ideas that support their plan for a technocratic economic system. As revealed in the widely-banned documentary "Shadowgate,"3,4 a shadow government has built up behind the scenes, and they’re using sophisticated psychological warfare tools against the American public to further their nefarious agenda.Shockingly, the reason this shadow government — led by government contractors, privatized intelligence companies — are able to manipulate public opinion is because they’ve been illegally siphoning the data collected by the NSA from all Americans and privatizing it.All of our personal data, combined with artificial intelligence and so-called localization strategies, allows sophisticated computer programs to predict which action or public message will result in a particular outcome.We’re in the midst of a social engineering project that poses a serious existential threat to our personal liberty and freedom. We’re all exposed to it daily, and have been for years. It’s just that now it’s become so pervasive, it’s blatantly obvious for anyone willing to see it. As you’d expect, "Plandemic — Indoctornation" also spends some time reviewing the role of Bill Gates and his foundation.CDC Owns Coronavirus PatentsWillis interviews David E. Martin, Ph.D., a national intelligence analyst and founder of IQ100 Index, which developed linguistic genomics, a platform capable of determining the intent of communications. According to Martin, in 1999, IBM digitized 1 million U.S. patents, which allowed his company to conduct a review.Using linguistic genomics technology, Martin made the "horrific assessment" that one-third of all patents filed in the U.S. were functional forgeries, meaning that "while they had linguistic variations, they covered the same subject matter." In 1999, patents for coronavirus also started to appear, "and thus began the rabbit trail," Martin says.In 2003, Asia experienced an outbreak of SARS. Almost immediately, scientists began racing to patent the virus. Ultimately, the U.S. Centers for Disease Control and Prevention nabbed ownership of SARS-CoV (the virus responsible for SARS) isolated from humans.The CDC actually owns the entire genetic content of that SARS virus. It’s patented under U.S. patent 7776521. They also own patents for detection methods, and for a kit to measure the virus.U.S. patent 7279327,5 filed by the University of North Carolina at Chapel Hill, describes methods for producing recombinant coronaviruses. Ralph Baric, Ph.D., a professor of microbiology and immunology who is famous for his chimeric coronavirus research, is listed as one of the three inventors, along with Kristopher Curtis and Boyd Yount.The law clearly states that genetic segments are "not patent eligible merely because it has been isolated." So, either SARS-CoV was manmade, which would render the patent legal, or it’s natural, thus rendering the patent on it illegal. However, if the virus was manufactured, then it was created in violation of biological weapons treaties and laws.According to Martin, Fauci, Baric and the CDC "are at the hub" of the COVID-19 story. "In 2002, coronaviruses were recognized as an exploitable mechanism for both good and ill," Martin says, and "Between 2003 and 2017, they [Fauci, Baric and CDC] controlled 100% of the cash flow to build the empire around the industrial complex of coronavirus."CDC Has Broken the Law, One Way or AnotherNow, here’s the key take-home message Martin delivers.There’s a distinct problem with the CDC’s patent on SARS-CoV isolated from humans, because, by law, naturally occurring DNA segments are prohibited from being patented.The law clearly states that such segments are "not patent eligible merely because it has been isolated." So, either SARS-CoV was manmade, which would render the patent legal, or it’s natural, thus rendering the patent on it illegal.However, if the virus was manufactured, then it was created in violation of biological weapons treaties and laws. This includes the Biological Weapons Anti-Terrorism Act of 1989, passed unanimously by both houses of Congress and signed into law by George Bush Sr., which states:6"Whoever knowingly develops, produces, stockpiles, transfers, acquires, retains, or possesses any biological agent, toxin, or delivery system for use as a weapon, or knowingly assists a foreign state or any organization to do so, shall be fined under this title or imprisoned for life or any term of years, or both. There is extraterritorial Federal jurisdiction over an offense under this section committed by or against a national of the United States."So, as noted by Martin, regardless of which scenario turns out to be true, the CDC has broken the law one way or another, either by violating biological weapons laws, or by filing an illegal patent. Even more egregious, May 14, 2007, the CDC filed a petition with the patent office to keep their coronavirus patent confidential.Now, because the CDC owns the patent on SARS-CoV, it has control over who had the ability to make inquiries into the coronavirus, Martin notes. Unless authorized, you cannot look at the virus, you cannot measure it or make tests for it, since they own the entire genome and all the rest."By obtaining the patents that restrained anyone from using it, they had the means, the motive, and most of all, they had the monetary gain from turning coronavirus from a pathogen to a profit," Martin says.Dangerous Gain-of-Function Research Was PermittedMartin goes on to describe events occurring between 2012 and 2013. At that time, the National Institutes of Health decided to take another look at gain-of-function research, ultimately deciding that gain-of-function research on coronavirus was too risky to continue.This led to the suspension of funding of such research in 2013. That included funding flowing into Harvard, Emery and University of North Carolina Chapel Hill. However, while the NIH had moral and even legal reasons for suspending such research, they made the funding pause voluntary, not mandatory.Then, in 2014, when the push-back against gain-of-function research into coronaviruses grew further, the NIH — under the leadership of Fauci — offshored that research to — you guessed it — the Wuhan Institute of Virology in China.However, as detailed by Martin, the funding was not sent in a straight-forward way. Instead, it was funneled through front organizations such as the EcoHealth Alliance, led by its president, Peter Daszak, whose research, according to the EchoHealth Alliance website, "includes identifying the bat origin of SARS."7Between 2014 and 2019, EcoHealth Alliance received a long list of grants from the NIH to study "the risk of bat coronavirus emergence." EcoHealth Alliance then subcontracted that work to the Wuhan Institute of Virology. So, in the end, the U.S. could deny culpability, blaming the outbreak on China when, in fact, it was American research that had been outsourced.Interestingly, in late-breaking news August 19, 2020, The Wall Street Journal8 reported that the NIH had notified EcoHealth that it wants "a sample of the new coronavirus that the Wuhan researchers used to determine its genetic sequence," along with study details and other information.Additionally, the NIH demanded that EcoHealth "arrange for an inspection of the Wuhan Institute of Virology by an outside team that would examine the facility’s lab and records ‘with specific attention to addressing the question of whether WIV staff had SARS-CoV-2 in their possession prior to December 2019.’"The problem, Martin notes in "Indoctornation," is that while the evidence is staring us right in the face, we’re told that so-called "fact-checkers" have a transcendent view of the situation, and they are the ultimate arbiters of truth. As a result, we have this very strange situation where facts and logic are being steamrolled and lambasted as good old-fashioned heresy.Will Truth Prevail?The film goes on to interview many other experts, many of whom are convinced the evidence points to SARS-CoV-2 being a manmade virus. Like Plandemic Part 1, Part 2 is well worth your time. As noted by Willis, in today’s fast-paced world, few have the time to do the necessary research to unveil what’s really going on.The evidence is there, but you have to put it together. This is why documentaries such as "Plandemic" and "Shadowgate" are so useful. They weave the dots together so that you can see a fuller, more complete picture. Unfortunately, the picture at present is grim.Yet, we must face it because it’s not going away or resolving in the near future. It is important to understand that we are all being subjected to a massive propaganda campaign to move us toward a very specific technocratic agenda. It is only by seeking alternative views that we can begin to understand the truth.In the case of coronavirus, it should be clear that gain-of-function research is a dangerous game that should not be permitted. By giving researchers the go-ahead to continue this kind of research, even as the NIH publicly "paused" funding for it, the NIH failed to uphold its moral and legal responsibilities.It’s also clear that the CDC has engaged in illegal activities relating to the patenting of the virus, and that they had ample motive and means to profit from a coronavirus pandemic. It’s hard to imagine a more corrupt system than what we currently have. The question is: When will something be done about it?(4) COVID is a *Psychological* weapon; Fauci could also allow use of known remediesFrom: cgSubject: Of Ships and Sealing Wax, and Covid... Psyops, and Kings*Rob McX says :  August 25, 2020 at 3:07 pm GMT<> A weapon is ineffective or counterproductive if it risks harming thosewho deploy it. They need to be able to switch it off when it’s done enoughdamage. Unless US intelligence has a cure for COVID, it seems unlikely thevirus came from its armoury. Or, if it did, these guys are far crazier thanwe thought.o *Replies: *@frontier<>:COVID is a *Psychological* weapon and can be turned on and off by simpleinformation control, such as: "Put on the masks and distance yourselves,"or, "take off the masks and you can travel, eat in restaurants, go back toschool," etc. Thus the Intelligence Agency that created it controls it (andinternationally through the WHO which is now only financed by Bill Gates).Fauci could also allow use of known remedies such as HCQ (that he himselfendorsed for SARS fifteen years ago) which he has now made a controlledsubstance. HCQ was freely available in the US but today you can only get itunder special conditions. Bring a prescription to a pharmacy and you won'tget it until your doctor confirms it (and is *allowed* to do so by theregulatory agency). Covid could disappear instantly if you followdirections and elect Biden, for example. Good dog! And if you don't electBiden, well then, you will have to suffer the consequences. Bad dog! Andhow crazy is the Intelligence Agency? Well, look around you. And look atSyria, Iraq, Libya, Afghanistan. Also, look at South Africa and Brazil, andthen imagine what it would look like if they had a baby.(5) Huge Eurodollar deficits in wake of Covid-19From: chris lancenet <>*url The Rabbit Hole - The Eurodollar Market Is The Matrix Behind It Allby Michael Every of RabobankSun, 04/12/2020 -The Eurodollar system is a critical but often misunderstood driver of global financial markets: its importance cannot be understated. Its origins are shrouded in mystery and intrigue; its operations are invisible to most; and yet it controls us in many ways. We will attempt to enlighten readers on what it is and what it means. However, it is also a system under huge structural pressures – and as such we may be about to experience a profound paradigm shift with key implications for markets, economies, and geopolitics. Recent Fed actions on swap lines and repo facilities only underline this fact rather than reducing its likelihoodWhat is The Matrix?A new world-class golf course in an Asian country financed with a USD bank loan. A Mexican property developer buying a hotel in USD. A European pension company wanting to hold USD assets and swapping borrowed EUR to do so. An African retailer importing Chinese-made toys for sale, paying its invoice in USD.All of these are small examples of the multi-faceted global Eurodollar market. Like The Matrix, it is all around us, and connects us. Also just like The Matrix, most are unaware of its existence even as it defines the parameters we operate within. As we shall explore in this special report, it is additionally a Matrix that encompasses an implicit power struggle that only those who grasp its true nature are cognizant of.Moreover, at present this Matrix and its Architect face a huge, perhaps existential, challenge.Yes, it has overcome similar crises before...but it might be that the Novel (or should we say ‘Neo’?) Coronavirus is The One.So, here is the key question to start with: What is the Eurodollar system?For Neo-phytesThe Eurodollar system is a critical but often misunderstood driver of global financial markets: its importance cannot be understated. While most market participants are aware of its presence to some degree, not many grasp the extent to which it impacts on markets, economies,…and geopolitics - indeed, the latter is particularly underestimated.Yet before we go down that particular rabbit hole, let’s start with the basics. In its simplest form, a Eurodollar is an unsecured USD deposit held outside of the US. They are not under the US’ legal jurisdiction, nor are they subject to US rules and regulations.To avoid any potential confusion, the term Eurodollar came into being long before the Euro currency, and the "euro" has nothing to do with Europe. In this context it is used in the same vein as Eurobonds, which are also not EUR denominated bonds, but rather debt issued in a different currency to the company of that issuing. For example, a Samurai bond--that is to say a bond issued in JPY by a nonJapanese issuer--is also a type of Eurobond.As with Eurobonds, eurocurrencies can reflect many different underlying real currencies. In fact, one could talk about a Euroyen, for JPY, or even a Euroeuro, for EUR. Yet the Eurodollar dwarfs them: we shall show the scale shortly.More(pheous) backgroundSo how did the Eurodollar system come to be, and how has it grown into the behemoth it is today? Like all global systems, there are many conspiracy theories and fantastical claims that surround the birth of the Eurodollar market. While some of these stories may have a grain of truth, we will try and stick to the known facts.A number of parallel events occurred in the late 1950s that led to the Eurodollar’s creation – and the likely suspects sound like the cast of a spy novel. The Eurodollar market began to emerge after WW2, when US Dollars held outside of the US began to increase as the US consumed more and more goods from overseas. Some also cite the role of the Marshall Plan, where the US transferred over USD12bn (USD132bn equivalent now) to Western Europe to help them rebuild and fight the appeal of Soviet communism.Of course, these were just USD outside of the US and not Eurodollars. Where the plot thickens is that, increasingly, the foreign recipients of USD became concerned that the US might use its own currency as a power play. As the Cold War bit, Communist countries became particularly concerned about the safety of their USD held with US banks. After all, the US had used its financial power for geopolitical gains when in 1956, in response to the British invading Egypt during the Suez Crisis, it had threatened to intensify the pressure on GBP’s peg to USD under Bretton Woods: this had forced the British into a humiliating withdrawal and an acceptance that their status of Great Power was not compatible with their reduced economic and financial circumstances.With rising Covid19 Pandemic Requires Socialism - Bernie's MMT Finance policies are becoming necessary, action was taken: in 1957, the USSR moved their USD holdings to a bank in London, creating the first Eurodollar deposit and seeding our current UScentric global financial system – by a country opposed to the US in particular and capitalism in general.There are also alternative origin stories. Some claim the first Eurodollar deposit was made during the Korean War with China moving USD to a Parisian bank.Meanwhile, the Eurodollar market spawned a widely-known financial instrument, the London Inter Bank Offer Rate, or LIBOR. Indeed, LIBOR is an offshore USD interest rate which emerged in the 1960s as those that borrowed Eurodollars needed a reference rate for larger loans that might need to be syndicated. Unlike today, however, LIBOR was an average of offered lending rates, hence the name, and was not based on actual transactions as the first tier of the LIBOR submission waterfall is today.Dozer and TankSo how large is the Eurodollar market today? Like the Matrix - vast. As with the origins of the Eurodollar system, itself nothing is transparent. However, we have tried to estimate an indicative total using Bank for International Settlements (BIS) data for:On-balance sheet USD liabilities held by non-US banks; USD Credit commitments, guarantees extended, and derivatives contracts of non-US banks (C, G, D); USD debt liabilities of non-US non-financial corporations; Over-the-Counter (OTC) USD derivative claims of non-US non-financial corporations; and Global goods imports in USD excluding those of the US and intra-Eurozone trade.The results are as shown below as of end-2018: USD57 trillion, nearly three times the size of the US economy before it was hit by the COVID-19 virus. Even if this measure is not complete, it underlines the scale of the market.It also shows its vast power in that this is an equally large structural global demand for USD.  Every import, bond, loan, credit guarantee, or derivate needs to be settled in USD.Indeed, fractional reserve banking means that an initial Eurodollar can be multiplied up (e.g., Eurodollar 100m can be used as the base for a larger Eurodollar loan, and leverage increased further). Yet non-US entities are NOT able to conjure up USD on demand when needed because they don’t have a central bank behind them which can produce USD by fiat, which only the Federal Reserve can.This power to create the USD that everyone else transacts and trades in is an essential point to grasp on the Eurodollar – which is ironically also why it was created in the first place!Tri-ffi-nityGiven the colourful history, ubiquitous nature, and critical importance of the Eurodollar market, a second question then arises: Why don’t people know about The Matrix?The answer is easy: because once one is aware of it, one immediately wishes to have taken the Blue Pill instead.Consider what the logic of the Eurodollar system implies. Global financial markets and the global economy rely on the common standard of the USD for pricing, accounting, trading, and deal making. Imagine a world with a hundred different currencies – or even a dozen: it would be hugely problematic to manage, and would not allow anywhere near the level of integration we currently enjoy.However, at root the Eurodollar system is based on using the national currency of just one country, the US, as the global reserve currency. This means the world is beholden to a currency that it cannot create as needed.When a crisis hits, as at present, everyone in the Eurodollar system suddenly realizes they have no ability to create fiat USD and must rely on national USD FX reserves and/or Fed swap lines that allow them to swap local currency for USD for a period. This obviously grants the US enormous power and privilege.The world is also beholden to US monetary policy cycles rather than local ones: higher US rates and/or a stronger USD are ruinous for countries that have few direct economic or financial links with the US. Yet the US Federal Reserve generally shows very little interest in global economic conditions – though that is starting to change, as we will show shortly.A second problem is that the flow of USD from the US to the rest of the world needs to be sufficient to meet the inbuilt demand for trade and other transactions. Yet the US is a relatively smaller slice of the global economy with each passing year. Even so, it must keep USD flowing out or else a global Eurodollar liquidity crisis will inevitably occur.That means that either the US must run large capital account deficits, lending to the rest of the world; or large current account deficits, spending instead.Obviously, the US has been running the latter for many decades, and in many ways benefits from it. It pays for goods and services from the rest of the world in USD debt that it can just create. As such it can also run huge public or private-sector deficits – arguably even with the multitrillion USD fiscal deficits we are about to see.However, there is a cost involved for the US. Running a persistent current-account deficit implies a net outflow of industry, manufacturing and related jobs. The US has obviously experienced this for a generation, and it has led to both structural inequality and, more recently, a backlash of political populism wanting to Make America Great Again.Indeed, if one understands the structure of the Eurodollar system one can see that it faces the Triffin Paradox. This was an argument first made by Robert Triffin in 1959 when he correctly predicted that any country forced to adopt the role of global reserve currency would also be forced to run ever-larger currency outflows to fuel foreign appetite – eventually leading to the breakdown of the system as the cost became too much to bear.Moreover, there is another systemic weakness at play: realpolitik. Atrophying of industry undermines the supply chains needed for the defence sector, with critical national security implications. The US is already close to losing the ability to manufacture the wide range of products its powerful armed forces require on scale and at speed: yet without military supremacy the US cannot long maintain its multi-dimensional global power, which also stands behind the USD and the Eurodollar system.This implies the US needs to adopt (military-) industrial policy and a more protectionist stance to maintain its physical power – but that could limit the flow of USD into the global economy via trade. Again, the Eurodollar system, like the early utopian version of the Matrix, seems to contain the seeds of its own destruction.Indeed, look at the Eurodollar logically over the long term and there are only three ways such a system can ultimately resolve itself:The US walks away from the USD reserve currency burden, as Triffin said, or others lose faith in it to stand behind the deficits it needs to run to keep USD flowing appropriately; The US Federal Reserve takes over the global financial system little by little and/or in bursts; or The global financial system fragments as the US asserts primacy over parts of it, leaving the rest to make their own arrangements.See the Eurodollar system like this, and it was always when and not if a systemic crisis occurs – which is why people prefer not focus on it all even when it matters so much. Yet arguably this underlying geopolitical dynamic is playing out during our present virus-prompted global financial instability.Down the rabbit holeBut back to the rabbit hole that is our present situation. While the Eurodollar market is enormous one also needs to look at how many USD are circulating around the world outside the US that can service it if needed. In this regard we will look specifically at global USD FX reserves.It’s true we could also include US cash holdings in the offshore private sector. Given that US banknotes cannot be tracked no firm data are available, but estimates range from 40% - 72% of total USD cash actually circulates outside the country. This potentially totals hundreds of billions of USD that de facto operate as Eurodollars. However, given it is an unknown total, and also largely sequestered in questionable cash-based activities, and hence are hopefully outside the banking system, we prefer to stick with centralbank FX reserves.Looking at the ratio of Eurodollar liabilities to global USD FX reserve assets, the picture today is actually healthier than it was a few years ago.Indeed, while the Eurodollar market size has remained relatively constant in recent years, largely as banks have been slow to expand their balance sheets, the level of global USD FX reserves has risen from USD1.9 trillion to over USD6.5 trillion. As such, the ratio of structural global USD demand to that of USD supply has actually declined from near 22 during the global financial crisis to around 9.Yet the current market is clearly seeing major Eurodollar stresses – verging on panic.Fundamentally, the Eurodollar system is always short USD, and any loss of confidence sees everyone scramble to access them at once – in effect causing an invisible international bank run. Indeed, the Eurodollar market only works when it is a constant case of "You-Roll-Over Dollar".Unfortunately, COVID-19 and its huge economic damage and uncertainty mean that global confidence has been smashed, and our Eurodollar Matrix risks buckling as a result.The wild gyrations recently experienced in even major global FX crosses speak to that point, to say nothing of the swings seen in more volatile currencies such as AUD, and in EM bellwethers such as MXN and ZAR. FX basis swaps and LIBOR vs. Fed Funds (so offshore vs. onshore USD borrowing rates) say the same thing. Unsurprisingly, the IMF are seeing a wide range of countries turning to them for emergency USD loans.The Fed has, of course, stepped up. It has reduced the cost of accessing existing USD swap lines--where USD are exchanged for other currencies for a period of time--for the Bank of Canada, Bank of England, European Central Bank, and Swiss National Bank; and another nine countries were given access to Fed swap lines with Australia, Brazil, South Korea, Mexico, Singapore, and Sweden all able to tap up to USD60bn, and USD30bn available to Denmark, Norway, and New Zealand. This alleviates some pressure for some markets – but is a drop in the ocean compared to the level of Eurodollar liabilities.The Fed has also introduced a new FIMA repo facility. Essentially this allows any central bank, including emerging markets, to swap their US Treasury holdings for USD, which can then be made available to local financial institutions. To put it bluntly, this repo facility is like a swap line but with a country whose currency you don't trust.Allowing a country to swap its Treasuries for USD can alleviate some of the immediate stress on Eurodollars, but when the swap needs to be reversed the drain on reserves will still be there. Moreover, Eurodollar market participants will now not be able to see if FX reserves are declining in a potential crisis country. Ironically, that is likely to see less, not more, willingness to extend Eurodollar credit as a result.You have two choices, NeoYet despite all the Fed’s actions so far, USD keeps going up vs. EM FX. Again, this is as clear an example as one could ask for of structural underlying Eurodollar demand.Indeed, we arguably need to see even more steps taken by the Fed – and soon. To underline the scale of the crisis we currently face in the Eurodollar system, the BIS concluded at the end of a recent publication on the matter:"’s crisis differs from the 2008 GFC, and requires policies that reach beyond the banking sector to final users. These businesses, particularly those enmeshed in global supply chains, are in constant need of working capital, much of it in dollars. Preserving the flow of payments along these chains is essential if we are to avoid further economic meltdown.Channeling dollars to non-banks is not straightforward. Allowing non-banks to transact with the central bank is one option, but there are attendant difficulties, both in principle and in practice. Other options include policies that encourage banks to fill the void left by market based finance, for example funding for lending schemes that extend dollars to non-banks indirectly via banks."In other words, the BIS is making clear that somebody (i.e., the Fed) must ensure that Eurodollars are made available on massive scale, not just to foreign central banks, but right down global USD supply chains. As they note, there are many practical issues associated with doing that – and huge downsides if we do not do so. Yet they overlook that there are huge geopolitical problems linked to this step too.Notably, if the Fed does so then we move rapidly towards logical end-game #2 of the three possible Eurodollar outcomes we have listed previously, where the Fed de facto takes over the global financial system. Yet if the Fed does not do so then we move towards end-game #3, a partial Eurodollar collapse.Of course, the easy thing to assume is that the Fed will step up as it has always shown a belated willingness before, and a more proactive stance of late. Indeed, as the BIS shows in other research, the Fed stepped up not just during the Global Financial Crisis, but all the way back to the Eurodollar market of the 1960s, where swap lines were readily made available on large scale in order to try to reduce periodic volatility.However, the scale of what we are talking about here is an entirely new dimension: potentially tens of trillions of USD, and not just to other central banks, or to banks, but to a panoply of real economy firms all around the Eurodollar universe.As importantly, this assumes that the Fed, which is based in the US, wants to save all these foreign firms. Yet does the Fed want to help Chinese firms, for example? It may traditionally be focused narrowly on smoothly-functioning financial markets, but is that true of a White House that openly sees China as a "strategic rival", which wishes to onshore industry from it, and which has more interest in having a politically-compliant, not independent Fed? Please think back to the origins of Eurodollars - or look at how the US squeezed its WW2 ally UK during the 1956 Suez Crisis, or how it is using the USD financial system vs. Iran today.Equally, this assumes that all foreign governments and central banks will want to see the US and USD/Eurodollar cement their global financial primacy further. Yes, Fed support will help alleviate this current economic and brewing financial crisis – but the shift of real power afterwards would be a Rubicon that we have crossed.Specifically, would China really be happy to see its hopes of CNY gaining a larger global role washed away in a flood of fresh, addictive Eurodollar liquidity, meaning that it is more deeply beholden to the US central bank? Again, please think back to the origins of Eurodollars, to Suez, and to how Iran is being treated – because Beijing will. China would be fully aware that a Fed bailout could easily come with political strings attached, if not immediately and directly, then eventually and indirectly. But they would be there all the same.One cannot ignore or underplay this power struggle that lies within the heart of the Eurodollar Matrix.I know you’re out thereSo, considering those systemic pressures, let’s look at where Eurodollar pressures are building most now. We will use World Bank projections for short-term USD financing plus concomitant USD current-account deficit requirements vs. specifically USD FX reserves, not general FX reserves accounted in USD, as calculated by looking at national USD reserves and adjusting for the USD’s share of the total global FX reserves basket (57% in 2018, for example). In some cases this will bias national results up or down, but these are in any case only indicative.How to read these data about where the Eurodollar stresses lie in Table 1? Firstly, in terms of scale, Eurodollar problems lie with China, the UK, Japan, Hong Kong, the Cayman Islands, Singapore, Canada, and South Korea, Germany and France. Total short-term USD demand in the economies listed is USD28 trillion – around 130% of USD GDP. The size of liabilities the Fed would potentially have to cover in China is enormous at over USD3.4 trillion - should that prove politically acceptable to either side.Outside of China, and most so in the Cayman Islands and the UK, Eurodollar claims are largely in the financial sector and fall on banks and shadow banks such as insurance companies and pension funds. This is obviously a clearer line of attack/defence for the Fed. Yet it still makes these economies vulnerable to swings in Eurodollar confidence - and reliant on the Fed.Second, most developed countries apart from Switzerland have opted to hold almost no USD reserves at all. Their approach is that they are also reserve currencies, long-standing US allies, and so assume the Fed will always be willing to treat them as such with swap lines when needed. That assumption may be correct – but it comes with a geopolitical power-hierarchy price tag. (Think yet again of how Eurodollars started and the 1956 Suez Crisis ended.)Third, most developing countries still do not hold enough USD for periods of Eurodollar liquidity stress, despite the painful lessons learned in 1997-98 and 2008-09. The only exception is Saudi Arabia, whose currency is pegged to the USD, although Taiwan, and Russia hold USD close to what would be required in an emergency. Despite years of FX reserve accumulation, at the cost of domestic consumption and a huge US trade deficit, Indonesia, Mexico, Malaysia, and Turkey are all still vulnerable to Eurodollar funding pressures. In short, there is an argument to save yet more USD – which will increase Eurodollar demand further.We all become Agent Smith?In short, the extent of demand for USD outside of the US is clear – and so far the Fed is responding. It has continued to expand its balance sheet to provide liquidity to the markets, and it has never done so at this pace before (Figure 5). In fact, in just a month the Fed has expanded its balance sheet by nearly 50% of the previous expansion observed during all three rounds of QE implemented after the Global Financial Crisis. Essentially we have seen nearly five years of QE1-3 in five weeks! And yet it isn’t enough.Moreover, things are getting worse, not better. The global economic impact of COVID-19 is only beginning but one thing is abundantly clear – global trade in goods and services is going to be hit very, very hard, and that US imports are going to tumble. This threatens one of the main USD liquidity channels into the Eurodollar system.Table 2 above also underlines looming EM Eurodollar stress-points in terms of import cover, which will fall sharply as USD earnings collapse, and external debt service. The further to the left we see the latest point for import cover, and the further to the right we see it for external debt, the greater the potential problems ahead.As such, the Fed is likely to find it needs to cover trillions more in Eurodollar liabilities (of what underlying quality?) coming due in the real global, not financial economy – which is exactly what the BIS are warning about. Yes, we are seeing such radical steps being taken by central banks in some Western countries, including in the US - but internationally too? Are we all to become ‘Agent Smith’?If the Fed is to step up to this challenge and expand its balance sheet even further/faster, then the US economy will massively expand its external deficit to mirror it.That is already happening. What was a USD1 trillion fiscal deficit before COVID-19, to the dismay of some, has expanded to USD3.2 trillion via a virus-fighting package: and when tax revenues collapse, it will be far larger. Add a further USD600bn phase three stimulus, and talk of a USD2 trillion phase four infrastructure program to try to jumpstart growth rather than just fight virus fires, and potentially we are talking about a fiscal deficit in the range of 20-25% of GDP. As we argued recently, that is a peak-WW2 level as this is also a world war of sorts.On one hand, the Eurodollar market will happily snap up those trillions US Treasuries/USD – at least those they can access, because the Fed will be buying them too via QE. Indeed, for now bond yields are not rising and USD still is.However, such fiscal action will prompt questions on how much the USD can be ‘debased’ before, like Agent Smith, it over-reaches and then implodes or explodes – the first of the logical endpoints for the Eurodollar system, if you recall. (Of course, other currencies are doing it too.)Is Neo The One?In conclusion, the origins of the Eurodollar Matrix are shrouded in mystery and intrigue – and yet are worth knowing. Its operations are invisible to most but control us in many ways – so are worth understanding. Moreover, it is a system under huge structural pressure – which we must now recognise.It’s easy to ignore all these issues and just hope the Eurodollar Matrix remains the "You-Roll-Dollar" market – but can that be true indefinitely based just on one’s belief?Is the Neo Coronavirus ‘The One’ that breaks it?