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Pound Crashes After BOE Hikes By Most Since 1995, Starts Gilt Sales Yet Warns Of Crushing Stagflationary Recession

In what may be the most dovish double-rate hike in history, moments ago the Bank of England raised rates by the expected 50bps to 1.75% and announced it was starting gilt sales, yet at the same time the bank forecast a "long recession" driven by soaring recession (perhaps soaring stagflation would have been more appropriate).

The rate hike was supported by 8 of the 9 voters (Tenreryro voted for 25bps) who copied the RBA phrase that policy not on a "pre-set path" and also kept up a pledge to act forcefully again in the future if needed, potentially putting similar hikes on the table for coming meetings. While the UK central bank was the first major central bank to hike rates after the pandemic, and has moved at every meeting since December, it had thus far stuck to smaller, more usual moves. That left it risk of falling behind the curve, with some 70 other central banks having moved by a half-point or more this year. The Federal Reserve has raised interest rates by 75 basis points at its last two meetings, while even the European Central Bank kicked off its cycle in July with a half-point rise.

The hike comes as officials predicted a UK recession will begin in the fourth quarter, and last all the way through next year. That’s the longest slump since the financial crisis. Officials expect the economy to shrink by around 2.1% in total. Inflationary pressures have “intensified significantly,” the BOE said. “The latest rise in gas prices has led to another significant deterioration in the outlook for activity in the United Kingdom.”

The BOE also boosted its forecast for the peak of inflation from 13.1% to 13.3% in October amid a surge in gas prices, and warned that price gains will remain elevated throughout 2023 as stagflation. That will sharpen a cost of living crisis that will see real disposable incomes fall more than at any time in around 60 years.

Alongside the decision, the BOE also laid out its plans for reducing the mammoth government bond holdings it amassed during the crisis. Active sales, the first carried out by a major central bank, are likely to start after a confirmatory vote in September and will be in the region of around £10 billion a quarter. Including redemptions, the BOE sees its stock of gilts declining around £80 billion in the first year of the program. Officials said there would be a “high bar” to altering the plan. Sales of the far smaller holding of corporate bonds will begin in the week starting Sept. 19, the BOE said. Taken together the moves represent a significant step up in the BOE’s battle against inflation.

The BOE also said it plans to sell gilts from its holdings evenly across “buckets” of short, medium and long-maturity gilts, and will not schedule a gilt sales operation on the same day as an operation by the UK’s Debt Management Office.

The BOE will also launch a new Short-Term Repo facility, designed to keep short-term market rates close to the BOE’s key interest rate as it reduces the size of its balance sheet.

Here are the details from the BOE announcement:

RATES:

Eight members of the Committee judged that a 0.5 percentage point increase in Bank Rate to 1.75% was warranted at this meeting. For these members a more forceful policy action was justified.

Market rates imply more BoE tightening than May; show Bank Rate at 2.4% in 04 2022. 2.9% in Q4 2023. 2.4% in Q4 2024 (May: 1.9% in Q4 2022 2.6% in Q4 2023. 2 2% in 04 2024)
GILT SALES:

Committee is provisionally minded to commence gilt sales shortly after its September meeting subject to economic and market conditions being judged appropriate and to a confirmatory vote at that meeting.

The Committee judged that over the first twelve months of a sales programme starling in September a reduction in the stock of purchased gilts held in the APF of around GBP 80 billion was likely to be appropriate.

Given the profile of maturing gilts over this period this would imply a sales programme of around GBP 10 billion per quarter
OUTLOOK:

United Kingdom was now projected to enter recession from the fourth quarter of this year and last five quarters

The Committee would be particularly alert to indications of more persistent inflationary pressures and would if necessary act forcefully in response
FORECASTS:

BoE estimates GDP fell 0.2% QIQ in q2 2022 (June forecast: -0.3% Q/Q) sees +0.4% Q/Q in q3 2022

BoE estimates GDP in 2022 +3.5% (May forecast: +3.75%), 2023 -1.5% (May: -0.25%), 2024 -0.25% (May: +0.25%). based on market rates

BoE monetary policy report estimates unemployment rate 3.67 in Q4 2022 (May forecast: 3.61%): Q4 2023 4.68% (May: 4.26%); Q4 2024 5.68% (May: 5.05%)

BoE estimates real post-tax household disposable income in 2022 -1.5% Y/Y (May: -1.75%). 2023 -2.25% (May: +1%), 2024 +0.75% (May: +2.5%)

BoE estimates wage growth +5.25% Y/Y in 04 2022 (May forecast +5.75%). 04 2023 +5.25% (May: +4.75%). Q4 2024 +2.75% (May: +2.75%)

The forecasts, based on average energy bills increasing by 75% to around £3,500 in October, also highlight the scale of the challenge awaiting the victor of the race to replace Boris Johnson as UK prime minister.

The BOE forecasts, based on a market path for interest rates that peaks at 3% next year, show the economy contracting about 1.25% in 2023 and a further 0.25% the following year. Unemployment, meanwhile, will climb to 6.3% by 2025. Inflation will peak above 13% later this year, and still be at 9.5% in the third quarter of 2023. After that it will fall rapidly toward the 2% target as the recession saps demand.

As Bloomberg notes, even after billions of pounds of government support for struggling households, families are set to be around 5% worse off by the end of 2023 with incomes falling both this year and next. So set against the gloomy outlook, the half-point hike, unprecedented since the BOE gained independence in 1997, is a sign officials are calling time on the era of cheap money and scrambling to keep pace with a wave of global tightening from its international peers.

The BOE decision feeds into what BBG described as an increasingly acrimonious debate about who is responsible for growing cost-of-living crisis. The BOE has been blamed in some quarters for acting too slowly in face of the growing inflation threat, and Liz Truss, who is favored to win the race Johnson as prime minister, has vowed to sharpen the BOE’s mandate if she takes power. The contest for the leadership has also made the task of forecasting the economy harder. The final two candidates are offering widely differing views on tax cuts and borrowing levels, with front runner Liz Truss advocating the more radical path. By convention, the BOE bases its forecasts on announced government policy, so the predictions don’t take into account anything brought up during the campaign.

With inflation soaring, the vote split on rates was more forceful than expected, with most economists expecting the nine-member Monetary Policy Committee to vote 7-2 for a 50 basis-point hike. Only Silvana Tenreyro backed a smaller move, saying rates may already have reached a level consistent with returning inflation to target and flagging worries about squeezed household incomes.

Minutes of the meeting showed officials kept in a pledge to move “forcefully” on rates if needed in future - language which paved the way for the half-point hike this month. Policy makers also added guidance that “policy was not on a preset path.”

Summarizing the uber-dovish-mega-hike, Vanda Research FX strategist Viraj Patel said that "this is what EM central banks do hike rates into a recession. Stagflation trade in the UK back on. And that's not good news for $GBP that cares about growth more than defensive rate hikes"

In kneejerk response, cable, which had risen into the decision, immediately tumbled as it realized the rate hikes will be limited in the face of the coming recession, and plunged more than 100 pips below 1.21 to a session low of 1.2086 so far as markets digested the grim projections from the BoE, especially the 5 quarter recession.

At the same time, Gilts spiked and sent yields sliding to session lows of 1.84% as the coming "long recession" means massive curve inversion.

Following the announcement, market pricing has a 25bps in Sept entirely priced in with a 30% chance of a 50bps rate hike. Further out, end-2022 pricing is relatively unchanged from pre-release levels with 100bps of further upside implied before the barrage of rate cuts and new QE begins.

https://www.zerohedge.com/markets/pound-crashes-after-boe-hikes-most-1995-starts-gilt-sales-yet-warns-crushing-stagflationary

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Denelle Dixon (Stellar CEO) On Bloomburg 🚀

'Everyone, including Mastercard and Visa, is looking at how this technology can make finance easier for their consumers and their business. I don't think there is going to be a loser, but I do think there will be shake-ups. And ultimately, the consumer is going to win.' - SDF CEO @DenelleDixon on @BloombergTV

00:05:29
We are minutes away from passing the GENIUS Act.
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Brad Garlinghouse On Banking & The Future Of Money!
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👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading
Nothing to see here.. 👀

Israel's Mossad spy agency was hacked just days before Netanyahu launched strikes on Iranian targets. The files uncovered? Nothing short of apocalyptic.

Among them: 👉 blueprints for cyber warfare, targeted assassinations, blackmail material, and even the unthinkable - the Samson Option - Israel's doomsday doctrine to blow up the entire world with a nuclear holocaust if their own survival is ever threatened.

Op: https://x.com/BarronTNews_/status/1935871791169159188?s=19

🚨 XRP Ledger Welcomes XAO DAO for On-Chain Governance 🚨

The XRP Ledger has integrated XAO DAO, introducing a new era of on-chain governance for the network. This move aims to enhance community-driven decision-making and transparency by allowing stakeholders to participate directly in protocol upgrades and ecosystem proposals through decentralized, blockchain-based voting mechanisms.

Key Highlights:

  • On-Chain Governance:
    XAO DAO brings a decentralized governance framework to the XRP Ledger, enabling holders and ecosystem participants to vote on proposals, upgrades, and other critical decisions in a transparent and secure manner.

  • Community Empowerment:
    The integration is designed to give the XRP community a more active role in shaping the network’s future, fostering greater collaboration and innovation among developers, validators, and users.

  • Ecosystem Growth:
    This development is expected to drive further adoption of the XRP Ledger, attract new projects, and strengthen the network’s position as a leading blockchain for ...

Persisters, Liquid Staking $XPRT is now live on Persistence DEX.

With stkXPRT built into the DEX, you can:

  • Liquid stake XPRT directly on 👉 app.persistence.one/stake

  • Superfluid LP into the stkXPRT/XPRT pool

Best part? It takes less than a minute

Here’s how you can do it 📒👇

https://x.com/PersistenceOne/status/1934954313480065426

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🎬Proof the Deep State Planned This War for Years🎬
Nation First outlines how the Israeli attack on Iran was planned by the Deep State and the Military Industrial Complex over 15 years ago.

Prepare to have your mind blown

~Namasté 🙏 Crypto Michael ⚡ The Dinarian

Dear friend,

What just happened in Iran wasn’t a surprise attack. It wasn’t a last-minute decision. It wasn’t even Israel acting alone.

It was a war plan written years ago — by men in suits, sitting in think tanks in Washington and New York. And yesterday, that plan was finally put into action.

Here’s the truth they don’t want you to know: this war was cooked up long before Trump ever became President — and it was designed to happen exactly this way.

Let’s start with what just happened.

Israel launched a massive, unexpected strike on Iran. They hit nuclear facilities. They killed military generals. They struck deep inside Iranian territory — and now the whole region is on edge, ready to explode into full-blown war.

The media is acting shocked. But I’m not. You shouldn’t be either.

Why?

Because we have the documents. They told us this was coming. Years ago.

Exhibit A: The Brookings Institution.

The Brooking Institution is a fancy name for what’s basically a war-planning factory dressed up as a research centre. Back in 2009, Brookings published a report called Which Path to Persia?

It laid out exactly how to get the U.S. into a war with Iran — without looking like the bad guy.

Here’s the sickest part:

“The United States would encourage — and perhaps even assist — the Israelis in conducting the strikes… in the expectation that both international criticism and Iranian retaliation would be deflected away from the United States and onto Israel.”

Let that sink in.

They literally suggested using Israel to start the war, so America could stand back and say, “Wasn’t us!”

They even titled a chapter of this report: “Leave It to Bibi” — naming Netanyahu as the guy to light the match.

Exhibit B: The Council on Foreign Relations (CFR).

The Council on Foreign Relations is an another Deep State operation. Also in 2009, CFR published a “contingency memothat laid out the whole military plan for an Israeli strike on Iran — step by step.

  • What routes the jets would fly (over Jordan and Iraq).

  • What bombs they’d use (the biggest bunker-busters in the U.S. arsenal).

  • Which Iranian sites to hit (Natanz, Arak, Esfahan).

  • And how Iran might respond (missiles, drones, threats to U.S. bases).

It’s like they had a time machine. Because those exact strikes just happened following the routes, likely using the bombs and hitting the sites that the CFR outlined.

Exhibit C: The Plot to Attack Iran by Dan Kovalik.

This one really blows the lid off.

US human rights lawyer and journalist Dan Kovalik, in his book The Plot to Attack Iran: How the CIA and the Deep State Have Conspired to Vilify Iran, shows how the CIA and Israel’s Mossad have been working together for decades — not just watching Iran, but actively sabotaging it. Killing scientists. Running cyberattacks. Feeding lies to the media to make Iran look like it’s always “six months away” from building a nuke.

He even reveals how they discussed false flag attacks — faking an Iranian strike to justify going to war. That’s not a conspiracy theory. That’s documented strategy.

And here’s where President Trump comes in.

Unlike the warmongers who wrote these plans, Trump wasn’t looking to bomb Iran. He wanted to talk. Negotiate. Make a deal — like he did with North Korea.

In fact, peace talks with Iran were just days away.

But someone didn’t want peace. Someone wanted war.

So Israel went in — just like the Brookings script said — and lit the fuse.

Trump didn’t authorise it. He didn’t want it. But they gazumped him. They went around him. And now, the peace he was trying to build has been blown to bits.

This was never about Iran being a threat. It was about keeping the war machine fed.

Think tanks, defence contractors, foreign lobbies — they don’t profit from peace. They thrive on tension. On fear. On war.

And now, thanks to them, the world’s one step closer to the edge.

If you’ve never trusted the mainstream media, you’re right not to.

If you’ve ever suspected there’s a shadowy agenda behind every war, you’re not paranoid.

You’re paying attention.

Because the documents are real. The war was planned. And the bombs are falling — right on schedule.

Pray for Iran’s civilians.

Pray for the Israelis caught in the crossfire.

Pray for a President who still wants peace.

And pray that we wake up before it’s too late.

Because the war has started.

But the truth has just begun to spread.

Until next time, God bless you, your family and nation.

Take care,

George Christensen

Source:

George Christensen is a former Australian politician, a Christian, freedom lover, conservative, blogger, podcaster, journalist and theologian. He has been feted by the Epoch Times as a “champion of human rights” and his writings have been praised by Infowars’ Alex Jones as “excellent and informative”.

George believes Nation First will be an essential part of the ongoing fight for freedom:

The time is now for every proud patriot to step to the fore and fight for our freedom, sovereignty and way of life. Information is a key tool in any battle and the Nation First newsletter will be a valuable tool in the battle for the future of the West.

— George Christensen.

Find more about George at his www.georgechristensen.com.au website.

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The Possible Impact Of USDC On The XRP Ledger And RLUSD
Key Points
  • It seems likely that USDC on the XRP Ledger (XRPL) boosts liquidity, benefiting XRP, though some see it as competition for RLUSD.
  • Research suggests both stablecoins can coexist, enhancing the XRPL ecosystem.
  • The evidence leans toward increased network activity being good for XRP, despite potential competition.

The recent launch of USDC on the XRP Ledger has sparked discussions about its impact on the ecosystem, particularly in relation to RLUSD, Ripple's own stablecoin. This response explores whether this development is more about competition for RLUSD or if it enhances liquidity on the XRPL, ultimately benefiting XRP.
 

Impact on Liquidity and XRP

The introduction of USDC, a major stablecoin with a $61 billion market cap, likely increases liquidity on the XRPL by attracting more users, developers, and institutions. This boost can enhance DeFi applications and enterprise payments, potentially driving demand for XRP, the native token used for transaction fees. While some may view it as competition for RLUSD, the overall effect seems positive for the XRPL's growth.
 

Competition vs. Coexistence with RLUSD

USDC and RLUSD cater to different needs: USDC appeals to those valuing regulatory compliance, while RLUSD, backed by Ripple, may attract users preferring ecosystem integration. Research suggests both can coexist, increasing options and fostering innovation, rather than purely competing.
 

Detailed Analysis of USDC on XRPL and Its Implications

The integration of USDC on the XRP Ledger (XRPL), announced on June 12, 2025, by Circle, has significant implications for the ecosystem, particularly in relation to RLUSD, Ripple's stablecoin launched in 2024. This section provides a comprehensive analysis, exploring whether this development is more about competition for RLUSD or if it enhances liquidity on the XRPL, ultimately benefiting XRP.
 

Understanding RLUSD and Its Role

RLUSD, Ripple's stablecoin, received approval from the New York Department of Financial Services (NYDFS) in 2024 and is designed to be fully backed by cash and cash equivalents, ensuring stability. It is available on both the Ethereum and XRP Ledger blockchains, aiming to enhance liquidity, reduce volatility, and serve cross-border payments. With a current market cap of $413 million, RLUSD is smaller than USDC's $61 billion but has regulatory credibility, particularly appealing to institutions.
 

Impact of USDC on the XRPL

The launch of USDC on the XRPL is a significant development, given its status as the second-largest stablecoin by market cap.
 
Key impacts include:
  • Liquidity Boost: USDC's integration can attract more users, developers, and institutions, increasing overall liquidity. This is crucial for DeFi applications, as Circle's announcement emphasizes its use in liquidity provisioning for token pairs and FX flows.
  • Increased Utility: USDC enhances the XRPL's utility for enterprise payments, financial infrastructure, and DeFi, potentially making it more attractive for global money movement and transparent settlements.
  • Regulatory and Institutional Appeal: As a regulated stablecoin issued by Circle, USDC can bring institutional users to the XRPL, aligning with Ripple's goals for regulated financial activities.
  • Network Growth: Supporting a widely recognized stablecoin like USDC on 22 blockchains, including the XRPL, increases the network's visibility and adoption, potentially driving more activity.

Competition vs. Complementarity with RLUSD

While USDC's launch could be seen as competition for RLUSD, the evidence suggests a more nuanced relationship:
  • Competition: Both are stablecoins on the XRPL, and USDC's larger market presence ($61 billion vs. RLUSD's $413 million) might attract users and developers away from RLUSD. However, competition can drive innovation, such as lower fees or better services, benefiting the ecosystem
  • Complementarity: Different stablecoins cater to different needs. USDC appeals to users valuing regulatory compliance and widespread adoption across multiple blockchains, while RLUSD, backed by Ripple, may attract those preferring ecosystem integration and regulatory approval from NYDFS. The XRPL can benefit from having multiple options, increasing liquidity and fostering a diverse ecosystem.
  • Coexistence Benefits: Research suggests that having multiple stablecoins enhances liquidity and provides users with more choices, potentially leading to higher network activity. For example, institutions might use USDC for global payments and RLUSD for specific XRPL-integrated applications, creating a symbiotic relationships.

Impact on XRP

The introduction of USDC, alongside RLUSD, is likely beneficial for XRP, the native token of the XRPL, for several reasons:
  • Increased Liquidity and Activity: Higher liquidity on the XRPL, driven by both stablecoins, can increase transaction volumes. XRP is used for transaction fees, with some fees burned, potentially reducing supply over time and increasing demand.
  • DeFi and Enterprise Use Cases: Both USDC and RLUSD enhance DeFi and enterprise applications, such as liquidity pools and cross-border payments, which can drive demand for XRP as a settlement token.
  • Network Growth: A more liquid and active XRPL is more attractive to developers and users, potentially leading to long-term growth for XRP, as increased utility can drive its value.
Expert analyses, such as those from u.today and ledgerinsights.com, suggest the launch is a "massive boost" for liquidity and adoption, with RLUSD also playing a significant role.
 

Comparative Analysis: USDC vs. RLUSD

To further illustrate, consider the following table comparing key attributes:
 
Given the evidence, it is more accurate to view the introduction of USDC on the XRPL as beneficial for liquidity, which is ultimately good for XRP, rather than solely as competition for RLUSD. The XRPL benefits from increased options, with both stablecoins enhancing liquidity, utility, and network growth. While some competition exists, the overall impact is positive, fostering a robust ecosystem that can drive demand for XRP. This conclusion aligns with expert analyses and community discussions, acknowledging the complexity of the stablecoin market within the XRPL.
 

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Die Glocke: The Nazi Bell That Bent Time, Vanished, and Was Never Seen Again

In the darkest corners of the Third Reich, behind the veil of conventional warfare, Nazi scientists were racing toward something that defied explanation. They weren’t just building rockets or jet planes, they were chasing a technology that pushed the boundaries of physics itself. One of the most mysterious and controversial projects to emerge from this era was called Die Glocke, German for "The Bell." But this wasn’t a bomb. It wasn’t even a weapon in the traditional sense. It was something else entirely.

What Was Die Glocke?

Die Glocke was reportedly a bell-shaped device, approximately 9 feet in diameter and 12 to 15 feet tall, encased in a thick ceramic-like shell. Internally, it housed two counter-rotating cylinders filled with a strange, metallic, violet-colored liquid referred to as Xerum 525, a highly radioactive and unknown compound. According to Polish researcher Igor Witkowski, who first brought the story to global attention in his book "The Truth About the Wunderwaffe," Die Glocke emitted intense electromagnetic radiation and killed many of the scientists who worked on it.

But the real claim that set the world alight? That it had the potential to manipulate gravity, disrupt time, and possibly even pierce dimensional barriers. Some descriptions sound like science fiction. Others sound eerily like technologies rumored in today’s black projects or even UAP propulsion systems.

Where Was It Built?

Most reports place the Bell project deep beneath the Wenceslas Mine in Ludwikowice, Poland. There, nestled in a reinforced underground facility known as Der Riese (The Giant), the Nazis hid many of their advanced weapons programs. Adjacent to the suspected test site is a strange concrete structure referred to today as The Henge, a ring of reinforced pillars that some researchers believe was part of an anti-gravity testing rig or cooling tower for Die Glocke. To this day, its true purpose remains unexplained.

Hans Kammler: The Man Who Vanished SS General Hans Kammler oversaw Nazi Germany’s most advanced technological programs, including the V-2 rocket and rumored exotic weapons like Die Glocke. He was a man with top-tier clearance and deep ties to the Reich’s secret projects. When the war ended, Kammler disappeared. No confirmed death, no trial, or capture. He was never heard from again. Some believe he brokered his safety with U.S. forces during Operation Paperclip, offering knowledge of Die Glocke in exchange for asylum. Others suggest he escaped to South America with the Bell. Whatever the truth, the timing of his disappearance and the vanishing of Die Glocke are hard to ignore.

Did It Actually Work?

That’s the million-dollar question. Accounts claim that when operational, Die Glocke emitted powerful gravitational and temporal anomalies. Test subjects reportedly experienced cellular breakdown, time displacement, and hallucinations. Some witnesses alleged that the device caused freezing of time, or at least a distortion in how time passed in its proximity. Others suggested the Bell may have even "jumped dimensions" or teleported entirely. Skeptics say it was nothing more than a high-energy centrifuge with tragic side effects. Still, CIA documents later referenced Die Glocke, and even modern physicists admit that some of the descriptions line up with theoretical frameworks for gravity manipulation and field-based propulsion.

Connection to Modern Black Projects

If Die Glocke truly existed and worked, it would make sense that it never saw public light. Instead, it would’ve been buried, repurposed, and integrated into deep black programs. Anti-gravity research, electromagnetic propulsion, even certain descriptions of UAPs, all have eerie parallels to the Bell’s characteristics. Was Die Glocke an early testbed for what would later become known as field propulsion or even quantum mirroring? Or was it a dangerous dead-end in the pursuit of Nazi technological superiority?

Last Thoughts To Summarize

Die Glocke remains one of the most tantalizing mysteries of WWII, part weapon, part experiment, part occult machine. A device said to manipulate gravity and time. A Nazi general who vanished without a trace. A concrete ring still standing in the Polish forest. Whether it was a real breakthrough in exotic physics or an elaborate myth built on whispers, Die Glocke has become a symbol, of lost knowledge, buried technology, and the thin line between science and the supernatural. If it was real, it’s likely not lost, just... relocated!

Source

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