This article was written by Brandon Smith and published at his Alt-Market.com site.
Editor’s Comment: This confrontation between the Federal Reserve and Donald Trump – painted as a populist outsider willing to destabilize the system – has been brewing for sometime. SHTF has reported many times on the double game of timing rate hikes to score politics points – and now, to dump a cycle that has been long overdue for a crash. Unfortunately, these are fundamentals at work. The only question now, is how badly it will drag on the economy, and what the optics of that downturn could be – i.e., will Trump be vilified, and to what degree.
It is more prudent than ever to prepare for a potential downturn, and attempt to insulate yourself from what could be a prolonged economic collapse. If good times come instead, then enjoy them with the knowledge that your family was prepared to endure even the worst of what may come.
Federal Reserve Initiates End Game As Trump Heads To White House
by Brandon Smith
For years, alternative economic analysts have been warning that the “miraculous” rise in U.S. stock markets has been the symptom of wider central bank intervention and that this will result in dire future consequences. We have heard endless lies and rationalizations as to why this could not be so, and why the U.S. “recovery” is real. At the beginning of 2016, the former head of the Dallas branch of the Federal Reserve crushed all the skeptics and vindicated our position in an interview with CNBC where he stated:
“What the Fed did — and I was part of that group — is we front-loaded a tremendous market rally, starting in 2009.It’s sort of what I call the “reverse Whimpy factor” — give me two hamburgers today for one tomorrow. I’m not surprised that almost every index you can look at … was down significantly.” [Referring to the results in the stock market after the Fed raised rates in December.]
Fisher continued his warning (though his predictions in my view are wildly conservative or deliberately muted):
“…I was warning my colleagues, “Don’t go wobbly if we have a 10-20 percent correction at some point. … Everybody you talk to … has been warning that these markets are heavily priced.”
Here is the issue — stocks are a mostly meaningless factor when considering the economic health of a nation. Equities are a casino based on nothing but the luck of the draw when it comes to news headlines, central banker statements and algorithmic computers. Today, as Fischer openly admitted, stocks are a purely manipulated indicator representing nothing but the amount of stimulus central banks are willing to pour into them through various channels.
Even with the incredible monetary support pooled together by international financiers, returns on equities investments continue to remain mostly flat. It would seem that the propping up of indexes like the Dow has been only for the sake of keeping up appearances. For many people, revenue is barely being generated.
Unfortunately, the majority of Americans do not care to educate themselves on the finer points of finance. Their only relation to the health of the economy is their daily glance at the Dow. If it is green, or at all time highs, they assume that all is well, even if their gut is telling them something is not quite right.
The elites that stand at the helm of the Federal Reserve understand this dynamic very well. They are not stupid. They know that the whole of the global economy could be in a shambles but as long as stocks remain positive the masses will continue to ignore reality until the flames of destabilization are at their very doorsteps.
With this fact in mind one might think that the Fed would consider it in their best interest to keep stimulus measures operating indefinitely; but that is not what they are doing.
In fact, the Fed along with other central banks like the ECB has been slowly peeling back pillars of support from markets that have been in place since 2008-2009 and leaving the system open to a crisis event that should have been dealt with years ago. I examined this process of deliberate destabilization in my article ‘The Global Economic Reset Has Begun.’
In that piece I outlined the three major pillars holding up the U.S. market system and certain parts of our economy and how they were being systematically removed. The first pillar was the use of bailouts and quantitative easing measures. These were diminished through the implementation of the Fed “taper,” which I predicted would happen three months prior that year.
The second pillar was the use of near zero interest rates, which allowed numerous banks and corporations to access low-cost and no-cost overnight loans from the Fed. These companies then used these loans in large part to support a never-ending program of stock buybacks, which reduced the stock pool and artificially boosted the values of the remaining stocks. I predicted in August of 2015 that the Fed would hike interest rates and that this would be the beginning of the end for the stock buyback bonanza. The Fed hiked rates in December of that year.
This process of removing backdoor manipulation through low interest rates should be our main concern right now. Early in 2016 I believed that the Fed would reach a position in which it would finally unleash a series of rate hikes. I did not think they would be so blatant as to wait until right after the U.S. presidential election to do so. I was wrong.
This is why I eventually predicted the launch of a series of rate hikes starting right after the election of Donald Trump in my article ‘World Suffers From Trump Shell Shock — Here’s What Will Happen Next.’ The Fed has now once again hiked interest rates with assertions that they will be “accelerating” such hikes throughout 2017.
As I have been arguing for most of the past year, the election of Donald Trump was inevitable and would precede the triggering of the final stage of our ongoing economic crisis. I came to realize that the Fed’s timing of their latest rate hike is highly strategic. Not only does it set the stage for a series of hikes that will crush U.S. stock markets this coming year and finally shock the public out of their fiscal stupor, but it also maneuvers the crisis right into the lap of Donald Trump and the conservative movements that support him.
Beyond this, it perpetuates an increasing Left/Right division in America. Think about it — during a fiscal crisis under Trump, tiggered by accumulating Fed rate hikes, liberals will immediately set upon Trump as the culprit, while conservatives will immediately defend Trump as a victim of Federal Reserve meddling.
The Federal Reserve and the mainstream media are already composing the narrative by stating that Trump’s potential economic policies and a widening budget deficit would REQUIRE higher rates at a faster pace in order to be accommodated.
I have heard arguments from some that this tactic would simply not work. That people would “never buy” a narrative in which Trump and conservatives are blamed for a market collapse that was at least eight years in the making. I have to say, this view is incredibly naive.
I understand why people would want to embrace the notion that the public is as savvy as the liberty movement when looking at economic events, but this simply isn’t reality. A large portion of the U.S. population identifies with the “Left” end of the political spectrum. We have already seen how they react in the face of a Trump election win. They are predisposed to believe that Trump is responsible for a market crash regardless of the facts. Not to mention, much of the rest of the world is economically ignorant and will likely jump on the anti-conservative bandwagon during a crisis as well.
But the real master stroke of this strategy on the part of the elites is that it creates the perfect platform for the destruction of the U.S. dollar’s world reserve status — the third and final pillar I mentioned months ago that is supporting our economic system.
Imagine that the Fed’s rate hike frenzy sparks an open feud between the central bank and Trump? Some people might say “Good! Shut the bastards down!” However, this is exactly what the elites want. With the Fed “at odds” with the president of the U.S., faith in the U.S. dollar will plummet. Its world reserve status will be destroyed. And instead of being blamed on central banks, the majority of people around the world will claim it was the fault of Trump.
With a historically sufficient excuse for the end of dollar dominance in hand, the elites can move forward with their great global reset, which includes the replacement of the dollar with the IMF’s special drawing rights as the go-to reserve currency mechanism. The SDR basket is an essential bridge in the formation of a single global monetary authority and a true single global currency.
I believe that the Fed will not only continue hiking interest rates throughout 2017, but that some of these rate hikes may be LARGER than many people expect (50 basis points or more). I believe this will be designed to foster extreme tensions between the executive branch and the central bank.
A few months ago I would have said that Trump may or “may not” be aware of this dynamic and the potential that he is a scapegoat. Now that I have seen Trump’s cabinet picks which include neo-con and Goldman Sachs alumni, I have little doubt that he is fully cognizant of the plan. I will be writing more on the issue of Trump as a “Trojan horse” in my next article. In the meantime I would point out that all of the elements of psychological support for stock markets will also disappear in the face of a Trump verses establishment narrative.
All those leftist media outlets cherry picking economic stats and telling half truths to support the recovery lie now have no reason to continue cheerleading for the economy. I expect that propaganda rags like Reuters and Bloomberg will quickly change their tune with Trump in the Oval Office and begin a consistent chorus of negative financial data. Not only will the Fed remove all support from the system, but the mainstream media will be pounding day traders with the kind of “doom and gloom” headlines that they have been criticizing us for over the years.
Make no mistake, the election of Trump may have some in the liberty movement ready to pack up their preps and forget about any national crisis in their lifetimes, but the truth is, vigilance is needed now more than ever. I said it before the election and I’ll say it today — do not get comfortable; the times are about to get even more interesting.
This article was written by Brandon Smith and first published at PersonalLiberty.com. Please visit and support his Alt-Market.com site.
Trump is the Trojan Horse?
Hillary would have been worse.
Trump is the trojan horse?
Hillary would have been worse.
These scumbag “elte trash” are going to do what they’re going to do. We preppers will do what we need to as well. I read where the Islamic savages have a list of US churches to attack over Christmas. I have to say this. If the scum ass muslim trash want entire communities of their own blown the fuck away, go ahead and proceed. Because that’s exactly what’s gonna fucking happen here.
Menzo:
I think you are wrong.
If and when Islamics attack, we can’t create civil unrest and play into the hands of the (((elite))) agenda.
An attack by Islamics would help us as it would give us the justification needed to round up suspected Islamics and lock them up or deport them.
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There ain’t no if. Civil unrest Lol. When people realize we are at war with these savages things will be better. Denial is not just a river in Egypt.
Thats exactly the response TPTB want the US to do. The end result is even greater destabilization, the toppling of stable governments. There is greater Islamic Fundamentalist inspired violence in the Middle East and worldwide post Iraq, Libya and now Syria (these three nations were/are secular) than before the US military involvement. The US is creating terrorists and unleashing them upon stable governments with the very intent of fostering instability. Why? Because governments in chaos have no ability to challenge globalist exploitive forces as they are all one small step from being overthrown themselves.
Learn this word……OSTENSIBLE.
The Islamic savages will not win with their tactics within an armed society.
I agree; I also should note; once upon a time the Germans knew how to deal with people they didn’t like. I definitely think they will remember again. Meanwhile American Silver Eagles are $20 or less it’s a good day.
menzo your an idiot there is only one enemy and its (((them)))
Blam your momma was good and obedient.
You are just a traitor son, that is all you will ever be.
OSTENSIBLE
stated or appearing to be true, but not necessarily so.
Yup,
REVENGE CAN BE A REAL B I T C H
TRUMP is smarter than I gave him him credit for. Now the elite are working for him, and the Left is pissing into the wind.
Times will get more interesting indeed !!! 🙂
BTW, I don’t buy the “Trojan Horse” scenario. The FED USUALLY initiates the downturn by raising rates. No mystery here. And they always do it with the changing of the guard.
Historically speaking the first year of a new President’s term is ALWAYS a recession; clearing the decks for the new policies of the incoming regime. It’s no different this time.
Hopefully the rate increases will come quickly, every month or 60 days, triggering the crash. My fear is that the cleansing won’t come until 2018 – 2019 shortening the time frame in which TRUMPS Economic Plan must work to trickle prosperity down to the masses in time for the 2020 Election.
The sooner the crash begins the better. 🙂
Brandon Smith, thanks for a great article. Most Americans don’t understand economics. The fact that our tremendous debt makes us vulnerable to calamity for the slightest increase in interest rates is lost on most Americans. The relationship between > $200 Trillion in entitlement obligations and those higher interest rates is a nightmare scenario.
Speaking of False Flag Terror Attack Operations, Guess what?
Re: Berlin Germany Truck killings
Berlin market attack: Police searching for Tunisian man after finding ID in truck �” reports
12-21-2016 • Prison Planet.com
German police are now looking for a young Tunisian man whose identity documents were found in the cabin of the truck used in the attack on the Christmas market in Berlin, which killed 12 people and injured 48 others, German media reports.
*** YEP STUPID CRIMINALS ARE REQUIRED TO PLANT THEIR OWN ID’S IN THE MURDER VEHICLE. THIS BS FALSE FLAG HAS THE SAME M-O AS THE PARIS FRANCE SHOOTINGS WHERE THE SHOOTERS PLANTED THIER OWN PASSPORTS IN THE GET AWAY CARS THEY DITCHED.
WELL HERE IS MY TAKE. Who ever planned this False Flag in Berlin, most likely kidnapped some Tunisian Kid Patsy weeks go, which they still have him held alive in some prison, they stole his ID, and planted it in the vehicle so it would be found. Then some other shill drives the hijacked truck killing people. He gets away, and the patsy’s ID is then found. So the Patsy will be held for a while until the Security Protectors can get some massive budget increase to combat terrorism since this was so aweful. Then after they get their money, they bring this dope up and claim they had to kill him in a gun fight as he had weapons, And sure enough the Body is a fresh killing, then the security people can say what a great job we did in capturing and killing this bad guy patsy. Please fund us more money to stop this bad stuff.
Far fetched? Not any more if you pay attention to all the similar details of how (((THEY))) carry this false flags out. And all of these attacks occur on the public population and rarely a politician. Where the crowd would cheer in most cases if a pack of politicians were killed.
Zeus, I never thought I’d say this about you, but this is one time I think you are spot on. After I heard about this attack and that they found papers identifying the attacker, I got a feeling that this whole thing was a setup.
/pol/ plz go
Screw SDR’s as the bastard digital fiat they will be. The Sucker Driven Revenue is currency of the Gimmeedat and thieving bankers. How much for that coffee? An SDR and a half. Give us a break, the first country to return to sound money wins by default. No pun intended.
You cannot say or print anything to change the mind of a Trumpbot coward, not when they are on their way to getting all riched up and great again, not when they are on their way to get paid, get laid, and get drunk, no sir, nothing will stop a Trumpbot coward from achieving their hedonistic materialistic money oriented goals!!!!!
Then Trump pulls out his Trump Card and Audits the Fed, declares them Fraudulent and wipes the debt off the books and tells the tribe to go pound sand. Who ya gonna call Banksters? IRAN? Saudi? Russia? lol The Tribe will be isolated on the Global map for at least 11 days. Then wiped off the map as Iran claims they could do that in that amount of time.
You don’t expect the globalist ruling establishment let their plans for us be derailed without trying every trick in the book, including inflicting as much suffering and misery as possible to punish us for revolting, do you?
No one said it would be easy, just potentially possible, to overthrow them.
Trump is just one thing among many other things that must be done if we want victory (and he isn’t the most important of them either, just the most visible).
Yes, I fear that this writer, Brandon Smith’s evaluation may be right.
If Trump is on the side of the people, I hope he is, the best thing, it seems to me, would be to include in his first speech, some mention of this challenge to his Presidency. It always makes it easier when the doctor says “this is going to hurt” before he socks it to you.
__
In the future we may be practicing Field Medicine and First Aid more than we have to right now.
A technique I found helpful when I repaired my 3 sons and it was gonna hurt – roll up a clean wash cloth or other clean rag and encourage the patient to clench it between his teeth. “Now focus all your pain right there, boy, while you grunt, scream thru clenched teeth, etc….BUT DON’T MOVE” It is a variation on biting the bullet.
This worked excellently for some small, but very painful wound treatments. I even removed thorns from delicate parts on more than one occasion from one of my sons when they were little 🙂 Crawling thru the brier patch I guess..
When the Doc is gonna hurt me, I always request a clean wash cloth. Works for me too…<bb
bb in GA.
Good to know. Thanks. Add bite stick to kit.
Dude “predicted” the rate hike? He must be a genius! LOL!
He predicted the rates hikes months before they happened when everyone was saying QE4 was “right around the corner”. Predicted Brexit and Trump’s win months before hand too. Yeah, he’s definitely smart, or freaken’ psychic.
Too late Now! We have to,(Get ready for it) “Wait and See what Happens”.
Enact new law requiring the federal reserve to have its charter renewed every quarter, requiring a 60% YEA from both the house and senate. Bring back the Kennedy silver certificate notes with a no dollar value, only they be redeemable in ounces only, require the treasury to have a 1:1 silver/note ratio in the vaults at all times. Start circulating these silver notes and threaten the federal reserve that if they keep printing money out of thin air they will lose their charter and the fiat dollar will die.
The economy has been going down the shitter since 1994 when NAFTA was signed.The US lost millions of good paying jobs that were replaced with primarily minimum wage/part time fast food/retail jobs that dont provide employee benefits or provide a liveable wage.Bill Clinton and friends hyped NAFTA as being beneficial to the world but in reality NAFTA only benefitted Corporate America and the politicians that supported it and recieved kickbacks.Ross Perot warned everyone that NAFTA would have devastating consequences on middle class America that would be permanent,but most laughed at him.There’s not many laughing now.22 years since NAFTA and Mexico is still one of the poorest countries with millions fleeing annually.China profitted from NAFTA by using slave labor under horrible working conditions.The US chose cheap labor over everything else.In the end it’s greed..Everything revolves around MONEY…
Torch down the paper pillars and build the real ones again with pre 1965 proven building materials. You may win a hand or 2 in the paper casino but the rigged house will take you for every penny in the “not” so long run.
But, but I thought 2010 no it was 2011 or was is 2015 no definitely 2016 was to be the year, now you say 2017, or will it be 2018 no, no 2020 for sure.
I agree we are riding for a fall but no-one knows the exact date, trying to be a fortune teller is playing on peoples fears, think I know why!
10 years is actually a very short time frame if you have any perspective. Especially when the Fed still had bullets and the dollar is the reserve currency.