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The Federal Reserve’s Controlled Demolition Of The Economy Is Almost Complete

Brandon Smith
March 28th, 2019
Alt-Market.com
Comments (36)

This article was originally published by Brandon Smith at Alt-Market.com

The Federal Reserve is an often misunderstood entity, not only in the mainstream, but also in alternative economic circles. There is this ever pervasive fantasy on both sides of the divide that the central bank actually “cares” about forever protecting the US economy, or at least propping up the US economy in an endless game of “kick the can”. While this might be true at times, it is not true ALL the time. Things change, agendas change, and sometimes the Fed’s goal is not to maintain the economy, but to destroy it.

The delusion that the Fed is seeking to kick the can is highly present today after the latest Fed meeting in which the central bank indicated there would be a pause in interest rate hikes in 2019. As I have noted in numerous articles over the past year, the mainstream media and the Fed have made interest rates the focus of every economic discussion, and I believe this was quite deliberate. In the meantime, the Fed balance sheet and its strange relationship to the stock market bubble is mostly ignored.

The word “capitulation” is getting thrown around quite haphazardly in reference to the Fed’s tightening policy. And yet, even now after all the pundits have declared the Fed “in retreat” or “trapped in a Catch-22”, the Fed continues to tighten, and is set to cut balance sheet assets straight through until the end of September. Perhaps my definition of capitulation is different from some people’s.

One would think that if the Fed was in retreat in terms of tightening, that they would actually STOP tightening. This has not happened. Also, one might also expect that if the Fed is going full “dovish” that they would have cut interest rates in March instead of holding them steady at their neutral rate of inflation. This has not happened either. In fact, I’m not exactly sure how anyone can claim with a straight face that the Fed has given up on Quantitative Tightening (QT).  Despite the many assumptions out there that the Fed is going to reverse on interest rates, I believe this is wishful thinking and that the Fed will not reverse rates in 2019.

What I do see is the Fed using rhetoric and head fakes to give the impression that they plan to go dovish in the future. And, this is being wrongly interpreted as the Fed being dovish now. But why is the Fed doing this while also continuing to dump its balance sheet? In my view, it is because they are almost finished with the task they set out to accomplish with QT in the first place, and they now have to make it appear as though they want to accommodate as the system breaks down.

In my article ‘Party While You Can – Central Bank Ready To Pop The Everything Bubble’, I outlined a process or tactic which the Fed has used on many occasions in the past: The creation of economic bubbles through inflation and artificially low interest rates, followed by abrupt tightening and higher interest rates into economic weakness. This tactic is highly effective in accomplishing ONE GOAL – financial collapse.

It is the same strategy the Fed used at the beginning of the Great Depression. It is also what the Fed used to trigger the crash of 2008. And, in 2018-2019, the Fed is doing it again.

For over two years now the Fed has been instituting tightening measures after inflating perhaps the largest economic bubble in modern history, also known as “the everything bubble”. The Fed did this despite extreme weakness in economic fundamentals, and is continuing forward until the fourth quarter of this year despite nearly every sector of the economy showing steep declines or a greatly reduced pace of growth.

It is perhaps not a coincidence that the Fed announced it would be cutting assets until September just as the Treasury Yield curve inverted for the first time since 2007.  The same thing happened just before the crash and recession that started in 2008. An inverted yield curve is generally a sure sign of a decelerating economy or recession/depression.

What bewilders me are the numerous claims in the mainstream and alternative media that the Fed is somehow oblivious to what it is doing. This is simply not true. Jerome Powell in his statements in the Fed Minutes of October 2012 explains plainly exactly what would happen if and when the Fed tightened policy into weakness. He essentially admits that a crash will occur.

Four years later in the wake of the Trump presidency, Powell somehow conveniently finds himself the Chairman of the Fed, and what does he do? He tightens policy into economic weakness fully aware of what would happen next. I’ll repeat this point again because I don’t think some analysts out there get it: The central bankers KNOW that they are causing a crash.  They are doing it deliberately. The question we need to ask is, why?

Over the past ten years the Fed may have acted as a crutch for markets, but this was not their true goal. Rather, the 2008 credit bubble collapse was used by the bankers as a rationale to create an even bigger bubble; a bubble that now encompasses every aspect of our financial structure. QT was needed to pop this bubble, and so the Fed tightened.

For many months now the Fed has stated that the US economy is “strong” and “in recovery” despite the evidence at hand. In March, they did not reverse tightening; they only admitted in an indirect way that the economy is not in recovery. They have until September to finish using QT for a controlled demolition of the Everything Bubble. This is more than enough time.

As noted in recent articles, US housing, autos, credit, retail, and even employment are faltering, while prices in most necessities remain high or are climbing. All that is left is for stock markets to follow the fundamental indicators down (as they usually do).  This trend started at the same time as the Fed’s tightening began.  All that was needed to set the avalanche in motion were moderate rate hikes and asset cuts.

The timing of the current crash is perfect for the banking elites for a number of reasons. Most importantly, they now have a scapegoat to pin the crash on in the form of “populist movements”. I warned about this ploy way back in early 2016 before the Brexit vote and the presidential elections. It is the reason why I predicted the Brexit vote would succeed and that Donald Trump would be president. The elites needed someone to blame for the collapse of the everything bubble they have been planning for the past 10 years.

The Brexit has turned into a three ring circus, a major distraction from the ultimate intended end game which I have long believed will be a “no deal” scenario. A no deal event is being painted in the mainstream media as a kind of economic doomsday for Europe, and I believe it will be, but not for the reasons they describe. Europe has been set up for a fall, just like the US, for many years now. Government and corporate debt levels are at extreme highs and major banks in Germany and Italy are on the verge of implosion.

A hard Brexit is useful to the elites as a scapegoat for a crash that was going to happen anyway. The bankers don’t plan on facing the music, they want “populist” groups to get the blame.

Trump has been a very effective ally to the banking class. After loading his cabinet with these “swamp creatures”, he then went on to take full credit for the very stock market rally he originally criticized during his campaign as a fraudulent bubble created by central bank stimulus. Then, he started a trade war which has dragged on for many months. It has shown no signs of slowing, and, is providing excellent cover for the Fed as it pulls the plug on life support for the economy.

Trump’s exoneration in terms of the Mueller probe and the Russiagate farce was easy to see coming.  I have been saying for the past two years that Trump will never be impeached (or never impeached successfully) exactly because the banking elites WANT him right where he is.  Russiagate was meant to drive leftists even further into extremism, it was NOT meant to unseat Trump.

If the markets were to tank this year (in January I predicted they would retest December lows starting at the end of March through April), then Trump would get total credit in the mainstream for the crisis and the Fed would avoid the majority of the blame.

Once again, lets consider the timing of current events – The Fed is tightening until September but pretending as if it is backing off. The yield curve has inverted. Major fundamentals are dropping exponentially. At the same time, we have Europe on the verge of a fabricated crisis in the form of a potential no deal Brexit, and we have US trade negotiations which have been delayed once again, perhaps until June, maybe longer.

I don’t believe in the “perfect storm” as a matter of coincidence, but I do believe according to the evidence that perfect storms can be deliberately engineered. Bottom line, no matter what the mainstream says in the coming months, the Fed knew what it was doing.

There are many advantages to an engineered crash. As noted, it was going to happen eventually anyway. It is simply delusion to think that the central bank can prop up the system forever. We sometimes hear the claim that this was done in Japan, but the Fed increased its balance sheet to $4.5 Trillion dollars in the span of two years – it took the Bank of Japan decades to get to the same level. There comes a point in which stimulus and increased debt provides diminishing returns when trying to hide economic weakness, and the Fed has already hit that point.

The Fed is crashing the system now because they have sovereignty activists and nationalists to point the finger at. They are also crashing the system now because the everything bubble is at its peak. Corporate and consumer debt are at historic highs, and the bankers are looking to cause maximum damage. Finally, the banking establishment has loyalties to certain agendas which are far outside national interests, including the often mentioned Agenda 2030 and the “global economic reset”. These agendas call for greatly increased global centralization of economic power as well as geopolitical power; in other words, global governance.

With chaos comes opportunity for those in power. They don’t let a good crisis go to waste, especially when they created the crisis. I have written extensively about this issue in past articles such as ‘The Economic End Game Explained’ and ‘IMF Reveals Cryptocurrency Is The New World Order End Game’.

No matter what the mainstream media says over the course of this year, I want readers to remember that this was a disaster at least ten years in the making. It is not something that suddenly fell out of the sky. It was not something that was unexpected or unpredictable. It was highly predictable to those with the eyes to see. It was NOT a mistake.

***

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You can contact Brandon Smith at: [email protected]

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The Finger is on the Nuke Button | Future Money Trends

Author: Brandon Smith
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Date: March 28th, 2019
Website: http://www.alt-market.com/

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36 Comments...

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  1. The Fed is plum out of options, Opie. We need to coin our our currency. Make wampum.

    • Seminole Wind says:

      The answer is simple and we all know it. Guns, Gold, ammo, booze, food, silver, tools, useful skills like farming, Nursing, Warriors for protection, and so on.

    • TheGuy says:

      “Audit” it with pitchforks and torches. Give a new meaning to the term “bank run”.

      • TharSheBlows says:

        Anybody who’s world is going to crash because of what the Fed does is ignorant Get off their seedy treadmill of fraud. Get out of all debt, stack PM’s and the rest of the Prepper Menue of survival tools. Then who cares what the Fed does. Its a criminal enterprise and nobody needs to subscribe.

        • TharSheBlows says:

          Trump could exercise JFK’s Executive Order EO-11110 and create a competing dollar backed by Silver again to compete with the Fraud Fed Paper called dollars.

          Executive Order 11110 – Wikipedia

          ht tps://en.wikipedia.org/wiki/Executive_Order_11110

          Executive Order 11110 was issued by U.S. President John F. Kennedy on June 4, 1963.. This executive order amended Executive Order 10289 (dated September 17, 1951) by delegating to the Secretary of the Treasury the president’s authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act, as amended by the Gold Reserve Act.

          JFK’s Executive Order 11100: Abolishing the Fed Reserve

          ht tps://inteldinarchronicles.blogspot.com/2018/09/jfks-executive-order-11100-abolishing.html

          JOHN F. KENNEDY THE WHITE HOUSE June 4, 1963 Once again, Executive Order 11110 is still valid. According to Title 3, United States Code, Section 301 dated January 26, 1998: The 1974 and 1987 amendments, added after Kennedy’s 1963 amendment, did not change or alter any part of Kennedy’s EO 11110.

    • durangokidd says:

      Can’t blame the FED for the end of THIS business cycle. They have been behind the curve all along, as I have mentioned before.

      The American Consumer is EXHAUSTED and buried in debt. It’s a CLASSIC demand based downturn; or rather the lack of demand that is cutting business revenue, and building inventory.

      To some measure it happens every Spring in March after the After Christmas Sales, as consumers recover/pause from their Christmas binge. No different this time. Nothing to see here. Move along.

      I have described this process to this community before. Yeah, it’s in the ARCHIVES. 🙂

  2. cranerigger says:

    The USA allowed an entity (Federal Reserve) that is NOT part of our country to coin (print) our money. The Founding Fathers were adamantly against this idea. Our first Treasury Secretary, Alexander Hamilton, arranged for the young nation to control its own money. The Federal Reserve decided during the Bernacke years to print money like crazy, therefore devaluing all previous dollars. What could possibly go wrong?

  3. Genius says:

    CRAIGSLIST SCORE AGAIN! Check this out…

    Dewalt XRP tools in very good condition 18V.
    2- impact guns
    1- circular saw
    1- drill
    1- angle drill
    1- light
    1- sawzall
    5- good condition batteries
    2- chargers
    1- extra large heavy duty dewalt tool bag with side pockets
    ALL THIS FOR 100.00! WOOOT! ::D

    • Yahooie says:

      Genius, nice going. I should check CL for a few tools I need. I hate to bother my son all the time although he loves helping mom.

    • Wow. That’s probably close to a thousand bucks worth of tools and batteries if new. Somebody need a fix? Good snag.

    • Betty says:

      The privately owned Rothshit federal reserve is a parasite and we the people their host. They give paper fiat to their friends at tiny to no interest. These happy friends run out and buy the best assets with magic paper. Now the friends have become the rich 0.01% and own 90% of the world’s resources and wealth. The tribe takes care of their own. What do you and I receive? We get High inflation throughout our lives robbing us of our wealth, a dollar devalued to 4 cents, a climate of low low wages that never keep up, they manipulate our markets creating booms and bust but they never get caught in the bust. Our privately owned federal reserve has been busy killing the middle class by transferring wealth to the rich 1%. How do you enjoy being raped everyday by a ugly criminal banker?

    • right now, some contractor in your area is filling out a police report and having his window glass replaced. Just sayin.

      • Genius says:

        Ya but the guy IS a contractor. An older man that gave them to his son who then upgraded and gave them back so he sold them. Probably figured that NiCad power tools weren’t worth much now. To me they are, I can get cheap high capacity Ah batteries new and get YEARS of use from them. NiCad batteries are fine if you take care of them right. I already have some 4ah dewalt batteries from a previous dewalt tool score and they work great.

    • Let it burn and let us get along with the Rat killing.

    • TharSheBlows says:

      I sold a King Bed Set a few months back on Craigs List for $5K. The guy was a DR from another state who just moved here. He put half cash down, and the other half cash when I delivered it to him and set it up in his 5000 Sq Ft Home, with a pool on 10 acres. He understands quality like I do.

      Wooot Wooot!!!! CL works for me, many times over and over again. If you wanted to work it, you could buy and resell for a living on CL. Need to be in a good area that is active though.

  4. Philosopher Deplorabilis says:

    Many people are clueless. The day their phone / internet goes down is the day they will have to start living.

    Subbed to Brandon’s newsletter, earlier today. $40 a year? Worth it!

    Free sample and he talks about the need for comms and a shared code system. A shared code between two people based on a commonly available book in many households (KJV Bible and Joy of Cooking come to mind) is an excellent reminder. How will you communicate with loved ones when the grid is down? Do you have a Hamm radio license? If not, why not?

    • Genius says:

      Uh because I don’t believe in being registered with the feds or states. I do fine without a permit slip and fees and them knowing my biz…

    • Justice says:

      Philosopher Deplorabilis and Genius, I’ve been looking for a comm’s code system, if either of you can recommend a source I can use? I was just going to modify one, but haven’t gotten around to it yet.

      • google “book code”, which is an old system DP is referring to. you must have the exact same edition of the book for it to work.

        Depending on your security needs, consider a rotating set of codes, maybe something based on time of day or date.

        If you are of a particular religious or social circle, use a reference code. use certain bible passages to signify certain information. Hold an AA meeting online in a chat room: use code phrases related to the meeting topic like “I relapsed 5 days ago at Moes Bar” can mean “we need to meet in 5 hours at Steves Bar”. Be creative, but try to sound sincere.

        Safest form of comms is not broadcasting your info everywhere, especially by radio. Digital over HF is a pretty cool option, and the feds want it shut down because it creates problems with them listening in. Look into it. Consider dead drops (try not to use locations often) or signals (fox mulders blue light in the window in x-files, different colored clothing on a line on your property in a certain order- red/white/blue: “all is well”, white white white for “help”, red, red red for “danger, stay away” etc). Physical signals can even be sent electronically. Email or post a pic of your dog with the clothesline in the background for example. Steganography is a whole different world, check it out.

        If you insist on electronic communications, get PGP/use strong encryption, use a vpn or TOR (just educate yourself on the risks like exit nodes), never do your banking etc from the same computers (burner laptops are great). NEVER expect smartphone comms to be secure. ever.

        remember EVERY code, encryption, passphrase or protocol can be broken. Its a matter of time. your task is to make it long enough they cannot affect your op, or use the broken code to break future comms.

        Its a fun mental task honestly, and once you go go down the rabbit hole, you will find yourself experimenting with all sorts of things just for fun. best of luck!

          • Genius says:

            All the comms we use are 4 watt handheld and not on ham frequency. They signal does not leave the valley. No one is going to hear it outside the valley. You have to be the worlds biggest moron to use ham frequencies without a license. I guess some people are too stupid to figure that out….

            • “You have to be the worlds biggest moron to use ham frequencies without a license. I guess some people are too stupid to figure that out….”

              yep. its amazing how many people get up in arms about it too lol. “I dont need no dang license!”

    • Justice says:

      Philosopher Deplorabilis, I don’t have my Ham license but I signed up for my GMRS license. My brother is the HAM guy.

      • TharSheBlows says:

        Hey man, you don’t need any damn CB radio license.. Get on there and yuk it up all you want with the highway homies.

        I do however listen to the NOAA weather band stations on my hand held portable ham.

        • GMRS is not CB, far from it. CB is on the 11 meter HF bands and has the range advantages of HF and if you are clever you can take advantage if NVIS to obscure your location for close range comms. GMRS is strictly short range, low-ish power line of sight in the 400mhz range. GMRS is similar to 2 meter. GMRS (a commercial derivative of FRS) DOES require a license, and you can occasionally run into pissed off fleet users, manufacturing facilities or warehouses who think they have licensed/purchased an entire chanell for their own use. The upside is that they are pretty much incapable of doing anything about it (whereas HAM users will foxhunt you for fun) and will eave you be if you stay off “their” channel.

    • 2Dogs says:

      Grid down situation you probably would need a ham license due to WROL

      • actually, even in a situation with an infrastructure and rule of law, you can still legally use amateur frequencies as its an “emergency”.

        §97.403 Safety of life and protection of property.
        No provision of these rules prevents the use by an amateur station of any means of
        radiocommunication at its disposal to provide essential communication needs in connection with the
        immediate safety of human life and immediate protection of property when normal communication
        systems are not available.
        §97.405 Station in distress.
        (a) No provision of these rules prevents the use by an amateur station in distress of any means at its
        disposal to attract attention, make known its condition and location, and obtain assistance.
        (b) No provision of these rules prevents the use by a station, in the exceptional circumstances
        described in paragraph (a) of this section, of any means of radiocommunications at its disposal to assist a
        station in distress.

        • FYI, a “station” and an “operator” are 2 different things. the operator is the licensee, the station is the equipment.

          (5) Amateur station. A station in an amateur radio service consisting of the apparatus necessary for
          carrying on radiocommunications.

      • 2Dogs says:

        Oops would not need

  5. Frank Thoughts says:

    The checklist:

    1) Christine Lagaarde
    2) Mark Carney
    3) Trump the Chump
    4) AOC
    5) Sleazy UN Secretary-General Guterres who likes to take bribes
    6) Social media blackmail operation complete
    7) Internet blackmail operation complete
    8) Derivatives to infinity
    9) Everyone in debt and significant reduction in middle class
    10) Record inequality

    Yep, looks to me like they are ready to go.

  6. Seminole Wind says:

    Saw this article on Rawles blog last weekend, awesome comedy!

  7. SF Mo (in AL) says:

    Let it burn and let us get along with the Rat killing.