The Fed’s Own Data Says This Happens Next: “The Market Is About to See Half Its Value Wiped Out”

by | Jan 25, 2016 | Headline News | 144 comments

Do you LOVE America?


    Editor’s Note: The following report originally published at Zero Hedge is based directly on data, analysis and information provided by The Federal Reserve. Most people may not know this, but The Fed has been attempting to control the economy from the get-go and many of the actions they took during the Great Depression rhyme with what they’re doing now. And if history is any guide, then all hell is going to break loose in coming weeks and months. The last time they attempted similar machinations it resulted in a major collapse of global financial markets. But this time is different, right?

    thefed-dees2 thefed-dees

    The Fed’s Stunning Admission Of What Happens Next
    By Tyler Durden

    Following an epic stock rout to start the year, one which has wiped out trillions in market capitalization, it has rapidly become a consensus view (even by staunch Fed supporters such as the Nikkei Times) that the Fed committed a gross policy mistake by hiking rates on December 16, so much so that this week none other than former Fed president Kocherlakota openly mocked the Fed’s credibility when he pointed out the near record plunge in forward breakevens suggesting the market has called the Fed’s bluff on rising inflation.

    All of this happened before JPM cut its Q4 GDP estimate from 1.0% to 0.1% in the quarter in which Yellen hiked.

    To be sure, the dramatic reaction and outcome following the Fed’s “error” rate hike was predicted on this website on many occasions, most recently two weeks prior to the rate hike in “This Is What Happened The Last Time The Fed Hiked While The U.S. Was In Recession” when we demonstrated what would happen once the Fed unleashed the “Ghost of 1937.”

    As we pointed out in early December, conveniently we have a great historical primer of what happened the last time the Fed hiked at a time when it misread the US economy, which was also at or below stall speed, and the Fed incorrectly assumed it was growing.

    We are talking of course, about the infamous RRR-hike of 1936-1937, which took place smack in the middle of the Great Recession.


    Here is what happened then, as we described previously in June.

    [No episode is more comparable to what is about to happen] than what happened in the US in 1937, smack in the middle of the Great Depression. This is the only time in US history which is analogous to what the Fed will attempt to do, and not only because short rates collapsed to zero between 1929-36 but because the Fed’s balance sheet jumped from 5% to 20% of GDP to offset the Great Depression.

    Just like now.

    Follows a detailed narrative of precisely what happened from a recent Bridgewater note:

    The first tightening in August 1936 did not hurt stock prices or the economy, as is typical.

    The tightening of monetary policy was intensified by currency devaluations by France and Switzerland, which chose not to move in lock-step with the US tightening. The demand for dollars increased. By late 1936, the President and other policy makers became increasingly concerned by gold inflows (which allowed faster money and credit growth).

    The economy remained strong going into early 1937. The stock market was still rising, industrial production remained strong, and inflation had ticked up to around 5%. The second tightening came in March of 1937 and the third one came in May. While neither the Fed nor the Treasury anticipated that the increase in required reserves combined with the sterilization program would push rates higher, the tighter money and reduced liquidity led to a sell-off in bonds, a rise in the short rate, and a sell-off in stocks. Following the second increase in reserves in March 1937, both the short-term rate and the bond yield spiked.

    Stocks also fell that month nearly 10%. They bottomed a year later, in March of 1938, declining more than 50%!

    Or, as Bank of America summarizes it: “The Fed exit strategy completely failed as the money supply immediately contracted; Fed tightening in H1’37 was followed in H2’37 by a severe recession and a 49% collapse in the Dow Jones.”

    * * *

    As it turns out, however, the Fed did not even have to read this blog, or Bank of America, or even Bridgewater, to know the result of its rate hike. All it had to do was to read… the Fed.

    But first, as J Pierpont Morgan reminds us, it was Charles Kindleberger’s “The World in Depression” which summarized succinctly just how 2015/2016 is a carbon copy of the 1936/1937 period. In explaining how and why both the markets and the economy imploded so spectacularly after the Fed’s decision to tighten in 1936, Kindleberger says:

    “For a considerable time there was no understanding of what had happened. Then it became clear. The spurt in activity from October 1936 had been dominated by inventory accumulation. This was especially the case in automobiles, where, because of fears of strikes, supplies of new cars had been built up. It was the same in steel and textiles – two other industries with strong CIO unions.”

    If all off this sounds oddly familiar, here’s the reason why: as we showed just last week, while inventories remain at record levels, wholesale sales are crashing, and the result is that the nominal spread between inventories and sales is all time high.


    The inventory liquidation cycle was previewed all the way back in June in “The Coming US Recession Charted” long before it became “conventional wisdom.”

    Kindleberger continues:

    When it became evident after the spring of of 1937 that commodity prices were not going to continue upward, the basis for the inventory accumulation was undermined, and first in textiles, then in steel, the reverse procees took place.

    Oil anyone?

    And then this: “The steepest economic descent in the history of the United States, which lost half the ground gained for many indexes since 1932, proved that the economic recovery in the United States had been built on an illusion.

    Which, of course, is what we have been saying since day 1, and which even such finance legends as Bill Gross now openly admit when they say that the zero-percent interest rates and quantitative easing created leverage that fueled a wealth effect and propped up markets in a way that now seems unsustainable, adding that “the wealth effect is created by leverage based on QE’s and 0% rates.

    And not just Bill Gross. The Fed itself.

    Yes, it was the Fed itself who, in its Federal Reserve Bulletin from June 1938 as transcribed in the 8th Annual General Meeting of the Bank of International Settlements, uttered the following prophetic words:

    The events of 1929 taught us that the absence of any rise in prices did not prove that no crisis was pending. 1937 has taught us that an abundant supply of gold and a cheap money policy do not prevent prices from falling.

    If only the Fed had listened to, well, the Fed.

    What happened next? The chart below shows the stock market reaction in 1937 to the Fed’s attempt to tighten smack in the middle pf the Great Depression.


    If the Fed was right, the far more prophetic 1937 Fed that is not the current wealth effect-pandering iteration, then the market is about to see half its value wiped out.


    h/t @pierpont_morgan

    Also Read:

    This Is How Quickly Society Will Break Down: “If You Don’t Have Food Yet I Feel Sorry For You”

    Digital Grid IS The Beast System: Norway Eyes “Complete and Total Elimination of Cash”

    Forced Economic Free Fall: “The World Is About To Enter A Global Depression Unlike Anything Seen Before”

    The Powers That Be Have Lost Control: “Everything Is Falling Apart Everywhere”


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      1. The DOW Jones can not and must not be watched as the market indicator. Only 30 companies are represented by the DOW and they are only the good ones.

        If a DOW company starts to do poorly, they are replaced by a better reporting company.

        Watching the DOW Jones is just another tool the MAN uses to control the people. People saw, “Hey, the DOW is doing ok today, all must be well.”

        When in reality to stock market is totally tits up and the DOW is hiding it all.

        You got to love propaganda. Everybody does it now a days.

        • “… that the Fed committed a gross policy mistake by hiking rates on December 16 …”

          I have to disagree with TD here. The business cycle was basically already over and the markets were on a death watch before the rate hike, and had been for some time, with people wondering what was keeping them up. Remember?

          The FED has the best info, and in advance.

          The FED knew that CARNIVAL was finally over, and they were just SIGNALLING to the Uber Rich that it was time to exit the markets when they made a SMALL 25 bprate hike.

          Of course the Uber Rich like to blame the FED for causing the downturn because their excesses which led to the decline/downturn/crash are not culpable then. They use the FED as a whipping boy to hide their sins.

          For the FED, who is not ACCOUNTABLE to anyone, the criticism is water on a duck’s back. Just saying. That’s the way the game is played. See? 🙂

          • “The Fed exit strategy completely failed as the money supply immediately contracted;…”

            LMAO!!! Of course it did … AS INTENDED …. to kill the BRIC’s; China the most. The money supply always contracts when the FED raises rates.

            The FED understood the effects on every major world economy with a rate rise. So much for threatening FED hegemony. Now its currency is under siege, too. 🙂

            • The FED is crushing its competition and it will sacrifice US on the Altar of Globalism to achieve that goal. Don’t miss the forest for the trees, my peeps.

              That is the end game. 🙁

              • the end game is to rule the WORLD, and that is what it ALWAYS has been from the few elites! remove that scum and things will become very violent for awhile and then start to settle down, until more scumbags come along! KEY is cut the SNAKES head OFF and things will get better!

              • Also, if The Fed ‘crushes the competition’ by sacrificing the U.S., doesn’t that mean the end of The Fed?

                That kind of seems like silly reasoning.

                But, I’m sure you have a rational, reasoned and calm explanation worthy of your own website that millions of people could learn from. What’s stopping you?

                Do you mean to say that the B.I.S. is really the top dog?
                Anyway, … creating a website is real easy. You should give it a try.

                • Helot/Clark: You said; “Also, if The Fed ‘crushes the competition’ by sacrificing the U.S., doesn’t that mean the end of The Fed?”


                  US is us. They will sacrifice the wealth of the Middle Class, and have, to bring the BRICK’s to their knees and back in line; and are doing it. 🙁

          • RE: “Of course the Uber Rich like to blame the FED for causing the downturn because their excesses which led to the decline/downturn/crash are not culpable then. ”

            So, you’re excusing The Fed now and blaming the rich?

            Boy, you really should create your own website, you’re a brilliant financial genius we could all learn from, especially by what you’re doing in your neck of the woods to make things better.

            …You are doing something, right?
            …You do know how easy it is to create a website, right?
            …With links, so we don’t have to look it up in the archives.

            I mean, to say that The Fed didn’t create this mess, wow. No one else in the alternative media is saying that. You must be double plus sthmart.

            • Helot/Clark: You said: “So, you’re excusing The Fed now and blaming the rich?”


              I am pointing out that the excesses of the Uber Rich are the fundamental cause of the business cycle as they produce, profit, borrow, produce, borrow, borrow, produce, profit, borrow,borrow,borrow until that debt becomes unsupportable by their revenue.

              Then they cut production, and repay their debt or default on the loans depending upon their cash management ability. Non Performing Loans cause banks to cut lending and the expansion cycle contracts. The FED has the aggregate data in house, before anyone else. Think of the FED as a referee with the clock.

              Think of a 25bps rate hike as the “two minute warning”. That’s the way the game is played. 🙂

              • There’s more to it than that. The “elites” OWN the damned Fed. No matter WHO is nominally in charge of it, Rothschilds et al give the orders. The Federal Reserve, for anyone who doesn’t know, is no more “Federal” than Federal Express, and for the same reason. They’ve been printing worthless money while stealing the gold that used to be in Ft. Knox and a couple of other places. The USD is hardly worth the paper it’s printed on.

        • Of the few blacks who ever invented anything, 15/16ths of them had some white ancestry.

          The average American black has 20% white DNA. That’s why their IQs are 10 points higher than a black Africans.

          Environment has nothing to do with it. Black children adopted into upper class white homes still have the same average IQ.

          The countries with the greatest colonial presence are faring the best at the moment.

          • Off topic stupid sheet with no facts to back up what you said, Acid Etch, you must be Dk’s backward brother from another mother.

            Nevermind how you gloss over the effects of Central Banks upon nations and regions, you just. don’t. get it.

            People are not numbers on a statistical chart, quit playing the NWO’s game.

            • no, i think he’s a muthuh from another bruthuh?

        • SNOWSHOES

          LL Bean makes some sturdy ones.

          Snowshoes are heavy and awkward and still sink down about 8″ into the snow when you walk, but its better than the alternative. It’s very slow going in any case and you will tire very quickly. You aren’t going very far in deep snow no matter how fit you are. If you fall, you will have quite a time getting back on your feet.

        • Mittens are much warmer than gloves. You should wear a pair of polyester liner gloves underneath a pair of DWR water-resistant fleece mittens which convert to fingerless gloves when you flip the top off. You can add a waterproof-breathable shell mitten, if and only if it precipitates.

        • Getting inside the treeline make essentially no difference in blocking snow or wind.

          It is easier to travel in deep snow at night because it is colder and the snow will glaze over, making it less compressible underfoot.

        • It is better to wear sunglasses than goggles in a blizzard because they have less chance of fogging up.

          Make sure to coat them with a surfactant in any case.

        • 5% of whites owned slaves

          30% of freedmen owned slaves

          50-75% of Jews owned slaves










          • raysis

        • I was wondering about that. I feel like I’m watching a magician who is doing sleight of hand, while he’s searching for the rabbit to pull out of the hat. Good luck with that, the rabbit chewed his way out….

      2. It has happened before, it will happen again.

        If one is on the right side of the bet, one can come thru looking pretty good.

        Eyes open, no fear…

        • The Longs, like 401K Holders lost trillions. The hedge funds shorting these same stocks made trillions. Its called wealth transfer by professional manipulation. Winners are chosen, just ask the banks withe Tarp aka Tax Payer Money, funded Banks to buy back their own Co stock. Sheep get butchered.

          – WWTI..

          • I bailed out on investments back in Feb of 2007 after reading too damn much. I neglected to realize the ability of the bankers to back feed QE money into the stock market in a post Glass-Steagall environment. The market went from 12,000 to 6,000 and up over 16,000.

            I know several blue collar people that have 2 million plus. Many with at least 1 million. I played it safe and now is damn sure no time to be in. I missed the boat sinking but also missed the later voyage home.

            Do not underestimate the banksters.

            • RE: “I neglected to realize the ability of the bankers to back feed QE money into the stock market in a post Glass-Steagall environment.”

              No, it’s rather, you didn’t know how badly the Senate and the House were sold out to corporate Fascism and you underestimated The People’s willingness to accept said Fascism. In the 1980’s the experts said this would never be allowed to happen, it would be illegal, they said, the people wouldn’t stand for it and the currency would loose all value as a result.

              Maybe we have a different breed of ‘people’ nowadays? I dunno. However; I don’t think it was the bankers ability which you underestimated. Rather; it was The People, and their so-called leaders. Imho. Same as it is now with everything else. Nutz.

              • helot

                Its not the intent but rather having the ability to:

                1. Create money from nowhere (I realized their ability to do that)
                2. Feed it into the Stock Market in sufficient quantity to dramatically raise the DOW from 6000 to 16,000 surpassing the pre crash value by 25%.
                3. Little inflation relative to the massive increase in liquidity put into the system via 45 billion/ month Treasure purchases and #2 above.

                Despite all of the above the USD at this point in time is in high demand as its value has increased due to the drop in oil.

                Who is at fault? How is it rectified if it even can be? Regardless TPTB had this card up their sleeve. You don’t have to like them but do not underestimate them.

              • Look up the effects of nano-aluminum and mercury on the brain.

      3. I’m still waiting for my Enron stock to come back to life, (sarcasm)

        • I still have a million shares of that I can’t do anything with.

        • I actually made money on Enron. Bought in when it was a penny stock that doubled. Made $1500 in one day. Good times.

          • Enron is a VERY bad subject, all my projects were Enron and all my monies were tied to that and SOOOOOOOO, PAST TENSE on money!
            i did not get hit as bad as some but bad enough! happened to quick to do much about it!

            • I have a friend who is a programmer who worked at Enron in Houston for 3 months. He was paid $100 an hour.

              He was hired, sat in his office everyday, playing solitaire. The project never started and they never had any work for him. He sat there for three months until finally a manager came in and said the project was canceled and fired him.

              He said that the waste and frivolous spending was prevalent at Enron right up until the end.

              • Sounds like government work

            • They stopped withdrawals from the system “temporarily” while the retirement fund was moved to a new manager. The big guys made their move right before everybody else was chained to the sinking ship.

      4. Here is a thought china built cities that are empty in the middle of nowhere but everything is in place and for years they grabbed all the steel they could are tptb bunkers located in china (SOME TRUTH TO THE MOVIE where they had built arks in china but are actually bunkers) and have planned and payed for it all these years via oil and now that they are ready to depopulate and are set up and have gathered majority of the gold oil is cheap cus they are ready to start it and first country to depopulate is where you plan to be at then let it spread

        • They recently dropped their “one child” policy. Strange timing according to your theory.

          • I heard they dropped the one child policy in name only.

          • Yea at the end when it wont matter but will passify the masses dont look at the right hand watch the left

        • I believe we have peaked in terms of the remaining ‘wealth’ in the world and what it would cost to integrate the ballooning populations of the third world into the economy. Because there is just not enough wealth to cover that cost (look at how Europe is being brought to its knees by refugees), the issue of population will come back on the table, most likely clandestinely.

          China is ready to ‘shrink to fit’: to reduce its population but at the same time upgrade its population into ultra-modern cities and infrastructure. Europe will have to grow a set and do the same but it is a battle between the East and West. The East knows the score and will lead on this (along with Russia).

          There are parts of the world that will have to be de-populated because a) the environment can’t handle them, b) they cost too much to upgrade the people and there is not enough time to do so, c) populations who are already very advanced will lose patience with these people and their countries and act.

      5. Is it tptb plan to depopulate or is something going to happen they know of but have no control over and are just saveing own asses

        • WOOT! Millions of morons are gonna die! Good riddance to those useless resource consuming zombie turds that are killing us all and making us pay out the wazoo for our own demise. The day the earth stood still was a good movie and pretty factual. We are a destructive species and left out of control will kill everything. Harsh but true and I dare anyone to refute that fact…

          • On another note, you can use a ceramic or metal cup and fill it with alcohol or gas an use it as a heating devise for cooking. You can also use kerosene or lamp oil just smother it when your done. Cheap and readily available fuel and so simple a caveman can do it.

      6. A shame really. I’d like to know who these people in the Fed are. So we can string em up.

        • Don’t bother; they’re the hired help. If you want the real perps, go after the Rothschilds, Rockefellers, Warburgs, Fords, etc.

      7. They did reopen the mountain where norad was and moved back in

      8. Ok so what. We have all know this would come to pass.
        We have all prepped and are ready. Like last time we weathered the storm.

        Now when the market crashes, and there is another terrorist attack at the same time, that is when you should worry. Then Obullshit and his turds will start playing their games.

        Be safe my friends. Put your Faith in the Lord and your preps.


        • Amen, the Lord first, allow the Holy Spirit to provide leadership and direction as we move forward, and prep like it’s all going to come to a head soon – and it is!!!


          Son of Liberty

          • 😉

          • The lord as you say is probably an alien race that created us with help from the universal intelligence. I think the lord will see what a failure the human race is and destroy them to save the gem called earth. There is a shitload more evidence that aliens were here long ago and designed things than any evidence of bible truth. I feel we have been through several cycles now and failed everytime. We are failing again and so the big reset will happen. The lord has to know that we are to stupid and to irresponsible to last for long…

            • Oh Genius. Cut it out, can’t ya.

            • He’ll say he is proud of where man has been, or tear it down and start again…

      9. I posted the other day about the new bird flu they found here in indiana at turkey farms well i just read and it was on the news where offenders at putnam co state prison are haveing severe flu symptoms one dead and one on ventilator bad and spreading but whats the kicker is the only meat offenders get is turkey like balogna sausage fake rib meat turkey burger ect but all is turkey what do they feed them in fed prison and no i was not an offender but i worked for the state for 10 yrs then realized

        • I don’t think bird flu is transmitted by eating it. Cooking the bird would kill any virus anyway. I suspect some prison labor was used at the turkey farm and they caught it by breathing in the virus.

          Probably a case there for illegal use of prison labor if anybody bothers to look into it.

          • Never said they worked there besides its no place near the prison you been watching the green mile havent you cus they do not do that any more farming out labor hell the state has to pay an offender .63 cents a day to be a porter and clean the bathrooms just becausr of the illegal labor that used to go on way back when so gotta love that aclu

            • Caledonia State Prison Farm in n.c.. They grow and can 500,000 gallons of food every year to feed the state system.

              • Yea putnamvill state pen where i was talking about used to be called the farm cus thats what they did now its where they put and take care of retired race horses and build wood pallets

                • Yeah, you sound like an ” inside” expert on the place. You probably have years of experience in places like that.

                  • No but was gov official and from the sound of you i would say you have been in prison at some point in time

        • It’s full of tryptophan. It makes people tired, sleepy. And it’s cheaper than drugs.

      10. Larry Nichols, a self declared Clinton Insider, states that back in 1986 the Clintons had a long term plan to get Bill into the Presidency and then put Hillary there and she would then place Bill as the US ambassador to the UN. Bill has been making worldwide connections over the past decade while working in his Clinton Foundation. He would use those connections to vault himself into the position of Secretary General of the UN. He and Hillary would then be the most powerful couple in the history of the world and would be in a position to bring about the Builderberger dream of the One World Government.

        However if Hillary is charged with a Federal Criminal Inditement she must withdraw from her run for the presidency. (She will never be tried because you can not have a secret trial and all the documents are top secret or classified so they can not be admitted in court so the judge will have to declare that a trial can not take place but that could take years to happen.) If that occurs before the primary then the leading candidate will win it. But if it occurs after the primary, the Democratic Party Executive Committee will nominate the candidate who will run. That will be Biden. He has been running a “ghost campaign” for months now and at his recent State of the Union to the people Obama mentioned how Biden had made a pledge to cure cancer in 2 years. Nichols says this is a often used political tactic of candidates. I have lived long enough to have seen it used several times and Nichols says that even if most people do not believe him or do not believe it is possible they will still vote for him on the chance it could be true. Biden is in this race. Nichols goes on to say that once Biden wins he will appoint Obama as ambassador of the US to the UN. Obama has been quietly working on getting himself considered for position of Secretary General of the UN. He wants that position. So it would appear to be in Obamas’ best interest for the crash not to occur until after the election. Nichols says Obama, and those who direct him, are extremely powerful within the Federal Government. That would mean the crash could be held off till late November.

        However if there is a catastrophy and the FEMA powers government is enacted and martial law declared, Obama would not need Biden. He could remain as President of the US indefinitely and he could appoint himself as US ambassador to the UN. He could do this because the FEMA government is set up like a kingdom with an all powerful king and lower Dukes, Earls etc. There is no Congress in that government model. Obama could be head of the US and the UN. And in that position he could have unlimited ability to bring in millions of illegal muslim immigrants. In the eyes of the muslim world he would be their world wide leader of Islam. And the laws of this nation would be whatever Obama made them at that time.

        If the economic collapse was big enough and the government had some hired provocateurs in the streets to incite riots or violence and if it was so bad that the people cried out for help, the govermment could declare martial law and FEMA government.
        Larry Nichols states “This is dire. People do not understand but this time is dire”.

        I an not a Trump fan, especially for President but based on the 2 other options he is looking better. If either Clinton or Obama gets Secretary General of the UN it will become open season on Christians immediately. And if you recall when communist governments take control they do it brutally and with much bloodshed so the people will be afraid and obey.

        Clintons= communists * Sanders= socialist=communist * Obama= muslim who prays 5 x/day to mecca according to White House staff and hates the USA and lifelong communist * Cruz= bankster owned = wife is an active executive of Goldman Sachs * Trump = has the $ to finance himself but why? What are his goals? He is a part of the elite that is how he is able to function within them. Is he really wanting a safe and strong USA or does he have his own agenda? He will live well no matter what.

        • I am suspicious of this post for the following reason:

          Larry Nichols, a Clinton insider, knows them since 1986…….

          I think all those Clinton insiders have already been dispatched.

          Terrible, the tragedies that have befallen Clinton insiders.

          • Stiner: I have been posting here for years. Why don’t you just look up Larry Nichols. He makes no secret of his message. I am not saying it is gospel truth as it is his opinion. I am saying he said it and it has some points for us to consider. It is all about being educated in more than your own opinion. The other guy may not be acting on your opinion. And his actions affect you.

            • Cara, sounds about right..

          • Quite a few people on Obama’s back trail have bitten the dust, too. Including Barry Soetoro’s half sister. I suspect she talked too much.

        • Great summary of the Alex Jones interview with Nichols from last week.

      11. Off Topic.

        MAC something to look into?

        Why did a leading US Senator tell his wife Friday night to go to the ATM and draw out as much money as she could?

        This Senator, Richard Burr is the Chairman of the intelligence committee (oxymoron).

        Something coming. False Flag? Terror Attack? I don’t believe for one second it was a snow storm.

        Found this on MSN.


        • Just looked up Sen. Burr. He is big into Cyber Terror.
          Just letting you guys know.

        • I call bull…s-it on that comment sir. Sounds like hearsay. Do you have documentation to back up that fear mongering sarge?

          • RJ
            It was no MSN on the headlines on my computer. That was were I found it this afternoon. Look it up.

          • Richard Burr Encouraged Wife To Perform Single-Family Bank Run

            By Sara K. Smith –

            April 15, 2009 – 12:09pm


            Share29 Tweet1 Share36

            Restoring public confidence in our nation’s banking institutions!North Carolinians, did you know your only national senator besides godless Kay Hagan is some guy who wanted his wife to withdraw his family’s entire savings from his local bank one ATM transaction at a time? If everyone had done this back in September, maybe we really could have had a good old-fashioned Depressiony bank run like in olden times.

            Here is a little secret: Banks do not keep all of their deposits on hand, in cash, all the time. So if everybody collects their deposits on the same day, the banks will quickly run out of cash and then there is a BIG OL FREAKOUT. This is called a “bank run,” and it is not usually encouraged by people like senators from states that are home to major banking institutions.

            Also, true fact: Most ATMs only allow you to withdraw $300 or so a day, in cash, although maybe if you have a fancy account they’ll let you take like a grand? (Ha ha, guess who does not have a fancy account for reference purposes!)

            During a speech on the economy last night, Burr related his immediate reaction the week the crisis began. After hearing Treasury Secretary Hank Paulson relay a story about a major company having trouble transferring money between banks, Burr became worried about the solvency of his own bank.

            “On Friday night, I called my wife and I said, ‘Brooke, I am not coming home this weekend. I will call you on Monday. Tonight, I want you to go to the ATM machine, and I want you to draw out everything it will let you take,” Burr said, according to the Hendersonville Times-News. “And I want you to tomorrow, and I want you to go Sunday.’ I was convinced on Friday night that if you put a plastic card in an ATM machine the last thing you were going to get was cash.”


            A jaw-dropping 21-month 0% APR is here


            Here is the site.

        • Snow Storm

        • Sarge, I did a quick search and the results I found were from 2009.

          That being said… I picked up 10 more gallons of diesel today, was nice to pay more for the cans than for the fuel that went into them.

          Got 5 military trauma kits for $50.00 ea (one for each family member and one for the RV), it’s a fricken First Aid kit on steroids.

          Have two 300 gallon water totes filled up, need to pick up two more. Been picking up heirloom and organic seeds as they come available, haven’t seen any seed potatoes yet this year, can’t wait to try again.

          All 4 of my chickens are now laying. Going to look at getting some rabbits too. Just for fertilizer right now but possibly to breed for meat later.

          Got to pick up a new chain for the saw and head down to pick up another cord of free wood they dump on the roadside near my work.

          Might make a trip to the coin shop and pick up a few silver dollars too. I love buying silver right now!

          • Where to get military trauma kits? I have made up my own first aide kits with Israeli military wound bandages and the usual stuff you keep on a boat if you are sailing across an ocean.
            My standard for first aide is middle of the Pacific ocean and no help available – forever.
            Thanks for the info.

            • Friend of the family was a heli instructor in the Army and when they pulled up roots in the Alaska base she was at she happened by a few truckloads of things they couldn’t get rid of so she brought them back with her.

              You can buy them on ebay for around $100.00 ea. Here’s one (drag the url into your browser (Firefox) or copy/paste (IE):


              • Looks like a good kit. (I was USN Hospital Corps and a paramedic).

          • Billy Hill,

            Monsanto bought Seminis and other non GMO seed companies. It is now going after our alternate market.

            • That is definitely cause for concern. The politicians are allowing Monsanto to control
              much of the world’s food supply. A food supply that is not fit for consumption.
              Chemtrails are poisoning the water supply. Carbon taxes. Stephen King should sit in on
              a Bilderberg conference. Stuff that is happening right now defies all logic.

              • Yup. And, it’s amazing how little attention geo-engineering gets. Especially after all the recent and Very detailed bits on ActivistPost. At the very least you’d think the global warming/climate change crowd would be all over it like flies on… But no, slaves don’t look up. Or, think.

              • Those chemtrails are also poisoning farm-grown foods labelled non-GMO. They ARE on-GMO – they’re just loaded with nanoaluminum and other chemtrail crap.

          • Get a carbide chain! They are worth 10X the price in durability and years of sharpen free sawing. I buy nothing but carbide for my saws they are the shit! Nothing I hate more than stopping and having to sharpen chains all the time, when I have used the same chains for 3 years and never had to sharpen them! Pay the price and get the best stuff!

            • Interesting. I’ve been swearing by carbide end mills and drills for decades. Never ONCE considered them for a chain saw. I’m stopping by the shop today to get the chain and I’ll ask if they carry the carbide ones.

              Thanks for the heads up.

            • Thanks for the tip! I didn’t think about it either. Didn’t know they were available! Blessings to you!

            • Just got back, they didnt’ have any carbide chains in stock. He said they cost around $125.00. I’ll eventually get one, but for now I bought a new steel one for $25.00 and am getting the existing one sharpened for $9.00 so I’ll have two fresh chains for this afternoon’s cutting. 2 is 1 and all that. 🙂

        • Sarge
          if I remember correctly that little incident is from the financial crisis in 2008
          that dirt bag of a politician was telling his constitutients
          that all was well
          meanwhile Congress had been told that a financial collapse was possible and that martial law might have to be invoked

          but then again
          maybe something else is getting ready to happen?

        • Sgt. Dale

          “Why did a leading US Senator tell his wife Friday night to go to the ATM and draw out as much money as she could?”

          What the hell can you do with $500?

          I don’t buy it.

          • Hence I never have more than 500 in my account. ALL my currency is in cash. Pay cash everywhere or money orders. Just enough to buy my online things are in the bank and quickly spent. Only an idiot keeps a lot of currency in the bank 🙂

            • Genius,

              I use cash to buy gift cards to shop online.. I wait till krogers has 4x the fuel points on gift cards, then buy them.. Last month I had $1.00 off a gallon 2 times, and 60 cents off a gallon once.. Also using gift cards to shop online, you don’t have to have a CC Attached to your account either.. I just wait till I’m ready to shop then load the cards onto your account..

              • just be careful with gift cards…when the place goes out of business, yer cards are worthless….and lately, there’s a LOT of companies going out of bizz…just sayin’.

                • B.C. Yep you have to be carefull. 99% of the time I stick to the big, big box stores like amazon, Home Depot, Lowe’s, Cabela’s.. Ect ect.. But, as is anything you do in life, theirs always risk of some kind..

          • K2: I agree. Why not just go inside the bank and withdraw the cash you need? Most ATMs have daily limits of between $200 to $500. And why wait to withdraw cash? Doesn’t pass the smell test for me.

          • K 2
            I looked it up Senator Burr telling his wife to do so. I put it on the site, but its in moderation.
            If it comes up read last paragraph.

            • Well the guy is mathematically challenged as $500 isn’t doing anything for you. Why would he say it if he did? Who knows.

        • Blizzard? No power for days/ weeks if power outage?

      12. Honestly, we’ve heard this prediction many, many times before. I can find articles written in 2001 that say almost exactly what this article states. As been said often; a broken clock is right twice a day, so long a predictions about any topic are made, mathematically speaking, it will happen sooner or later. And in case someone is reading these posts that know what they are talking about; the economy has done well with a bad stock market, and has performed poorly with a good stock market, such as now. A large economy simply cannot fail over night, only people with a limited understanding of natural economic laws believe that.
        The market can slide a great deal, and will, but for the economy to collapse as so many people writing posts on this site are craving to happen, more than a failing stock market has to occur. The bond market has to fail, banking systems have to fail with no more assistance to be propped up (and therefore money is drying up), then consumer spending must dry up causing all the various markets suffer; like energy, or real estate, or investments, or cars, or whatever. All these will lead to unsustainably high levels unemployment. Most people have it wrong; total economic collapse does not lead to social disorder, it is the other way around.
        However, I am a prepper because these events are in the process of happening, and a severe and protracted downturn will eventually occur (it will be bad, very bad, but not mad max like). Stop wishing for it to happen, it eventually will. My personal belief is we will see some big cracks open up later in 2017 after the honeymoon of the new administration.

        • RE: “A large economy simply cannot fail over night, only people with a limited understanding of natural economic laws believe that.”

          I didn’t know there were such things as economic laws. Where can we read the list of economic laws? They must be written in stone somewhere. They must be unlike the laws of chemistry where there are no absolutes.

          Wait a minute, “natural economic laws”? What’s the ‘natural’ part? Do you mean like Human Action? Like the Austrian Economist all teach? I don’t think they have absolutes like that. They are much more sensible.

          Where does this “natural” part come into play from? Do you mean like the Keynesian Economists and their crazy “animal spirits”? Maybe that’s what you mean? The Keynesian Economist believe in the cargo cult, too. Is that your idea of ‘natural’?

        • RE: “a severe and protracted downturn will eventually occur (it will be bad, very bad, but not mad max like).”

          Whew! That’s a relief. I’m glad somebody has a crystal ball.

          What else can you tells us oh great and magical one?

          Also, what’s the difference between, “bad, very bad” and, “mad max like”? Is it like the difference between Communism and Fascism?

      13. When shtf and there are no tampons or pads the modern women and girls prob wont give thought to the term being on the rag and do just that i know what will prob happen to all my white cotton socks just like bath towles will become diapers. And guys dont be doing all them nasty women even if it only cost ya a romin noodle cus even a bj by a woman who has a dirty mouth and scrapes will cause a bad infectin and rot your willy off

        • Good contribution……(sarc)

          • Sorry if i struck a nerve with ya john but you should have kept it in your pants in the first place hahaha no seriously hygiene will be horrable for the great majority if they can not just turn on a faucet and get hot water they are either too stupid or lazy to figure something out and people will have abscesses and boils ect and dont forget highly infectious impitego

          • John,
            Is it just me or is there a connection here with women bashing and literacy? The ones that are so negative can’t seem to spell.

            • Anonymous,

              ” godsoldier” is not to blame for his mental illness, it was cultivated by spending too much time in the prison system where women and education are items that are in short supply, he probably has been traded for a pack of cigarettes more times than he cares to remember.

            • Can i send posts to you so you can proof read them first oh yea how about you analy retintively micro manage your self i get enough micro management from the gov its alot like political correctness hip a critic idiot

              • hypocritical….it’s focken’ hypocritical.

        • GS

          Great Gobbly Gook! Hahahahaha!

        • As I’ve often said on here, you need to make sure you have plenty of ‘cillins in your medical bags.

          STDs will be the enemy in camp.

          • Good to have some sheep handy lol 🙂

            • No raincoat for me. I’m too old anyway.


      14. Monistat cteam will be worth a fortune and prob condoms

        • You need to be careful any how so many transgenders out there now.
          Just get the situation in hand when the need arises.
          No muss, no fuss.

        • I’m not asking for exact town, but whereabouts are ya in Indiana? Myself and family are always looking for like minded people in the area.

          • Brazil

      15. Here here, I concur. Amazon, Google, Apple, Netflix and a hand full of others is what is propping up the Dow and the market. Your money should be out of the system.

        • Didn’t see your post and posted pretty much the same thing below….drats!

      16. QE #4 is coming. They’ll just kick the can down the road a tad further and the collapse is delayed.

        As long as the USD is accepted with value, and it has recently risen with the drop in oil prices, breathing room is obtained to create and inject more money into the system w/o a great inflationary pressure. Worry about the day when massive amounts of money are injected into the system, prices significantly rise and holders of USDs unload them.

        Hate to say it but that damn Oil Peg was brilliant. Every once in a while it takes the US Military to keep it functioning. Its Guido and Vinny visiting some nation thinking about dropping out of the Oil Peg that is not hooked up with the Russian or Chinese “family”. “Nice country you have here”; “Wouldn’t want to see anything happen to it, or you”.

        Whats the sense of having the M in MIC and not occasionally using it?

        • M is for monkey, right?

      17. The article is full of irrelevant data….almost 100 years old. History only repeats itself when the rules remain the same….and we all know the game has been seriously manipulated since then.

        We no longer have an economy. It crashed in the fall of 2012. That’s all you need to know. The fictional commerce game we see today only will last as long as the powers that be say it will.

        • RE: “The fictional commerce game we see today only will last as long as the powers that be say it will.”

          The market has no say?


      19. We go from the economy to filthy whores. I like how people say the Dow is not an indicator of the economy. The top 30 companies represent the health of the economy IMO. If the market wasnt an indicator of the economy how come when it’s down people go into a selling frenzy. Oil below $30 a barrel is normal from the high $100 a barrel. It’s lost more than three times its value. From what I see this is a desperate attempt to stimulate the economy. The economy is complicated so is a nuclear reactor and nobody thought Chernobyl would meltdown either. The loads of never ending electric was promising till shtf. Then the suffering began and is still dealt with to this day. When the economy melts down it will be ugly. Nobody has seen a global economic meltdown yet. We’ve been experiencing exceptional growth for a long time and some people have gotten rich off the backs of others. After a boom comes a bust it’s the way shit is. Look at the South Dakota oil boom it was good times for a while but now people can’t even make their rent. Leading economists are saying its in trouble. Gov is making more unconstitutional laws clamping down on freedoms trying to take guns from citizens. They do it because they know that their experiment is failing and they don’t want people to overthrow their power. Come on people put the pipe and bottle down look at what is going on. You can bullshit others but if your true to yourself sit back and look at what is going on. It isn’t looking good. Don’t fuck around you will get burned. Keep your $ don’t buy anything big like vehicles or homes. Don’t buy consumer crap you don’t absolutely need. Just focus on making $ and hoarding it. Live simple now because you will be later.

        • Asshat,

          You said, ” I like how people say the Dow is not an indicator of the economy. The top 30 companies represent the health of the economy IMO. If the market wasnt an indicator of the economy how come when it’s down people go into a selling frenzy.”

          The Dow doesn’t represent the main economy. 80% of all workers are employed through small business. P/E ratios are the underlying metric for the stockmarket….and earnings can be manipulated significantly through special items on a corporation’s profit and loss statement and balance sheet.

          The DOW index is simply and advertisement for wall street. It says to the rest of the world…invest your money in our market because it money is Wall Street’s drug of choice and it needs all it can get.

          So, in my honest opinion, the DOW Index doesn’t represent the “economy”.

        • RE: “Look at the South Dakota oil boom it was good times for a while but now people can’t even make their rent.”

          Yeah, seems like there was some boisterous Twinkie guy full of himself on here awhile back saying they could pump at prices below what the Arabs could and still make money. I hope no one banked on those words. It sure would hurt to have bought a house in that arena.

          • helot

            The process can’t stay at this level as Saudi Arabia is pulling down its cash reserves to make ends meet.

            • Prices not Process

          • The Arabs can just get the big oil boys to do all the drilling and moving and sit back in their air conditioned castles and smoke a hooka…
            In the Dakotas not so much, costs big $ to get that black stuff, not to mention how popular the oil companies are after they pollute the ground water everywhere they drill and bring in the unsavory crowd that follows the oil work around, lil bit worse group than construction draws.

      20. a child having an asthma attack
        and the teacher “leaps into action” by sending a f_cking
        email ???

        Texas eighth-grader suspended for rescuing classmate during asthma attack

        ht tp://…ocid=ACERDHP15

        “The girl told classmates that she was having an asthma attack, but her teacher refused to let anyone leave the classroom, according to NBC affiliate KCEN. Instead, the teacher emailed the school nurse and waited for a reply, telling students to stay calm and remain in their seats.”

        would someone please burn down the entire EDumAkasHUiL system in this country so we can start over ?

        • The whole pile o shit needs to be reset,
          For Gods sake at least stop participating and complying with this crap.
          If everybody does it what they going to do?
          We out number the bureaucrats and their minions by the tens of millions and more

      21. I STRONGLY urge all of you to take a few minutes and go to this site and educate yourselves on the ZIKA virus
        this will be in America at some point
        and it is a mother f_cking bitch (excuse my language)

        h ttp://…126_page1.html

        • Well we might have another virus to worry about. Over to Survival Blog, there is a report that a Virus has escaped from a US lab in Ukraine. Reports coming in state that twenty soldiers have died and 200 more affected. One city/town has also reported cases. It is known as the “California flu”.

          • Ya might wanna spend a few minutes over at NoMoreFakeNews and read up on ‘the flu’. Some things, aren’t what they seem.

        • Heard on the news 2 women in Illinois diagnosed.

        • Traveler in Arkansas has been reported to have zika. All these damned illegals. Th and measles on the rise in Texas.

      22. Did anyone else here the C2C interview last night? Chris Cooper was presented as “nano man.”

        George Knapp was the interviewer last night and I consider him to be a serious news man.

        This was probably one of the most incredible science interviews I have heard in my life. Cooper was talking about many things. With regard to his discussion about nanotech: I have read more than one sci-fi novel about the ultimate ends of nano tech. These are the top two: The Mars Series by Kim Stanley Robinson. There are three novels by Mr. Robinson who took the idea of a space elevator, as first written about by Arthur C. Clarke, to a new level. They were able to build, or rather fabricate a space elevator, after the mass production of carbon fibers became possible through the use of nanotechnology. Nanotechnology simply means that fabrication is possible on the molecular level. IBM was one of the first companies that was able to demonstrate the ability to manipulate molecules and to photograph the results.

        There is a newer series by Hugh Howey, The Wool Series. This explores nanotechnology and COG.

        Mr. Cooper spoke about a space engine that is able to access quantum physics and translate that formerly theoretical view of quantum physics into reality by creating what he calls a space engine that turns quantum energy into a fluid that can be accessed and used as a propellant. Furthermore, Mr. Cooper, in his interview, talks about how to access the quantum field or quantum energy and how to use this energy to power a space engine or to power a battery.

        If this interview is valid, and I have no reason to believe it is a fake, every person will have the ability to power their home, heat their home, and to access electricity at a cost that means no one would have to burn oil or wood or coal. Ever.

        Extraordinary claims require extraordinary evidence:

        Being able to live off grid with only a simple power source is the dream some of us have been waiting for our entire lives.

        • I wouldn’t bet the farm on anything I heard on Coast to Coast AM. I listen to it occasionally for entertainment. I have an archive of shows going back many years, including back when Art Bell was the host.

          Here’s a sample of topics covered just this month: Cryptid Love, Psychic Investigating, ET Disclosure, The Tarot, Greys & Strange Beings, Mayan Lore, Alien Hybrids, and Soulmates & Reincarnation.

          FYI, the regular host George Noory’s aunt was Shafica Karagulla, MD, who wrote a book on higher sensory perception, which she believed was a better term than ESP.

          There is a Coast To Coast newsgroup where you can download each show stripped of commercials a day or two after it airs.

          • Archivist: most of the time it is just junk (now) on that show. But sometimes in amongst the filth there are pearls. Not often. I mentioned the Sunday show which was hosted by George Knapp, too. NOT George Noori. Did I give a link to Coast? No. I gave links to the filmmaker and to Chris Cooper, directly.

            I understand your tactic. Discredit my source and you discredit me. Like I care.

      23. Keep Calm & f**k the FED, Buy Physical Silver.

      24. Kula is right stop complying with the agenda. We are being used to build a system of our own oppression. Stop helping them build the wall. This is why i say private sales or trades are tax free. This cuts out tptb and corporations. Keep your $ out of the system as much as you can. If your taking $ from corporations through working but not buying good and services they don’t profit and cannot reinvest in new ways to keep us down. some folks have a lot of $ and can buy or do whatever they want and do. To me they are fools. To do what I’m saying means it has to be a lifestyle of frugality and self reliance. Don’t buy big ticket things like cars new. Buy a used vehicle instead from a private seller. $40,000 new vehicles is out of control. Avoid retail stores. They are set up to keep you in there as long as possible to get you to spend$. You can spend an hour in Wally’s just to get a few things and leave with more than you came for. This is extra $ spent you didn’t need to spend. People we have to put a hurt on corporations and gov as much as we can. I’m not proposing doing illegal stuff just what’s within our power to do.

      25. I’m cheering when the market falls down. I want the ship to sink. Sounds crazy but I don’t think so. I have zero shares of stocks so I don’t have anything to lose. If the market isn’t an indicator of the economy then I don’t have to worry about my employer closing right. See I don’t worry about retiring because it’s not gonna happen. I’m gonna work till I die so my future don’t matter just today matters. My future is what I make it. That’s why I prep. I’m taking this ship to the bottom. Never trust an investor with your $. Nobody cares about your $ as much as you do. There is no easy $ just hard earned and fought for$.

      26. leave in the Cascadia region ?

        This Simulation Shows What Would Happen If an Earthquake Caused a Mega-Tsunami

        h ttp://

      27. Lowell Massachusetts is making people who want to buy a hand gun write a letter of need for it. This is a state that has a magazine limit of 5 rounds or 10 I’m not sure but it’s one or the other and you gotta pay $1000 for training. No one can buy ammo without a fid card as it is firearms ID card. I live next door to mass. Sharon mass has signs that say no discharging fire arms within town. Thank god I don’t live there but I go there to make deliveries. If you live in Fall River or newbedford or Brockton you need a gun. There is thugs everywhere. This is a state where you need a gun. They have a bunch of libs from academia running the place that totally believe in the utopian plan. I said it befor they will price people out of guns now in mass you gotta pay an extra $1000 for training to get a gun. It’ll cost you $1800 for gun and training plus some ammo. Before it was $800 still steep. They are affectively disarming the public. This is unconstitutional IMO.

      28. The Baltic Dry Index is at record lows, still. But it’s been stuck at 354 since Jan. 22nd. Unusual that it hasn’t moved. Are “they” locking it in at that number to keep it from falling further? Hmmm.

        • Well its just gotta be what they say it is why would they tell us such a lie oh yea its the gov and is nothing compared to everything else

      29. Israel’s electrical grid attacked in massive cyberattack

        Drudge Report

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