I began writing analysis on the macro-economic situation of the
American financial structure back in 2006, and in the eight years since, I have
seen an undeniably steady trend of fiscal decline.
I have never had any doubt that the U.S. economy
as we know it was headed for total and catastrophic collapse, the only question
was when, exactly, the final trigger event would occur. As I have
pointed out in the past, economic implosion is a process. It grows over time,
like the ice shelf on a mountain developing into a potential avalanche. It is
easy to shrug off the danger because the visible destruction is not immediate,
it is latent; but when the avalanche finally begins, it is far too late for most
people to escape…
If you view the progressive financial breakdown in America as some
kind of “comedy of errors” or a trial of unlucky coincidences, then there is not
much I can do to educate you on the reasons behind the carnage. If, however, you
understand that there is a deliberate motivation behind American collapse, then
what I have to say here will not fall on biased ears.
The financial crash of 2008, the same crash which
has been ongoing for years, is NOT an accident. It is a concerted and
engineered crisis meant to position the U.S. for currency disintegration and the
institution of a global basket currency controlled by an unaccountable
supranational governing body like the International Monetary Fund (IMF). The
American populace is being conditioned through economic fear to accept the
institutionalization of global financial control and the loss of
sovereignty.
Anyone skeptical of this conclusion is welcome to study my numerous
past examinations on the issue of globalization; I don’t have the time within
this article to re-explain, and frankly, with so much information on deliberate
dollar destruction available to the public today I’ve grown tired of anyone with
a lack of awareness.
If you continue to believe that the Fed actually
exists to “help” stabilize our economy or our currency, then you will never find
the logic behind what they do. If you understand that the goal of the
Fed and the globalists is to dismantle the dollar and the U.S. economic system
to make way for something “new”, then certain recent events and policy
initiatives do start to make sense.
The year of 2014 has been looming as a serious concern for me since
the final quarter of 2013, and you can read about those concerns and the
evidence that supports them in my article Expect Devastating Global Economic Changes
In 2014.
At the end of 2013 we saw at least three major
events that could have sent America spiraling into total collapse. The
first was the announcement of possible taper measures by the Fed, which have now
begun. The second was the possible invasion of Syria which the Obama
Administration is still desperate for despite successful efforts by the liberty
movement to deny him public support for war. And, the third event was the last
debt ceiling debate (or debt ceiling theater depending on how you look at it),
which placed the U.S. squarely on the edge of fiscal default.
As we begin 2014, these same threatening issues remain (along with
many others), only at greater levels and with more prominence. New developments
reinforce my original position that this year will be remembered by historians
as the year in which the final breakdown of the U.S. monetary dynamic was set in
motion. Here are some of those developments explained…
Taper Of QE3
When I first suggested that a Fed taper was not only possible but
probable months ago, I was met with a bit (a lot) of criticism from some in the
alternative economic world. You can read my taper articles here and here.
This was understandable. The Fed uses multiple stimulus outlets
besides QE in order to manipulate U.S. markets. Artificially lowering interest
rates is very much a form of stimulus in itself, for instance.
However, I think a dangerous blindness to threats
beyond money printing has developed within our community of analysts and this
must be remedied. People need to realize first that the Fed does NOT
care about the continued health of our economy, and they may not care about
presenting a facade of health for much longer either. Alternative analysts also
need to come to grips with the reality that overt money printing is not the only
method at the disposal of globalists when destroying the greenback. A debt
default is just as likely to cause loss of world reserve status and devaluation
- no printing press required. Blame goes to government and political gridlock
while the banks slither away in the midst of the chaos.
The taper of QE3 is not a “head fake”, it is very
real, but there are many hidden motivations behind such cuts.
Currently, $20 billion has been trimmed from the $85 billion per
month program, and we are already beginning to see what APPEAR to be market
effects, including a flight from emerging market currencies from Argentina to
Turkey. A couple of years ago investors viewed these markets as among the few
places they could exploit to make a positive return, or in other words, one of
the few places they could successfully gamble. The Fed taper, though, seems to
be shifting the flow of capital away from emerging markets.
The mainstream argument is that stimulus was flowing into such
markets, giving them liquidity support, and the taper is drying up that
liquidity. Whether this is actually true is hard to say, given that without a
full audit we have no idea how much fiat the Federal Reserve has actually
created and how much of it they send out into foreign markets.
I stand more on the position that the Fed taper
was actually begun in preparation for a slowdown in global markets that was
already in progress. In fact, I believe central bankers have been well aware
that a decline in every sector was coming, and are moving to insulate
themselves.
Is it just a "coincidence" that the central bankers have initiated
their taper of QE right when global manufacturing numbers begin to plummet?
Is it just "coincidence" the taper was started right when the
Baltic Dry Index, a global indicator of shipping demand, has lost over 50% of
its value in the past few weeks?
Is it just "coincidence" that the taper is running tandem with
dismal retail sales growth reports from across the globe coming in from the
final quarter of 2013?
And, is it just a "coincidence" that the Fed taper is accelerating
right as the next debt ceiling debate begins in March, and when reports are
being released by the Congressional Budget Office that over 2 million jobs (in
work hours) may be lost due to Obamacare?
No, I do not think any of this is coincidence. Most if not all of
these negative indicators needed months to generate, so they could not have been
caused by the taper itself. The only explanation beyond "coincidence" is that
the Federal Reserve WANTED to launch the taper program and protect itself before
these signals began to reach the public.
Look at it this way - The taper program distances
the bankers from responsibility for crisis in our financial framework, at least
in the eyes of the general public. If a market calamity takes place
WHILE stimulus measures are still at full speed, this makes the banks look
rather guilty, or at least incompetent. People would begin to question the
validity of central bank methods, and they might even question the validity of
the central bank’s existence. The Fed is creating space between itself and the
economy because they know that a trigger event is coming. They want to ensure
that they are not blamed and that stimulus itself is not seen as ineffective, or
seen as the cause.
We all know that the claims of recovery are utter
nonsense. Beyond the numerous warning signs listed above, one need only
look at true unemployment numbers, household wage decline, and record low
personal savings of the average American. The taper is not in response to an
improving economic environment. Rather, the taper is a signal for the next stage
of collapse.
Stocks are beginning to plummet around the world and all mainstream
pundits are pointing fingers at a reduction in stimulus which has very little to
do with anything. What is the message they want us to digest? That we “can’t
live” without the aid and oversight of central banks.
The real reason stocks and other indicators are
stumbling is because the effectiveness of stimulus manipulation has a shelf
life, and that shelf life is over for the Federal Reserve. I suspect
they will continue cutting QE every month for the next year as stocks decline.
Will the Fed restart QE? If they do, it will probably not occur until after a
substantial breakdown has ensued and the public is sufficiently shell-shocked.
The possibility also exists that the Fed will never return to stimulus measures
(if debt default is the plan), and QE stimulus will eventually be replaced by
IMF "aid".
Government Controlled Investment
Last month, just as taper measures were being implemented, the
White House launched an investment program called MyRA; a retirement IRA program in which middle class and low wage
Americans can invest part of their paycheck in government bonds.
That’s right, if you wanted to know where the
money was going to come from to support U.S. debt if the Fed cuts QE, guess
what, the money is going to come from YOU.
For a decade or so China was the primary buyer and crutch for U.S.
debt spending. After the derivatives crash of 2008, the Federal Reserve became
the largest purchaser of Treasury bonds. With the decline of foreign interest in
long term U.S. debt, and the taper in full effect, it only makes sense that the
government would seek out an alternative source of capital to continue the debt
cycle. The MyRA program turns the general American public into a new cash
stream, but there’s more going on here than meets the eye…
I find it rather suspicious that a government-controlled retirement
program is suddenly introduced just as the Fed has begun to taper, as stocks are
beginning to fall, and as questions arise over the U.S. debt ceiling. I have three major concerns:
First, is it possible that like the Fed, the
government is also aware that a crash in stocks is coming? And, are
they offering the MyRA program as an easy outlet (or trap) for people to pour in
what little savings they have as panic over declining equities accelerates?
Bonds do tend to look appetizing to uninformed investors during an equities
route.
Second, the program is currently voluntary, but
what if the plan is to make it mandatory? Obama has already signed
mandatory health insurance “taxation” into law, which is meant to steal a
portion of every paycheck. Why not steal an even larger portion from every
paycheck in order to support U.S. debt? It’s for the “greater good,” after
all.
Third, is this a deliberate strategy to corral
the last vestiges of private American wealth into the corner of U.S. bonds, so
that this wealth can be confiscated or annihilated? What happens if
there is indeed an eventual debt default, as I believe there will be? Will
Americans be herded into bonds by a crisis in stocks only to have bonds implode
as well? Will they be conned into bond investment out of a “patriotic duty” to
save the nation from default? Or, will the government just take their money
through legislative wrangling, as was done in Cyprus not long ago?
The Final Swindle
Again, the next debt ceiling debate is slated for the end of this
month. If the government decides to kick the can down the road for another
quarter, I believe this will be the last time. The most recent actions of the
Fed and the government signal preparations for a stock implosion and ultimate
debt calamity. Default would have immediate effects in foreign markets, but the
appearance of U.S. stability could drag on for a time, giving the globalists
ample opportunity to siphon every ounce of financial blood from the public.
It is difficult to say how the next year will
play out, but one thing is certain; something very strange and ugly is
afoot. The goal of the globalists is to engineer desperation. To create
a catastrophe and then force the masses to beg for help. How many hands of
“friendship” will be offered in the wake of a U.S. wealth and currency crisis?
What offers for “aid” will come from the IMF? How much of our country and how
many of our people will be collateralized to secure that aid? And, how many Americans will go along with the swindle because they
were not prepared in advance?
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