I have written on the subject of the Federal Reserve's deliberate sabotage of the U.S. economy many times in the past. In fact, I even once referred to the Fed as an "economic suicide bomber." I still believe the label fits perfectly, andthe Fed's recent actions I think directly confirm my accusations.
Back in 2015, when I predicted that the central bankers would shift gears dramatically into a program of consistent interest rate hikes and that they would begin cutting off stimulus to the U.S. financial sector and more specifically stock markets, almost no one wanted to hear it. The crowd-think at that time was that the Fed would inevitably move to negative interest rates, and that raising rates was simply "impossible."
Over the decades, the Fed has made it nearly impossible for households with one wage earner to support a family. Today, men and women who should be in the prime of their careers and starting families are for the first time in 130 years more likely to be living at home with their parents than any other living arrangement.
Bernanke is referring in part to the Fed's program of raising interest rates into an economic downturn, exacerbating the situation in the early 1930's and making the system highly unstable. He lies and says the Fed "won't do it again;" they are doing it RIGHT NOW.
The Fed was the core instigator behind the credit and derivatives bubble that led to the crash in 2008, a crash that has caused depression-like conditions in America that we are still to this day dealing with. Through artificially low interest rates and in partnership with sectors of government, poor lending standards were highly incentivised and a massive debt trap was created. Former Fed chairman Alan Greenspan publicly admitted in an interview that the central bank KNEW an irrational bubble had formed, but claims they assumed the negative factors would "wash out."
Yet again, a Fed chairman admits that they either knew about or caused a major financial crisis. So we are left two possible conclusions — they were too stupid to speak up and intervene, or, they wanted these disasters to occur.
Today, we are faced with two more brewing bubble catastrophes engineered by the Fed: The stock market bubble and the dollar/treasury bond bubble.
Fisher went on to hint at his very reserved view of the impending danger:
The problem is, just like they did at the start of the Great Depression, the central bank is once again raising interest rates into a declining economy. This means that all those no-cost loans used by corporations to buy back their own stocks are now going to have a price tag attached. An interest rate of 1% might not seem like much to someone who borrows $1000, but what about for someone who borrows $1 Trillion? Yes, borrowing at ANY interest rate becomes impossible when you need that much capital to prop up your stock. The loans have to be free, otherwise, there will be no loans.
Thus, we have to ask ourselves another question; is the Fed really ignorant enough to NOT know that raising rates will kill stock markets? They openly admit that they knew what they were doing when they inflated stock markets, so it seems to me that they would know how to deflate stock markets. Therefore, if they deliberately engineered the market rally with low interest rates, it follows that they are deliberately engineering a crash in markets using higher interest rates.
Mainstream economists and investment "experts" appear rather bewildered by the Federal Reserve's exuberance on rate hikes. Many assumed that Janet Yellen would hint at a pullback from the hike schedule due to the considerable level of negative data on our fiscal structure released over the past six months. Yellen has done the opposite. In fact, Fed officials are now stating that equities and other assets appear to be "overvalued" and that markets have become complacent. This is a major reversal from the central bank's attitude just two years ago. The fundamental data has always been negative ever since the credit crisis began. So what has really changed?
Well, Donald Trump, the sacrificial scapegoat, is now in the White House, and, central bank stimulus has a shelf life. They can't prop up equities for much longer even if they wanted to. The fundamentals will always catch up with the fiat illusion. No nation in history has ever been able to print its way to prosperity or even recovery. The time is now for the Fed to pull the plug and lay blame in the lap of their mortal enemy - conservatives and sovereignty champions. They will ignore all financial reality and continue to hike. This is a guarantee.
The 2008 crash allowed the banking elites to introduce vast stimulus measures requiring unaccountable fiat money creation. Rather than saving America from crisis, they have expanded the crisis to the point that it will soon threaten the world reserve status of our currency. The Fed in particular has set the U.S. up not just for a financial depression, but for a full spectrum calamity which will include a considerable devaluation (yet again) of our currency's value and resulting in extreme price inflation in necessities.