The Federal Reserve On A Suicide Bombing Mission - Crash Coming

It’s A Fact That Needs Repeating: The Federal Reserve Is A Suicide Bomber

Brandon Smith

For many years now I have been examining the policies and behaviors of the Federal Reserve because they are in fact the most powerful institution in the US, with far more influence over the fate of America than any single president or branch of government. They have the power to end the economic life of our country in a matter of moments. They hold their finger on the button of multiple financial nuclear bombs, and to this day there are people that still pretend as if they are a mere moderating presence subservient to the White House or Congress.

This is a fallacy proven by history and the admissions from central bankers own mouths. The Fed answers to no one in our government. They answer to a different set of masters, and the blame for the consequences of their policies falls to them and their cohorts.

Last year I published an article titled ‘The Fed’s Catch-22 Taper Is A Weapon, Not A Policy Error.’ In that article I predicted that the Fed would embark on a hiking spree on interest rates in response to inflationary/stagflationary events. I noted that:

“We are now at that stage again where price inflation tied to money printing is clashing with the stock market’s complete reliance on stimulus to stay afloat. There are some that continue to claim the Fed will never sacrifice the markets by tapering. I say the Fed does not actually care, it is only waiting for the right time to pull the plug on the US economy.”

At the time I received a lot of resistance to the idea. The usual argument was: “The fed will never raise rates and put stock markets at risk. Why would they destroy the golden goose?”

This position showcases a common misconception about the central bank and its purpose. You see, a lot of people think the Fed exists to keep the US economy afloat, and specifically to keep stock markets afloat. This is incorrect. Every single policy of the Fed since its inception has been a long train of abuses designed to slowly and scientifically whittle down the US economy and bring it to the point of extinction.

The next most common argument is: “Wouldn’t the fed sabotaging the economy eventually destroy them as well?”

The answer is YES, and they don’t care. If you have read my previous work on this issue then you know that the Fed is inexorably tied to the Bank for International Settlements (the “central bank of central banks”) and that they call the shots in terms of coordinated global banking initiatives. The BIS is a globalist institution, not an American one, and its agenda is ideologically globalist in nature. The Fed is a servant of globalism; and if the US economy or our currency need to be brought down through a controlled demolition in order to make the globalist dream of a one world socialist “Utopia” come true, that is exactly what the Fed will do.

I was able to predict that the Fed would continue onward with its interest rate hikes and hawkish position only because I acknowledge what the Fed really is: A suicide bomber. And, they have decided the time is ripe to hike interest rates into economic weakness, just like they did at the onset of the Great Depression.

What happens next?

That’s easy to answer: The fed continues to hike rates well into next year and will not reverse course or capitulate and return to stimulus. The dovish predictions were wrong. 

The people that said the Fed would not raise rates were wrong. The people that said the Fed would never remove support from stock markets were wrong. This process is ongoing and the effects will grow as the months pass, but those that were hoping for a manic return to the days of bailouts and QE are going to be deeply disappointed.

What the Fed will never do is admit that a crash is happening until it is too late for people to act. They will never warn the populace of the dangers and they will never tell people to prepare. Watch as they tap dance and tell the public that all the pain is “transitory.” Then, watch as the dust settles and they tell people that “no one could have seen this coming.” It’s all very predictable, because it’s all been done before.