Monday, December 26, 2022

The Mother Of All Crashes Coming?

The Mother of All Crashes Is Coming in April 2023

The signs of the coming economic contraction are already both present and obvious, but the overall economic picture probably won’t be acknowledged in the mainstream until the situation becomes much worse

It’s a problem that arises at the onset of every historic financial crisis – mainstream economists and cable-news commentators deliberately mislead the public about the severity of the challenges and the chances of recovery. They feed their audiences false reassurances in the hope of lulling people back to sleep.

Even now with inflation pummeling the average American family, they tell us that there is nothing to worry about. The Federal Reserve’s “soft landing” is on the way.

I remember in 2007, right before the epic derivatives collapse that took down Lehman Brothers and Bear Sterns, when media pundits were applauding the U.S. housing market and forecasting even greater highs in both sales and in valuations. A “permanent plateau,” which would generously spread wealth across the nation.

I had only been writing economic analysis for about a year at the time, but I remember thinking that all this overt optimism felt like compensation for something. It seemed as if they were trying to pull the wool over the eyes of the public in the hopes that, if people just believed hard enough that all was well, then the fantasy could be manifested into reality. Science has even developed a term for this: the Tinkerbell effect.

So far, higher interest rates are not bringing prices down significantly, nor are they slowing manic stock market speculation. Easy money has been entrenched for far too long, which means a “hard landing” (which is what Fed officials call a collapse) is the most likely scenario.

I think that, this time, the Fed wants a crash.

As I noted in my article The Fed Is Taking The Punch Bowl Away – But The Inflation Crisis Will Continue To Grow, published in May:

The central bank has a global agenda that requires the decline of the American economy. They are getting exactly what they want and they are perfectly aware of what they are doing.

One lesser-known issue is the new 1% excise tax on stock buybacks planted within Biden’s Inflation Reduction Act. The measure, which goes into effect in January of next year, will not reduce prices on most goods. That said, stock buybacks are still the main way major corporations keep their stock prices high. Over the past decade, buybacks were funded by money borrowed from banks or from the Fed directly at near-zero interest. Adjusted for inflation, these loans were essentially free money.

Now, the easy money party is about to end.


Anonymous said...

Good Informative Article and we all want joy so suggestions here we go:

Overhauling an institution as rocky as this Federal Reserve’s has become a must, IMO! There has been, since 1929 crash, too many blunders whether intentional at worst, or inept at best, it's now obviously rendered useless; Hence: The American Citizen's need a restructured Institution that surpasses the Federal Reserve’s, complete oversight in place included would be some upstanding known American Citizen's,(there are many), put on the Board, and go from there, in my opinion.

When broken systems only enrich a few, it's common-sense to overhaul said system, IMO! If we keep getting same results which keep compromising millions of people, then why would American's continue this dance?? While all this AI, surveillance eye toys, NWO CON-jobs, broken laws with border illegal’s sucking us dry, this nonsense now gets attention, yet meanwhile, old outdated Institutions are what immediate attentions needs attended to, what is America waiting for?

Or does this bring to light; our whole system has become corrupted, inept, and no longer serves humanity? Is so, this "New Year" should bring bright folks to implement new concepts, ideas, solutions, to improve/rid of, those entities which no longer serves American Citizens, in my opinion! "We must enact an "Act Now" Act to be put in place for the good of all in the name of God", right? Put on back burner, ideas that subvert the USA, and shown to do such, right? Instead, we address non-working systems presently! Hello, anyone out there!? Easier said than done, but enough voices and prayers will reach God All Mighty to see us through, there is a will, there is a way....Main objective, goals, or Mission Statement if prefer, are: needed stability with our money, lives, freedoms, and not be bombarded with Global BS about their "New Sustainability Ruse" with our already does/had worked fuel, and has since day one IMO; Those New Global Warming trends, mouthpieces for pushing Tran humanism, et., has failed to provide common-sense sustainability for right here, right now, IMO; They can experiment on each other till they have a real proven workable break-through, and stop experimenting with our Nation as they go, it's been a killing, hurting, robbing, being a joy-kill through their lawlessness of a journey, since 9/11 and it must be stopped, IMO! Start with, close the borders, correct made-up Election compromised processes tried, put known crooks in Government on trials for Treason committed especially with Foreign Entities, and do NOT give more money to Agencies that abused power as witnessed since Covid-19 sent here, in my opinion; Go from there! Whew, lots to pray about shout about, and the beat goes on, and on....

American Citizens need to re-evaluate how to make a difference when your Government is not limited governing, no longer serves you, but has been/will/does, serve every other illegal, foreign enemy, or Terrorist's, as defined by known laws in USA, right?? The End, it's a "New Year", get er done tater-tot’s! Americans are compassionate, empathetic, kind, smart, tolerant citizens, majority folks know Jesus, but Good Lord, enough of dealing with stupid here; let’s pray for a "Happy New Year" to all!!!! Reminder: We give $$ to Third World Countries, plus plenty Missionary Work given yonder, but their Tyrant's don't spread $$ to their people, right? So, those illegal’s now here, or people from over there, need to not encourage our system to be same, right? Run back, deal with yours, we deal with ours, fair and square, right, you will be helping USA's homeless, thank-you!? Many want your jobs in our own Nation, says many Americans to Illegal’s; now something is wrong when this slogan/mantra occurs, right??? Observation/IMO: Up is down, wrong is right, war is peace, slavery is Freedom, and Leaders are MUSH BRAIN, what is up Doc??

Anonymous said...

Continued from comment:

No, those folks need to address their own Tyrants first, IMO! Now, are we to encourage Tyrannical Rule here, become like another Third World Country, and then we run...where??? (I do love, love, Austria, but seriously...) So yep, America is in a process of becoming Third World clones, and must be dealing with our own issues, right? Is this concept to be serfs in USA acceptable in USA? Don't you believe it so folks!!!!!! Constitution needs upheld one way, or another at this point! Never say, too late! It's never too late to say, you’re sorry for burying your head, going along to get along, and buying the con-jobs laid out, right? Believe something big and good is about to happen this "New Year", and no it's not coming from WEF, it's from God; "God is King"!!!!!!