The latest Federal Reserve meeting in Jackson Hole, Wyoming, is over and so far it would seem that the general investment world is not too happy about Janet Yellen’s statements as well as those of other Fed officials. In fact, many people are looking for some simple clarity as to what the central bank is actually planning.
Most importantly, investors want to know why the Fed is suddenly so adamant about continued interest rate hikes in 2016. Only a couple months ago, almost everyone (including alternative economic analysts) was arguing that the Fed would “never dare” to raise rates again so soon, and that there was no chance of a rate hike so close to the presidential elections.
Instead, investors have been greeted with surging rate-hike odds as Fed officials openly hint of another boost, probably in September.
As I have been saying for years, if you think the Fed’s motivation is to protect or prolong the U.S. economy, then you will never understand why they do the things that they do. Only when people are willing to accept the reality that the Fed’s job is to undermine the U.S. economy can they grasp central bank behavior.
Here is the issue that scares mainstream markets — many day traders are greedy, but not necessarily dumb. They KNOW full well that the only pillar holding up stocks at record highs has been central bank intervention. A vital part of this intervention has been the use of near-zero interest rates. That is to say, cheap and free overnight loans through the Fed have allowed banks and other corporations to remain “solvent,” and these loans have been the fuel companies have used for corporate buybacks of stocks.
Corporate buybacks have been a primary driver in the bull market rally that supposedly saved the world from the ongoing deflationary destruction of capital. In 2015, buybacks reached historic levels and garnered one of the largest equities reversals in history. While these buybacks do little or nothing to heal the economy on Main Street, they certainly do wonders for equities portfolios. By buying up their own shares, corporations boost the value of remaining shares through a brand of legal trickery. And, in the process, these corporations also boost the overall perceived value of global stock markets.
As Edward Swanson, author of a study from Texas A&M, noted on stock buybacks used to offset poor fundamentals:
“We can’t say for sure what would have happened without the repurchase, but it really looks like the stock would have kept going down because of the decline in fundamentals… these repurchases seem to hold up the stock price.”
Yes, to us he seems to be stating the obvious, but for the average American, a green stock market means a recovering economy. There is no deeper question of why the markets are rallying, and this lack of understanding is dangerous for our country.
Even marginal hikes in borrowing costs will kill the party and, while people not involved in finance and stocks are oblivious, day traders know exactly what is going on. This is the reason for the underlying panic felt by the investment world at any hint of a rate hike by the Fed.
As we saw with the limited audit of TARP, the Fed was pumping tens of trillions in overnight loans into distressed banks and companies, even foreign companies overseas. I suggest that if a FULL audit of the Fed were ever conducted, we would find tens of trillions more in overnight loans since 2008.
Imagine for a moment if those loans never stopped. Imagine that such loans have been an ongoing mainstay of our financial system and stock markets in general. Now, ask yourself, what would happen if the companies reliant on these free loans suddenly had to pay interest on them?
Think about it; what would the interest cost be on a mere .5% to 1% of $16 trillion in overnight loans through TARP? What would the cumulative cost be on all the loans banks and companies need to survive every quarter? In the end, corporations would either drown in billions of dollars in exponential debt or they would have to stop accessing loans from the Fed. Once the loans stop, the stock buybacks stop. Once the buybacks stop, stock markets crumble.
Without free cash from the Fed, the bubble in stock markets will finally and thoroughly implode, crashing down to meet all other fundamentals.
Why would the central bank pull the plug on life support to stock markets? There are multiple reasons, but a top reason is that this is the Federal Reserve’s modus operandi. They consistently seem to raise rates into recessionary conditions that they also tend to create. In essence, the Fed likes to acclimate and addict markets to low interest percentages, and then increase those percentages to agitate and elicit a chaotic reaction.
In my article Brexit Aftermath - Here’s What Will Happen Next, I stated:
“Really, the only safe measure the Fed can take from now on is to do nothing. I highly doubt that they will do nothing. In fact, even in the face of the Brexit I still believe the Fed will raise rates a second time before the end of the year. Why? This is what the Fed has always done as recession takes hold. Historically, the Fed raises rates at the worst possible times. As with the Brexit, I am going to have to take the contrary position to most analysts on this.”
What analysts out there need to understand, whether they are independent or mainstream, is that a great shift in central bank policy and attitude is coming. Christine Lagarde at the IMF calls it the “economic reset,” some Fed officials, like Atlanta Fed President Dennis Lockhart, state that central banks are entering a “brave new world.” These are highly loaded phrases that represent a drastic overhaul of the global financial system; an overhaul that is quite deliberate and inevitably destructive for certain nations and economies, including the U.S.
If we examine the policy pursuits and recently stated goals of central banks around the world, and those statements made after the Brexit referendum, we find that a process of complete global centralization is underway. This includes a push for all central banks to “coordinate policy” under a single directive.
Alternative analysts already know that all central banks are ALREADY covertly coordinated by the Bank for International Settlements. So, when central bankers call for policy coordination in the mainstream press, what they really mean is, they want the existing coordination that is covert to become publicly accepted and celebrated. They want that which is illegal to become legal. That which is morally reprehensible to become morally relative.
Central bankers also want their position of authority over the global economy to become a public priority. Ten years ago, when I asked average people what they knew about the Federal Reserve, most of them responded with confusion. They had never heard of the institution, let alone what its function was. Today, almost everyone knows about the Fed, but there is also an assumption attached that central banks, whether they are successful or not, are supposed to maintain economic stability. Keep in mind that global stocks barely vibrate today until a central bank somewhere publishes a policy statement. This is not how investment is supposed to function. The jawboning of central banks should be mostly meaningless.
The brave new world of central banking is a plan to expand on this corrupt correlation. That is to say, the general public and the mainstream should be questioning whether central banks should exist at all. Instead, people are arguing over what policies are better for central banks to adapt. The existence of central banks is considered an absolute. The masses are only given the option to debate what faces and what hats central banks should wear. If we get anything out of this deal, we only get to choose the form of our destructor.
I should point out also the growing trend in the mainstream media of criticism against the Fed. This is a relatively new thing. For the past several years the more effectively critical the alternative media became against the Fed, the louder MSM talking heads would cheerlead for the establishment. With central bankers becoming more open about their global shift into something "different", a new program of stabbing at the Fed has been initiated. This is not a coincidence.
As I have argued in various articles, the Fed itself may be just as sacrificial to the elites as the U.S. economy. In the process of global centralization, the Fed would eventually have to take a back seat to the IMF, World Bank and the BIS. It is not surprising to me in the slightest that the bought-and-paid-for mainstream media is changing gears and attacking the institution they once desperately defended. Priorities are evolving.
I believe that with the advent of a second rate hike in 2016, many conditions will change. The Dow and some emerging markets will no longer enjoy unmitigated support, and they will begin to fall going into the elections. As I have mentioned many times in past articles, Donald Trump is the most likely candidate to take up residence in the White House. Conservatives will be lulled into a temporary euphoria, happy just to have defeated she-demon Hillary Clinton, only to discover that an overall global implosion has entered a new stage. This implosion will of course be blamed on those same conservative movements.
In the meantime, central banks around the world are going to start openly coordinating while the IMF will take up a “leadership role” in managing international policy. Central banks will also be branching out and taking on new powers. As suggested at Jackson Hole, many central bankers are arguing for “new tools” to fight future fiscal downturns, and no, this does not mean negative interest rates. Instead, watch for central banks to change the definition of inflation on a whim, or adjust the relative value of currencies through agreements with other countries instead of allowing free markets to determine values, and watch for complete overhauls in how economic instability is calculated.
What we are heading for is a world in which many nations will suffer from reductions in living standards and where some first world nations will be reduced to third world conditions. In order to normalize increased global poverty, you have to stop calling it poverty and start calling it a “brave new world.” You have to convince the populace that the economic degradation is not a problem that can be solved — rather, it is a problem we must all adapt to and accept.
Be very wary when elites and international financiers mention “global reset,” or a “brave new world,” or a “new world order.” What they are talking about is not a program that is in your best interest. What they are talking about is the deliberate creation of chaos; a slow burning calamity that can be exploited to derive the benefits of even more centralization and even more power.
They will call it random. They will call it coincidence or fate or even blame it all on their ideological opponents. In the end, they will eventually call it a natural progression of events; a social and financial evolution. They will call it inevitable. None of this will be true. There is nothing natural about a totalitarian framework — it is a machine that is carefully crafted piece by piece, maintained by the hands of a select few tyrants and fed with the labor, sacrifice and fear of the innocent.
The only solution is to expunge the parasites from our fiscal body. These institutions and the people behind them should not exist. Most if not all of our sociopolitical distress today could be cured if a “brave new world” meant wiping the slate clean and dispelling financial elites and central bankers into a bottomless pit.
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written by TF , August 31, 2016
Can you please share your guidance/inputs for what could be done in countries like India where for a common man it's very difficult (if not impossible) to have any firearms to give any meaningful resistance to the tyranny. Here everything is being digitalized/centralized ( check 'aadhar'...biometric information of more than a billion people, 'UPI' which is a cashless scheme by central bank, rise of NSA type surveillance agencies) at record breaking speed, most of the population is extremely poor and can't think more than making their end meets (that's how they got most of the country registered by tying subsidy with aadhar), new middle class is mostly living on credit cards/loans while the political/rich class has amassed unimaginable wealth (many of the politicians are worth more than 10 Billion $, most of the agricultural and residential lands of India are owned by them (exception being NE region)).
https://en.wikipedia.org/wiki/Aadhaar
https://en.wikipedia.org/wiki/Unified_Payments_Interface
written by shutupnsing , August 31, 2016
"The only solution is to expunge the parasites from our fiscal body." Ben Franklin once said beer is proof that God loves us. I say a divine expunging of Soros from the face of the earth would be even greater proof! Can I get an Amen brothers and sisters?
written by Brandon Smith , August 31, 2016
@TF
I receive similar questions from people all around the world in countries that have already been heavily regulated or completely disarmed. There are no easy answers...
One strategy is to take advantage of the one thing you have an abundance of in India - population. What I mean is, if you have any chance of survival, it will be through voluntary tribal organization en masse. Millions of people forming localized groups, but all connected by certain principles of freedom.
In order for this to happen in India, people are going to have to abandon the continuing Caste system. It is really going to hinder organization otherwise.
Next, your "tribes" will have to focus on local production of necessities, including food, clean water, shelter, etc. If you can't provide your own necessities, there is no chance whatsoever to fight back against a corrupt system.
There are risks even in this. Citizens will have to defy government oversight of production, They will have to refuse to pay taxes. They will have to trade through a black market. And, they will have to continue to recruit. If you can prove to people that your method will generate prosperity, they will join in droves.
In the meantime, the government will try to stop you. They will make examples out of prominent activists. They will seek to frighten you. You will have to make an example out of them by defying their attacks at every turn. For every person they imprison, ten more activists will have to take his place.
This alone is not going to solve your nation's problems, though. It is only a start. Eventually, violence will be used against you if your movement becomes successful. You will have to fight back. I would use the Oath Keepers model and appeal to members of your military and police forces. If you can get some of them on your side, then you can train for self defense.
All other measures I would suggest are potentially illegal. I can only say that there is no such thing as a completely disarmed population, only people who are disarmed in the mind. Anyone can get their hands on a means of self defense with enough organization and enough intelligence.
written by californiawoman , August 31, 2016
Brandon
You are very gifted in many ways. Will donate. Thank you.
written by Woodcock , August 31, 2016
If the IMF and mainstream media is attacking the FED, will the FED fight back? Don't they want to maintain their power over the greatest economy on Earth?
Why increase interest rates and fuck everything up when they could keep getting rich off of us?
If they allow the FED to fall, won't it's leaders lose power? Or will they just move on to other ventures?
written by Gods Creation , August 31, 2016
Brandon, I read many articles every day just trying to keep tabs on the enemy of the people, "government". Of all the authors, yours is the only name I ever cared to notice so i could be sure to read every article you write.
You have an uncanny understanding of the big picture, while most focus on a few pixels and use them to make wild guesses about the image.
Thanks for what you do to inform those who think they are awake while still quite asleep. I hope that some will actually wake up before it is too late.
written by Brandon Smith , August 31, 2016
@woodcock
The Fed has no need to fight back because they WANT the end of the U.S. led financial system. Their job is to dismantle it and walk away while Rome burns.
The officials themselves will suffer no consequences at all unless the American people make them suffer consequences. Otherwise, they will simply move on to new positions within the new IMF based system.
written by KyleD , August 31, 2016
I enjoy your deep insight as usual. They will use the coming crisis like they did in 2008 to give themselves broad new powers. They got Dodd-Frank ( and in typical fashion, the nondemocratic, unaccountable CFPA, used for example by Obama to continue the illegal Operation Chokepoint), but not complete control over the whole financial system that they wanted ( https://web.archive.org/web/20080922034248/http://www.cnn.com/2008/US/03/28/financial.oversight/index.html) .
written by gardengritty , August 31, 2016
Where??? In the Holy Scriptures!! There is nothing hidden or concealed. Those who study history, mankind, and the Scriptures already know the beginning from the end. Those with "eyes to see and ears to hear" know what is already here with more destruction to come, worldwide. The "beast" will be implemented seamlessly as most all are blind and deceived.
It's not a pretty picture! Mainstream media will not save us. They are not the "end all", "be all." They are just as deceived as most.
The demonic forces at work will prevail for a time. They will have their run. But the Almighty still has them in on a leash and their evil deeds will be limited but extremely, extremely devastating, nevertheless. This nation has never repented for her many, many sins. And satan laughs at our ignorance. The Almighty is NO LONGER WINKING AT OUR IGNORANCE. Acts 17:30.
The Fed, the corrupt corporations, big pharma, the food industry, the "healthcare", Wall Street......have ALL been designed for this very end. There is nothing in this nation that is not corrupted. Nothing! It has all been designed and led to this point of the end for this generation. As go the "leaders" so goes the nation. We see that very clearly. America is the "Babylon" of our time. Voting is a sham and all very well contrived and controlled. Voting does not matter. People get their shorts in a bundle over this one or that one. It's already set. I believe something dramatic will happen beforehand.
We all are going to have to make some very, very hard decisions very, very soon...like how do we live, eat, etc? The "beast system" - mark of the beast - Revelation 13- is about buying and selling, and who we worship. The Almighty's hand of judgment on this nation, especially, will stand. The banks will close, just as Greece and all the rest.
Our time is coming here very soon. This is a spiritual battle fought only with spiritual weapons. Carnal weapons will not heal anything but kill many more people. Who knows who is shooting at who? How many people who own guns know the "good guys" from the "bad guys? How many people who buy guns are fools who know nothing but only how to pull a trigger? And no knowledge how to respect and to use it properly? Few!!
Many, many elderly people live just on their Social Security and have to set aside 1/2 of what they receive just to pay their property taxes if they own their home they worked hard for. That was/is another planned for collapse.
For many, today, who paid into Social Security during their many working years - BTW, it's NOT a free "entitlement" as WE WORKED FOR IT...AND STILL DO, those few who still have jobs, that is! The hard decisions about living in a totally different way, in a totally different world will be like never before.. there will be hard and heavy decisions. Many...indeed, most...will not be able to cope. We are a soft, spoiled nation.
We have had it very easy compared to so many places around the world and have taken for granted all the blessings we have received. Soon, all will come to an end. Much sooner than later. We have turned away from our Creator and His Laws.
Brandon, I have followed you since the "Giordano Bruno" days and have a big notebook with your writings...very eloquently written. Sometimes you put too soft a picture on things. I respect your writings. Is that your real picture? You look too sweet to have such wisdom!
written by Brandon Smith , August 31, 2016
@Gardengritty
That is an outdated picture. I should probably change it. I look older and meaner now.
As far as weapons go, I think you'll know who to shoot at when the time comes, because they will be shooting at you. Carnal weapons are good for some things. Many spiritual battles precede physical battles.
written by gardengritty , August 31, 2016
Brandon, We just can't manage to look the same as we did 10 years ago no matter what we do!! I don't know, Brandon, the sweet innocence looks good. You might want to keep it...with all this new techno-tracking, and all. Who'd know? Keep 'em guessin' I always say.
Make it a great day, Brandon. And yes, indeed, those spiritual battles can do us in if we let it. Thankfully we have His Truth. Well some of us do! Pray the rest catch on. "Turn or burn" is not for sissies.
written by Jeans , August 31, 2016
Central Banks, Elite, TPTB, Globalists....they are all reflections of the sum total of evil that is in the peoples hearts. They are the tip of the spear. The rest of the spear are the people who reject truth. They reject truth therefore there is not truth for them.
"And this is the condemnation, that light is come into the world, and men loved darkness rather than light, because their deeds were evil.”
I went around for 10 straight years trying to warn family friends, strangers, coworkers, churchgoers of the plans of the elite. I don't recall a single person actually giving half a rats ash about anything other than getting gain for themselves. And the very few who listened were simply posturing like they cared until the conversation was over.
The only truth is God's Word. All else is NOTHING.
...but your article is well written and if it leads a person to seek truth, Lords will be done.
written by luri , September 01, 2016
Brandon,
The equity indexes of the DOW and SP 500 are the propaganda arms of the FED - plain and simple. When they "pull" the rug from beneath this propaganda, at that point "the game of destruction" is on.
Even MSM attests to the fact that the all time high "price" of these indexes reflect the direct "manipulation" from the fed, so when the support for the equity market ceases, the subsequent move in the indexes will be swift and crash like as prices for equity try to find "fundamental" value. they have set the denouement for the economy to be a quick and devastating "crash" rather than the previously used "incrementalist" approach.
This is why "looking" at the equity indexes is important - as it reveals the direct and immediate "timing" of the larger picture of the engineered 'reset' for the economic destruction of america.
just as the natural warning signal of the ocean at the beach suddenly being "sucked" back out to sea is the "immediate" indication of the tsunami hitting within minutes, so too is watching the propaganda indexes.
brandon, would you agree with this assessment?
written by luri , September 01, 2016
brandon, excuse me as i rant.
if i read another "the mark of the beast" - horns of hell, satan take over of mankind says the bible blah blah - grrrr.....
these types of comments reflect an intellectually "lazy" chayah who is anti - christian.
why?
CHAY-AH, which means LIVE, LIVING CREATURE, EARTH LIFE-EARTH DWELLER. This word refers to biped (two-legged) Earth Life "beasts" or in other words a hu-man, or man-kind.
the "beast" as translated from the hebrew means MAN!! the beast IS man! man was created on the 6th day, and thus the "mark of the beast" was 6/6/6.
the beast system is "US" people, or more precisely the "man made system", and more precisely yet, the man made economic system.
there is the Melchizedekian economic system {gods system} and the system of the beast [man-made system].
GODS money system is one in which debt is to be without interest! [technically money based on the barley/silver system - you can look that one up yourselves]. this is the true system - the holy system.
the man made [the system of the beast] is based on "usury". a DEBT MONEY SYSTEM BASED ON "INTEREST". this is an abomination to god! simply put, to participate in a debt money system based on interest amounts to "stealing" and human slavery [as a class of people can live without deeds by 'stealing' the labor of another]. "thou shall NOT "steal".
the "root" of ALL EVIL is the "LOVE" of money. this is what evil is - not some mythical beast satan, snake serpent with apples and with horns. NOT 'money" but rather it is the 'LOVE' of money or more precisely the 'worship' of money that is the ROOT TO EVIL. go figure, of all that could be defined as evil by god, he centers on ONLY ONE!!!!
only in a debt money system based on interest can the LOVE of money exist. financial speculation for MORE is the LOVE OF MONEY. yanking out your credit card to buy something on debt with interest is the LOVE OF MONEY! you participate in the LOVE OF MONEY every day. you - [the ones with the "revelations, mark of the beast comments"] - you participate in this unholy manmade system daily, you are the very BEAST SYSTEM the bible so speaks.
the bible indicates that the 'man made' economic system of usury try to be as GOD. and as Icarus trys to fly to close to the sun, and fails, so too does this false god economic usury system of man collapse upon itself EVERYTIME.
“If you abide in my word, you are truly my disciples, and you will know the truth, and the truth will set you free."
learn the meaning of the scriptures - to 'know' the truth - stop being a mindless 'repeater" .......
rant over.......
written by shutupnsing , September 01, 2016
It seems so clear. Soros moving to use the internet to reward those who fall in line with his "Open Society". Many of our families, friends and neighbors will do so. They (elites) must believe they can drag this out, build their numbers, while we whither on an increasingly inhospitable vine.
written by sw , September 01, 2016
Brandon,
I am doing what I can to pay down my student debt as quickly as possible, but it will still take me a couple of years at least. What do you think would happen to student loan rates under the "Brave New World" system? Will my debt be partially inflated away, or will I and those like me be facing crippling interest rates (100%+) or drowned by "readjusted" capital? I am concerned about my debt becoming a monstrosity. Thank you for your thoughts!
written by Brandon Smith , September 01, 2016
@luri
I wouldn't say that stocks are a very good indicator of much of anything. They are a final trailing indicator, which means they are the last indicator to show signs that an economy is in the midst of collapse. It is far better to watch signals of supply and demand. Stocks crash long after the real economy is already in crisis.
One could argue that when stocks crash that is a warning of a "final" implosion, but for those of us in the alternative field, we are already well aware of the coming implosion long before the people who watch stocks, and thus, we are better prepared.
written by Brandon Smith , September 01, 2016
@SW
It's hard to say, but I can tell you what I think is most likely to happen.
If Clinton is in office, you might see some student loan debt absorbed by bailouts, but, that would require a massive return of QE and this would indicate a final crash of the economy. A bailout of student loans would be a very bad sign, but perhaps good for you in the short term.
If Trump is in office (which I think is most likely), there won't be any bailouts of student loans. The question at that point will be, can you make minimum payments until the system breaks down and enforcing such loans becomes difficult?
There will come a point when most people will NOT be paying off debts. Post-inflation, or post high interest, debtors simply aren't going to pay off loans. They will be too busy trying to figure out how to purchase necessities like food and water. You should be able to escape your payments during this mass refusal.
Then again, there are also indications that the establishment might be seeking "debt imprisonment" once again. I don't know how they would be able to enforce this and house so many millions of extra people, but I'm not going to say it's impossible.
In that scenario, if I held student loans that the system has made impossible to pay back by destroying the very economy and all labor options, and then they tried to arrest me for it, I would probably be picking up a rifle.
written by NY Oathkeeper , September 01, 2016
Mortgages are what should be worrying people.Do the banks just end up with every ones homes and farms?which will actually belong to the Gov?Modern day moving people off the land?
written by Brandon Smith , September 01, 2016
@NY Oathkeeper
Unfortunately, that is probably what will happen with most homeowners. I believe the next shock to the system will claim many private properties with mortgages. The holdouts will be the people with some savings in gold and silver. Those folks will be able to make mortgage payments (and pay property taxes) even during a decline in dollar value. I think the situation will turn into an endurance test - meaning, can you continue to make payments until the system breaks down enough that it would be impractical for the banks or the government to repossess your property.
Keep in mind, a main goal of the elites is to destroy ALL private property ownership and make all people dependent on the grid. You will be forced to physically defend your property rights someday, even if you can somehow pay off your debts.
written by sw , September 01, 2016
A key difference on loans is adjustable rate vs. fixed rate.
written by TruthWarrior , September 01, 2016
@Brandon
As usual, you have delivered a clear and thought provoking analysis. The central planners and TPTB certainly have carefully crafted plans. The time to act is now, or rather it was yesterday. Most of us can and should be doing more to prepare and counter these power-mongers. Let us "make hay while the sun is shining"!
written by gardengritty , September 01, 2016
"Keep in mind, a main goal of the elites is to destroy ALL private property ownership and make all people dependent on the grid. You will be forced to physically defend your property rights someday, even if you can somehow pay off your debts."
During the Great Depression the people who lived in Kansas, Oklahoma, etc, were forced off their property including the land and homes by the government. The land was bone dry due to drought, people could not grow crops or raise animals. Nor could they pay their taxes or anything else.
The government came in and bull-dozed down the homes and the people loaded their belongings onto what ever vehicle they had and came to California. They were called "Oakies!" I have pictures of my grandparents with their big "Grapes of Wrath" truck laden down with the family, the piano, household goods - anything they could load on the truck and still be able to drive it.
History always repeats itself. Only this time it will be worse. It's my belief that whether you have a mortgage, own your own home outright, have a reverse mortgage, and you cannot pay your property taxes, home owners insurance - it's all tied together - your home is foreclosed on, you and the family are out in the street, and then who will need the grid living on the streets. Or bunking in with relatives who may still have a few bucks left that aren't useless. Or at least to be used as toilet paper.
The Japanese, Chinese, Saudi's and whoever else coming here with $$$$ are already buying up much of America. Hopefully, they will be benevolent! History always repeats itself and escalates downward until that "empire", too, is gone. Important to learn some life saving skills that granny and gramps had. The softies of today have no clue. Hopefully, their cell phone will have an APP telling them how to find food - life after McDonald's.
written by gardengritty , September 01, 2016
More recently, the Bundy's in Nevada and the Oregon Ranchers defending their properties come to mind. America is rich in minerals, uranium, oil, copper, and silver and other valuable assets that the elites want to grab hold of. Using the BLM and any other gov't agency they deem necessary and "any excuse in a storm" - it all mimics Waco, Ruby Ridge, 9/11.
When people get it into their "dumbed down, drugged-up" heads that evil is running the show - and not the "good guys - nor anyone looking out for humankind - then maybe more will wake up that the times that are here, with more to come as in we ain't seen nuthin' yet...they'd better get their heads out of their backsides, unplug CNN and wake up to reality...and quick.
Times runnin' out.
written by Objectivist7 , September 02, 2016
It seems to me that Smith is basing his entire argument on a faulty assumption (i.e., that Fed stimulus is propping up the market, and tightening is on the way and will prove fatal). As we discussed a few weeks ago, I see things very differently.
I think the Fed has cut rates because the market has been extremely risk averse; the Fed is a follower, not a leader. Stocks were very cheap and are now only moderately expensive (i.e., PE ratios are a bit above long-term averages). But considering how low interest rates are, stocks are still quite attractive relative to cash and short-term bonds.
There are plenty of signs of risk aversion which jibe with the low level of short-term interest rates. Inflation expectations are unquestionably low. The dollar is trading around its long-term average against other currencies on an inflation adjusted basis.
Very few, if any signs of speculative excess; plenty of indicators suggesting that the private sector has deleveraged to a significant degree. Business investment has been notoriously weak, another sign of risk aversion. Very few, if any, signs of financial market distress. I think the market is priced to the expectation that growth will remain sluggish for as far as the eye can see, and inflation will remain low.
The August jobs number was disappointing, and it confirms that the economy has downshifted so far this year. I don’t see any signs that the Fed is determined to tighten, and today’s data will likely serve to weaken whatever resolve they may have had to do so.
written by Brandon Smith , September 02, 2016
@Objectivist
I don't "assume" the markets are propped up by Fed stimulus, that is a verifiable fact.
As already linked in the article above, stock buybacks are indeed propping up equities prices artificially. Companies are seeking to counteract poor fundamentals:
http://www.cnbc.com/2016/03/28/companies-that-do-buybacks-do-worst-over-time-.html
The Fed's overnight loans and near zero interest rates feed the coffers of various banks and international businesses. This has allowed them to institute constant debt fueled stock buybacks:
http://www.reuters.com/article/us-usa-fed-buybacks-analysis-idUSKCN0RN0D320150923
The Fed cut rates because it was the only way to prop up the dying markets. In fact, every time stocks began to retrace the initial crash of 2008-2009, the Fed introduced more QE, boosting markets again. THIS WAS OPENLY ADMITTED by Dallas Fed head Richard Fisher. Here is the quote:
"What the Fed did — and I was part of that group — is we front-loaded a tremendous market rally, starting in 2009.
It’s sort of what I call the “reverse Whimpy factor” — give me two hamburgers today for one tomorrow.
I’m not surprised that almost every index you can look at … was down significantly." [Referring to the results in the stock market after the Fed raised rates in December.]
Fisher went on to hint at the impending danger:
I was warning my colleagues, “Don’t go wobbly if we have a 10-20% correction at some point…. Everybody you talk to … has been warning that these markets are heavily priced.”
http://video.cnbc.com/gallery/?video=3000474362
Alan Greenspan also openly admitted that the Fed's main concern was propping up equities:
http://www.zerohedge.com/news/2016-04-18/greenspan-admits-feds-plan-was-always-pushing-stocks-higher
Of course, it does not surprise me that a "mainstream economist" would be completely oblivious to this information. They live in another world separate from reality.
As far as the so called "recovery" is concerned, all fundamental data has indicated since last DECEMBER that the global economy is not only in consistent decline, but that decline is now accelerating. This did not stop the Fed from raising rates the first time. I am not sure why mainstream economists think that data makes any difference to the Fed today.
No one asked the fed to raise rates in the first place, yet they did. And now, they are going to raise again. Today's job numbers gave no indication whatsoever that the Fed will back off from another hike. That is all mainstream news gossip and nothing more.
I have been consistently right over the years about Federal Reserve activity. I am right again this time. When they raise again this year, I hope you are willing to accept that perhaps the mainstream knows very little about how the economy and the central banks operate
written by gardengritty , September 02, 2016
https://images.search.yahoo.com/search/images?p=baltic+dry+index+chart+10+year&fr=yfp-t-s&imgurl=http://marketupdate.nl/wp-content/uploads/2015/11/baltic-dry-index.jpg#id=yst2&iurl=http://marketupdate.nl/wp-content/uploads/2015/11/baltic-dry-index.jpg&action=click
Brandon - you have repeatedly reported over the years that the the best indicator of the economy is the BDI, Baltic Dry Index. Above - intense, extensive, and interesting.
No jobs means no money to purchase goods and services, or new homes, means massive credit card debt and robbing Peter to pay Paul until the money well" runs dry, means nothing much gets shipped, trucked or riding the rails, means more and more homeless on the streets, means charity groups under funded because there is no money coming in from the family breadwinners because it's needed for the family.
This can't go on much farther until the proverbial very wobbling, weak "house of cards" all finally falls down. THUD! Any monies coming in to household needs to be held close. The failure - a long, agonizing time in coming - will be very quick and unexpected when it finally hits. Once again main street average Joe gets screwed- and when the dollar is done - most will be scrambling and scraping.
written by gardengritty , September 02, 2016
In diligently studying history including Biblical history, the "beast system" has all happened before, along with the "beast" forces that prevailed during those times. And continue on today, and being repeated with different players as events unfold. The unfolding is not yet complete. Much has yet to be revealed. Some is obvious, much still concealed. Much of what you say is true. Debt, usury is not biblical. And idolatrous as it is used, mis-used, and coveted today. We could also be using sea shells just as well as dollars. Something that is bought has to be paid for with something else.
As called out in Revelation 13:18 which you appear to be referring to "a man" (singular, and there is a variation on that number), as in past times, has not been identified as yet. So false prophecy has to be "tried", "tested", "prove all things." The Scripture always repeats. We will have our "Nero"; our Tower of Babel", our "Caesar" This "beast system" in nothing new. There is the seal of Christ as spiritual in the faith and in the character. Then there is the mimicking forces that must be interpreted in like manner of evil as to the principles of the tyrannical world power - worldly false religion, and the financial and governmental.
I appreciate what the Ellicott's Commentary has to say -
"Surely the dignity of the Apocalypse is sacrificed when we search for its meaning like children playing with conundrums rather than like men being guided by its principles. There is a wisdom which brings its sevenfold beam of heavenly light to the children of men—a wisdom pure, peaceable, gentle, full of mercy, without partiality, without hypocrisy—and when this wisdom rests on men in the fulness of its seven-fold perfection they may read the number of the beast, and see that, with all its vaunted strength, it is but weak; with all its vaunted perfection, it is imperfect; that though it vaunts itself as rich, increased in goods and needing nothing, it still lacks that “one needful thing”—faith in God, or the love by which faith works. Without this it will never attain even the appearance of that perfect heavenly number symbolised by seven; it may multiply itself in earthly strength—the power of worldliness into the power of worldly wisdom, and this again by the power of a hundred-fold satanic subtlety—but it will remain still short of the tokens of the kingdom of God; and the number when read will be, however godlike it looks, but the number of a man after all."
Have a blessed Sabbath. Shalom
written by Objectivist7 , September 03, 2016
I have full confidence in your analysis, Brandon. I wasn't endorsing the assertions of the "mainstream" economist I cited above - by the way, his name is Scott Grannis - I just came across his response to your article on another unrelated forum site, generally frequented by constitutionalists, and thought I'd give you an opportunity to rebut it.
I have no doubt that you are right about this - and yes, you have an excellent track record on this subject.
written by sw , September 03, 2016
Brandon,
I am fairly new to your site and I just looked back at older entries regarding my question about Russia and China and their role in the NWO. You have answered my questions and opened my eyes. Thank you for your work! I know of no one in the alternative media who has as complete a picture of reality as you do. Well done!
I do not know where to begin in sharing this information with others. I know it takes courage and a relationship with them that goes beyond preparedness. I have had some success is spreading basic preparedness, but as far as helping others to understand what is going on and how to win vs the NWO propaganda, I feel at a loss as to where to begin! I am convinced you know the truth, especially as evidenced by your facts on the East vs West false paradigm, but this is so very different from what people on the street hear that I am afraid others will just raise an eyebrow and write me off when I open my mouth further. Any ideas on a good place to start on this subject?
My family just moved this summer and I want to organize our neighborhood, starting especially with our next door neighbor.
written by gardengritty , September 04, 2016
From Randy Conway on Steve Quayle's site -
"But to sing America the Beautiful brings me tears and frustration. To know we have the promise of blessing but men rather choose damnation We have abandoned the Truth and torn down the early foundations.
AMERICA THE BEAUTIFUL
America, we used to be known as the land of the free and the home of the brave
We now exist in danger of the brave being dead and the free becoming slaves.
An inspired composer once wrote of beautiful and spacious skies
Now poisonous clouds drift where the eagle flies.
We were the bread basket of the world with amber waves of grain
Now the crops are tainted and the farmers land is gone through Imminent Domain.
The purple mountains still have their majesty but is there any fruit left in the plain?
Those who poison the skies and alter the seed also withhold the rain.
The thoroughfare of freedom has become overgrown with lies.
Will God crown our little good when His patience we have tried?
It is time to remember the rest of the song the part that is a prayer
That we would exercise self-control and God our flaws repair.
We have been robbed of that which the proven heroes bought
By those who do not know that gain is divine as evil they have wrought.
I don’t think it was the patriot’s dream to establish a New World Order,
Or to establish a country without prayer, without God or without borders.
Are there noble men that dwell within the halls of government?
Has selfish gain stained our souls to the loss of any covenant?
The shine upon the seas is not glimmer but disease
And we turn our backs on God’s grace so our lusts we may appease.
The words to a song penned to described a once great nation
But to sing America the Beautiful brings me tears and frustration.
To know we have the promise of blessing but men rather choose damnation
We have abandoned the Truth and torn down the early foundations.
We now will see what we have birthed for past is the period of gestation
The time has come for men to repent for there is born an aberration.
It is the offspring of our sin and when full grown brings decimation.
America will only be beautiful again when God receives first our repentance, then our adjuration."
By Randy Conway
http://www.stevequayle.com/index.php?s=33&d=1861
written by Brock Lesnar , September 11, 2016
Brandon, what are the best places to put your money right now? I want to purchase a home sometime in the next few years. If the stock market crashes like you say, will U.S. Treasuries perform well due to the flight to safety mechanism? What about mining stocks? I would guess physical metals would be the best choice. I would also assume home prices would likely plummet, so it could be wise to have some cash on hand as well. Thanks.
