Will The Fed Inevitably Fall Into Negative Interest Rates? This Is Not A Simple Incident.
Alt-Market.com economist Smith Smith recently published the article that the Federal Reserve is the main body behind the financial crisis, with the aim of making way for globalists to create a new single global economic system by disrupting the fiscal structure of the United States. (Brandon)
Smith wrote about the Federal Reserve's attempts to sabotage the US economy in the past several times.
In fact, Smith even called the Federal Reserve "economic suicide bomb".
He still thought the label was perfect, and the Fed's recent actions directly confirmed his accusations.
As early as 2015, when Smith predicted that the Fed would change its policy stance sharply and embarked on a path of continuous interest rate increase, they would start cutting off the liquidity injection into the US financial sector, especially in the stock market. At that time, few people paid attention to what Smith said.
The idea at that time was that the Fed would inevitably fall into negative interest rates, and raising interest rates was "impossible".
But not long after, many analysts, even those who supported liberalism, quickly adopted Smith's theory without hesitation.
Why? Because they found that a core hypothesis is actually wrong: the goal of the Federal Reserve is to maintain the US economy at all costs, or at least to maintain economic stability.
According to this assumption, the stability of the US economy is indispensable to the globalists, and the US dollar is also an indispensable tool in their arsenal.
Therefore, the Fed will never deliberately destroy the financial structure of the United States, because destroying it means that the United States has lost the "goose that lays golden eggs".
There is no doubt that it is foolish to talk nonsense.
Mainstream idiot analysts and foreign exchange traders believe that this statistic is not as bad as it looks, because although the dollar value is declining, "people have been charging interest", which will offset or exceed any purchasing power loss.
These people are foolish and do not even realize that there are loopholes in their arguments.
If someone deposits his savings into his personal account or purchases treasury bonds and begins to damage interest rates from the US Federal Reserve in 1959, he can start to collect interest.
However, this argument ignores absurdly that millions of Americans were born long after the Federal Reserve started the devaluation program.
"Depositors" born in 1980 or 1990? They have no chance to offset the Fed's already purchasing power losses by charging interest.
The age of their birth requires that one must work harder to save the same amount of money as their parents, not to mention that they can not enjoy the same items at the same price as their parents, such as housing or automobiles.
For decades, the Fed has made it impossible for wage earners to maintain a family life.
Today, the proportion of men and women entering the workplace or starting a family is higher than that of other forms of residence. This is the first time in 130 years.
Today, these young people are more willing to live with their parents because they can be taken care of by their parents.
That is to say, most young people live together with their parents not because they have to stay at home, but because they can hardly afford to live outside.
This is almost entirely the symptom of the central bank's currency and the devaluation of purchasing power.
Since the Federal Reserve began to destroy the value of the dollar, wage income has seen a marked decline.
Since the founding of the Federal Reserve, almost every major recession has been its responsibility.
As Smith pointed out before, Bernanke, the former chairman of the Federal Reserve, publicly acknowledged that the Fed was the root cause of the long economic Holocaust in the great depression in the November 8, 2002.
At the age of 90, he said:
In short, according to Freedman and Schwartz's view, the banking panic in the great depression was more serious and widespread than in the general recession due to institutional change and misleading doctrines.
Allow me to say sorry on behalf of the Federal Reserve and end this.
I want to talk to Milton and Anna about the great depression.
You are right. We did make mistakes.
We are very sorry.
But thank you for your correction. We will not make such a mistake again.
To some extent, Bernanke admitted that the Fed's policy led to economic recession, exacerbated the poor economic situation in the early 1930s and made the system highly unstable.
But his sentence "we will not make such a mistake again" is lying: they are doing so now.
The credit and derivatives bubble caused the financial crisis in 2008, and the Fed is the key instigator behind these bubbles. This crisis has led to a setback in the US economy and we are still working on it now.
Artificially low interest rates, cooperation with government departments and loose lending standards have brought high incentives to the market and created a huge debt trap.
In an interview, former Federal Reserve Chairman Greenspan publicly acknowledged that the Fed knew in advance that it had formed an irrational bubble, but they thought the bubble would "stop by itself".
Once again, the chairman of the Fed acknowledged that they had understood or triggered a great deal.
financial crisis
。
So we can draw two possible conclusions: either they speak or intervene in a way too stupid, or they deliberately want to let these disasters happen.
At present, we are faced with two big bubbles, which are planned by the Federal Reserve: the stock market bubble, and the US dollar / US debt bubble.
The current stock market bubble is quite obvious and widely recognized.
In an interview with CNBC, Fisher, former chairman of the Dallas fed, admitted that the Fed has been secretly pushing the stock market up since 2009: Richard Fisher.
"Since 2009, the Federal Reserve has been planning a huge stock market rally, and I am also a member of this working group.
This is what I call the "reverse Whimpy" factor - two hamburgers for tomorrow's hamburger.
Fisher continued to suggest that he had a very reserved view of the coming crisis.
"I have been warning my colleagues not to see the market callback from 10% to 20%.
Everyone is talking about...
They are warning that these markets are overvalued. "
The Federal Reserve has "pushed" this incredible bull market through various means. One of the key tools is overnight loans with interest rates close to zero. Since the financial crisis in 2008, companies around the world have been raising funds for stock repurchase through such loans and raising the valuation of the stock market.
Edward Swanson, a scholar at Texas A&M University, points out that stock repurchase is often used to counteract the adverse Fundamentals: Swanson:
"We can't say for sure what will happen in the stock market without stock repurchase, but what is more reasonable is that the stock market will continue to fall because of the deterioration of the fundamentals.
These ones here
stock repurchase
It seems to support the stock price. "
At the early stage of the launch of the Troubled Asset Relief Program (TARP), the relevant audit was relatively limited and no retrial procedure was reported. The companies were allegedly obtained trillions of dollars of overnight loans from the Federal Reserve.
It was at this time that stock repurchase became a way to artificially support stock prices.
The problem is, as at the beginning of the great depression, the fed once again started raising interest rates in the context of the economic downturn.
This means that the cost free loan used by the company to buy shares will now be appended with a "price tag".
1% interest rate seems to be nothing for a borrower of 1000 dollars, but for those who borrowed 1 trillion dollars? Yes, when you need a lot of money to support the company's share price, any interest rate loan is difficult for you.
Loans must be interest free, otherwise they will not be borrowed.
So we have to ask ourselves another question: is the Fed really stupid enough to know that raising interest rates will kill the stock market? They openly admit that they know what they are doing in the process of deliberately pushing up the stock market, so there is reason to believe that they will also suppress the stock market.
Therefore, if they deliberately plan a market rebound at lower interest rates, they may also deliberately raise the interest rate to bankrupt the market.
Mainstream economists and investment brick owners seem puzzled by the Fed's persistence in raising interest rates.
Many people believe that Yellen will hint of a delay in raising interest rates because of the large number of negative data released in our financial system in the past six months.
But Yellen did the opposite.
In fact, Fed officials are now saying that stocks and other assets seem to be "overvalued" and that the market has become too complacent.
This compares the Fed's attitude two years ago to a sharp turn.
However, since the financial crisis, the economic fundamentals of the United States have been negative.
What has changed?
Because the Fed's stimulus has a "shelf life", and President Trump has unfortunately become a scapegoat.
Even if the Fed has such a will, they will not be able to support the stock market for longer.
Sooner or later, the fundamentals will pierce the illusion of policy.
No country in history can move towards prosperity by printing money.
The Fed now decides to pull the plug of "money printing machine" and then shirk its responsibility to its enemies, the advocates of conservatives and sovereign states.
The Fed can therefore ignore all financial realities and continue to raise interest rates.
This "pot" Fed does not recite.
The main misunderstanding in the liberalist economic movement is that the Fed is trying to catch up with the next economic collapse by raising interest rates, so that there will be room for another stimulus.
This does not exist.
The Fed has no interest in saving the stock market or the economy.
We once again saw that the Federal Reserve raised the interest rate to the level before the financial crisis (the great depression), and the result was a long-term economic crisis.
They know what they are doing.
Federal Reserve
What advantages can we get from this destruction? Centralization.
For example, before the great depression, there were thousands of small private and localized banks in the United States.
But after the great depression, most of these banks were destroyed or merged by elite banking groups.
The banking industry in the United States immediately became a fully monopolized industry.
In the past ten years, they have eliminated all localised competition and redundancy systems, so that communities can fully trust their credit systems.
In 2008, the financial crisis made it possible for the banking elite to introduce extensive stimulus measures to start irresponsible large-scale banknote printing.
They not only saved the United States from the crisis, but also expanded the crisis to threaten the position of the US dollar as the global reserve currency soon.
The fed not only created the US economic depression, but also brought about a comprehensive disaster, which included a substantial depreciation of the value of money and the extreme price inflation of essential commodities.
We all know that the next stage of the collapse will include the end of the dollar, thus opening the door to the establishment of a new global monetary system based on the SDR basket of currencies of the International Monetary Fund (IMF).
The plan has been publicly acknowledged in the article "the 2018: preparing for the global currency" by the elite magazine economist.
It is important to understand what the Fed's role is actually - yes, it is a weapon.
It is a weapon that globalists destroy the US system at a specific point in time, so that they can move towards a new single global economy controlled by a single management entity (most likely IMF or the bank for International Settlements).
This is the purpose of the Fed.
It is not to save the United States from fire and water, but to destroy the United States by deliberately destroying our financial structure.
For more information, please pay attention to the world's shoes, hats and Internet cafes.
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