QE Is Back! -- Economic Collapse 2019 - Stock Market Crash

More people are now realizing that The United States economy is doomed. There is no way out of a collapse. What can be done? With respect to avoiding a collapse, absolutely nothing can be done. Who bears the burden of the collapse is a different issue. Who will bear the burden? That will be you and others just like you. What about you who live in Europe, Asia, the Mid East and Russia? You will be impoverished as a result. Economies in each country are failing for the same reason as is the economy of the United States. In every country in the world today, government is used as a tool to rig markets and enrich those with political power. The harm to you is not malicious. It is incidental but it is harm none the less. The process of using government to guarantee an elevated lifestyle for the privileged over time, destroys the free market system and destroys the lives and opportunities of others who have no advantage. What happens, when a cow is milked for more than it is worth? It doesn’t produce anymore milk, at least for a while. The process and result of destroying an economy with political power is similar. The public will be expected to absorb the losses of the elite. You can count on it. Here is how it will play out. The stock market will accelerate to the downside. As the slide begins, every effort will be made to force it back up. When key stocks are hit, others will get organized support to minimize the effect on the averages. Central banks are heavy into what we can call anointed stocks. Central banks buying stocks really is top down socialism and nothing more. Central banks are likely to buy more of their mistakes in order to avoid looking foolish. They will pull out QE, negative rates and stuff you do not even know about. Whatever they do the effect will be to destroy any capital that the 99% have. You are "funding the recovery". The American public will be expected to let the experts take over because only they have the knowledge and expertise to right the situation. Like the TARP bill of 2008 and the quantitative easing that followed, the government action will end up saving the world’s elite from experiencing any loses while the rank and file suffer through the greatest depression in the history of the world. Sadly, the public will largely buy in to it. For the first time since QE ended way back in late 2014, Federal Reserve holdings of Treasury bonds rose (yellow columns, below). The $8 billion increase is the first seen since QE ended almost 5 years ago and comes after QT (quantitative tightening) had been decelerating since mid 2019. However, the outright increase in Treasury holdings is still a bit of shocker. Can't say if this was a one off... but this deserves a bit more attention. "Quantitative Easing" - the economic alchemist's euphemism for debasing the labor (life) of the citizenry is back again with a QE4 . I expected QE in September or October. This is much sooner, which tells me the Banking Cartel is putting all their bets on Trump losing in 2020. They are going to attempt to hold the economy together to avoid getting the blame and being exposed by Trump. the Fed is already factoring in a scenario in which a shock to the economy leads to additional QE of either $2 trillion, or in a worst case scenario, $4 trillion . ever since 2009 when they started QE the Central Banks basically took over the entire financial system which means they ARE the system now so if the whole system crashes then they crash and burn. And that would mean no more wars, no more bullying, no more controlling through their lobbyists where they secretly funnel billions of dollars to and all other agendas they have that destroys America. QE and rate management (translation NIRP and ZIRP) are easy peasy to understand. Almost everyone makes it complicated. QE is simply monetizing federal debt for a stated reason, one step above helicopter money, aka just paying out printed cash to people directly. Money is fungible so even if QE ends up as bank reserves, the cash not being used as reserves may be lent out. Artificially lower interest rates is To increase loan demand . QE plus artificially low rates: To buy debt nobody would otherwise buy and lower the rates on all debt in general and in sync. Lower rates work to pull demand for loans forward. They only work to create asset bubbles or if they're for short term loans as low rates also decrease income for savers. Lower interest income risks lowered GDP thus eliminating a reason to borrow money at any rate. Also, if people are overloaded with debt being paid off, there's little reason to borrow more at any price. So, the next question is What is the real reason for QE and/or lowering rates? The economic reasons do not support the concept today. Normal people are loaded up with debt and interest income is only barely enough to spurt economic growth. Asset bubbles are at their top with little upside available. Raising rates a little more would increase interest income and cause GDP to rise a bit, creating loan demand for productive purposes. Wall Street would scream about it though because it crowds out their easy money and asset bubble creation. To accommodate higher rates, Wall Street's algos would need more volatility and deeper dips periodically to keep the algos profitable. This is simple economics and it completely and fully explains modern central banking. Money is debt, the more the merrier a la bankster think. This is the mantra until the end goal is reached which is to completely own and control you.









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