The Fed is The Mother of all Recessions.

The US president claims that America has never been better in terms of economy. Mixed signals are coming out of the US government that raise speculations about a new recession. The government says there is a possibility of recession, but US manufacturing has already sunk into recession in June after two consecutive quarters of decline. Why? All this is happening as a result of Donald Trump’s trade wars, a slowdown in China and other trading partners. The US Federal Reserve says manufacturing fell by a 2.2 percent annual rate in the April toJune period. The total industrial production has lost 1.2 percent, in both cases the second consecutive quarterly decline. Experts say tariff uncertainties and a general slowdown in the global economy are the reason behind the dive into recession. Economists warn that an uptick is unlikely in any time soon and the economy won’t be on a track to be sustained in coming months. Many wonder how everything came to this, especially after the Tax Cuts and Jobs Act of 2017 which allowed a tax credit for employers. At first, there has been a meaningful improvement in the pace of economic growth. It not only lowered taxes but featured reforms to business taxation that improved the incentives to invest domestically and keep headquarters in the US. Yet, Trump’s trade policies are ruining everything. The aluminum and steel tariffs hurt consumers of metals far more than they helped US producers. The global growth was slowing down but Trump’s escalating trade war with China amplified the crisis. In a Ponzi economy (debt based financial system), debt must grow exponentially. When the serf aren’t getting the job done then the government picks up the slack. Regardless of who borrows the currency into existence, its still an exponential function or you have a “liquidity crisis” like we did in 2008. Yes, the end game is an implosion of the financial system, but EVERYONE should know that by now. When the U.S. Bond Market goes deeply negative you'll know the monetary system has failed. Out of control deficits and negative interest rates are indicators of a failing currency. I believe the plan is to keep the economy artificially propped up with borrowed money so our congress will feel more and more free to keep spending. They are led to believe there is plenty more where that came from due to very low borrowing rates of US treasuries. So when the economy does collapse and workers are laid off and corporate profits collapse because people are buying less, the result will be a great reduction in revenue going into the US and state treasuries. So we have all this spending allocated, but very little money coming in. Everything will go haywire. The yields on US treasuries will skyrocket and the fed will stop secretly printing money in order to buy them. Banks who have heavily invested in equities and securities will fail. Government will have to compound the situation by laying off people. A domino effect the likes of which we have never seen will be the result. Total collapse of the world economy. Conspiracy theory? Yes. Would it make a good movie? Sure, why not. Will it happen? We'll have to wait and see. Calling what is about to happen a recession is like calling Noah's flood a drizzle. What's gonna happen? First we will have hyperdeflation as most of the major corporations and tax donkeys default on their debt. Then we will have hyperinflation as the Fed bails out everyone with tens of trillions of Papiermarken released from helicopter drones (except for the mothership which will be piloted by Powel.) Then the people in despair will call out to their gods in the central banks to save them, which they will agree to do in return for their first born sons.








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