Peter Schiff : The Mother of all Bubbles is About to Pop !!

There's no fixing this, and not just because this can't be fixed. Because to even acknowledge that it needs fixing, never mind the replacing that it really needs, is to admit that almost everybody has gotten screwed by a very small number of people. They'll never own up to that and how could they? Welcome to The Atlantis Report. When the New York Federal Reserve began pumping billions of dollars a day into the repurchasing (repo) markets (the market banks use to make short-term loans to each other) in September, they said this would only be necessary for a few weeks. Yet, last Wednesday, almost two months after the Fed’s initial intervention, the New York Federal Reserve pumped 62.5 billion dollars into the repo market. The New York Fed continues these emergency interventions to ensure “cash shortages” among banks don’t ever again cause interest rates for overnight loans to rise to over 10 percent, well above the Fed’s target rate. The Federal Reserve’s bailout operations have increased its balance sheet by over 200 billion dollars since September. This is Quantitative Easing “on steroids.” One cause of the repo market’s sudden cash shortage was the large amount of debt instruments issued by the Treasury Department in late summer and early fall. Banks used resources they would normally devote to private sector lending and overnight loans to purchase these Treasury securities. This scenario will likely keep recurring as the Treasury Department will have to continue issuing new debt instruments to finance continuing increases in in government spending. Even though the federal deficit is already over one trillion dollars (and growing), President Trump and Congress have no interest in cutting spending, especially in an election year. Should he win reelection, President Trump is unlikely to reverse course and champion fiscal restraint. Instead, he will likely take his victory as a sign that the people support big federal budgets and huge deficits. None of the leading Democratic candidates are even pretending to care about the deficit. Instead they are proposing increasing spending by trillions on new government programs. The Dow pushed above 28,000 on Friday. The Nasdaq also closed on a record high above 8,500, and the S&P 500 made a new record high of 3,120. This despite some more gloomy economic data that came out during the day. Industrial production dropped more than expected, falling by 0.8 in October. Inventory numbers were also revised down. All of this led the Atlanta Fed to revise its Q4 GDP estimate down to 0.3. In his most recent podcast, Peter Schiff said that it’s Quantitative Easing and Federal Reserve policy that is driving the stock market, not a great economy. In fact, the Fed is creating all kinds of bubbles. And like all bubbles, they will eventually pop. Despite the weakening economy, the stock market continues to roar, and Donald Trump continues to claim credit for the rising stock market and holding the stock market out as evidence of the success of his presidency.” Ironically, a rising stock market and unemployment were the same two things Barack Obama pointed to as evidence of his success. Peter said this is really all about the Fed. When Obama was president, we had a rising stock market and a falling unemployment rate, and basically, for the same reasons, we have an increasing stock market and a falling unemployment rate now. The stock market was going up because of the Fed because of artificially low interest rates and quantitative easing. Well, that’s precisely why it’s going up now — artificially low-interest rates and quantitative easing.” Peter said today we have one more thing driving stock markets — talk of a trade deal. As long as the White House can goose the stock market by pretending there’s a trade deal, well, then they’re going to keep pretending.” But Peter said he thinks the effects of all the trade deal talks are secondary to the impact of the Federal Reserve — three rate cuts this year and quantitative easing. And he said despite Powell saying the rate cuts are on pause; he thinks the central bank will likely keep cutting. The market is rising today for the same reasons it rose under Obama. Trump knew that that was phony. He knew that the stock market was a big, fat, ugly bubble and he called out the president, and that’s one of the reasons, or the main reason, I think, that he got elected. The same thing with unemployment.” It’s the same phony economy, and the only thing keeping it going is the Fed. It’s a bunch of bubbles, and like all bubbles, they will pop. In fact, some of them have already popped. Peter mentioned the recent IPOs and the cannabis stocks in particular. These are warning signs. If you think popping bubbles are going to be contained in the IPO market or to the pot stocks, no. All of the bubbles are going to pop, including the total bubble in the US stock market overall – not just in these sectors, but in the entire market is in a bubble. In fact, the bond market is in a bubble; the dollar is in a bubble. There are bubbles everywhere and they’re all going to pop.” Peter talked about President Trump’s plea for negative interest rates. Trump said, “give me some of that!” But the US is actually benefitting from the negative rates in Europe because investors are fleeing the euro. Negative rates in the eurozone and Japan are driving capital into the US. We are benefiting from negative rates by not having them.” Peter Schiff also touched on Powell’s testimony before Congress. The Fed chair continued to claim the economy was good and scolded Congress about the national debt. It’s the Fed that is enabling all the deficits. The Federal Reserve cannot call out Congress and say, ‘Get your house in order, you have too much debt,’ while they’re doing quantitative easing, while they’ve got interest rates artificially low. Because as long as they’re doing that, Congress is never going to act responsibly.” Powell actually did admit that at some point, there is going to be a day of reckoning. I think the day of reckoning is going to happen a lot sooner than Powell thinks.” There is no way back; none. Keep the balls in the air or watch the economy, and then society collapse. Try to take away entitlements after the billionaire bankers got bailouts, good luck. Millions are already screaming for communism, and this is with the lowest unemployment in decades. The government is a massive jobs program. Cut it back and watch our cities burn. Millions count on government largeness, either directly, or indirectly. They may work for companies that have colossal government contacts, or be in a government program such as social security, welfare, EBT cards, VA benefits, etc. Any politician who tries to cut one dime is toast. Trump was gonna 'drain the swamp' until his advisors set him straight about the number one thing on voter's minds. So long as the markets don't tank, he gets re-elected. About 90% of Americans couldn't find Ukraine on a map, and the same percentage don't know what quid-pro-quo, means and don't care anyway. They vote for their wallets, and they rest noise. The Fed must keep printing and cutting, or the party ends ugly. When do we tip over? No one knows. We are in uncharted territory. You can expect the national debt to soar trillions more, and the Fed balance sheet to grow by trillions too. If the Fed lets this get away from them, it is game over. We may never recover, and we will see a communist takeover, as people get even angrier and more irrational than they already are. In the meantime, the debts will keep piling up. A black swan may arrive? Who knows? For several years, economists, big-time investors, political, and financial analysts have tried to predict the month or quarter or year when they expect a global economic collapse to occur. Even when economists, big-time investors, and financial analysts also see cracks and potential disruptions in the global financial system, such indications do not reveal the timing for the downturn. Timing will be determined by the globalist insiders, the schemers, and they keep this top-secret information strictly to themselves, for obvious reasons. They will first select and frame someone or something to blame for the recession (or collapse) they will cause. Furthermore, they usually confuse any crafty, untrustworthy schemers within their ranks of insiders who might leak information to certain of their collaborating friends in an attempt to gain added advantage by jumping the gun. The big schemers confuse potential leakers by creating one or more false alarms or false starts for the planned recession. Having created such false start tests and then intervened to prevent a significant premature downturn, they then set the final, unstoppable recession in motion. Huge profits can be made by those who know when the next major global recession (or collapse) will take place. But only the schemers know the timing. The best we can hope for is that people know what to blame the eventual collapse on because make no mistake, collapse is coming. We have really strayed from the model that was laid out for us by our founding fathers in the constitution. They were a rare breed of men who actually got it right, but over the years, those founding principles have been bent and distorted to the point that I doubt any of them would even recognize what we have become. It started out innocent enough, very gradually at first, but over time these bad precedents tend to multiply, compounding with every year and political cycle. The people, especially those in charge, lack the will to change what has been feeding them. The federal government is using the Fed (which hates to be called "The U.S. Central Bank") as a drug-addicted prostitute. They'll milk the fat, useless Fed for all she's got. If the government was consistently looked at as the founders intended, that is, a 'protector of rights' not a 'creator of rights,' we'd have a better chance to limited government, but unfortunately most Americans do not look at government that way. The bureaucracy is expanding to meet the needs of the expanding bureaucracy.

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