The Fed Set the Stage For the Greatest Economic Crisis In History

The Fed Set the Stage For the Greatest Economic Crisis In History The US government has already run past the critical mass point of where interest payments on debt are greater than the amount of money it takes in via taxes, fines, etc... By about a couple of billion at this point. So, in other words: it will never be able to pay down debt. The debt has nowhere to go but ,up. Even if the government stops all spending right now ,and just pays interest on the debt. We are now permanently on the highway to hell, and the sheet show is gonna get real. All we can do is hunker down and wait for the collapse. It's too hard to even try to argue against the blatantly absurd. At least three rounds of QE this year. America is owned by offshore private banks, period! They set the rules of the game and choose how to play the game. More money on its way. We injected so much liquidity causing yields to rise faster than we expected, which threatens the viability of our risk-free rate valuation balloon.Hence our best course of action is to add even more liquidity at a faster pace. Massive fiscal and monetary stim suggests coming higher inflation Supply not able to meet increased dollars demand. Hence, investors engage in a battle royale with the Fed. The Fed tries to keep the lid on yields through QE and rate policy. While these investors strive for rational and sane price discovery. The Fed have so painted themselves into an ever-growing asset inflation corner that they'll do anything in order to support these valuations. They won't admit they've lost control of inflation and prices until forced to do so by the market. Central Banks think it's okay to keep yields low and money supply infinite. Because it's all, they can do. The biggest monetary crime of our lifetime is that all Central Banks were warned of this, ignored that advice, and now, unforgivably ( out of sheer panic), deny that they are in that corner. So it makes you wonder what the real objective is here. According to "GartmanNomura Analytics" from about a week ago, it should've been GAME OVER for the markets (and pretty much everything else) when the 10-year yield hit 1.5%. As of now, the 10-year yield is at 1.635%, and the stock markets made new all-time record highs while the 10-year yield stayed above 1.5%. Although the stock market keeps on up and up, regardless of the underpinning factors of the economy. However, one day, the laws of economic reality will set in. After 12 years of below reality market rates, the bond vigilantes are reborn. And it won't be pretty. 50 basis points most scenarios can be handled, but if we breach 2.50% on the 10-year yield, it will create a crater in the middle of American finances from sea to shining sea. Interest rates will never go up until the currency used to suppress them becomes worthless. Neither Powell nor the Fed will allow rates to rise far enough. They will purchase and inflate until the dollar crashes. In the aftermath, they will work together with the other nations in creating a world currency. The Fed will create the circumstances that will leave the US no choice in the matter. If the FED is so omnipotent and clever; then why are we in this mess for over 15 years, with things getting worse? The truth is, QE is a failure, and so is the FED. They should be arrested for what they’ve done to the quality of life in this country. The fiscal stimulus, including the latest $1.9 trillion American Rescue Plan Act. All financed with a massive deficit, piled upon a mammoth debt, made possible by dollar debasement. In short, inflation destroys Treasury values for investors. To account for expectations of rising inflation, yields rise. But this presents another problem for long-term Treasury investors. High-priced stocks become less attractive. In addition, higher borrowing costs make it harder for over-leveraged zombie corporations, state governments, municipalities, and Washington to roll over their debts. At the moment, Fed Chairman Jay Powell says he wants inflation to run hot. That the Fed will hold the federal funds rate near zero until at least 2023. And by our estimation, we’re about 50-basis points to disaster. There could be corporate debt, hedge fund, and pension fund financial blow-ups galore. But this is exactly what the Fed is trying to avoid. The Fed wants inflation without higher interest rates. The divergence between what the Federal reserve is saying and what is happening in the market is a clear sign that the Federal reserve no longer has the power to lower rates. Law of diminishing returns. The market demands a return on investment. You remember your economy 101 class; the interest rate is always higher than the inflation rate. Take a look at this last PPI. It is seasonally adjusted, but if you look at where it was not seasonally adjusted, it is up 20%. Overwhelming debt, entitlements, and many other financial issues must be eliminated to ensure a productive and prosperous future for the US. No reason for the Fed to be tied to the US Dollar when a world currency will suffice for the goals of the Aristocracy. Dollar and Treasuries, all dead. Has there ever been a time that so many people borrowed money to gamble with stocks? Maybe in the 1920s? Gamble in stocks and Bitcoins, which will make things worse when the moment of truth arrives. Also, consider that U.S. treasuries will no longer be attractive for foreign investors as confidence collapses in the reserve currency, so international trading is paralyzed. All parties end. The longer they go, the worse the hangover. The only material value will be in food and energy. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. One year ago, Goldman Sachs was 138; today, it is 350. The Fed loves bailing out the banks and helping stocks like Goldman go up 212 dollars a share in one year. It took Goldman 150 years to go up 80 bucks. You get your check for 1,400 from the Federal Reserve, and Goldman got 84,000,000,000. Some things just never change. Fed is already pumping $80 billion per month into Treasuries and $40 billion per month into mortgage-backed securities to suppress interest rates. The major run-up in real estate happened over the last eight years. Cheap money and cheap energy prices made this possible. Looks like the pendulum is swinging to higher interest and energy prices which will make homes unaffordable to once qualified buyers. The entire financial system rests on the assumption that a bond will be worth more tomorrow than it is today (price up, yield down). The moment that trend changes, no one will want bonds. And bonds are the collateral for everything, especially the banks. If there is a run away from bonds, the banks collapse. Then, everything else collapses afterward. That’s why they are terrified of rising rates and have artificially manipulated them lower for decades. Yields are going up, and we will have to deal with it. With all the trillions of new printed debt, the US comes in a painful situation. Every 1% equals $300B in extra Fed interest payments. The total debt level of the US is so high that any figure above 1,50 % really hurts the economy. All the new debt must also be paid back one day. The US rate is at 1,60% now, Germany at -0,30% (negative rate, Germany receives money). Otherwise said, with a spread of almost 2% between these two nations, the market is much more confident in Germany than in the US to get the debt paid back !!. No doubt if the Fed doesn't step up the printing to buy treasuries to keep those rates low enough to service the debt, pretty much everything collapses. This isn't the 80's where they can raise to slow inflation. They're stuck in a nasty box. A coffin of their own making. And we, the people, will suffer the consequences. The Fed cannot resist ever greater amounts of printing press money. It’s the only way for the government to stay in business. The Fed asset purchases will likely balloon to keep interest rates in check. So, in addition to a debt crisis, the Fed is propagating a dollar crisis. It doesn’t take much imagination to see where this leads. And if you still don’t own some gold and silver, you probably never will. Gold and silver are cheap right now, so buy now if you can get any. Because where they're headed, you won't be able to get it. Fiat currencies always go where they're supposed to go, and they're all going to the trash heap when this bubble pops. Gold and silver will maintain your lifestyle in a hyperinflationary environment because the Fed will get us there for sure. Something will start the dominoes falling. Then the obscure corner becomes a tsunami. The petrodollar is dead. The eurodollar is dying. The US Dollar has already been buried. The peeps just haven't got the memo yet. The Dollar has been falling for the last 100 years. It has lost way over 90% of its value. There will come a day when foreign countries will no longer accept those dollars as payment, and that day is fast approaching. I give it two years, and this sheet show is over. It's going to happen anyway, so the sooner, the better. Those foreign countries are exchanging their goods and services for a soon-to-be worthless dollar, and when they realize that; they'll reject those dollars as payment. The FED and Treasury will keep on printing until the interest on the debt exceeds GDP. At that point, it is mathematically impossible to pay it back. But, the system will blow up well before that. With a $30 trillion national debt, a 50 basis point increase in rates means an increase of $150 billion a year in interest payments. And we've pretty much bet the country that rates won't increase 5% ($1.5 trillion a year in additional interest payments). That it all comes tumbling down at some point in time is a given. The question, of course, is when. Some point to Japan as an example of how long the balls can be juggled. I don’t think that’s a good comparison. Japan has a huge national debt, and, like the US, it’s getting higher each year. However, where Japan has a pretty much neutral trade deficit, the US has a very high annual trade deficit. So, where Japan keeps its yen on-shore, a lot of those newly minted zeros and ones from the Fed leave the country each year. I think the crisis gets kicked off when a sufficient number of trading partners say that “Your full faith and credit is no good here. We want hard assets in return for the goods we’re sending”. That will trigger a stampede to the exits not only in debt but in equity as well and will have the added attraction of hyperinflation coupled with empty shelves. We all know the debt is far too big to ever be paid off now. We are just going to keep spending until it all falls. That was the Cloward/Piven Strategy. The Democrats have been following this strategy since the '60s. The end was to seize everyone's wealth for a restart. Now it has gone global, and we call it the great Reset. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. 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