Sunday, March 14, 2021

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. And please take some time to subscribe to my backup channels; I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends! The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more

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“Control oil and you control nations; control food and you control the people.” Henry Kissinger


once a standing army is established, in any country, the people lose their liberty.”
George Mason

“Military men are dumb, stupid animals to be used as pawns for foreign policy.”
Henry Kissinger

“If you are an ordinary person, then you can prepare yourself for war by moving to the countryside and building a farm, but you must take guns with you, as the hordes of starving will be roaming. Also, even though the elite will have their safe havens and specialist shelters, they must be just as careful during the war as the ordinary civilians, because their shelters can still be compromised.”
Henry Kissinger

"We don't let them have ideas. Why would we let them have guns?" Joseph Stalin

The people who cast the votes decide nothing. The people who count the votes decide everything.
Joseph Stalin

Governments keep a lot of secrets from their people . . .
Why aren't the people in return allowed to keep secrets
from the government?

PHILIP ZIMMERMAN, DER SPIEGEL

“Some call it Communism, I call it Judaism.”

Rabbi Stephen Weiss

“Anti-Communism is Anti-Semitism.”
Jewish Voice, July - August 1941

Taxing People is Punishing Success
UNKNOWN

There's the rich, the poor, and the tax payers...also known as the middle class. Robert Kiyosaki

The Tax you pay is The Bill for Staying Stupid

Stefan Molyneux


“The modern banking system manufactures money out of nothing. The process is, perhaps, the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and un-mint the modern ledger-entry currency.” Major L L B Angus

The few who understand the system will either be so interested in its profits or so dependent on its favours that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system will bear its burdens without complaint and perhaps without even suspecting that the system is inimical to their interests.
The Rothschild Bros

"Debts must be collected, bonds and mortgages must be foreclosed as rapidly as possible. When, through a process of law, the common people lose their homes they will become more docile and more easily governed through the influence of the strong arm of government, applied by a central power of wealth under control of leading financiers.

This truth is well known among our principal men now engaged in forming an imperialism of Capital to govern the world.

By dividing the voters through the political party system, we can get them to expend their energies in fighting over questions of no importance. Thus by discreet action we can secure for ourselves what has been so well planned and so successfully accomplished."

USA Banker's Magazine, August 25 1924


Cutting Tax Rates stimulates Economic Growth creates more Profit , more Jobs and therefore The Treasury ends up with more Tax Money
UNKNOWN

Taxation is legalized Theft
UNKNOWN

"The Objective of the Bank is not the control of a conflict , it's the control of the debt that a conflict produces . The real value of a conflict , the true value is in the debt that it creates . You control the debt , you control everything . this is THE VERY ESSENCE OF THE BANKING INDUSTRY , to make us all , whether we be nations or individuals , SLAVES TO DEBT " An UNKNOWN Banker

Patriotism is the last refuge... to which the scoundrel clings .... Steal a little and they throw you in jail ..steal a lot and they make you king ....

Bob Dylan


"Corporations are stealing billions in tax breaks, while the confused, screwed citizenry turn on each other. International corporations have no national allegiance, they care only for profit." Robert Reich


There is NO political answer to a spiritual problem!
Steve Quayle


Po
litical Correctness is a Political Stand Point that does not allow Political Opposition , This is actually The Definition of Dictatorship
Gilad Atzmon

The modern definition of racist is someone who is winning an argument with a liberal
Peter Brimelow


When People lose everything and have nothing left to lose , They Lose It !

GERALD CELENTE

Your Greatest Teacher is Your Last Mistake
DAVID ICKE

The one who Controls the Education System , Controls Perception
UNKNOWN

"The world will not be destroyed by those who do evil, but by those who watch them without doing anything."

Albert Einstein

In The Left Nothing is Right & in The Right nothing is Left
UNKNOWN


No man escapes when freedom fails; The best men rot in filthy jails. And those that cried 'Appease! Appease!' Are hanged by those they tried to please
UNKNOWN

Freedom is not Free
UNKNOWN

Don't Steal The Government Hates The Competition

Ron Paul

"Buy The Rumor , Sell The Fact " Peter Schiff


You can love your Country and not your Government

Jesse Ventura


" The Government Works for ME , I do not answer to them They Answer to ME "
Glenn Beck

"Tyranny will Come to Your Door in a Uniform "
Alex Jones

"The Government is not The Solution to our Problems , The Government is The Problem "

Ronald Reagan


"The price good men pay for indifference to public affairs is to be ruled by evil men." Plato


The world is a tragedy to those that feel, and a comedy to those that think...Beppe Grillo

"The people should not fear the government for it is the government who should fear the people" UNKNOWN

"If You are looking for solutions to the world's problems , look in the Mirror , You Are The Solution , You have the power as a human being on this planet " UNKNOWN

"They don't control us , We empower them " UNKNOWN

"Serial Killers do on a Small Scale What Governments do on a large one..."

Serial Killer Richard Ramirez

There is a Class War going on in America, & unfortunately, my class is winning." Warren Buffet

"When the people fear their government, there is tyranny; when the government fears the people, there is liberty."

Thomas Jefferson

"College is a waste of Money"
Albert Einstein

Schools manufacture people who think that they're smart but they're not.
Robert Kiyosaki

Education is what you learn after you leave School
Robert Kiyosaki

" ‏Schools were designed to create employees for the big corporations."
Robert Kiyosaki


"If a law is unjust, a man is not only right to disobey, he is obligated to do so" Thomas Jefferson

Dissent is the highest form of patriotism
Thomas Jefferson

“True education makes you feel stupid. It makes you realize you have so much more to learn.” Robert Kiyosaki


"One day your life will flash before your eyes. Make sure it's worth watching." - Gerard Way

"Aspire not to have More but to be More "
UNKNOWN

The losers in life think they have all the answers. They can’t learn because they’re too busy telling everyone what they know.
Robert T. Kiyosaki ‏

"Failure is simply the opportunity to begin again. -This time more intelligently." Henry Ford

What You Own Owns You
UNKNOWN

If you expect the government to solve your problems, you have a problem. Robert Kiyosaki

"Those who give up their liberty for more security neither deserve liberty nor security." Benjamin Franklin

"None are more hopelessly enslaved than those who falsely believe they are free.” -
Johann Wolfgang von Goethe

"Always trust someone who is seeking the truth , never trust someone who found it" Jordan Maxwell

Be The Change you want to see in The World
UNKNOWN

Failure inspires winners but defeats losers
Robert Kiyosaki ‏

“If you are planning for a year, sow rice; if you are planning for a decade, plant trees; if you are planning for a lifetime, educate people” A Chinese Proverb

"First they came for the Socialists, and I did not speak out--
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out--
Because I was not a Trade Unionist.
Then they came for the Jews, and I did not speak out--
Because I was not a Jew.
Then they came for me--and there was no one left to speak for me." UNKNOWN