… There is a lie circulating in the media that Jerome Powell and the Fed are “heroic” for “going against” past central bank regimes and removing easy money policies. This is the exact opposite motive behind what is happening. We have to remember that it was the Fed and other central banks that created the initial crash in 2008 through easy money policies. They then deliberately created an even bigger bubble (the “everything bubble”) through more monetary stimulus; a bubble so large that it would collapse the entire U.S. economy including bond markets and the dollar if it ever burst.
This circular process of crisis-stimulus-crisis is one that that the central bank has used for over a century. Former Fed officials like Ben Bernanke and Alan Greenspan have openly admitted to central bank culpability for the Great Depression as well as the crash of 2008. Though, as they do this they also assert that they were “not aware at the time” of the greater danger. I don’t buy that for a second.
In almost every instance during which the Fed created a crash environment, banking institutions were able to use the opportunity to snatch up hard assets for pennies on the dollar, as well as steal more political and social power. During the Great Depression, major banks absorbed thousands of smaller local banks as well as all the assets those banks held. In 2008, banks and corporations enjoyed a deluge of easy money paid for by American taxpayers for generations to come, while also vacuuming up hard assets like distressed home mortgages.
An even greater prize for banking elites is global centralization of economic authority, which is what I believe their goal is as the next engineered crash runs its course. As crisis leads to catastrophe, it will be institutions driven by globalism like the International Monetary Fund (IMF) and Bank for International Settlements (BIS) that step in to “save the day”.
As I have noted time and time again, Jerome Powell is well aware of what will happen as the Fed tightens. He is recorded in the Fed minutes of October 2012 discussing the consequences, including his hint of an impending crash if the Fed shut down stimulus measures, raised interest rates and cut the balance sheet….