… In my article ‘Party While You Can – Central Bank Ready To Pop The Everything Bubble’, I outlined a process or tactic which the Fed has used on many occasions in the past: The creation of economic bubbles through inflation and artificially low interest rates, followed by abrupt tightening and higher interest rates into economic weakness. This tactic is highly effective in accomplishing ONE GOAL – financial collapse.
It is the same strategy the Fed used at the beginning of the Great Depression. It is also what the Fed used to trigger the crash of 2008. And, in 2018-2019, the Fed is doing it again.
For over two years now the Fed has been instituting tightening measures after inflating perhaps the largest economic bubble in modern history, also known as “the everything bubble”. The Fed did this despite extreme weakness in economic fundamentals, and is continuing forward until the fourth quarter of this year despite nearly every sector of the economy showing steep declines or a greatly reduced pace of growth.
It is perhaps not a coincidence that the Fed announced it would be cutting assets until September just as the Treasury Yield curve inverted for the first time since 2007. The same thing happened just before the crash and recession that started in 2008. An inverted yield curve is generally a sure sign of a decelerating economy or recession/depression.
What bewilders me are the numerous claims in the mainstream and alternative media that the Fed is somehow oblivious to what it is doing. This is simply not true. Jerome Powell in his statements in the Fed Minutes of October 2012 explains plainly exactly what would happen if and when the Fed tightened policy into weakness. He essentially admits that a crash will occur….
The owners of the fed are disaster capitalists. They profit by inducing “business cycles”, riding up the bubbles and then buying up the real economy for pennies on the dollar after the crashes. Even many fed critics don’t seem to get this.
A debt-based monetary system, where the production of money is recursively dependent on expectations of the future production of money, creates an inherently unstable feedback loop which gives the fed the leverage it needs to cause and exacerbate crashes and bubbles on demand. There is an alternative with a history of huge successes, such as the “colonial scrip” in use in pre-revolutionary america, before the british started counterfeiting it. See http://monetary.org and