by Boo_Randy
Ever since 1999 and the tech bubble implosion, Fed-engineered increase/bust cycles have been essentially the most efficacious means for the Wall Road-Federal Reserve Looting Syndicate to switch the wealth and property of the more and more pauperized center and dealing courses, i.e. the retail investor muppets, to the Fed’s “non-public fairness” accomplices. We had the tech bubble bust, the housing bubble bust, after which the 2008 monetary crash. Every of those occasions enabled the already super-wealthy to pay attention much more wealth and energy in their very own palms.
Now the Keynesian fraudsters on the Fed have blown the Mom of All Bubbles, whereas bilking savers out of trillions in curiosity revenue with its near-ZIRP insurance policies that pressure yield-seekers to gamble in Wall Road’s rigged on line casino, the place they are often fleeced at will by the Fed’s accomplices. Recall: within the run-up to the 2008 monetary crash, Goldman Sachs merchants’ inner communications revealed that they have been telling their shoppers – who they known as “muppets” – to put money into collateralized debt obligations (CDOs) for toxic-waste mortgage backed securities (MBSs) at the same time as they have been secretly betting towards them as a result of the merchants knew the AAA-rated (by the three captured rankings businesses) MBSs have been stuffed with subprime mortgage crap. (See “The Large Quick” for extra on such Wall Road monetary chicanery, carried on whereas complicit regulators, enforcers, and policymakers turned a blind eye).
So right here’s the query: are we overdue for yet one more Fed-engineered crash, aka one other Nice Muppet Reaping? All it might take to burst these bubbles is for rates of interest to spike, after being artificially suppressed since 2008 by the Fed and central banks based mostly on their lies of low or “transitory” inflation. Conversely, if/when the Fed implements yield curve management in an try to stop the bond vigilantes from signaling bother forward within the inventory market, this dangers inflicting a significant lack of investor confidence since these rigged and damaged “markets” are completely disconnected from any underlying fundamentals. Deflation is an actual chance because the 99% in our oligarch-looted economic system are financially tapped out on account of crippling debt burdens coupled with the worsening destruction of their buying energy by the Fed’s debasement of the foreign money.
A broad market meltdown would initially be bearish for treasured metals, on account of liquidation promoting on cascading margin calls (margin debt is presently at or close to all-time highs). Any sharp drop in PM costs on account of compelled promoting would probably allow the Fed’s bullion financial institution market-rigging accomplices to cowl a few of their large quick positions in gold & silver and go lengthy earlier than the “flight to high quality” stampede into the protected haven of bodily treasured metals begins in earnest as even the dullest of the sheeple begin seeing via the Fed’s fiat foreign money con sport and frantically commerce their soon-to-be-inflated away Yellen Bux into actual cash – silver, gold, and platinum group metals.
These insane bubbles have already gone on far longer than I believed doable. Seems I vastly underestimated how reckless and irresponsible the felony central banks can be with their Keynesian financial lunacy whereas professing to see no bubbles or inflation. So how does this finish? I haven’t a clue. Not properly, I think. To me, the chances appear excessive of one other Fed-engineered bust, or as an uncontrolled “black swan” sort crash and even monetary collapse occasion. An excessive amount of debt that may by no means be repaid have constructed up within the monetary system. Consider issues like tens of trillions of derivatives (principally off steadiness sheet) and dodgy 2X or 3X leveraged bets for and towards the markets, to not point out an incipient pandemic resurgence, out-of-control authorities spending, and a dangerously polarized physique politic with an enraged proper and militant far left, and it looks like the extent of systemic danger to the monetary system and “markets” is off the charts – particularly since no Wall Road funding banks or their Fed accomplices have been ever held accountable for inflicting the 2008 nice monetary disaster, and our policymakers, regulators, and enforcers stay as corrupt and clueless as ever.
As all the time, not funding recommendation, only one man’s musings and thought of opinion as I look out with rising unease on this every day shit-show. Do your individual due diligence, be sort to 1 one other, and keep protected on the market.
