The Final Swindle Of Private American Wealth Has Begun I stand more on the position that the Fed taper was actually begun in preparation for a slowdown in global markets that was already in progress. In fact, I believe central bankers have been well aware that a decline in every sector was coming, and are moving to insulate themselves. Is it just a coincidence that the central bankers have initiated their taper of QE right when global manufacturing numbers begin to plummet? agweb/article/us_stocks_drop_as_manufacturing_gauge_falls_more_than_forecast_BLMG/ bloomberg/news/2014-02-01/china-manufacturing-gauge-falls-to-six-month-low.html Is it just coincidence the taper was started right when the Baltic Dry Index, a global indicator of shipping demand, has lost over 50% of its value in the past few weeks? investmenttools/futures/bdi_baltic_dry_index.htm Is it just coincidence that the taper is running tandem with dismal retail sales growth reports from across the globe coming in from the final quarter of 2013? businessweek/news/2014-02-04/euro-is-near-10-week-low-before-retail-sales-data-ecb-meeting scmp/business/economy/article/1421025/no-christmas-cheer-hong-kongs-retailers business.time/2013/11/14/walmart-sales-dip-as-low-income-americans-close-wallets/ And, is it just a coincidence that the Fed taper is accelerating right as the next debt ceiling debate begins in March, and when reports are being released by the Congressional Budget Office that over 2 million jobs (in work hours) may be lost due to Obamacare? reuters/article/2014/02/04/us-usa-fiscal-obamacare-idUSBREA131B120140204 No, I do not think any of this is coincidence. Most if not all of these negative indicators needed months to generate, so they could not have been caused by the taper itself. The only explanation beyond coincidence is that the Federal Reserve WANTED to launch the taper program and protect itself before these signals began to reach the public. Look at it this way - The taper program distances the bankers from responsibility for crisis in our financial framework, at least in the eyes of the general public. If a market calamity takes place WHILE stimulus measures are still at full speed, this makes the banks look rather guilty, or at least incompetent. People would begin to question the validity of central bank methods, and they might even question the validity of the central bank’s existence. The Fed is creating space between itself and the economy because they know that a trigger event is coming. They want to ensure that they are not blamed and that stimulus itself is not seen as ineffective, or seen as the cause. We all know that the claims of recovery are utter nonsense. Beyond the numerous warning signs listed above, one need only look at true unemployment numbers, household wage decline, and record low personal savings of the average American. The taper is not in response to an improving economic environment. Rather, the taper is a signal for the next stage of collapse. Stocks are beginning to plummet around the world and all mainstream pundits are pointing fingers at a reduction in stimulus which has very little to do with anything. What is the message they want us to digest? That we “can’t live” without the aid and oversight of central banks. The real reason stocks and other indicators are stumbling is because the effectiveness of stimulus manipulation has a shelf life, and that shelf life is over for the Federal Reserve. I suspect they will continue cutting QE every month for the next year as stocks decline. Will the Fed restart QE? If they do, it will probably not occur until after a substantial breakdown has ensued and the public is sufficiently shell-shocked. The possibility also exists that the Fed will never return to stimulus measures (if debt default is the plan), and QE stimulus will eventually be replaced by IMF aid.
Posted on: Tue, 13 Jan 2015 06:16:13 +0000
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