LIES YOU WILL HEAR AS THE ECONOMIC COLLAPSE PROGRESSES
By Brandon Smith.
Thursday, 27 August 2015
It is undeniable; the final collapse triggers are upon us,
triggers alternative economists have been warning about since the initial
implosion of 2008. In the years since the derivatives disaster, there has been
no end to the absurd and ludicrous propaganda coming out of mainstream
financial outlets and as the situation in markets becomes worse, the propaganda
will only increase. This might seem counter-intuitive to many. You would think
that the more obvious the economic collapse becomes, the more alternative
analysts will be vindicated and the more awake and aware the average person
will be. Not necessarily...
In fact, the mainstream spin machine is going into high
speed the more negative data is exposed and absorbed into the markets. If you
know your history, then you know that this is a common
tactic by the establishment elite to string the public along with false hopes
so that they do not prepare or take alternative measures while the system
crumbles around their ears. At the onset of the Great Depression the
same strategies were used. Consider if you've heard similar quotes to these in
the mainstream news over the past couple months:
John Maynard Keynes in 1927: “We
will not have any more crashes in our time.”
H.H. Simmons, president of the New York Stock Exchange, Jan.
12, 1928:
“I cannot help but raise a
dissenting voice to statements that we are living in a fool’s paradise, and
that prosperity in this country must necessarily diminish and recede in the
near future.”
Irving Fisher, leading U.S. economist, The New York Times,
Sept. 5, 1929:
“There may be a recession in
stock prices, but not anything in the nature of a crash.” And on 17,
1929: “Stock prices have reached what looks like a permanently high
plateau. I do not feel there will be soon if ever a 50 or 60 point break from
present levels, such as (bears) have predicted. I expect to see the stock
market a good deal higher within a few months.”
W. McNeel, market analyst, as quoted in the New York Herald
Tribune, Oct. 30, 1929:
“This is the time to buy stocks.
This is the time to recall the words of the late J. P. Morgan… that any man who
is bearish on America will go broke. Within a few days there is likely to be a
bear panic rather than a bull panic. Many of the low prices as a result of this
hysterical selling are not likely to be reached again in many years.”
Harvard Economic Society, Nov. 10, 1929:
“… a serious depression seems
improbable; [we expect] recovery of business next spring, with further
improvement in the fall.”
Here is the issue – as I have ALWAYS said, economic collapse
is not a singular event, it is a process. The global economy has been in the
process of collapse since 2008 and it never left that path. Those
who were ignorant took government statistics at face value and the manipulated
bull market as legitimate and refused to acknowledge the fundamentals. Now,
with markets recently suffering one of the greatest freefalls since the
2008/2009 crash, they are witnessing the folly of their assumptions, but that
does not mean they will accept them or apologize for them outright. If there is
one lesson I have learned well during my time in the Liberty Movement, it is to
never underestimate the power of normalcy bias.
There were plenty of “up days” in
the markets during the Great Depression, and this kept the false dream of a
quick recovery alive for a large percentage of the American population for many
years. Expect numerous “stunning stock reversals” as the collapse of our
era progresses, but always remember that it is the overall TREND that matters
far more than any one positive or negative trading day (unless you open down
1000 points as we did on Monday), and even more important than the trends are
the economic fundamentals.
The establishment has made every
effort to hide the fundamentals from the public through far reaching
misrepresentations of economic stats. However, the days of effective
disinformation in terms of the financial system are coming to an end. As
investors and the general public begin to absorb the reality that the global
economy is indeed witnessing a vast crisis scenario and acknowledges real
numbers over fraudulent numbers, the only recourse of central bankers and the
governments they control is to convince the public that the crisis they are
witnessing is not really a crisis. That is to say, the establishment will
attempt to marginalize the collapse signals they can no longer hide as if such
signals are of “minimal” importance.
Just as occurred during the onset of the Great Depression,
the lies will be legion the closer we come to zero hour. Here are some of the lies you will likely hear
as the collapse accelerates...
1- The Crisis Was Caused By
Chinese Contagion
The hypocrisy inherent in this lie is truly astounding, to
say the least, considering it is now being uttered by the same mainstream dirt bags
who only months ago were claiming that China's financial turmoil and stock
market upset were inconsequential and would have “little to no effect” on
Western markets.
I specifically recall these
hilarious quotes from Barbara Rockefeller in July:
“Something else that doesn’t
matter much is the Chinese equity meltdown—again. China may be big and
powerful, but it lacks a retail base and fund managers experienced in price
variations, never mind a true rout...”
“Doom-and-gloom types have
been saying for a long time that we will get a stock market rout when the Fed
finally does move to raise rates. But as we wrote last week, history doesn’t
bear out the thesis, not that you can really count on history when the sample
size is one or two data points...”
Yes, that is a bit embarrassing. One or two data points?
There have been many central bank interventions in history. When has ANY
central bank or any government ever used stimulus to manipulate markets through
fiat infusion and zero interest fueled stock buybacks or given government the
ability to monetize its own debt, and actually been successful in the endeavor?
When has addicting markets to stimulus like a heroin dealer ever led to
“recovery”? When has this kind of behavior ever NOT created massive fiscal bubbles,
a steady degradation of the host society, or outright calamity?
Suddenly, according to the MSM,
China's economy does affect us. Not only that, but China is to blame for all
the ills of the globally interdependent economic structure. And, the
mere mention that the Fed might delay the end of near zero interest rates in
September by a Federal Reserve stooge recently sent markets up 600 points after
a week-long bloodbath; meaning, the potential for any interest rate increase no
mater how small also has wider implications for markets.
THE TRUTH IS, the crash in global stocks which will
undoubtedly continue over the next several months despite any delays on ZIRP by
the Fed is a product of universal decay in fiscal infrastructure. Nearly every
single nation on this planet, every sovereign economy, has allowed central and
international banks to poison every aspect of their respective systems with
debt and manipulation. This is not a “contagion” problem, it is a systemic
problem to every economy across the world.
China's crash matters not because it is causing all other
economies to crash. It matters because China is the largest importer/exporter
in the world and it is a litmus test for the financial health of every other
country. If China is failing, it means we are not consuming, and if we are not
consuming, then we must be broke. China's crash portends our own far worse
economic conditions. THAT is why western markets have been crumbling along with
China's despite the assumptions of the mainstream.
2- China's Rate Cuts Will Stop
The Crash
No they won't. China has cut rates
five times since last November and this has done nothing to stem the tide of
their market collapse. I'm not sure why anyone would think that a new
rate cut would accomplish anything besides perhaps a brief respite from the
continuing avalanche.
3- It's Not A Crash, It's Just
The End Of A “Market Cycle”
This is the most ignorant non-explanation I think I have
ever heard. There
is no such thing as a “market cycle” when your markets are supported partially
or fully by fiat manipulation. Our market is in no way a free
market, thus, it cannot behave like a free market, and thus, it is a stunted
market with no identifiable cycles.
Swings in markets of up to 5%-6% to the downside or upside
(sometimes both in a single day) are not part of a normal cycle. They are a
sign of cancerous volatility that comes from an economy on the brink of
disaster.
The last few years have been seemingly endless market bliss
in which any idiot day trader could not go wrong as long as he “bought the dip”
while Fed monetary intervention stayed the course. This is also not normal,
even in the so-called “new normal”. Yes, the current equities turmoil is an
inevitable result of manipulated markets, false statistics, and misplaced hopes,
but it is indeed a tangible crash in the making. It is in no way an example of
a predictable and non-threatening “market cycle”, and the fact that mainstream
talking heads and the people who parrot them had absolutely no clue it was
coming is only further evidence of this.
4- The Fed Will Never Raise Rates
Don't count on it. Public statements by globalist entities
like the IMF on China, for example, have argued that
their current crisis is merely part of the “new normal”; a future in which
stagnant growth and reduced living standards is the way things are supposed to
be. I expect the Fed will use the same exact argument to support the end
of zero interest rates in the U.S., claiming that the decline of American
wealth and living standards is a natural part of the new economic world order
we are entering.
That's right, mark my words, one day soon the Fed, the IMF,
the BIS and others will attempt to convince the American people that the
erosion of the economy and the loss of world reserve status is actually a “good
thing”. They will claim that a strong dollar is the cause
of all our economic pain and that a loss in value is necessary. In
the meantime they will, of course, downplay the tragedies that will result as
the shift toward dollar devaluation smashes down on the heads of the populace.
A rate hike may not occur in September. In fact, as I predicted
in my last article, the Fed is already hinting
at a delay in order to boost markets, or at least slow down the current carnage
to a more manageable level. But, they WILL raise rates in the near term, likely
before the end of this year after a few high tension meetings in which the
financial world will sit anxiously waiting for the word on high. Why would they raise rates? Some people
just don't seem to grasp the fact that the job of the Federal Reserve is to
destroy the American economic system, not protect it. Once you understand this
dynamic then everything the central bank does makes perfect sense.
A rate increase will occur exactly because that is what is
needed to further destabilize U.S. market psychology to make way for the “great
economic reset” that the IMF and Christine Lagarde are so fond of promoting.
Beyond this, many people seem to be forgetting that ZIRP is still operating,
yet, volatility is trending negative anyway. Remember when everyone was ready
to put on their 'Dow 20,000' hat, certain in the omnipotence of central bank
stimulus and QE infinity? Yeah...clearly that was a pipe dream.
ZIRP has run it's course. It is no longer feeding the
markets as it once did and the fundamentals are too obvious to deny.
The globalists at the Bank for International Settlements in
spring openly deemed the existence of low interest rate policies a potential
trigger for crisis. Their statements correlate with the BIS tendency to
“predict” terrible market events they helped to create while at the same time
misrepresenting the reasons behind them.
The point is, ZIRP has done the job it was meant to do.
There is no longer any reason for the Fed to leave it in place.
5- Get Ready For QE4
Again, don't count on it. Or at the very least, don't expect
renewed QE to have any lasting effect on the market if it is initiated.
There is truly no point to the launch of a fourth QE
program, but do expect that the Fed will plant the possibility in the media
every once in a while to mislead investors. First, the Fed knows that it would
be an open admission that the last three QE's were an utter failure, and while
their job is to dismantle the U.S. economy, I don't think they are looking to
take immediate blame for the whole mess. QE4 would be as much a disaster as the
ECB's last stimulus program was in Europe, not to mention the past several
stimulus actions by the PBOC in China. I'll say it one more time – fiat
stimulus has a shelf life, and that shelf life is over for the entire globe.
The days of artificially supported markets are nearly done and they are never
coming back again.
I see little advantage for the Fed to bring QE4 into the
picture. If the goal is to derail the dollar, that action is already well
underway as the IMF carefully sets the stage for the Yuan to enter the SDR
global currency basket next year, threatening the dollar's world reserve
status. China also continues to dump hundreds of billions in U.S. treasuries
inevitably leading to a rush to a dump of treasuries by other nations. The
dollar is a dead currency walking, and the Fed won't even have to print Weimar
Germany-style in order to kill it.
6- It's Not As Bad As It Seems
Yes, it is exactly as bad as it
seems if not worse. When the Dow can open 1000 points down on a Monday
and China can lose all of its gains for 2015 in the span of a few weeks despite
institutionalized stimulus measures lasting years, then something is very
wrong. This is not a “hiccup”. This is not a correction which has already hit
bottom. This is only the beginning of the end.
Stocks are not a predictive
indicator. They do not follow positive or negative fundamentals. Stocks do not
crash before or during the development of an ailing economy. Stocks crash after
the economy has already gone comatose. Stocks crash when the system is no longer salvageable. Since 2008,
nothing in the global financial structure has been salvaged and now the central
banking edifice is either unable or unwilling (I believe both) to supply the
tools to allow us even to pretend that it can be salvaged. We're going to feel
the hurt now, all while the establishment tells us the whole thing is in our
heads.
====
No hay comentarios:
Publicar un comentario