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Federal Reserve…Backed Itself Into A Corner
-By Caleb Jones
The entire Republican vs. Democrat presidential election is a big shiny object used to distract your attention away from those elites who actually do run the country, the Federal Reserve. The Federal Reserve's job, among other things, is to convince Americans (and the rest of the world) that the economy is doing great, even when it isn't. Lately, they've been doing this by telling everyone that they might raise interest rates.
The problem is, they can't raise interest rates, since that would crash our entire economy, which is in such bad shape right now it's 100% reliant on falsely low (as in near zero) interest rates. The Fed can't admit this though. They have to pretend everything is fine. It's their job to continue the establishment and status quo.
In reality, not only is the Fed unlikely to raise interest rates (or if they do, just raise it by a tiny tick like they did last year), they are more likely to do pretty much the opposite, which is to engage in more quantitative easing soon. "Quantitative easing" is a fancy way of saying "print more money and give it to the ultra-rich, making you poorer by reducing your purchasing power and raising inflation."
But, if they engage in more QE, it will be an admission that the economy is in bad shape (which it is) and they'll all look like liars (which they are) since this entire time they've been saying the economy is great when it clearly has not been.
If they do nothing, because the economy is so precarious right now, we may get a stock market crash before the presidential election. A possible stock market crash before November terrifies the Fed, because it will essentially hand the presidency to Donald Trump. This is why Pussy Barack won the election in 2008. McCain was way ahead in the polls all the way to October when the entire stock market crashed, handing the election to Obama. The incumbent party always gets murdered in election years where there is a stock market crash.
The Federal Reserve does not want Corrupt Trump to be president. The Fed is part of the establishment, which means they're for Hillary. Fed defenders tell everyone that the Fed is "politically neutral," but this is hilarious bullshit. Federal Reserve officials donate to The Lizard Queen's campaign all the time, and the head of the Fed, Janet Yellen, was Bill Clinton's chief economic adviser.
So the Federal Reserve has painted itself into a corner. Whatever it does, even if it does nothing, will likely bite them in the ass.
My guess, and this is only a guess, is that from now to November the Federal Reserve will do nothing (not raise interest rates, even if they say they will, and not print any more money). Then, after the election, they will print more money (QE) since it will be politically safe to do so. (If the Fed actually has the balls to engage in more QE before November, this will be an indicator that something is very, very wrong with the economy.)
More QE will further devalue the Dollar, but that's what the Fed wants. Devalued dollars means the Fed's gravy train of big government will continue. It hurts all of us "little people" in the long run, but the Fed couldn't care less about that.
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TAG Animus 2016-08-04 06:32:33
Hey Caleb, While I don't doubt what you're saying, it's hard to share this knowledge with my peers without some more background knowledge. I'll do my own research, but I was wondering if you'd mind sharing any media, books, or articles that reflect the current state of our economy, and how you've come to your conclusion that there may be another crash. Thanks for putting your stances out there - Really enjoy your blogs and your book.
Caleb Jones 2016-08-04 09:31:34
I used to have a sidebar on this blog with many of my sources. When I re-do this blog (soon) I'll put an updated version there.
CrabRangoon 2016-08-04 11:06:50
Have you read Ron Paul's book "End the Fed"? If so is it worth reading? I tend to agree with his more Libertarian ideas and I know he wants the Federal Reserve gone.
Caleb Jones 2016-08-04 14:36:15
Have you read Ron Paul’s book “End the Fed”?I haven't because to me it would be preaching to the choir. Putting your monetary policy under the complete command of a near-autonomous private central bank will simply enrich the ultra-rich and the expense of everyone else, and will eventually bankrupt your nation. Of course we should end the Fed. We won't though.
Way_of_Man 2016-08-04 22:46:47
Some of the predictions I've seen for the next round of QE state that the market will rally temporarily but then take a dive. At that point, the Fed will lose control because it will show that: A:) The "economic recovery" was a paper tiger B:) The Fed and central banks are out of tools to curb recessions. I agree in that if all of this went down before the election (quite possibly as Sept and Oct are historically bad months for the market) that it would be a shoe-in for Trump. His anti-establishment speeches and debates would be cranked up to eleven. He'd point out the Yellen connection to the Clintons and tie them into the entire thing.
Caleb Jones 2016-08-05 10:34:49
Some of the predictions I’ve seen for the next round of QE state that the market will rally temporarily but then take a dive.Yeah, that's very likely too.
Kurt 2016-08-07 09:56:17
McCain 'way ahead' until October? I don't believe there is convincing evidence to support your claim. Review your history: http://www.realclearpolitics.com/epolls/2008/president/us/general_election_mccain_vs_obama-225.html#polls Obama had it in the bag pretty much from the DNC onward. McCain had a lead in a few polls but the overwhelming majority of polling data had Obama in the lead the whole way.
Caleb Jones 2016-08-07 13:32:10
McCain ‘way ahead’ until October?Looks like my memory was off, but my point stands. As you can see from your own link, Obama did not maintain a solid lead over McCain until October when the stock market crashed.
Kurt 2016-08-07 19:36:58
No, it looks to me like he had a lead pretty much the whole time, with the exception of early September.
Greg 2016-08-08 21:14:48
The Federal Reserve doesn't run the country, the Jews behind it do. Caleb, as he has admitted, is an INTJ (It's Not The Jews).
Richard 2016-08-08 21:54:20
Snopes disagrees with the attribution of your quote http://www.snopes.com/quotes/jefferson/banks.asp
Caleb Jones 2016-08-08 22:29:39
Snopes disagrees with the attribution of your quoteGood to know. Thank you. I've removed that quote from the post.
Cris 2016-08-19 12:07:30
Hi Caleb! Do you have a piece of your wealth in hard assets?? I'm asking because this economy seems to be in shambles... What is your take on gold?? Thanks and keep up your excellent work!
Caleb Jones 2016-08-22 11:58:41
Do you have a piece of your wealth in hard assets??Yes.
I’m asking because this economy seems to be in shamblesYes. It is.
What is your take on gold??I've spoken a lot about gold here. It's a very good hedge and I'm invested in gold. It's not an investment though, so it won't make you rich. It's simply something you must have to hedge against inflation and chaos, both of which are likely coming.