The Economic End Game....

Discussion in 'Financial Cents' started by Yard Dart, Apr 7, 2016.

  1. Yard Dart

    Yard Dart Vigilant Monkey Moderator


    We live in strange economic times, stranger perhaps than at any other point in history. Since 2007-2008, the globally intertwined and dependent fiscal system has suffered considerable declines in every conceivable area. Manufacturing around the world is in a slump, from Japan to China to Europe, with the minimal manufacturing accomplished in the U.S. also fading. Consumption is falling, most notably in petroleum and raw materials. Employment is truly dismal, with the U.S. posting over 94 million people as “non-participants” in the national work force.

    High paying jobs are disappearing, and the only jobs replacing them are in the low wage service sector. This problem is becoming so pervasive that certain more socialist states including California and New York are attempting to offset the loss of sustainable income jobs by forcing retail and service companies into paying an inflated minimum wage. That is to say, the government hopes to stop the bloodletting in wages by magically turning low paying jobs into high paying jobs.

    As anyone with any economic sense knows, you cannot have a faltering consumer sector in which people are buying less and force companies to pay their employees far more per hour than the job is worth. Those companies will simply lay off more employees, cut hours or shut down entire branches of their operation in order to maintain their profit margins. Either that, or those companies will go out of business.

    One sector, though, continues to reap certain benefits (for now), and that is equities. There is a good reason for this.

    The stock market is a kind of Pavlovian control mechanism, a mental trigger in the minds of the masses that dominates their perceptions of the world’s financial health. The drooling public sees green lines and they hail impending “recovery;” they see red lines and suddenly they begin to wonder if all is not well. As the former head of the Federal Reserve Dallas branch, Richard Fisher admitted in an interview with CNBC, the U.S. central bank in particular has made its business the manipulation of the stock market to the upside since 2009:

    What the Fed did — and I was part of that group — is we front-loaded a tremendous market rally, starting in 2009.

    It’s sort of what I call the “reverse Whimpy factor” — give me two hamburgers today for one tomorrow.

    I’m not surprised that almost every index you can look at … was down significantly. [Referring to the results in the stock market after the Fed raised rates in December.]

    Fisher went on to warn investors:

    I was warning my colleagues, “Don’t go wobbly if we have a 10-20% correction at some point…. Everybody you talk to … has been warning that these markets are heavily priced.”

    Central banks have focused most of their efforts on levitating the Dow as well as energy markets for some time now. Why? Because the general public does not pay attention to any other market indicators. They do not care that equipment giant Caterpillar is having the worst profit period in the company’s history. They do not care that the Baltic Dry Index, a measure of global shipping rates and thus a measure of global orders for raw goods, continues to bounce around well below its original historic lows due to crashing shipping demand. They do not care that according to the World Economic Forum, oil demand has dropped to levels not seen since 1997. They do not know nor do they care to know. Their only barometer for economic danger is the Dow, and central banks know this well.

    Something has changed recently, though. Why, for example, did the Fed go against its long-time mandate of manipulating equities into positive territory and commit to the taper of QE3? Why did they then later commit to hiking interest rates, causing a massive downturn in stocks from December to February?

    The jawboning of stocks in March back from the brink actually tells us a lot in terms of the central bank’s intentions. First, it tells us that the Fed does not intend to use tools such as rate cuts and stimulus measures to buy back market optimism. Rather, they are relying solely on investor faith that central banks are not going to leave them high and dry. They have decided to use manipulative language alone, rather than the manipulative monetary policy we have grown accustomed to.

    Second, the action of the Fed in raising rates has torn away the veil and shown the public stocks truly cannot survive without central bank support. The moment the Fed leaves markets to their own devices, the only things left for investors to turn to are the fundamentals, and of course the fundamentals are ugly beyond belief. Thus, stocks begin to plummet.

    As I point out in my article “Markets ignore fundamentals and chase headlines because they are dying,” some of the greatest market rallies in U.S. history occurred during the onset of the Great Depression, and all of these rallies were based on a false sense of public faith that recovery was “right around the corner”. The rally this past March is no different. There are no fundamentals to back it, it was built entirely on faith, and soon it will implode as similar rallies did during the Depression.

    Just in the past week alone, certain signs are bubbling to the surface to undermine the facade of the recent dubious rally.

    For anyone who was betting on oil markets to continue their spike past the $40 per barrel mark, there was a lot of bad news. Saudi Arabia crushed optimism by announcing that it would not be entertaining a “production freeze” proposal unless all other oil producing nations, including Iran, also agreed to it.

    Iran then doubly crushed optimism that by announcing an increase in production rather than committing to a freeze.

    Russia then administered the final blow by releasing data showing that their oil output had risen to historic levels, indicating that will not be entering into any agreement on a production freeze.

    Why do oil markets matter? Well, it would seem that stocks for the past few months have been tracking oil. When oil takes a dramatic turn to the negative, so do stocks. This may be a purely psychological correlation, but that is kind of the point. All stock market movements are purely psychological today, and when psychological optimism fails, the fundamentals strike hard. So far, oil is erasing its 2016 gains, and equities will soon follow.

    In fact, most of the world is beginning to feel tremors yet again in stocks as central bank meeting and announcements are having less and less affect on positive psychology.

    Asian markets were trounced last week with a return to volatility as Chinese and Japanese central banks were either unable or unwilling to slow the tide. European markets followed, with some market participants coming to terms with the nature of the recent rally:

    “The market is missing confidence,” said Mathias Haege, who helps oversee 300 million euros ($342 million) as managing partner of MaxAlpha Asset Consultant in Frankfurt. “At the end of the day, it doesn’t matter what central banks are doing if economic growth doesn’t accelerate and corporate earnings continue to shrink.”

    And there you have it. Stock markets are in no way a measure of economic health, they are only a measure of investor confidence in central banks, and that confidence is failing in light of extremely negative fundamentals.

    So, I ask again, why have many central banks and the Federal Reserve in particular pulled back from their usual tools (near zero rates and stimulus) at a time when investor faith in economy is falling?

    Recently, Wikileaks published a transcript of an internal International Monetary Fund (IMF) discussion that provides some answers. The general thrust of the document shows that the IMF deliberately set the stage for a return to instability in Greece this summer with the intention of destabilizing the EU, and more specifically cornering Germany. The goal? To essentially force the EU to allow the IMF to take a more commanding role in the economic affairs of the supranational body.

    Far too much attention is paid to the criminality of national central banks like the Federal Reserve, but the Federal Reserve is nothing more than a franchise, an appendage of a greater banking syndicate with the IMF, Bank for International Settlements (BIS) and the World Bank leading the way.

    What many people do not seem to understand is that national central banks are expendable in the minds of globalists like those at the IMF. They are nothing but institutions on paper. Their true assets are unknown because they have never been audited. They can be destroyed or absorbed on a whim if globalists see greater gains as a result. The Wikileaks documents support the assertions I wrote in my article, “The economic end game explained,” that central banks, led by the IMF and the BIS, are deliberately creating instability in global markets in order to create a crisis large enough to substantiate total centralization of power in the hands of those same institutions.

    This should not be news to anyone, but unfortunately it is. Back in 2012 IMF head Christine Lagarde made this revealing statement:

    When the world around the IMF goes downhill, we thrive. We become extremely active because we lend money, we earn interest and charges and all the rest of it, and the institution does well. When the world goes well and we’ve had years of growth, as was the case back in 2006 and 2007, the IMF doesn’t do so well both financially and otherwise.

    If the IMF is engineering a financial crisis in Europe in order to gain more power and influence, why wouldn’t the Fed be doing the same for the IMF in the U.S.?

    The only explanation that makes sense in terms of the Fed allowing an incremental removal of support from U.S. markets is that their goal is to create instability. The jawboning and false hopes act as a kind of steam valve, slowing the crash to a manageable pace.

    The loss of faith in central banks and their ability to support dying markets is indeed occurring. However, this is not the whole story. The fact is, the loss of faith is meant to happen, and is useful to globalists at the IMF who seek to replace hundreds of central bank franchises across the globe with a single governing entity overseeing the financial administration of the entire world. That is to say, the IMF is creating the problem so that they can offer themselves and their authority as a solution.

    Just as the international bankers use stimulus and rate policy as tools, so, to, do they use chaos.

    Lost faith in central banks and the economic end game - Personal Liberty®
    hitchcock4, Dont, Mountainman and 8 others like this.
  2. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

  3. stg58

    stg58 Monkey+++ Founding Member

    UncleMorgan likes this.
  4. stg58

    stg58 Monkey+++ Founding Member

    Did you know most retailers did not order dimes for change?
    They only ordered pennys, nickels and quarters for change, you may have received a dime but that is because someone used it for a bill, back when cash and checks were the primary payment methods.
    UncleMorgan likes this.
  5. Brokor

    Brokor Live Free or Cry Moderator Site Supporter+++ Founding Member

  6. duane

    duane Monkey+++

    Very good post, thank you Yard Dart for the information. The sheeple will not read it on their I-Phones and it becomes yet another sermon delivered to the choir. Kind of reminds me of a story I heard of one of the early Jewish escapes from Hitler"s death camps. He returned to the ghetto and told the Jewish leaders what was happening to those being taken away. They discussed the situation and turned him in to the "police" as they didn't believe his story, didn't want to believe it, and didn't want to rock the apple cart by bringing down the police on the ghetto for giving him refuge. In my humble opinion the greatest danger our economy, and thus to our well being, is the deliberate distortion caused by the very low interest rates. It has created debts at all levels that in turn have created paper values that are not sustainable and can only be repaid thru either inflation or default. In the long run we can not pay back the 19 trillion in national debt and all of the promises for future payments on the national level, the payments on the million dollar single family homes in the major states, the trillion in college debts, the promises the states and companies have made for pensions, the debts created to "buy back" stocks or buy out your competition, the inflated values placed on stocks that were created when our 401K's are being forced into the ponzi scheme to receive any return above 0 %, and so on. We can not recover from this situation with our present system and when our largest companies are in the business of selling "consumer" goods, Apple with products made overseas, Ford and GM, electronics, the sports and entertainment industries, all with products that are designed to be obsolete and replaced in a couple of years, and that add little if anything to our productive capacity, it will be difficult to "grow" out of the trap we are now in. I hope to minimize the effect the coming collapse will have on me by driving a 16 year old truck, living in a small house that is paid for, not owning an I-Phone or any of its cousins, staying out of the stock market, etc but for my children and grand children it doesn't look good and any comments made to "open" their eyes are ignored or made fun of. Our educational, political, social and entertainment systems are doing an excellent job in creating a very disturbed mindless herd. They are cattle being lead to slaughter, the herd smells blood, they haven't eaten or drank for 18 hours, they don't see any place around them that they recognize, but everyone tells them that if they just go down that chute, all their problems will be over. My limited advise is to be as comfortable in your life and mind as you can be, read your Bible, get your mind prepared if you don't believe in God which is not an option for me, and lead as good of a life as you can thru these troubling times.
  7. Ganado

    Ganado Monkey+++

    There is a war going on in currency markets about who is going to control how money flows. This affect ALL trade. This isn't just about america and it will affect americana economic stability.

    Panama Papers (not full disclosure and its controlled info as to who has access)
    Bank for International Settlements
    Economic Indicator | Corporate Debt Defaults Explode To Catastrophic Levels Not Seen Since The Last Financial Crisis | Stillness in the Storm
    How and Why "The Money Masters" Took Control (Full Documentary) | Stillness in the Storm
    UncleMorgan, Motomom34 and duane like this.
  8. UncleMorgan

    UncleMorgan I like peeling bananas and (occasionally) people.

    My heartfelt thanks to Yard Dart for his post and the creation of this thread.

    This is a subject that is of consummate importance, yet few people seem interested in it, and even fewer seem inclined to act upon the implications of the total loss of economic freedom.

    What happens when every price is regulated, every economic choice is mandated, and it is the government that decides who will be allowed to prosper, and who will be made to labor a lifetime with no hope of financial gain?

    The time is coming when not only will the governments tell the people what they can buy and at what price, but what they MUST buy whether they wish to or not.

    The time is coming when the accumulation of savings will be a criminal act.

    The time is coming when the mere possession of cash will be a felony (if not capital) crime.

    The time is coming when the worker who does not spend all of his pay on the day it was earned will forfeit the remainder. When money itself will have a designated lifespan, and no wealth will be permitted that is not assigned to the individual by the government.

    Mere political tyranny pales in comparison.
    hitchcock4, duane and Yard Dart like this.
  9. Kingfish

    Kingfish Self Reliant

    Today is living proof that this new world order has failed. Corporations take advantage of slave labor in depressed countries like Communist China, Vietnam and others. Until we return to a state of moderate protectionism it will continue to fall. If want high paying jobs we need to keep the money HERE and stop exporting it. W e never needed the world . They needed us. They parted us out and we have seen the largest redistribution of wealth through industry in the history of the world. We need that industry back to survive.
    saltbush, UncleMorgan, duane and 3 others like this.
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