Foreign Federal Reserve (sic): In A State Of Perpetual Unlawful Manipulation

Jim Rickards

Jim Rickards explains the next event that will cause gold & silver to turn up again. Here’s the details…

June 12 is just three weeks away.

That’s when the Federal Open Market Committee, FOMC, the Fed’s interest rate policy arm, will in all likelihood raise interest rates another 0.25%, the seventh such rate increase since the “liftoff” in interest rates in December 2015.

The market is currently putting the odds of a rate hike at 95%.

This is the most aggressive tempo of rate hikes of any major central bank and puts U.S. policy rates significantly higher than those in the U.K., Japan or eurozone.

The issue for investors is whether the Fed is raising rates too aggressively considering the strength of the U.S. economy. Higher rates imply a stronger dollar, imported deflation and head winds to growth.

If the U.S. economy is on a firm footing, then the rate hikes may be appropriate, even necessary to head off inflation.

But if the U.S. economy is vulnerable, then the Fed’s actions could trigger a recession and stock market sell-off unless the Fed reverses course quickly.

My view is that the latter is more likely.

The Fed is tightening into weakness and will reverse course by pausing rate hikes later this year.

When that happens, important trends in stocks, bonds, currencies and gold will be thrown into reverse.

Outwardly, the Fed is sanguine about the prospects for monetary normalization. Both Janet Yellen and new Fed chair Jay Powell have said that interest rate hikes will be steady and gradual.

In practice, this means four rate hikes per year, 0.25% each, every March, June, September and December, with occasional pauses prompted by strong signs of disinflation, disorderly markets or diminution in job creation.

Lately job creation has been strong. And inflation has picked up. But it’s been spotty. The Fed still faces head winds in achieving its inflation goal.

The Fed is targeting a 2% annual inflation rate as measured by an index called PCE core year over year, reported monthly (with a one-month lag) by the Commerce Department.

That inflation index has not cooperated with the Fed’s wishes, and despite recent gains, hasn’t been able to hold consistently above 2%.

This has been a persistent trend and should be troubling to the Fed as it contemplates its next policy move at the FOMC meeting on June 12-13.

I’ve warned repeatedly that the Fed is tightening into weakness. The Atlanta Fed is projecting a 4.1% growth rate for the second quarter. But it’s known for its rosy projections that are almost always revised downwards once the data come in,

It had to lower its estimate of first quarter growth from over 5% to 1.8%. You can pretty much bet they’ll have to significantly reduce this projection as well.

The economy has been trapped in this low-growth cycle for years. The current economic recovery shows none of the 3% to 4% growth that previous recoveries have shown.

Meanwhile, the Fed is plowing ahead with its policy of quantitative tightening (QT), or cutting into its balance sheet.

Balance sheet normalization is even more on autopilot than rate hikes. Now, the Fed will not dump its securities holdings. Instead, it refrains from rolling over maturing securities. When the Treasury pays the Fed upon the maturity of a Treasury note, the money simply disappears.

This is the opposite of money printing — it’s money destruction. Instead of QE, we now have QT, or quantitative tightening. It’s like the Fed is burning money.

The Fed has been transparent about the rate at which they will run off their balance sheet this way, although transparency should not lead investors to complacency.

The Fed wants you to think that QT will not have any impact. Fed leadership speaks in code and has a word for this which you’ll hear called “background.” The Fed wants this to run on background.

Think of running on background like someone using a computer to access email while downloading something on background.

This is complete nonsense.

Contradictions coming from the Fed’s happy talk wants us to believe that QT is not a contractionary policy, but it is.

They’ve spent eight years saying that quantitative easing was stimulative. Now they want the public to believe that a change to quantitative tightening is not going to slow the economy.

They continue to push that conditions are sustainable when printing money, but when they make money disappear, it will not have any impact. This approach falls down on its face — and it will have a major impact.

My estimate is that every $500 billion of quantitative tightening could be equivalent to one .25 basis point rate hike. Some estimates are even higher, as much 2.0% per year. That’s not “background” noise. It’s rock music blaring in your ears.

For an economy addicted to cheap money, this is like going cold turkey.

The decision by the Fed to not purchase new bonds will therefore be just as detrimental to the growth of the economy as raising interest rates.

Meanwhile, retail sales, real incomes, auto sales and even labor force participation are all declining or showing weakness. Every important economic indicator shows that the U.S. economy can’t generate the growth the Fed would like.

Orchestrated dollar balloon

When you add in QT, we may very well be in a recession very soon.

Then the Fed will have to cut rates yet again. Then it’s back to QE. You could call that QE4 or QE1 part 2. Regardless, years of massive intervention has essentially trapped the Fed in a state of perpetual manipulation. More will follow.

But what about the stock market?

Despite February’s correction, the stock market remains overpriced for the combination of higher rates and slower growth.

The one thing to know about bubbles is they last longer than you think and they pop when you least expect it. Under such conditions, it’s usually when the last guy throws in the towel that the bubble pops.

February’s correction took some air out of the bubble, but the dynamic still applies. It just extended the timeline a bit.

But is this thing ready to pop for real?

Absolutely, and QT could be just the thing to do it. I would say the market is fundamentally set up for a fall.

When you throw in the fact that the Fed continues to have no idea what they’re doing and has taken a dangerous course, I expect a very severe stock market correction coming sooner than later.

The Fed is going to find out the hard way that raising rates and reducing the balance sheet will slow the economy.

I believe that will ultimately lead to another flip-flop and the Fed will once again loosen.

When the market sees that the Fed has decided to flip from tightening to an easing policy, look for increased volatility — and more corrections.

By Jim Rickards

us debt 1 pallet is 100 million dollarsdollars
US Debt: The Pallet Held By The Crane Is $100,000,000.00. One Hundred Million Dollars.

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Source Article from https://politicalvelcraft.org/2018/05/20/foreign-federal-reserve-sic-in-a-state-of-perpetual-unlawful-manipulation/

Did the Federal Reserve Save President Trump From Assassination?

Paul Preston of Agenda 21 Radio, a quality and and tireless researcher, and myself have combined on investigating a number of issues ranging from the crisis involving the Oroville Dam to the various developments of the CALEXIT movement. We have crossed paths once again, but this time, our joint investigations were not planned, our paths accidentally crossed paths and the topic of coincidence has to do with the iintended assassination of President Trump.

Two months ago, Paul Preston told me that the reason that President Trump abruptly, and at the last minute cancelled his South American trip was due to the fact that a definitive and well-coordinated plot to assassinate the President had been discovered. Paul ran with that story and I was content to sit on the sidelines of this story and cheer on his fine work and celebrate the fact that the President avoided catastrophe.

Call me “slow to the party”, I have also stumbled upon similar information with regard to this planned assassination of Trump. The perpetrators are called, The Shining Path. As it is with the Sanchez Peredes cartel, operating out of Peru, this group is a facillitator between Middle East terror groups, MS-13 and various drug cartels operating within Central America and now, inside of the United States.

One of the reasons that I found Paul Preston’s assassination plot revelation so compelling is because I am already aware that Trump, and for good reason, does not trust much of the Deep State infested Secret Service. I have previously reported that the President uses the Marines to provide much of his security. I have learned, independent of the fine work of Paul Preston that it was the Marines White House detail that called off the President’s trip to South America as they came across details of the plot. I have also been told loyal elements of the FBI shared similar information with key White House staffers. Additionally, I was told that the Federal Reserve shared key information on this point with Trump’s guard detail. Why would they do that? The answer is simple, Trump is protecting the Petrodollar as much as possible. Now, I am not here to make excuses for this President, however, his unwarranted and participation in the false flag Syrian chemical weapons attack and subsequent retaliation, was a deal made between Federal Reserve interests and Trump. The Fed needs Syria and Iran knocked out of power and thus, collapse the gold backed oil sales coming out of Iran. The Federal Reserve is willing to go to war over this issue, because it is a survival issue for this institution. Without a viable petrodollar, the dollar will collapse along with your job, pension and bank account. This is why Trump capitulated and gave the Federal Reserve what they wanted, which is to unseat Assad before turning their attention to Iran. I was told that it is the belief of American intelligence agencies that if Syria falls, Russia will not feel that they can adequately defend Iran from Israel.  To date, Russia has not shown any real interst in going to war other than the typica blustering against the US imperialism.

The perpetrators of the assassination plot against Trump, The Shining Path, have distinctive Red Dawn ties to the paramilitary groups that are training in El Salvador and Honduras. They are also tied to the old CITGO oil empire which, in part, evolved into the BRICS organization which is seeking to destroy the Petrodollar by confining oil purchases to gold while bypassing the international agreement which only permitted oil sales in dollars. Interestingly, the old CITGO alliances tie directly to George Soros front groups and directly to the Chinese government. I do not believe that China wants war, at this time, with the US, however, this event and subsequent discovery of Shining Path’s involvement would have led to blaming China and thus, World War III could have commenced. Thi sis specufflation, but this is probably why China is cooperating with Korean unification.  What this definitely indicates is that although the Federal Reserve is not active in trying to assassinate President Trump at this time, larger scale banking interests are very much interested in starting WW III and framing China for any assassination attempt. This group could be none other than the Rothschild’s Bank of Internation Settlements.

Trump’s complicity in the Syrian chemical weapons false flag attack is now understandable given how these moving parts of this story fit together.Trump has reached a deal with the Federal Reserve and regime change for Syria and Iran is his objective. Further trump needs a healthy Federal Reserve to continue to bolster his economic recovery for America. It is an ugly partnership, but it is a partnership.

My source for this information does not have a name as far as the public is concerned. He is a former ARSOF member. He was the source for my ground breaking revelations regarding the near military coup that almost took place against Obama by key members of AFRICOM and part of the Navy in the midst of the Clinton based plot to assassinate Ambassador Stephens because his CIA activities regarding gun-running, drug-running and child trafficking which were beginning to leak right before the 2012 election. Followers of The Common Sense Show may recall that I published these revelations in October of 2012 and by February of 2013 every word from my ARSOF source was validated. I have a 100% confidence call in this information as presented here. Essentially what I am saying is that Trump compromised on Syria and now we know why. I have come to believe that Trump’s capitulation is tied to his survival and very possibly the survival of his family.

To be clear, Paul Preston is the original source of this event. My purpose is to connect the dots on a wider scale because this explains so much more than the avoidance of an assassination.

Why would the Deep State want Trump assassinated?

To answer that question, I think it is prudent to take a look back at JFK and ask the same question and I have spoken previously on each and everyone of these reasons.

I spent 25 years examining the JFK assassination and the reasons why he was assassinated and I arrived at the following conclusions:

  1. The Federal Reserve wanted JFK dead over the silver certificates which threatened to one day supplant the Federal Reserve Note.
  2. JFK wanted to reduce/eliminate the oil depletion allowance which provided a huge, yet undeserved tax break that the average taxpayer did not receive.
  3. JFK was talking nuclear arms reduction with the Soviets, through back channels. His American University Speech in May of 1963 spoke of stopping above ground nuclear testing. The multi-pronged ownership of what Eisenhower feared and called, the military industrial complex, stood to lose a lot of money. In fact, within 60 days of JFK’s death, LBJ ordered the single biggest increase in nuclear arms production in our country’s history. The ownership of the military industrial complex intertwines with the ownership of the oil and banking interests in this country.
  4. JFK was dismantling the sacred cows of Washington DC (e.g. CIA director Allen Dulles) and replacing them with his own appointees to carry out his programs and not the plans of the elite.
  5. JFK was clearly going to kill the elite’s plans for engaging in the Vietnam War. Had JFK lived, the advisors, assigned to Vietnam, would have been recalled by December of 1964. The failure of JFK to deliver this war would have cost the establishment (e.g. members of the Federal Reserve, the military industrial complex, etc) a lot of money. If there was not Vietnam war, the drug trafficking from the “Golden Triangle” could not have been further exploited by the elite.
  6. JFK also had a French reporter secretly negotiating with Castro at the time of the assassination. The elite could not have had peace breaking out, it would have been a profit killer. So, it was easier to kill a President.

Source Article from http://govtslaves.info/2018/05/did-the-federal-reserve-save-president-trump-from-assassination/

American bittern turns up at nature reserve in Suffolk, UK

The American bittern poses for its many admirers at Suffolk Wildlife Trust's Carlton Marshes nature reserve, near Lowestoft.

    

An American star with stripes has lured hundreds of birdwatchers to an East Anglian nature reserve – and has provided a £1million appeal to extend the site with a welcome bittern bonus.

Twitchers from many parts of Britain have been converging on Suffolk Wildlife Trust’s Carlton Marshes, near Lowestoft, to see an American bittern – a species rarely seen in Britain and never before in Suffolk. Related to the great bittern for which East Anglian reedbeds are famous, the rare transatlantic visitor is distinguished by its smaller size, longer bill, greater contrast in its wing pattern and, most obviously, prominent brown neck stripes.

Hordes of birdwatchers have visited the reserve, filling its overflow car park almost to capacity, and donating generously to the trust’s Sir David Attenborough-backed Broads Appeal. The trust aims to extend Carlton Marshes by 384 acres with the purchase of Share Marsh – which is being frequented by the rare visitor – and Peto’s Marsh, together with new infrastructure that includes a new visitor centre.

The American bittern stealithily walks through Share Marsh at Suffolk Wildlife Trust's Carlton Marshes nature reserve, near Lowestoft.

    

Trust warden Matt Gooch said about 600 birdwatchers visited on Sunday and others were arriving today. About £400 was raised for the appeal on the first day – boosting the fund which now stood at about £903,000.

Reserve volunteer and keen Waveney area wildlife photographer Gavin Durrant, of Worlingham, triggered the twitch by posting photographs on social media.

“I was half-hoping to photograph bitterns as there had been a few sightings recently and we’d never got a picture of one before at Carlton,” he said. “At Share Marsh a Chinese water deer started staring at me and I was watching that when out of the corner of my eye a ‘bittern’ flew in low.”

He took photos of the bird and later viewed them at home, thinking the bittern “looked a bit funny”. He posted images on social media that were quickly spotted by Suffolk naturalist Rob Holmes who identified the species as American bittern.

It is not known when the bird arrived on the reserve but many believe it may have crossed the Atlantic last autumn and wandered off course to Europe, spending the winter further south before heading north on its spring migration – and calling in at Carlton. How long it will stay, and its ultimate fate, is also unknown but many birdwatchers across Britain will be hoping it remains long enough for them to see it.

Source Article from https://www.sott.net/article/382320-American-bittern-turns-up-at-nature-reserve-in-Suffolk-UK

The Federal Reserve has already lost control of the markets: ‘US not on a sustainable fiscal path’

Jerome Powell

    

Professional trader Gregory Mannarino says the new Fed Head, Jerome Powell, caused the market to sell off last week, not Trump tariff talk. Powell blurted out in Congressional testimony that the “U.S. is not on a sustainable fiscal path.” Mannarino explains the truth bomb Chairman Powell dropped, “I think this guy was nervous. I think he’s getting shook up here. I think the weight of his position is weighing on him a little too much, and that is what sparked the sell-off. It wasn’t the tariffs. This was Powell, and the markets are saying that this guy really might not have our backs as much as Yellen did.”

So, is the Federal Reserve losing control of the markets? Mannarino contends, “It’s worse than that. They have already lost control. If they were in control, would they still be buying bonds like they are? Would they still be trying to ‘get it right’? They cannot unwind this in a normal way. They have created a system of bubbles, and they are well aware of this. These things tend to collapse very violently when they do. If the Federal Reserve or any of these central banks were in control, do you think we would be in the situation we are in right now? Absolutely not. All they have done is liquefy the world with debt and buy everything they can to keep this propped up. This is not control. This is some kind of a Frankenstein they have created by trying to prop everything up. . . . This is a corpse here that is on life support, and that is all it is.”

“There is going to be a terrible moment of reckoning. Inflation, forget about it. Of course, there is going to be massive inflation. They can’t stop it. . . . They are in a lot of trouble here. Of course, they are going to lose control. Let’s say we start getting some real inflation and they start hiking and hiking rates super-fast. What’s that going to do? Bam, there goes your debt bubble, and then we’re done. Back to the Stone Age. Stock market 6,000 will probably seem like a dream come true because it might even go lower than that. . . They are going to run this until they hit the wall. When is that going to be? I don’t know . . . . I think they are going to keep this propped up until at least the mid-term election. The stock market is going to continue to go up. The distortions are going to get worse and probably much worse until we get a correction to fair value.”

Source Article from https://www.sott.net/article/378997-The-Federal-Reserve-has-already-lost-control-of-the-markets-US-not-on-a-sustainable-fiscal-path

Federal Reserve Wants To Put Metal Chips In Cash To Track Every Dollar and Tax It

In the state’s relentless pursuit to scrutinize and control every citizen, including monitoring, tracking, and especially taxing their income, untraceable physical cash has long been a shield against such tyranny. However, thanks to Donald Trump’s nomination to the Federal Reserve Board of Governors, anonymous purchases, deposits, and savings with cash could soon be a thing of the past.

In November 2017, central banking proponent and Keynesian economist Marvin Goodfriend was nominated by President Donald Trump to fill one of the vacancies on the Federal Reserve Board of Governors. He was then confirmed by the U.S. Senate Banking Committee to advance.

Goodfriend is a central banking insider who’s spent decades moving in and out of government and central banks and his ideas are nothing short of Orwellian.

While his resume may make him seem like a qualified member of the corrupt and insidious Federal Reserve System, he’s proposed and openly advocated for one of the most horrific plans a free society (somewhat) has ever seen—tracking cash.

Reuters reports:

Goodfriend’s idea was to insert magnetic strips into the bills. Each time the cash was returned to a bank, the money would be taxed at a pre-determined rate. That would discourage individuals from hoarding cash and remove one obstacle for central bankers in setting negative rates.

Negative interest rates are employed to incentivize banks to lend money more freely and businesses and individuals to invest, lend, and spend money rather than pay a fee to keep it safe.

However, it is little more than theft. Instead of paying you interest on the money you give them to store and subsequently use as reserves to make these loans, when banks are strapped for cash, they call the theft of your money “negative interest.”

Goodfriend is an advocate for both negative interest rates and tracking your cash—and this person is about to have a leadership position inside America’s central bank.

Under the ostensible idea of reducing quantitative easing, Goodfriend would apply a tax directly to cash—stealing money from already taxed dollars—by tracking who is using it. According to Goodfriend, US currency should include tracking devices that let the government tax private possession of dollar bills—for your own good, of course.

“The magnetic strip could visibly record when a bill was last withdrawn from the banking system. A carry tax could be deducted from each bill upon deposit according to how long the bill was in circulation,” Goodfriend wrote in his proposal.

What could possibly go wrong?

The idea of tracking cash with magnetic strips or RFID chips is such a horrific idea that two unlikely senators from opposite sides of the aisle have come forward to vehemently oppose the Goodfriend appointment.

As Reuters notes again, the idea of a tax on cash is politically toxic. Senators Rand Paul and Elizabeth Warren – two lawmakers often on opposite ends of the ideological spectrum – have denounced Goodfriend’s idea, and may now put his nomination in jeopardy.

We think that is a good idea.

Rand Paul’s father, the esteemed Dr. Ron Paul has been a long-time advocate against such Orwellian moves to track cash and has been fighting them for decades.

“The whole idea is preposterous. The notion that we’re going to tax somebody because they decide to be frugal and hold a couple of dollars is economic planning at its worst,” then-Congressman Ron Paul said. “This idea that you can correct some of the evil they’ve (the Federal Reserve) already created with another tax is just ridiculous.”

 

via:

thefreethoughtproject

Source Article from https://worldtruth.tv/federal-reserve-wants-to-put-metal-chips-in-cash-to-track-every-dollar-and-tax-it/

Trump’s Federal Reserve Pick Wants to Put Metal Chips in Cash to Track Every Dollar and Tax It

cashcash

In the state’s relentless pursuit to scrutinize and control every citizen, including monitoring, tracking, and especially taxing their income, untraceable physical cash has long been a shield against such tyranny. However, thanks to Donald Trump’s nomination to the Federal Reserve Board of Governors, anonymous purchases, deposits, and savings with cash could soon be a thing of the past.

In November 2017, central banking proponent and Keynesian economist Marvin Goodfriend was nominated by President Donald Trump to fill one of the vacancies on the Federal Reserve Board of Governors. He was then confirmed by the U.S. Senate Banking Committee to advance.

Goodfriend is a central banking insider who’s spent decades moving in and out of government and central banks and his ideas are nothing short of Orwellian.

While his resume may make him seem like a qualified member of the corrupt and insidious Federal Reserve System, he’s proposed and openly advocated for one of the most horrific plans a free society (somewhat) has ever seen—tracking cash.

Reuters reports:

Goodfriend’s idea was to insert magnetic strips into the bills. Each time the cash was returned to a bank, the money would be taxed at a pre-determined rate. That would discourage individuals from hoarding cash and remove one obstacle for central bankers in setting negative rates.

Negative interest rates are employed to incentivize banks to lend money more freely and businesses and individuals to invest, lend, and spend money rather than pay a fee to keep it safe.

However, it is little more than theft. Instead of paying you interest on the money you give them to store and subsequently use as reserves to make these loans, when banks are strapped for cash, they call the theft of your money “negative interest.”

Goodfriend is an advocate for both negative interest rates and tracking your cash—and this person is about to have a leadership position inside America’s central bank.

Under the ostensible idea of reducing quantitative easing, Goodfriend would apply a tax directly to cash—stealing money from already taxed dollars—by tracking who is using it. According to Goodfriend, US currency should include tracking devices that let the government tax private possession of dollar bills—for your own good, of course.

“The magnetic strip could visibly record when a bill was last withdrawn from the banking system. A carry tax could be deducted from each bill upon deposit according to how long the bill was in circulation,” Goodfriend wrote in his proposal.

What could possibly go wrong?

The idea of tracking cash with magnetic strips or RFID chips is such a horrific idea that two unlikely senators from opposite sides of the aisle have come forward to vehemently oppose the Goodfriend appointment.

As Reuters notes again, the idea of a tax on cash is politically toxic. Senators Rand Paul and Elizabeth Warren – two lawmakers often on opposite ends of the ideological spectrum – have denounced Goodfriend’s idea, and may now put his nomination in jeopardy.

We think that is a good idea.

Rand Paul’s father, the esteemed Dr. Ron Paul has been a long-time advocate against such Orwellian moves to track cash and has been fighting them for decades.

“The whole idea is preposterous. The notion that we’re going to tax somebody because they decide to be frugal and hold a couple of dollars is economic planning at its worst,” then-Congressman Ron Paul said. “This idea that you can correct some of the evil they’ve (the Federal Reserve) already created with another tax is just ridiculous.”

Source Article from http://thefreethoughtproject.com/trumps-federal-reserve-track-cash/

Foreign Federal Reserve President Sounds Panic Over Level Of Orchestrated U.S. Debt

FEAR MONGERING

Nearly a decade after the US unleashed its biggest debt-issuance binge in history, doubling the US debt from $10 trillion to $20 trillion under president Obama, which was only made possible thanks to the Fed’s monetization of $4 trillion in deficits (and debt issuance), the Fed is starting to get nervous about the (un)sustainability of the US debt.

The Federal Reserve should continue to raise U.S. interest rates this year in response to faster economic growth fueled by recent tax cuts as well as a stronger global economy, Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday.

Rothschild’s Employee John Maynard Keynes

“I believe the Federal Reserve should be gradually and patiently raising the federal funds rate during 2018,” Kaplan said in an essay updating his views on the economic and policy outlook.

“History suggests that if the Fed waits too long to remove accommodation at this stage in the economic cycle, excesses and imbalances begin to build, and the Fed ultimately has to play catch-up.”

The Fed is widely expected to raise rates three times this year, starting next month.

Kaplan, who does not vote on Fed policy this year but does participate in its regular rate-setting meetings, did not specify his preferred number of rate hikes for this year. But he warned Wednesday that falling behind the curve on rate hikes could make a recession more likely.

Echoing the recent Goldman analysis, which warned that the recently implemented Republican spending plan could lead to an “unsustainable” debt load, Kaplan – who previously worked for Goldman – also had some cautionary words about the Trump administration’s recent tax overhaul, which he said would help lift U.S. economic growth to 2.5% to 2.75% this year, pushing the U.S. unemployment rate, now at 4.1% down to 3.6% by the end of 2018, but not for long.

On the all important issue of inflation, he projected it would firm this year on route to the Fed’s 2-percent goal.

The most ironic warning, however, came when Kaplan predicted the US fiscal future beyond 2 years: he said that while the corporate tax cuts and other reforms may boost productivity and lift economic potential, most of the stimulative effects will fade in 2019 and 2020, leaving behind an economy with a higher debt burden than before.

“This projected increase in government debt to GDP comes at a point in the economic cycle when it would be preferable to be moderating the rate of debt growth at the government level,” Kaplan said.

He was referring, indirectly, to the following chart from Goldman which we showed previously, and which suggests the US will become a banana republic in just a few years.

A higher debt burden will make it less likely the federal government will be able to deliver fiscal stimulus to offset any future economic downturn, he said, and unwinding it could slow economic growth.

While addressing this issue involves difficult political considerations and policy choices, the U.S. may need to more actively consider policy actions that would moderate the path of projected U.S. government debt growth,” he said.

So to summarize: when US debt doubled in the past decade the Fed had no problems, and in fact enabled it. And now, it’s time to panic…

Finally, going back to Kaplan’s point that fiscal stimulus may no longer work during the next downturn covered by a record mountain of debt (which according to Trump’s budget will hit $30 trillion by 2028), we agree, and is why we suggested a few days ago that the next crisis will lead to – what else – even more QE, which also explains why Goldman has been so desperate to get its clients to sell all the Treasurys they have now, as Goldman’s prop desk keeps adding to its inventory…

Bernanke ~ Rothschild’s Keynesian Foreign Federal Reserve Puppet

Source Article from https://politicalvelcraft.org/2018/02/21/foreign-federal-reserve-president-sounds-panic-over-level-of-orchestrated-u-s-debt/

Coca-Cola And Nestlé To Privatize The Largest Reserve Of Water In South America

By  Amanda Froelich Truth Theory

Private companies such as Coca-Cola and Nestlé are in the process of privatizing the largest reserve of water, known as the Guarani Aquifer, in South America. The aquifer is located beneath the surface of Brazil, Argentina, Paraguay and Uruguay and is the second largest-known aquifer system in the world.

The major transnational conglomerates are reportedly “striding forward” with their negotiations to privatize the aquifer system. Meetings have already been reserved with authorities of the current government, such as Michel Temer, to outline procedures required for private companies to exploit the water sources. The concession contracts will last more than 100 years.  

The first public conversation about this dilemma was scheduled on the 25th of January, the same day the process of voting for the impeachment of President Dilma Rousseff was opened. As Central Politico reports, “This coincidence was fatal for the adjournment of the meeting.”

“There must be another list of projects to be granted or privatized in the medium term, with auctions that may occur in up to one year, such as Eletrobras energy distributors and freshwater sources,” adds the news site, translated via Google from Portuguese.

This issue extends beyond South America, as all humans will be affected by the decision to privatize the second-largest aquifer system in the world. Essentially, the corporations are profiting off a natural resource that should be freely available to all.

Under the Guarani Aquifer Project’s Environmental Protection and Sustainable Development Project, known as ANA’s Guarani Aquifer Project (SAG), the aquifer would be managed and preserved for present and future generations. Following the conservatives’ victory in Argentina and the coup d’état, pressed for by the ultra right in Paraguay and Brazil, only Uruguay was left to vote on the privatization of the aquifer.

Approximately two-thirds (1.2 million km²) of the reserve is located in Brazilian territory, specifically in the states of Goiás, Mato Grosso do Sul, Minas Gerais, São Paulo, Paraná, Santa Catarina and Rio Grande do Sul. Future generations will ultimately suffer if this deal goes through, which is why human rights organizations around the world are getting involved.

“Organized civil society is alert to possible privatization strategies of transnational economic groups. Since 2003, the Organization of American States (OAS) and the World Bank, through the Global Environment Facility (GEF), have implemented the Environmental Protection and Sustainable Development project to gather and develop research on the Guarani Aquifer , with the objective of implementing a common institutional, legal and technical model for MERCOSUR countries,” says a document from the Human Rights Organization Terra de Direitos.

Nothing will change if we, as a populace, sit idly by and watch greedy individuals exploit the environment and snatch precious resources from present and future generations. If you agree, please share this article to raise awareness.

Image Credit: Wikimedia

Get free copy of our 33 Page Illustrated eBook- Psychology Meets Spirituality- Secrets To A Supercharged Life You Control!

Source Article from https://truththeory.com/2018/02/05/coca-cola-nestle-privatize-largest-reserve-water-south-america/

The House of Cards the Foreign Federal Reserve Bankers Built

Jean-Baptiste Siméon Chardin, Boy building a House of Cards , 1735; Rothschild’s Waddesdon Manor, The Rothschild Collection (Rothschild Family Trusts).

Over the last two years, the Federal Reserve has been nudging interest rates higher and their efforts are starting to bear fruit in the marketplace. Bond yields are beginning to climb.

The question is how high can rates go before the house of cards the central bankers built comes tumbling down?

In a podcast last week, Peter Schiff talked about the bond rate that could break the camels back, arguing that yields of around 4% could spark the next economic crisis.

The last time we had a 4% yield on the 10-year was before the 2008 financial crisis. Basically, that was the yield that broke the camel’s back. Remember, the financial crisis was triggered by rising interest rates on the debt that had been accumulated in the years prior as a result of Alan Greenspan keeping interest rates at 1% for a year-and-a-half and then slowly raising them back up over the course of another year-and-a-half. So, as the Fed was moving interest rates up at a measured pace, by the time they got to the point where rates had gone back up to about 5%, the yield on the 10-year was about 4%. That’s about as high as it was able to go. Then the market all fell apart.”

Economist Dr. Thorsten Polleit recently published an article at the Mises Institute that delves into why the “new economy” created by the central bankers cannot endure even modestly higher interest rates.

As Peter alluded to, it has to do with the ever-increasing levels of debt their easy-money, low interest rate policies encourage.

Artificially depressed borrowing costs are fueling a ‘boom.’ Consumer loans are as cheap as never before, seducing people to increasingly spend beyond their means. Low interest rates push down companies’ cost of capital, encouraging additional, and in particular risky investments – they would not have entered into under ‘normal’ interest rate conditions. Financially strained borrowers – in particular states and banks – can refinance their maturing debt load at extremely low interest rates and even take on new debt easily.”

We also get a psychological effect from central bank policy. The Fed, along with the world’s other central banks, have effectively draped a safety net under the markets.

Investors feel assured that monetary authorities will, in case things turning sour, step in and fend off any crisis.

The central banks’ safety net has lowered investors’ risk concern. Investors are willing to lend even to borrowers with relatively poor financial strength.

Furthermore, it has suppressed risk premia in credit yields, having lowered firms’ cost of debt, which encourages them to run up their leverage to increase return on equity.”

Of course, as debt piles up, any increase in the interest rate will strain borrowers. For instance, normalization of interest rates would crush the US budget under interest payments.

Analysts have calculated that if the interest rate on Treasury debt stood at 6.2% – their level in 2000 – the annual interest payment on the current debt would nearly triple to $1.3 trillion annually. And it’s not just governments that will feel the effect.

Highly leveraged corporations and individuals will also struggle in a higher interest rate environment. And they can’t print money in order to kick the can down the road.

AMERICA IS BROKE

The central banks have created a vicious cycle, as Polleit points out. Coming out of the 1990s, the Federal Reserve pushed up rates and ended the “new economy boom,” better-known as the dot-com bubble. In order to “fix” the problem, the Fed slashed rates and created another massive credit boom, primarily centered on the housing market.

That bubble burst in 2007/2008. In the years since, the Fed has repeated the process and we now have a world full of bubbles just waiting to pop.

With every cycle, the Fed has had take rates to lower levels and keep them there longer. And with each recovery, the peak interest rate that popped the bubble has been increasingly lower. Polleit explains the dynamics in easy to understand terms.

A destructive side effect of fiat money is that the economy’s level of debt keeps rising over time: The growth of credit keeps outpacing production gains. This is because in a fiat money regime, credit-financed investments fall short of their expected profitability, and credit-financed consumption is unproductive.

Quite a few investments turn out to be flops. The economy gets caught in a debt trap. Credit-financed consumption and government spending make it even worse. To be sure: it has become a problem on a global scale.”

“In an attempt to prevent the day of redemption, central banks slash interest rates to ever lower levels to keep the system going.

Once interest rates are lowered, however, they typically cannot (for political reasons, I should hasten to say) be brought back to pre-crisis levels – as this would make the debt pyramid, and with it the economy and the financial system, come crashing down. It is this economic insight that explains why interest rates show a marked trend decline over the last decades in all countries that have adopted fiat money.”

As economist Ludwig von Mises said, “There is no means of avoiding the final collapse of a boom brought about by credit expansion.” This house of cards will collapse. It’s not a question of “if,” but “when.”

Schiff Gold

Related News:

  1. Silver Expected To Outperform Gold In 2018
  2. Americans Want Nullification Of Banker’s Counterfeit Debt
  3. Ron Paul: Repeal The 1913 Rothschild Federal Reserve: The Hidden Treasonists
  4. Silver Is a Strong Buy 2018: “The Last Straw” For The Large Paper Speculators, who have “thrown in the towel”

 

Source Article from https://politicalvelcraft.org/2018/01/29/the-house-of-cards-the-foreign-federal-reserve-bankers-built/

Ron Paul: Repeal The 1913 Rothschild Federal Reserve: The Hidden Treasonists!

The 1913 creation of the Fed fused the power of the Eight Families to the military and diplomatic might of the US government.

If their overseas loans went unpaid, the oligarchs could now deploy US Marines to collect the debts.

Morgan, Chase and Citibank formed an international lending syndicate.

JP Morgan Chase

The House of Morgan ~ Rothschild Agent:

The Federal Reserve Bank was born in 1913, the same year US banking scion J. Pierpont Morgan died and the Rockefeller Foundation was formed.

The House of Morgan presided over American finance from the corner of Wall Street and Broad, acting as quasi-US central bank since 1838, when George Peabody founded it in London.

Peabody was a business associate of the Rothschilds. In 1952 Fed researcher Eustace Mullins put forth the supposition that the Morgans were nothing more than Rothschild agents.

Mullins wrote that the Rothschilds, “…preferred to operate anonymously in the US behind the facade of J.P. Morgan & Company”.

Author Gabriel Kolko stated, “Morgan’s activities in 1895-1896 in selling US gold bonds in Europe were based on an alliance with the House of Rothschild.”  The Morgan financial octopus wrapped its tentacles quickly around the globe.

Morgan Grenfell operated in London. Morgan et Ce ruled Paris. The Rothschild’s Lambert cousins set up Drexel & Company in Philadelphia.

The House of Morgan catered to the Astors, DuPonts, Guggenheims, Vanderbilts [CNN Sodomite Anderson Cooper From The Vanderbilt Family ~ Trained CIA agent] and Rockefellers.

It financed the launch of AT&T, General Motors, General Electric and DuPont. Like the London-based Rothschild and Barings banks, Morgan became part of the power structure in many countries.

By 1890 the House of Morgan was lending to Egypt’s central bank, financing Russian railroads, floating Brazilian provincial government bonds and funding Argentine public works projects. A recession in 1893 enhanced Morgan’s power.

That year Morgan saved the US government from a bank panic, forming a syndicate to prop up government reserves with a shipment of $62 million worth of Rothschild gold.

Morgan was the driving force behind Western expansion in the US, financing and controlling West-bound railroads through voting trusts.

In 1879 Cornelius Vanderbilt’s Morgan-financed New York Central Railroad gave preferential shipping rates to John D. Rockefeller’s budding Standard Oil monopoly, cementing the Rockefeller/Morgan relationship.

The House of Morgan now fell under Rothschild and Rockefeller family control.

A New York Herald headline read, “Railroad Kings Form Gigantic Trust”. J. Pierpont Morgan, who once stated, “Competition is a sin”, now opined gleefully, “Think of it. All competing railroad traffic west of St. Louis placed in the control of about thirty men.”

In 1913 the Federal Reserve Bank was born, with Paul Warburg its first Governor. Four years later the US entered World War I, after a secret society known as the Black Hand assassinated Archduke Ferdinand and his Hapsburg wife.

The Archduke’s friend Count Czerin later said,“A year before the war he informed me that the Masons had resolved upon his death.”

That same year, Bolsheviks overthrew the Hohehzollern monarchy in Russia with help from Max Warburg and Jacob Schiff, while the Balfour Declaration leading to the creation of Israel was penned to Zionist Second Lord Rothschild.

In the 1920’s Baron Edmund de Rothschild founded the Palestine Economics Commission, while Kuhn Loeb’s Manhattan offices helped Rothschild form a network to smuggle weapons to Zionist death squads bent on seizing Palestinian lands.

General Julius Klein oversaw the operation and headed the US Army Counterintelligence Corps, which later produced Henry Kissinger.

Transcript

Ron Paul:

Hey, thank you. End the Fed, hey! Along with the IRS. Let’s repeal 1913 and we’d all be better off. Now, it’s great to be here. You know, sometimes I give speeches on the House floor and there’s nobody there.

I like to leave the House floor and I like to go to America. I like to go to Texas and other states because people actually cheer what I say, and I like that. You know, I’m sure everybody here has talked a lot about taxes and this is tax day.

But taxes, in many ways, are nothing more than a symptom. The taxes that we pay are a symptom of runaway government.

And that is the problem. It is the fact that we have allowed our government to be so big and out of control – the Congress doesn’t control it, the executive branch has more control than they deserve and the courts have more control than they deserve.

What wee need is a strong Congress to rein in the executive branch and the courts to get back to a constitutional government. I have a belief about taxes and I believe that taxes, indeed, are theft; stealing from the people.

You may have seen this on the Internet, I have a bumper sticker on my desk that everybody that comes to my offices sees, that says, “Don’t steal, the government hates competition”.

But the government taxes us in many ways. I think of spending as the culprit, because think of spending as being the tax. And then it’s paid for in many different ways; they do tax us and it’s way too high.

But they never tax enough to pay the bills. So what do they do? They endlessly borrow, and they borrow so much and then interest rates go up and that doesn’t work.

So then what do they do? They resort to the printing press, and the Federal Reserve is the culprit that finances big government. And that’s exactly right.

Eventually, if we’re going to have a republic, we’re going to have sound money.

The Constitution is very clear: only gold and silver can be legal tender, not paper money. Now why is it that even the Federal Reserve is involved in taxation? When they print money, they devalue your currency.

Anytime you complain about a high price, you’re paying a tax. So it is a tax, and the big sin, of course, is the big spending.

Politicians, up until just recently, were always rewarded by spending money and telling their constituents back home, “I’m going to get you whatever you want”.

Well, those days are over, and you’ve helped end those days. Now, the Federal Reserve serves two special interests in Congress.

There are two types of spending that we have to be concerned about. One is the liberal spending; we know all about that.

They like to take over your lives because they consider you too stupid to take care of your lives yourself. So they have to take care of you from cradle to grave, so they justify that.

Ron Paul

Did you know Rothschild financed Lenin in 1913 to over throw the Monarch of Russia in order to centralize the banking system to his London base?

WHEN PUTIN WAS ELECTED PRESIDENT of Russia in 2000, Russia was bankrupt. The nation owed $16.6 billion to the Rothschild-run International Monetary Fund while its foreign debt to the Rothschild-controlled Paris & London Club Of Creditors was over 36 billion dollars.

But Putin took advantage of the current boom in world oil prices by redirecting a portion of the profits of Russia’s largest oil producer Gazprom so as to pay off the country’s debt. The continual surge in oil prices greatly accelerated Russia’s capacity to restore financial sovereignty.

By 2006 Putin had paid off Russia’s debt to the Rothschilds. Russia’s financial dependence on the Jewish financiers was now over. Putin could then establish what became his Russian Unity Party’s 2007 campaign slogan: Putin’s Plan Means Victory For Russia! This slogan continues to make the New World Order Zionists very nervous…Here.

UK’s Rothschild Loses “Puppet Master” Libel Case: Rare Legally Documented Insight Into The Conspiracy Of The Richest 1% NWO Puppet Masters.

U.S. ‘Ashamed’ Of Gorbachev Lies: Putin Pulling Russia ‘Back Into the Past’ ~ Truth Is ~ Putin Kicked Out Rothschild From Russia And Is Now Sovereign!

(1917)

Did you know that Sun Yat Sen was born in China moved to Hawaii (where he received a COLB just like obama) in order to escape the death penalty and then return to China in 1917 to establish the centralization of the banking system to Rothschild London base followed by Mass Murderer Mao Tse Tung?

(1913)

Did you know that in 1913 Rothschild paid cronies voted for his Federal Reserve inside the United States Of America?(D)Did you know Rothschild Banks has been stopped before and that some of our Presidents have been assassinated by this Bastard Banking Family?

Ron Paul: Most Consistent Unrelenting Champion of Liberty.

He has never voted to raise taxes.He has never voted for an unbalanced budget. He has never voted for a federal restriction on gun ownership. He has never voted to raise congressional pay. He has never taken a government-paid junket. He has never voted to increase the power of the executive branch.

He voted against the Patriot Act.He voted against regulating the Internet. He voted against the Iraq war.

He does not participate in the lucrative congressional pension program.He returns a portion of his annual congressional office budget to the U.S. treasury every year.

Congressman Paul introduces numerous pieces of substantive legislation each year, probably more than any single member of Congress.

Ron Paul: Government is too big. The role of government ought to be for the protection of liberty, not for the intrusion in economic affairs.

We’ve spent too much, we taxed too much, we borrowed too much. It’s bankrupting this country! I’ve been talking about these problems for a long, long time. Now we’re bankrupt and we have to decide which way we’re going to go.

ANALYSIS | Republican Representative Ron Paul, R-Texas, is far more libertarian in his economic views than most of his opponents. His views on fiscal responsibility have been well-documented during his many years in the U.S. House of Representatives.

Here is a look at Ron Paul’s economic policies.

On Taxes: Drastic Cutting Is Key

Paul has said he wouldn’t raise the debt ceiling, would veto unbalanced budgets, and opposesunfunded mandates and regulations on small businesses. He’s against income, capital gains, and “death taxes,” pledging to eliminate them all. He’s also for eliminating the Internal Revenue Service(IRS).

He feels a flat tax or fair tax would be better than the current income tax system, but still thinks the 16th Amendment, which allows Congress to impose an income tax, needs to be repealed.

On ‘Class Warfare’: In Favor of a Little Against ‘The Ones Who Rip Us Off’

Paul doesn’t agree with his more vocal opponents, Herman Cain and Mitt Romney, in saying that demonstrations are a form of class warfare: “I do agree that there’s a mal-distribution in wealth in this country.”

“Entitlements end up going to the rich anyway,” he told reporters at an event sponsored by the Christian Science Monitor. “Some of them should be attacked. The ones who rip us off, the ones who get bailed out.”

On Economic Recovery: Blame Spending

According to Paul’s campaign site, he believes that “excessive spending, artificial credit, and market manipulation crashed our economy, and no one should be surprised that these same policies continue to prolong the suffering for millions of Americans.”

He thinks we’re sending jobs overseas due to a program of “deliberately weakening our currency.”

On the Federal Reserve: End It

This is a topic Paul enjoys discussing. He’d like to see the Federal Reserve abolished. One of his books is titled “End the Fed.”

During a June 13 debate in Manchester, N.H., he explained that the financial crisis could be linked to the fed. “We got in the trouble because we had a financial bubble, and it’s caused by the Federal Reserve,” he said.

“If you don’t look at monetary policy, we will continue the trend of the last decade. We haven’t even – we haven’t developed any new jobs in the last decade. Matter of fact, we’ve had 30 million new people and no new jobs, and it’s because they don’t – the people don’t understand monetary policy and central economic planning things.”

He sponsored H.R. 459, the Federal Reserve Transparency Act of 2011, which directs the Comptroller General to audit the Board of Governors of the Federal Reserve System and the federal reserve banks, then provide a report to Congress.

On Unemployment: Failed Policy Cause of Problems

Paul commented on the Labor Department’s jobs report for September 2011:

“The national unemployment rate of 9.1 percent for the month of September says nothing new about our failed experiment with Keynesian economics. Simply put, all these years of Washington deficit spending and money printing did not move the labor market.”

Yahoo

Lew Rockwell

 

Source Article from https://politicalvelcraft.org/2018/01/24/ron-paul-repeal-the-1913-rothschild-federal-reserve-the-hidden-treasonists/