[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Sign-in] [Mail] [Setup] [Help]
Status: Not Logged In; Sign In
|
Business/Finance See other Business/Finance Articles Title: The fix is in and the banksters win again The fix is in and the banksters win again Posted on December 21, 2015 by Bob Livingston businessman with umbrella looks at distant storm The Fed has flooded the world with credit; and we must be fully aware that there has never been a single credit-driven asset inflation that has not been followed by market collapse, followed by a financial crisis, which always erases most of the previous gains. The public is smothered in propaganda-induced euphoria at this time, totally oblivious to the approaching storm. Tricks of banking and currency are what they were created to be, illusions of prosperity, which always leads to certain collapse and depression. As the Fed raised interest rates for the first time since June 2006 last week and signaled that quarter point increases can be expected each quarter next year, it did so while painting illusions of recovery. “I feel confident about the fundamentals driving the U.S. economy, the health of U.S. households, and domestic spending,” Fed chief Janet Yellen said during a press conference. “There are pressures on some sectors of the economy, particularly manufacturing, and the energy sector … but the underlying health of the U.S. economy I consider to be quite sound.” The sycophantic Keynesian corporate media whores joined in, proclaiming: "But the economy is no longer in crisis. In fact it is a lot healthier — unemployment now is at 5%, half of the 10% rate it hit in 2009 during the worst of the jobs crisis. "Over 12 million jobs have been added since the recession ended. Wages — which have barely grown during the recovery — have also started to pick up recently." And: “The Fed’s decision today reflects our confidence in the U.S. economy, that we believe we’ve seen substantial improvements in labor market conditions,” Federal Reserve Chair Janet Yellen said in a news conference. But not so fast. Signals indicate the U.S. is now in outright deflationary recession. Commodities are down 70 percent — to levels not seen since 1999 — and are still falling, per the Bloomberg Commodity Index. Oil continues to fall to levels long unseen. Industrial production is on pace to decline by 0.6 percent in the fourth quarter, which would make the third time in four 2015 quarters. Annual contractions of this sort are not seen outside formal recessions. “The Fed’s own Industrial Production report showed monthly, quarterly and annual contractions in domestic production of a nature only seen in recessions,” writes John Williams of Shadowstats.com. “Beyond the deteriorating circumstances in the oil industry, the U.S. manufacturing sector never recovered from the collapse; it never has reclaimed its pre-recession or pre-collapse high.” Real unemployment is north of 20 percent (when counting discouraged workers and the long-term unemployed), not the 5 percent number touted by the government and talking heads in the media. What job growth there’s been has primarily been in the energy sector — which is now being hammered by low oil prices and Barack Obama’s policies to intentionally destroy the coal industry — and in part-time service-industry-sector jobs like bartenders, waiters and store clerks and at temporary agencies. There are only about 70.5 million full-time jobs in manufacturing, energy and mining and white-collar jobs in information technology, business management, finance and real estate. That’s 3 percent fewer jobs in those sectors than when Bill Clinton was president. There are 102 million Americans out of work, and real median income is at 1989 levels, according to David Stockman. The big banks are sitting on $2.4 trillion in excess reserves held in the Fed, thanks to the massive money printing the Fed has engaged in since the Great Recession began. They aren’t lending the money; they’re making interest on the money. And now the Fed has raised the rate it will pay them. And they are earning interest — now, at higher rates — on what little money they’re lending to small banks that are “loaned out” from actually lending money to the people and small businesses. A rate hike is going to send up interest rates paid by the consumer and by small businesses on credit cards, home mortgages, home equity lines and commercial loans. But the banks will hold off raising the interest it pays on deposits, further squeezing the middle class. All this benefits the banksters and Wall Street because with deposits paying almost nothing, the people, looking for income growth, pile their money into stocks, which artificially inflates the stock market. And with inflation in check, those (particularly seniors) on fixed incomes and living off savings will continue to be squeezed. And note there will be no cost-of-living adjustment on Social Security in 2016. Although the consequences of a deflationary collapse are unimaginable, there is likely nothing to stop it now. I know the public mind and how slow the crowd is to wake up. I also know that the crowd trusts the Fed, the politicians and the media. I can tell you now most people are going to be shocked, but then it will be too late. I am saying that the collapse will come sooner or later, so you should stay prepared for deflation with some survival cash. Of course, I’ve been warning you to keep most of your cash out of the banks for some time. As the money supply contracts, cash could get scarce overnight. You don’t want to be like the people of Greece, standing in line for rationed cash at automatic tellers. I urge you to consider now that the great illusion is passing and the only possible question left is: When will the collapse come? If you are in gold, silver (the metals and the stocks) and have cash on hand, it won’t matter when the big crisis arrives or in what form. Gold and silver are still great bargains and strong buys and really are the only game in town, especially in the long run. Poster Comment: The tricks of prosperity are upon us. Get ready for the collapse that is sure to come. Post Comment Private Reply Ignore Thread
|
||
|
[Home]
[Headlines]
[Latest Articles]
[Latest Comments]
[Post]
[Sign-in]
[Mail]
[Setup]
[Help]
|
||