Federal Reserve Initiates End Game As Trump Heads To White House
22 December 2016
, by Brandon Smith - Alt-Market (Zero Hedge)http://www.zerohedge.com/news/2016-12-22/federal-reserve-initiates-end-game-trump-heads-white-houseExcerpt:In fact, the Fed along with other central banks like the ECB has been slowly peeling back pillars of support from markets that have been in place since 2008-2009 and leaving the system open to a crisis event that should have been dealt with years ago. I examined this process of deliberate destabilization in my article 'The Global Economic Reset Has Begun.' http://www.alt-market.com/articles/2758-the-global-economic-reset-has-begun
In that piece I outlined the three major pillars holding up the U.S. market system and certain parts of our economy and how they were being systematically removed.
The first pillar was the use of bailouts and quantitative easing measures
. These were diminished through the implementation of the Fed “taper,” which I predicted would happen three months prior that year.The second pillar was the use of near zero interest rates
, which allowed numerous banks and corporations to access low-cost and no-cost overnight loans from the Fed. These companies then used these loans in large part to support a never-ending program of stock buybacks, which reduced the stock pool and artificially boosted the values of the remaining stocks. I predicted in August of 2015 that the Fed would hike interest rates and that this would be the beginning of the end for the stock buyback bonanza. The Fed hiked rates in December of that year.
But the real master stroke of this strategy on the part of the elites is that it creates the perfect platform for the destruction of the U.S. dollar’s world reserve status — the third and final pillar
I mentioned months ago that is supporting our economic system.
As I have been arguing for most of the past year, the election of Donald Trump was inevitable and would precede the triggering of the final stage of our ongoing economic crisis. I came to realize that the Fed’s timing of their latest rate hike is highly strategic. Not only does it set the stage for a series of hikes that will crush U.S. stock markets this coming year and finally shock the public out of their fiscal stupor, but it also maneuvers the crisis right into the lap of Donald Trump and the conservative movements that support him.I believe that the Fed will not only continue hiking interest rates throughout 2017
, but that some of these rate hikes may be LARGER than many people expect (50 basis points or more
). I believe this will be designed to foster extreme tensions between the executive branch and the central bank.Trump as a "Trojan horse" in.