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The FED Is Ready to Destroy the US Economy to Regain Power
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The FED Is Ready to Destroy the US Economy to Regain Power

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NEW YORK – August 30, 2018

It looks like the Feds and their allies are again prepared to pounce. They are ready to raise the key interest rate, which will trigger higher rates on credit cards, home equity lines and other kinds of borrowing and will crush the US stock markets in the coming year and, finally, shock the public by withdrawing from the financial stupor. Thus, the Fed will be able to create a crisis right under Donald Trump's nose along with the conservatives supporting him.

According to some experts, after several rounds of raising the rates of the Fed, when we face a slipping economy and weakening markets, liberals will blame Trump for everything, and the conservatives will begin to defend him, calling the economy a victim of federal intervention. This will lead to a strong division of society, destroy the American infrastructure, but will allow the international financial elites to regain power.

Former Fed insider Danielle DiMartino Booth is sure the Fed is going to raise interest rates again at the September meeting. Why? DiMartino Booth explains, “I think he’s (Jerome Powell) the most independent Fed Chair in the past 30 years, and I think he’s going to raise rates regardless of what is happening in politics. . . You don’t kowtow to political pressure when you need to do right by the economy. . .  Powell thinks the inflation numbers are under-reported. He’s listening to companies saying their profit margins are being squeezed . . . non-labor costs are outpacing labor costs by the greatest extent in three years, and what that tells you is inflation has run amok. . .  The Fed is going to continue to raise rates. . .  I think the markets have priced in the (September) rate hike by 90%. We may be looking forward to Jay Powell backing off come December. So, I am not really worried right now about a skyrocketing dollar.”

Earlier, Trump has repeatedly stated that he is "not happy" with the increase in interest rates. "I don't like it when we do so much for economic growth and then I see the rates go up," Trump said.

Increased levels of corporate debt can increase concerns about financial stability and affect investment. Following the global financial crisis, corporate debt — and in some countries, foreign currency debt — is growing rapidly, increasing the vulnerability of corporations to higher borrowing costs. DiMartino Booth shares these concerns and points out the biggest problem the world faces now is record global debt near $250 trillion “that few can conceive a workable solution.” Di Martino Booth says, “It really does keep me up at night because of the nature of debt. As we approach the 10 year anniversary of Lehman Brothers, the one takeaway that many have forgotten in the decade that has passed is that you don’t know where the true ticking time bomb is when there is an over-indebted problem. . . . When systemic risk is released, it cannot be contained by any higher authority and potentially be unleashed. The greatest peril of debt is we don’t know where the danger truly lies until something triggers it.”

Michael Snyder, a nationally syndicated writer, media personality, political activist, and author of four books including The Beginning Of The End and Living A Life That Really Matters, believes that the quickest way to hurt the U.S. economy is to aggressively raise interest rates.  Lower interest rates make it less expensive to borrow money, and therefore economic activity tends to expand in a low-interest rate environment. Fed officials say their decision reflects an economy that’s getting even stronger. Unemployment is 3.8%, the lowest since 2000, and inflation is creeping higher. The Fed is raising rates gradually to keep the economy from overheating. Of course, that is a load of nonsense.

Many experts, Including  DiMartino Booth, predict a recession in 2019. She points out that Wall Street is publicly forecasting a recession in 2020, but it is budgeting for a recession in 2019.

Where could the next debt problem be? DiMartino Booth says, “There are trillions and trillions of dollars of leverage in this country that are not regulated by any entity and could cause problems in and of themselves. Can I rattle your memory with Angelo Mozilo and Countrywide? Again, a big company that was not regulated, and look at these problems, these subprime unregulated lenders caused way back when. If you want the parallel today, look at private equity and the trillions of dollars they control in our financial system where basically nobody is looking over them. The fox has taken over the hen house. That’s what keeps Jay Powell up at night, and that’s what keeps me up at night. . .  There is more leverage than in 2008. If you are gauging it on the fact that we used to have a $160 trillion to $170 trillion in global debt, and now we have $250 trillion in global debt, yes, things are worse. Things are definitely worse. ”

How can you protect yourself? Experts advise first of all not to create new debts. Try to distance yourself from the banks and not to take out new loans, even if it has a negative impact on your standard of living. Try to live within your means and not get into debt.

If you have extra money, then withdraw it from banks and investment funds. Buy physical gold or gold coins. You can keep them in the same banks, but not in accounts. When banks collapse due to bursting bubbles in the financial markets, you will be able to pull out your savings as they will not relate to the Bank's assets and accordingly the Bank will not pay for their debts with your money.

DiMartino Booth advises the same. She says the simple way to protect yourself is to get out of debt. You can also do what the wealthy are doing. DiMartino Booth says, “I am no gold bug, but I can tell you gold is the ultimate hiding place. It is the ultimate place to hide when financial markets are disrupted because when financial markets are disrupted, all of them react in tandem. All of that hooey that you need to have a diversified portfolio, all of that falls apart with one exception, and that would be precious metals.”

Author: USA Really