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Party While You Can - Central Bank Ready To

Pop The 'Everything' Bubble
Wednesday, 10 January 2018 03:00 Brandon Smith

Many people do not realize that America is not only entering a new year, but within the next month
we will also be entering a new economic era. In early February, Janet Yellen is set to leave the
Federal Reserve and be replaced by the new Fed chair nominee, Jerome Powell. Now, to be
clear, the Fed chair along with the bank governors do not set central bank policy. Policy for most
central banks around the world is dictated in Switzerland by the Bank for International
Settlements. Fed chairmen like Janet Yellen are mere mascots implementing policy initiatives as
ordered. This is why we are now seeing supposedly separate central banking institutions around
the world acting in unison, first with stimulus, then with fiscal tightening.

However, it is important to note that each new Fed chair does tend to signal a new shift in action
for the central bank. For example, Alan Greenspan oversaw the low interest rate easy money
phase of the Fed, which created the conditions for the derivatives and credit bubble and
subsequent crash in 2008. Ben Bernanke oversaw the stimulus and bailout phase, flooding the
markets with massive amounts of fiat and engineering an even larger bubble in stocks, bonds and
just about every other asset except perhaps some select commodities. Janet Yellen managed the
tapering phase, in which stimulus has been carefully and systematically diminished while still
maintaining delusional stock market euphoria.

Now comes the era of Jerome Powell, who will oversee the last stages of fiscal tightening, the
reduction of the Fed balance sheet, faster rate increases and the final implosion of the 'everything'
bubble.

As I warned before Trump won the election in 2016, a Trump presidency would inevitably be
followed by economic crisis, and this would be facilitated by the Federal Reserve pulling the plug
on fiat life support measures which kept the illusion of recovery going for the past several years. It
is important to note that the mainstream media is consistently referring to Jerome Powell as
"Trump's candidate" for the Fed, or "Trump's pick" (as if the president really has much of a choice
in the roster of candidates for the Fed chair). The public is being subtly conditioned to view Powell
as if he is an extension of the Trump administration.

This could not be further from the truth. Powell and the Fed are autonomous from government. As
Alan Greenspan openly admitted years ago, the Fed does not answer to the government and can
act independently without oversight. So, why is the media insisting on misrepresenting Powell as
some kind of Trump agent? Because Trump, and by extension all the conservatives that support
him, are meant to take the blame when the 'everything' bubble vaporizes our financial structure.
Jerome Powell is "Trump's guy" at the Fed; so any actions Powell takes to crush the recovery
narrative will also be blamed on the Trump administration.

But, is it a certainty that Powell will put the final nail in the coffin of "economic recovery?" Yes. Last
Friday the Fed finally released the transcripts of its monetary policy meetings in 2012, and in
those transcripts are some interesting admissions from Powell himself. After reading these
transcripts I am fully convinced that Powell is the man who will stand as the figurehead of the
central bank during the final phase of U.S. decline.

Here are some of the most astonishing quotes by Powell from those transcripts along with my

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commentary. These quotes are yet another piece of evidence that vindicates my position on the
Fed as an economic saboteur and my position on the historic market bubble the bank has
created:

Powell: "I have concerns about more purchases. As others have pointed out, the dealer
community is now assuming close to a $4 trillion balance sheet and purchases through the
first quarter of 2014. I admit that is a much stronger reaction than I anticipated, and I am
uncomfortable with it for a couple of reasons.

First, the question, why stop at $4 trillion? The market in most cases will cheer us for
doing more. It will never be enough for the market. Our models will always tell us that we
are helping the economy, and I will probably always feel that those benefits are
overestimated. And we will be able to tell ourselves that market function is not impaired
and that inflation expectations are under control. What is to stop us, other than much
faster economic growth, which it is probably not in our power to produce?"

Assessment: By all indications the Fed did do more, MUCH more. Including QE3, various
stimulus packages and incessantly low interest rates for years, the Fed has essentially stepped in
every time stock markets in particular were about to crash back to their natural state of decline.
Powell is being rather honest in his estimation here that these stopgaps are in fact temporary and
that the Fed cannot produce true economic growth to support the market optimism they have
created through their interventions. He is stating openly that markets will only remain optimistic so
long as they are assured that the Fed will continue to intervene.

This is probably why it took almost six years before these transcripts were released.

Powell: "When it is time for us to sell, or even to stop buying, the response could be quite
strong; there is every reason to expect a strong response. So there are a couple of ways to
look at it. It is about $1.2 trillion in sales; you take 60 months, you get about $20 billion a
month. That is a very doable thing, it sounds like, in a market where the norm by the
middle of next year is $80 billion a month. Another way to look at it, though, is that it's not
so much the sale, the duration; it's also unloading our short volatility position."

Assessment: And here we have Powell's shocking admission, clarifying his previous point — the
"strong response" that Powell is referring to is a market reversal, or bubble implosion. He even
admits the existence of the Fed's "short position on volatility." This explains the strange behavior
of the VIX index, which has plunged to record lows as "someone" continually shorts VIX stocks in
order to interfere with any decline in markets.

This interference in the VIX has conjured an aberration, a market calm and investor confidence
that is artificial. Such overconfidence, when optimism turns into mania, has happened before. In
fact, the end of the Greenspan era was awash in such exuberance. And this delusion always ends
the same way — with crisis.

I would also like to mention here that I have seen some disinformation being planted on Powell's
statements in 2012, asserting that he was "not talking about stock markets" specifically. Obviously
he is, as you will see in other parts of his statement, but to reinforce the point, here is a quote
from another Fed member who spilled the beans, Richard Fisher:

"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."

Fisher went on to hint at his very reserved view of the impending danger:

"I was warning my colleagues, Don't go wobbly if we have a 10 to 20 percent correction at

some point... Everybody you talk to... has been warning that these markets are heavily
priced." [In reference to interest rate hikes]

So, what happens when the Fed stops shorting volatility and ends the easy money being pumped
into markets? Well, again, I think Powell and Fisher have just told you what will happen, but let's
continue.

Powell: "My third concern — and others have touched on it as well — is the problems of
exiting from a near $4 trillion balance sheet. We've got a set of principles from June 2011
and have done some work since then, but it just seems to me that we seem to be way too
confident that exit can be managed smoothly. Markets can be much more dynamic than we
appear to think.

When you turn and say to the market, "I've got $1.2 trillion of these things," it's not just $20
billion a month — it's the sight of the whole thing coming. And I think there is a pretty
good chance that you could have quite a dynamic response in the market."

Assessment: The Fed balance sheet is being reduced NOW, and Powell as chairman will only
continue the process if not expedite it. Some people may argue that Powell is displaying an
attitude that would suggest he is not on board with tightening policies. I disagree. I believe Powell
will make the argument that the band-aid must be ripped off and that stock markets need some
"tough love".

In fact, Fed members including Yellen and former member Alan Greenspan (is there such a thing

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as a "former" member of the Fed?) have already been fielding the notion that stock markets are
suffering from "irrational exuberance" and that something must be done to "temper inflation."

Powell is also acknowledging the mass-psychological aspect of investors, now trained like
Pavlovian dogs to salivate over stock tickers instead of thinking critically on the implications of
equities that "can't lose". When they finally begin to realize that equities can indeed lose, and that
the Fed is going to let them lose, what will the result be, I wonder?

Powell: "I think we are actually at a point of encouraging risk-taking, and that should give
us pause. Investors really do understand now that we will be there to prevent serious
losses. It is not that it is easy for them to make money but that they have every incentive to
take more risk, and they are doing so. Meanwhile, we look like we are blowing a fixed-
income duration bubble right across the credit spectrum that will result in big losses when
rates come up down the road. You can almost say that that is our strategy."

Assessment: Wow! And there you have it. The new Fed chair's own prognostications. He even
used the dreaded "B" word — bubble. Yes, as I have been arguing for quite some time, the Fed
will continue to raise rates and cut off the low cost money supply to banks and corporations that
has helped boost stock markets as well as numerous other asset classes. And now we discover
after six years a Fed official, soon to be the Fed chairman, telling you EXACTLY what is about to
happen within American markets, reinforcing my long held position.

Powell even mentions that "this is their strategy." Now, that could be interpreted a few ways, but I
continue to hold that the Fed plans to deliberately crash markets and that this will be a controlled
demolition of the U.S. economy.

Trump may actually clash with Powell over these measures in the near future, considering Trump
has thoroughly taken credit for the insane stock market rally that has dominated since his election.
But, this will only add to the fake drama. Imagine, the very man Trump "picked" as the new head
of the Federal Reserve undermining the market bubble which Trump boasts about on his Twitter
account. The Kabuki theater will be phenomenal.

All the while, the true culprits behind the bubble and the crash, the international financiers and
banks, will escape almost all scrutiny as the public mindlessly follows the political soap opera
played out in the mainstream media.

If you would like to support the publishing of articles like the one you have just read, visit
our donations page here. We greatly appreciate your patronage.

You can contact Brandon Smith at:

brandon@alt-market.com

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Comments (36)
...
written by stevenguinness , January 10, 2018

I probably shouldn't have been taken aback reading Powell's comments, but
seeing it in black and white and expressed so openly is staggering. Great
analysis Brandon.

You'd have to imagine that the next U.S. rate hike will be in March. Incidentally, I've noticed a
trend of both the Federal Reserve and the Bank of England announcing changes to interest
rates when a press conference takes place. The BOE's hike back in November coincided with
the latest inflation report, and allowed Mark Carney the platform to explain the rise and keep
markets on side. Every Fed rate hike since December 2015 has happened at the same time
Janet Yellen went before the cameras to deliver the latest 'Summary of Economic Projections'.

Even the Fed's September meeting, where rates were kept on hold, was used to officially
announce the balance sheet reduction plan. Again through a press conference.

The March Fed decision will give Powell the opportunity to address the media, as will the
BOE's February meeting.

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This doesn't feel like a coincidence. It seems to me that the conferences are used to maintain
confidence in the central banks and convince markets that rate rises are indicative of a
healthy economy. And a majority clearly believes them.

...
written by Brandon Smith , January 10, 2018

@Steven

Very astute observation on the press conferences coinciding with rate

hikes.

Yes, things will become interesting when the Fed has to acknowledge the steadily falling dollar
(and the drastic yield spread) despite their rate hikes and their balance sheet reduction
initiative. I think they will use this as an excuse to raise rates faster than markets expect. Fed
officials have been hinting the past year that "irrational exuberance" in markets needs to be
tempered. In fact, Powell seems to be tailor made for pulling the plug on the stimulus
extravaganza, just as Bernanke was tailor made for launching it.

Great Observations
written by Chaim , January 10, 2018

Thanks for sifting through these transcripts and finding the most useful stuff.

I have been holding my breath since 2008 and have been gobsmacked at
how far the manipulations have continued and to their degree. It is coming up on a decade of
overt HFT-driven markets and a cool $4T (declared) balance sheet. This was pure piracy
though. Everyone in the know already knew that 2018 was the beginning of the end for the
USD as world reserve so they rode this mess for all it was worth while many of us were just
trying to decipher what was going on and how it was possible.

I had been predicting that Yellen was going to be the fall-guy at the Fed though, thinking that
the chauvinist old-school would rather discredit a female. But, with Trump was in office as a
'patsy in waiting'; using/blaming HIS Fed nominee (and arguably one with a "big mouth")
would heap further anger on the Populist/Liberty movement(s) and Conservative (sic)
values/policies. Which is the obvious aim of all this globalist lunacy in the first place.

once a swamp always a swamp

written by observer , January 10, 2018

For those who were fooled into thinking anything would change.

http://wallstreetonparade.com/2017/01/heres-how-goldman-sachs-became-
the-overlord-of-the-trump-administration/

Nailed it!
written by Alohajim , January 10, 2018

"All the while, the true culprits behind the bubble and the crash, the
international financiers and banks, will escape almost all scrutiny as the
public mindlessly follows the political soap opera played out in the
mainstream media."

Thanks for keeping the eye on the prize. Too many well meaning, liberty minded people are
distracted by a plethora of ongoing criminality - pedogate, Clinton's, endemic corruption,
murder, legally sanctioned and enforced theft, etc. etc. etc. All distractions intentionally
drawing attention away from the single most critical issue for humanity : the massive
worldwide con of bankers creating money from nothing.

It won't matter if every pedophile and deep state criminal is put away if bankers retain their
sole 'right' of issuing currency.

Thank the banking families who have established a most incredibly integrated, long running,
matrix (academia, media, governments, corporations, institutions and entire industries), for
most human misery and suffering, poverty, and the generational dumbing down, distracting,
dividing, and making as many human beings helpless and dependent on governments as
possible.

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...
written by Soldier , January 10, 2018

On a serious note how bad do you things will get say in 6 months? If our
way of life crashes enough then the power grid collapses, etc and so too
does some of their control.

Well Done!
written by Guest , January 10, 2018

Brandon- your perspicacity is only exceeded by your eloquence, a very well

researched and illuminating article.

All this makes one wonder as to timing and what the tipping point will be that turns
unrestrained and delirious optimism to code black panic in the markets. How will soaring
treasury yields be explained away as the Fed continues to stomp on the destruct button?

Poor President Trump- he has played right into the globalist's hands and couldn't have
positioned himself better as the perfect patsy.

God have mercy on us all.

This could be the year!

written by Renewed , January 10, 2018

Yes Brandon, the pieces seem to be all coming together. As much of a

disaster as the collapse will be, it will almost be a relief to finally get the end
game going. Seems like I've been waiting a long time. We shall see.

Distraction from collapse

written by Special_Brew , January 11, 2018

H Brandon,

I agree with your analysis & also Steven's subsequent comment. As you
stated previously the collapse may/will be accompanied by war to serve as a distraction. This
is off topic from the article but I saw a story in December that I wouldn't mind your opinion on.
It's about the photo released by the pope with very little context given. (Tried entering link here
but spam filter won't let me, it's the photo of the Japanese boy carrying his dead brother on his
back)

I personally see this as him giving his approval to war on the Korean Peninsula but I can't
figure out if he's saying go ahead and use nukes or not to. Given the scant text he gave with it
I'm assuming he's saying "there will be war in Korea and that this Will be the fruits of it. Go
ahead.". Not sure if you have any thoughts on it. Also I'm basing this on the premise that the
Vatican controls most western intelligence agencies & governments by extension.

...
written by Tim Brandyberry , January 11, 2018

Excellent analysis, Brandon. Thank you. @Distraction: no, the Vatican

(Catholic Church) does not control western intel and governments. But my
question: not wanting to make it too much about the Jews, but I am figuring
that Powell is not Jewish, unlike all the previous Fed Chairs since way back. Could this be, if
true, because the powers that be want to be able to accomplish the crashing of the system
without a name like "Yellen" or Greenspan" attached to it. What do you think?

Another Fed chairman from CFR

written by John2 , January 11, 2018

Jerome Powell is a member of the Rockefeller CFR, along with Janet

Yellen, Stanley Fischer, Alan Greenspan, and Paul Volcker.

Citigroup, JPMorgan and Goldman Sachs are CFR corporate sponsors, and several of their
execs are also CFR members (Blankfein, Dimon, Rubin, Summers, etc).

See lists in the CFR annual report.

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written by Jericho , January 11, 2018

Like his fellow Fed governor Daniel Tarullo with whom he oversaw almost
every Fed committee, Jerome Powell is Jesuit trained. (Trump and Pence
are also Jesuit trained.) Unlike the trivial hofjuden who preceded him Powell
is a serious guy who will implement serious changes. The big surprise will be the dollar
continuing to fall in the face of interest rates rising. Looks like PMs have bottomed as we head
into another fear cycle.

Sounds like a US president....

written by Occams , January 11, 2018

"Fed chairmen like Janet Yellen are mere mascots implementing policy
initiatives as ordered."

Puppets to the Rothschilds, one and all.

~ Occams

...
written by Brandon Smith , January 11, 2018

@Occams

Not to the Rothschilds, but to the globalists. The Rothschilds are just one
factor of many.

It's Too Late For the Fed to fix anything

written by Get Ready , January 12, 2018

Contrary to conventional wisdom, the dollar's demise will be accompanied

by rising interest rates and rising gold prices. And the stock market will
continue to soar for another year or so,not because of insane Fed liquidity
injections but to keep up with the obscene inflation the Fed will have unleashed--i.e. no real
gains. It no longer matter swho runs the Fed or what they do. The die is cast and nobody will
be able to stop what's coming. There are bigger cyclical systemic influences at play that will
overwhelm the Fed. The reset will come. Nobody can stop it.

Get Ready
written by Get Ready , January 12, 2018

Case in point? A story from today illustrating how the Fed has lost its
influence:

Markets Still Blow Off the Fed, Dudley Gets Nervous, Fires Warning Shot

https://wolfstreet.com/2018/01/12/markets-still-blow-off-the-fed-dudley-gets-nervous-fires-
warning-shot/

...
written by Brandon Smith , January 12, 2018

@Get Ready

The fed has not "lost it's influence"; as Powell's comments illustrate, the fed
has been aware all along of what would happen once they hiked interest rates. A crash is all
part of the plan. Also, The stock market is not guaranteed to last another year. In fact, look at
the reaction at the mere rumor of China stopping treasury purchases - an immediate plunge in
futures. The fate of US debt and the dollar is inexorably tied to stocks now. Substantial threats
to either one will result in immediate market collapse.

We have already witnessed the inflationary phase of stock markets, and it will soon be coming
to an end.

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the emperor has no clothes

written by li , January 12, 2018

Swiss rule the world... second and third templar sons of the hapsburg
empire... they and the north east eu royals are playing a ruthless game of
thrones... bend the knee

Will investor assets be seized by financial institutions?

written by Johnny Law , January 12, 2018

I wonder if our assets will be seized when the big crash comes along?

witch yellen
written by Lord Odin , January 12, 2018

"mascot"...from the french mascotte, from provencal mascotto, meaning

"witch"

Incredulous
written by Ambrose Bierce , January 12, 2018

Is this true, the Fed would sit on this for five years? Explosive, I still don't
believe this, is this the Onion?

...
written by Brandon Smith , January 12, 2018

@Ambrose

Nope. Read the transcripts for yourself. Anyone who has studied the fed
should not be surprised though that they hide information and lie to the public...

https://www.federalreserve.gov/monetarypolicy/files/FOMC20121024meeting.pdf

.
written by Anon55 , January 12, 2018

Hey, thanks for the informative article. Now when you say "everything
bubble" do you mean everything in the US or worldwide? and if as in
worldwide, do you believe all the world's financial markets will collapse at
the same time or is it going to gradually go from the US to the rest?

...
written by Brandon Smith , January 12, 2018

@Anon

I'm not the one who coined the phrase "everything bubble", but it essentially
refers to a bubble in multiple assets across a wide spectrum - not literally a bubble in every
asset in the world.

For example, in the US we have massive bubbles in stocks, bonds, the dollar, consumer
spending (fueled by a bubble in consumer credit), the housing market (again), etc. ALL of
these bubbles are tied directly or indirectly to Federal Reserve stimulus and low interest rates.
As Powell openly admits in his statements, take that support from the Fed away, and suddenly
you have a considerable negative event on your hands.

There are also similar bubbles in multiple other nations, some of those are tied to Fed
stimulus, some of them are not. Some nations and economies would survive a major reversal,
some of them will not. I believe China and Russia, for example, are slated to survive while the
US is slated for financial demolition.

Federal Reserve and here’s what you need to know

written by Donald Canaday , January 12, 2018

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Federal Reserve is no more federal than Federal express. They are private
Bank that issue money for America. A book that explains it in detail is”the
creature from Jekyll Island by G. Edward Griffin, 5th
edition.softcover,copyrights 2010 September iSBN; 978-0-912986-45-6.
American Media,p.o. box 4646,Westlake Village, California 91359”. Mr.
Griffin has appeared Alex Jones, infowars. The charter for Federal ReserveBank, which are
own stock holders and was supposed to be 100 years. In 2013 US Congress would need to
continue this Charter. US Constitution give Congress to make money for Americans economy.

Canada?
written by Canuck , January 13, 2018

Brandon, how do you see this affecting Canada?

Counterpoint
written by E-Waves , January 13, 2018

I'd like to point out that yields were already rising when the FED decided to
increase its rates, and yields were already falling when the FED lowered its
rates. This has occurred more than 95% of the time. But wait! There's more!
The same relation between yields in other countries and their central banks has been similar
to that in the US. This strong objective evidence leads one to believe markets control interest
rates, not central banks. There is no Wizard of OZ.

...
written by Brandon Smith , January 13, 2018

@E-Waves

Nope, simply not true. Yields on 10-year bonds for example were actually
holding quite steady and were even rising slightly just before the financial crisis in 2008 when
the Fed cut rates to near zero.

10 year yields have PLUNGED even further despite the Fed recently hiking interest rates. The
FED always determines interest rates. Period. There is no free market influence anymore.

I don't know what data you are looking at, or your sources, but you are either confused about
how to read treasury charts, or you are deliberately misrepresenting the information. Also, I
think I should point out that Elliot Wave theory is nonsense.

Why now?
written by Kevin. , January 14, 2018

Anyone following markets and knowing about the long term goal of
globalists to form one world government and a single currency via a
financial reset, would know it is coming, the problem is knowing exactly
when.

This is the problem I have, like almost everyone else, I have been absolutely gobsmacked at
how long and how far the Fed have extended this stockmarket and bond market bubble.

The question I have for you Brandon is this, why would they goose the markets for almost ten
years and then do it, why go to all the trouble of rigging markets and doing QE 1,2,3, ZIRP
and operation twist to then just pull the rug out now?

Why didn't they do it any time in the last nine years?

And if this isn't the time, perhaps the parabolic rise in the stockmarket is now merely
discounting higher inflation down the road from the re-patriation of hundreds of billlions of
overseas $ and higher corporate profits as a result of the tax reform, a weaker dollar and the
Fed being behind the curve not wanting to kill off the "recovery" by raising rates too fast ?

...
written by Brandon Smith , January 14, 2018

@Kevin

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Well, you are asking me a hypothetical question, so I can give my theory, but lets be clear that
I will NOT be arguing over hypotheticals here. It is a complete waste of time. If you want to
know the reason why the banking elites waited so long, you'll have to tie one of them to a
chair and ask them.

As far as the stock market rise is concerned, the stock market has been rising rather steadily
for the past few years, and the FED has stepped in every time it began to reverse to its natural
crash course. People have such short attention spans they think everything is due to the
Trump tax cuts, when the reality is setup for this was taking place LONG before Trump came
around.

On top of that, I have direct quotes from Fed officials ADMITTING that they have been
propping up markets. So, I don't know what more truth I can beat you over the head with to
convince you of this reality.

Also, as noted, I believe the Fed will raise rates much faster starting in 2018 in response to a
plunging dollar and flailing interest in US debt. We shall see in due course.

In terms of the "long wait", I would remind people that it took almost nine years before the
mainstream truly acknowledged the Great Depression as a depression. All the while you had
the same type of lying "professionals" telling everyone that recovery was right around the
corner. Some of the most impressive stock market rebounds also occurred during the Great
Depression.

What you see as a "long wait", economic history sees as a blink of an eye. Beyond that, the
stock market is MEANINGLESS as an economic indicator. It is the most useless trailing after-
the-fact indicator of all time. The only reason I discuss the stock market at all is because
unfortunately the majority of people only look at stocks when gauging economic health. And I
am forced to remind them often that stocks are not what they appear to be, nor are they as
invincible as they appear to be right now.

Look at almost all the fundamental indicators of economic health and you will find the US
economy in a state of constant hibernation; a coma if you will. We are in the middle of a
collapse NOW. It is not on the way, it is here right in front of your face.

Why would the elites prop up stock markets in particular, and why all the stimulus? Because if
they had allowed the system to complete the crash back in 2008, it would have been
survivable, and the US dollar would have remained a functioning mechanism. Their goal is to
destroy the dollar first and foremost as the world reserve currency and replace it with a one
world currency system. They have to create the conditions by which the public will BEG for
this solution.

What most people simply do not get is that stimulus measures were not a stop gap, they are a
weapon. A time bomb designed to explode when the bankers are ready to replace the dollar.
By all indications, the dollar will be replaced by a cryptocurrency system; the banks have been
building a vast framework for cryptocurrencies and pushing them in the mainstream.

The Economist (a globalist run magazine) "predicted" that we would see the beginnings of a
world currency in 2018. It looks like the elites are sticking to that schedule so far.

Re:Why now
written by Kevin. , January 14, 2018

Thanks for the detailed reply, but I'm still not convinced they will do the
reset this year, I have also seen the PPT dive in at any sign of market
weakness, and I still think they will protect the stockmarket at all costs, this
is now the self fulfilling belief that is driving markets higher, the thought that the Fed has their
backs(and quotes by Powell in your article now confirms it).Mom and pop are going all in and
it is accelerating.

NASDAQ could hit 10,000 or even 20,000 before this bubble pops, and then the Fed will jump
in with QE4 and more buying at critical supports in the market.

As regards interest rates, correct me if I'm wrong but didn't the Fed or the Treasury cap bond
yields at 2.5% after WWII, so the bond bubble is safe as well?

...
written by Brandon Smith , January 14, 2018

@Kevin

If the Fed wanted to protect the market rally then they would not be raising
interest rates, nor would they be reducing their balance sheet. No one asked them to raise

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rates. In fact, everyone in the world expected them to go for negative rates (except me and a
couple of other analysts).

The quotes by Powell actually confirm the opposite - Powell's job will be to raise rates at
breakneck speeds, eventually crush the dollar's world reserve status, and in the process crush
the stock market rally.

The Fed also did not print tens of trillions of dollars during or after WWII, nor did they have
debt obligations far in excess of 400%+ of GDP. And, the Dollar was not the world reserve
currency then, either. Consider those factors for a moment before making such assumptions
on today's economic health.

It sounds like you are desperate to believe the stock market rally will continue no matter what.
You may have a bit of the bull market mania, and frankly I have no intention of "convincing"
someone with a mania of anything.

Even if stock indexes doubled, it would not matter. The rest of the economy will be in ongoing
collapse. And while ticker trackers like yourself hyperfocus on these meaningless numbers,
you will be missing the far more important issues at hand.

Final Prep
written by MM , January 14, 2018

Brandon,

Been following you a long long time, thanks for the insights. I have passed
your blog on to all in my inner circle.

Besides retiring to a modest rural working farm and all the standard prep, I'm debt free,
stacked (about 50-50) with cash outside the system, and what I have to leave in my wife's
401k is in short term treasuries.

I' have been active as an Oath Keeper, and working on building a like minded neighbor tribe.

Any additional advice?

Thanks again for your work, really.

...
written by Brandon Smith , January 15, 2018

@MM

It sounds like you are way ahead of about 99% of the population. I would
only add that it would be wise to put together tools or equipment for the production of some
kind of necessity. Meaning, can you make a necessity, fix a necessity, or teach a necessary
skill? This way you have a valuable barter option in the event of economic breakdown.

Regards,

Brandon Smith

...
written by stevenguinness , January 15, 2018

Quick question for you Brandon - the Fed's first rate hike since 2006 came
under Obama, but the market reaction was negative and the follow up hike
did not come until Trump was confirmed as the next president. I'm doubtful
that the Fed made a mistake, but at the same time recognise that they are not infallible.

What do you think their motivation was for beginning monetary tightening under Obama?

...
written by Brandon Smith , January 16, 2018

@Steven

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Well, all I can do is offer a hypothetical answer to that question, but my

suspicion is that they launched the tapering of QE and the first rate hike
under Obama because they KNEW that the next president was going to be
a conservative (at least in rhetoric if not in practice), and that it would take a
couple of years for their fiscal tightening to work its way through markets
and finally disrupt them, while that president was in office.

They also had to start tightening policies under Obama so that they could say later that "Hey,
we aren't political, we were tightening under Obama just like we are tightening under
Trump...if you want to blame this crisis on someone, blame Trump..."

Again, just a theory. I do believe the central bankers make mistakes, but I also believe
according to the evidence that they are in fact on a timeline and that they are acting according
to that timeline. How strict the timeline is I don't know, but 2018 seems to be very important to
them, as well as 2030.

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