Friday, July 6, 2018

Fed is trying to distance itself from next financial crash by hiding data on their lessening balance sheet

At the end of the movie The Big Short, the writers of the book adaptation conveyed who was eventually scapegoated for the events that led to the bursting of the Housing Bubble and subsequent collapse of the global banking and financial system.

"I have a feeling, in a few years people are going to be doing what they always do when the economy tanks. They will be blaming immigrants and poor people."
And sure enough, those who actually created the systemic collapse were not only protected by the establishment, but were also given bailouts to the tune of trillions of dollars.

There are two intrinsic reasons why both the United States and the rest of the world economies have seen ever increasing financial crashes... and they are the removal from the gold standard, and where all monetary and fiscal policies being given over to the hands of the central banks.  And whether it was the Mexican Peso crisis, the Asian bond crisis, the Dot Com bubble, or the 2008 collapse, at the heart of every one of these crises was the credit expansion policies of the central banks.


Fast forward to today.

In 2012, Congress officially gave the Fed absolute control over both fiscal and monetary policy when in a hearing Senator Church Schumer told then Fed Chairman Ben Bernanke to 'get to work'.  And of course this 'get to work' demand was for the implementation of QE3.

Since then not only has the Fed propped up the bond markets at every turn, but they unlawfully expanded their mandate to include blowing up the equity markets to extraordinary proportions.  And now with the fruits of their policies showing up in rising inflation and unpayable debt levels for corporations, consumers, and the Federal government, the central bank is now being forced to have to pull back on its balance sheet growth and near zero interest rates.

This means of course that the very fuel that has blown up multiple bubbles in this current business cycle is being removed, and since the so-called recovery was reliant completely upon ever increasing credit expansion, the results will inevitably be the same as in 2008, only perhaps as much as 10 times worse.

Thankfully, the rise of the alternative media has provided the common man extraordinary access to truths long hidden behind the mainstream and corporate media on exactly what the central bank is, and what their policies actually entailed.  So now there is enough critical mass of awakening out there that when the next recession or crash comes, people can know exactly who to blame.
The Federal Reserve has become front and center in the U.S. presidential campaign. Republican nominee Donald Trump says the Fed has created a 'false economy' by keeping interest rates low. In fact, he told an Ohio crowd that the Fed is keeping interest rates low to prop up the stock market to help President Obama. – The Street
But the Federal Reserve appears to not want to go down without a fight, because the awakening that occurred following the 2008 collapse has given Trump the very ammunition to put the blame on the central bank should the economy tank during his tenure in office.  And in response to this potential threat, the Fed has decided beginning this month to discontinue providing data on the lessening of their balance sheet so as not to provide the fuel for markets and economists to direct the public's ire at the very entity who not only created this boondoggle, but who will also be ultimately responsible for its collapse.

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