It no longer takes a conspiracy theorist to see that the Fed’s market manipulation program, based on cheap money and econ-babble, is coming apart at the seams. Nevertheless, Monday’s liquidity near miss, a scary shot over the bow for anyone with a clue, was played down to nothing by the Fed as usual, but the truly dangerous and unsettling development it exposed is the practically across-the-board ignorance applied to the entire scenario by the government and more importantly, the general media. It’s not necessarily the media’s job to connect the dots, or tell subscribers what to think (though CNN and Fox do it relentlessly, exclusively for their own purposes), but it IS their job to identify the dots and their potential, whether obvious or not. As expected, Fed Chairman Powell reduced interest rates to accommodate Wall Street’s dieseling saga, but his statement and follow-up interview failed to identify or discuss the infusion of cash to an obscure but critical interbank financial system that the American public knows little to nothing about.
Extend & Pretend is a catch phrase used to describe the artificial stimulus exerted by the Fed in an effort to ‘manage’ what would normally be controlled by natural market forces. Since the infusion began on Monday, more than $205 billion in emergency funds have been pumped into the liquidity void. But, the ultimate and inevitable reality that practically no one is talking about is the fact that central bank interference is not normal, healthy, or sustainable. It’s nothing more than an act to propagate a belief that the Fed is in control, when in fact nothing could be further from the truth. Worse than that, we’ve eliminated access to every opportunity that could legitimately save us. We’ve made banks too big to fail, put our faith in media that’s got its head stuck in the sand, and ratified the empowerment of a currency manipulating group of people that only seem to be available and accountable to power players on Wall Street.
How is it possible that the American public has been sold out by the very economic system it created to benefit from? Too big to fail banks have placed depositors directly on the hook for the bank’s unaccountable corporate stupidity. The stock market has become a house of cards, whose foundation is far more liquid than the mechanism designed to support it. Government and the media can do nothing but blame each other for growing cracks in the dwindling facade of strong and solid market fundamentals. The unavoidable fact of the matter is that absolutely nothing can be done to correct it until the TRUE condition of our economy and market is laid out for all to see and evaluate. The corporate rats are prepared and ready to run with their bonuses. As in 2008, it’s going to be the trusting American investor who gets crushed, when the veil of conspiratory dogma gets pulled back.
This cat’s out of the bag and there’s no putting it back. But at the very least, the American public deserves to know the truth before the inevitable collapse and negative interest rates are just another act in the same sick play. Those capable of taking defensive actions should be made aware of any potential opportunity. A larger than usual stash of physical precious metals may be the best possible start to asset protection. Call the experts at American Bullion for assistance at (800) 653-GOLD (4653).