Friday, February 3, 2017

Mish:"End of Fed Independence"

Mish is not known for making too many emotional statements and so I think we should not ignore his recent post which highlights new Trump policy to Yellen's fed.  In these communications, congress formally tells the fed that they will not be allowed to continue doing things the way they have been doing them.  They are now going to be subject to oversight.  You might want to think of it as new adult supervision but where children are the supposed adults.


This is a hugely important turn of events and one which I predicted a long time ago would be seen in the final days leading to economic collapse.  No, really.  In this post I wrote, "At some point, probably in 2017, congress will kick the central bankers out with an audit, decry them as thieves (to rounds of clapping by the people) only for congress to prove itself the bigger thief as it begins massive inflation in order to buy votes.   The fed is corrupt for sure but there are relatively few palms to grease and they understand the concept of carving a steak out of the cow for dinner and then giving him time to heal before getting another one.  In other words, the fed understands the need for sustainable parasitism.  Congress will lack this discipline.  There are too many corrupt palms to grease and all of the members will take the stance that if they don't get their share, someone else will take it anyway.  It is only after congress wrests control of the money supply from the fed that I fear hyperinflation will be the new trend.  Until then we have deflation as the fed deleverages.


Mish's article states that, "the letter seeks a comprehensive review of past agreements with the Financial Stability Board, Basel, and the International Association of Insurance Supervisors".  Comprehensive review??  Ohhhh, that means "audit", doesn't it.  Additionally, have we had deflation since that post was written in October of 2014?  Yes.  Look at oil.  Look at global shipping.   Look at how the gold miners crashed into early 2016.  All of these players have been in a serious depression that has been worse for them than the Great Depression.  So many of the things that I predicted in that post, including the 2017 timing, seem to have fallen into place.  Maybe it's just another coincidence but if so, it's a doozy.  Of course, I don't believe in them and neither should any thinking person when so many of them happen in a very similar way to how someone has clearly stated they would likely take place.


Folks, the fed is running a global debt Ponzi, that much is so obvious.  This understanding guides all of my views and my models.  Any Ponzi is a confidence game.  Confidence games require confidence in the person, authority or institution running the con.  Some players know it is a con but they also know that, as Citibank con man Chuck Prince reminded us so eloquently, you never know when the music is going to stop and until then you have to keep on dancing.  Others are simply clueless about it whether out of stupidity, ignorance (they are different), or simple lack of ability to suspend disbelief (i.e. caught up in herding/can't see forest for the trees).  Again, you might not see me as any kind of authority to listen to despite all the predictions I got right but you should acknowledge that my views are fact based and not gut feel.  When Chuck fucking Prince says it's a game of musical chairs and that the music will stop some day but that everyone in the game is going to act like nothing is wrong until it all collapses, maybe you should pay attention to that.


The next shoe to drop will be that the velocity of money chart which I have been discussing in these pages for years now will bottom and then it will turn up.  When that happens, well, I think it indicates that major changes are coming.


I am monitoring the timing of these things on my subscriber's blog.  If you want the inside skinny from someone with a proven track record for "getting it", you know where the subscribe button is.  Don't expect me to give any further advance warning here for free; that is now premium content.

1 comment:

Augustine said...

Indeed, when Congress takes over the Fed, hyperinflation it is. But, as you said, the Ponzi has been running for decades. So, it's not going to be a new Ponzi run by Congress that will unravel, but the same one run by the Fed. Why will it unravel just then? Probably because Congress will step in to control the unraveling, as the government is always a trailing, not a leading, indicator.

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