One Big, Fat, Ugly Bubble

Guest Post by Nick Giambruno

The establishment is setting up Donald Trump.

The mainstream media hates him. Hollywood hates him. The “Intellectual Yet Idiot” academia class hates him.

The CIA hates him. So does the rest of the Deep State, or the permanently entrenched “national security” bureaucracy.

They did everything possible to stop Trump from taking office. None of it worked. They fired all of their bullets, but he still wouldn’t go down.

Of course, the Deep State could still try to assassinate Trump. It’s obvious the possibility has crossed his mind. He’s taken the unusual step of supplementing his Secret Service protection with loyal private security.

The Deep State’s next move is to pin the coming stock market collapse on Trump. When people think “Greater Depression,” they’ll think “Donald Trump.”

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The economy has been on life support since the 2008 financial crisis. The Fed has pumped it up with unprecedented amounts of “stimulus.” This has created enormous distortions and misallocations of capital that need to be flushed.

Think of the trillions of dollars in money printing programs—euphemistically called quantitative easing (QE) 1, 2, and 3.

Meanwhile, with zero and even negative interest rates in many countries, rates are the lowest they’ve been in 5,000 years of recorded human history.

This is not hyperbole. We’re really in uncharted territory. (Interest rates were never lower than 6% in ancient Greece, and ranged from 4% to over 12% in ancient Rome.)

The too-big-to-fail banks are even bigger than they were in 2008. They have more derivatives, and they’re much more dangerous.

If the Deep State wants to trigger a stock market collapse on par with 1929, it just has to pull the plug on the extraordinary life support measures it’s used since the last crisis.

It’s already baked in the cake. It’s just a matter of when they decide to trigger the controlled demolition.

Donald Trump is the perfect fall guy. And there are signs the Deep State is already starting to get its revenge.

The most important variable to watch is the Federal Reserve—the quintessential establishment institution.


Source: Ben Garrison

Even though most politicians, economists, and pundits in the mainstream media won’t admit it, central banks exist to help governments finance themselves, at the expense of the average man. It’s the hidden, but real, reason they exist.

The Fed accommodated Obama—effectively financing his regime’s deficits by creating new currency units. I doubt they will do Trump the same favor. And Trump will likely run up enormous deficits. Don’t forget about the $1 trillion in stimulus spending he has planned.

If the Fed doesn’t gobble up the debt used to finance Trump’s spending, it will only work to push up interest rates.

Interest Rates

Manipulating interest rates to near 5,000-year lows is a crucial part of the life support system. Now the Fed is set to pull the plug and leave Trump holding the bag.

In December 2015 the Fed raised interest rates for the first time in almost a decade, from 0% to a mere 0.25%.

The Fed kept rates there until last month, when it raised them to 0.50%. It also announced it would accelerate rate hikes throughout 2017—three in total.

There’s a good chance the Fed will announce these rate hikes during the eight Federal Open Market Committee (FOMC) meetings it has scheduled in 2017.

2017 FOMC Meetings
February 1 July 26
March 15 September 20
May 3 November 1
June 14 December 13

I think some of these rate hikes will be much bigger than the 0.25% most expect. They could pull a series of 0.50% rate hikes… or go even bigger.

Anything greater than the normal 0.25% tempo would shock the market—and seem designed to hurt Trump.

The establishment will get its revenge on Trump. The Federal Reserve is its weapon of choice.

Trump seems aware of the situation. He recently said, “They’re keeping the rates down so that everything else doesn’t go down.”

He’s also said that “We have a very false economy” and the stock market is a “big, fat, ugly bubble.”

During the campaign, Trump called Fed Chair Janet Yellen “highly political.” He said the Fed should raise interest rates but won’t because of “political reasons.” (Raising rates before the election would have hurt Hillary Clinton.)

The Media

The mainstream media is another variable to watch.

Paul Krugman, a New York Times economist—or, more accurately, witch doctor economist—has come out against Trump’s $1 trillion infrastructure stimulus.

It’s bizarre because Krugman, a die-hard Keynesian, had previously never seen a “stimulus” program he didn’t like. Once, he even advocated faking a space alien invasion to stimulate the economy. It shows that Krugman is not only a fool, but a hypocrite.

This is a clue.

I bet the rest of the mainstream financial media—CNBC, Bloomberg, The Economist, etc.—will morph from bullish cheerleaders into pessimistic doom-and-gloomers after Trump takes office.

Don’t expect them to find any “green shoots” after the market tanks on Trump’s watch.

All this is why what happens after Trump’s inauguration could change everything… in sudden, unexpected ways.

This is exactly why Doug Casey and I put together a time-sensitive video explaining how it could all go down.

Click here to watch it now.

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21 Comments
Anon
Anon
January 21, 2017 10:07 am

Federal Reserve and Yellin is a creature of congress. Trump has some very pointed “trump cards” he can use, and because of who he is, he would probably have little problem using them.
If Yellin and the board try to do something crazy, Trump could literally come out with a pointed speech the next day highlighting the mechanism the Fed uses to cause income inequality. He already has a primed audience…is there anyone with an IQ over 80 that does not believe the banksters and fed work for the oligarchs? All Trump would have to do is “break the seal” with a pointed speech, and then introduce pointed legislation to “reform the fed”. You think that would not strike fear in to the bankster class as well as many other elite who know how the game is played?
Frankly, I think the “deep state” would over play their hand if they tried something like this, and if they did, I think after the dust settles we would all be better off, since the fed, and deep state, would essentially have committed suicide.

Mark
Mark
January 21, 2017 10:23 am

However, the more he cuts taxes. The more he deregulates. The more he gets NATO outside of France and England to pony up to close to 2% of GDP for Defense or pay a service fee to the U.S.

The harder these policies are going to be to undue given their ramifications.

Remember , what the establishment fears most is being exposed as irrelevant. It’s the productive capacity of the people outside Washington that counts.

hardscrabble farmer
hardscrabble farmer
January 21, 2017 10:45 am

The quality of trolls has really suffered since Hillary ate the big one in November. Maybe it’s a by-product of shock.

If a fraudulent system collapses, does anyone really care?

Here’s a couple of facts about the big fat ugly bubble bursting that no one ever mentions-

1) It’s going to hurt the people that created it far more than anyone else since they’re the ones that profited from its creation. Their hypothecated wealth will become penury.

2) People will continue to eat, sleep, care for their children, fornicate, whatever it was they were up to before. Human nature will not be altered a single whit.

3) It will drive the final nail in the media coffin. They have sold- among all the other fraudulent tales- a story of economic recovery greater than any other since the dawn of mankind, all of sudden it was all a fiction? Right. Good riddance.

4) The real economy is based on production and consumption at the human level and it will, like water, seek its own level. All the hypothecated tranches manipulated by HFT’s will not survive, but living breathing humans and their needs will.

5) No matter how much suffering will attend such an event, the end result will be the overall health of the social organism. The weakest, least capable, most unproductive members of the society will be the majority of the losses while the most resilient, capable, resourceful and grounded will rise to the challenge.

No one wants war, yet wars happen. No one wants economic instability, yet bubbles occur time and time again. You cannot frighten reality with dire warnings of consequences to a fraudulent system any more than you can make the dead alive again. These outcomes are not only necessary, they are natural and immutable.

Back to you troll.

Suzanna
Suzanna
  hardscrabble farmer
January 21, 2017 11:46 am

HSF,
I love your words.
How about an executive order to the Fed? Our debt to you is null
and void. Grandma will need to go home to her children rather
than reside in a state sponsored nursing home. And other changes
will happen to the tax payer funded boondoggles that rob us. We
pay for the right to live in the USA by giving all our earning to the
gov by one third, and we are not getting any value for it.

Anonymous
Anonymous
  Suzanna
January 21, 2017 1:23 pm

Our money is debt to the Fed (ever wonder why it is titled “Federal Reserve Note”?

So why not just skip the indirect stuff and issue an XO stating “Our money is void” since that is what declaring our debt to them void would actually be.

And then, of course, you have the Fed establishing legislation and the Constitutional authority over money given only to Congress to consider as well.

The Fed is not going to be reformed, redirected, or otherwise controlled by an XO, it will require an act of Congress or a very highly unlikely USSC decision to do anything about it.

Other than appointing the Chairman of the Fed, subject to the Senate, the President really has little power to control it.

But Congress does, that is where action needs to be taken if anything is to be done about it.

Teddy
Teddy
  Anonymous
January 22, 2017 4:37 am

He could really upset them by declaring that they will go back to a gold standard, a move designed to send all banks broke immediately

Tampared
Tampared
January 21, 2017 10:56 am

We interrupt this light-hearted jousting for a swift, dark kick from the hard-to-scrabble farmer.

WIP
WIP
January 21, 2017 10:56 am

He has to stay out front of all their shenanigans.

Even if he does, most imbeciles in this country wouldn’t be able to understand.

We are doomed.

Suzanna
Suzanna
  WIP
January 21, 2017 11:48 am

We are not doomed. We just need to rise up, and collectively say NO!

TampaRed
TampaRed
  Suzanna
January 21, 2017 4:54 pm

Looks like Sybil got off her meds this morning.Let’s hope that when the collapse comes we can at least keep the mental hospitals open.

RiNS
RiNS
  Suzanna
January 21, 2017 5:10 pm

I wish I had that confidence. That all that needs to be done is say no but there is an army of useful idiots. Many have been marching these past days. The movers and shakers only need to throw them some scraps from the table and anarchy will ensue. Most of those fools will get swept up in malestrom but many who prepared will too.

TampaRed
TampaRed
  RiNS
January 21, 2017 6:20 pm

I agree with you RiNS. There are some tough sob s on their side.Everyone sees pics of snowflakes or stupid inner city utes & thinks that it will be easy pickings if things come unglued.
Also,there are more guns on their side than people realize.How many of you remember the Chinese smuggling operation back in the 90s where the Red Army was bringing in automatic rifles?How many got thru?
It will not be fun if it all comes undone.

Anonymous
Anonymous
  TampaRed
January 21, 2017 7:31 pm

IIRC, only one boatload was intercepted.

I doubt it was the only boatload that was sent.

And since they still haven’t turned up anywhere that I know of, I imagine there could be well trained groups out there awaiting orders to use them.

EL Coyote
EL Coyote
  RiNS
January 22, 2017 4:02 pm

Maelstrom

Michael Keane
Michael Keane
January 21, 2017 12:33 pm

The “Bubble” = 1200 trillion dollars.

Those counterfeit dollars= 20 X the combined “Gross” of every country, on the planet, as “GDP”, for 20 years.

Morons explain a “deficit” of some 18-20 trillions. You have been brain-washed. That number speaks to the “Interest-owed”, on the US Credit Card. The “Principal” has not been paid since Andrew Jackson.

How We The People should deal with criminal bankers? – Google: “Nicholas Biddle and Andrew Jackson”.

What is the present solution? : “Weaponize” the phony, counterfeit 1200 trillions, by “Monetizing”, the phony, counterfeit trillions.

Legitimize the criminal banks and their fantasy 1200 trillions, presently listed, as “Assets”, on their books and then begin investigations, prosecutions and seizures of criminal banker tangibles, land, storefronts, hard mineral assets, etc.

In other words, issue a new currency: Abe’s Greenbacks (presently available, as viable replacements) will do nicely, as “pro-rated” upon seizures of intentionally-mislabeled, “Federal Reserve Notes- neither federal, nor, possessing ANY reserves”.

We owe 6 trillions to China, more-or-less, so maintain favored nation status as trading partner- China will never “float” their currency, nor, should they. The people expecting them to do so are presently, hopelessly-“Insolvent”… 1200 trillion in counterfeit, inter-bank, criminal debts (remember?).

Putin, thanks to Snowden, already knows the score, as he is a student of Goldman Sachs’ predations as visited upon Russia by HW and his pals and now, also, a student of Goldman Sachs predatory behaviors, regarding the PIIGS countries, as well.

The government is owned by We The People, if the new President can remain true to his promises.

The banks are the Oppressors; the banks and the crooked politicians and at present, they are altogether beyond any ability to demonstrate any rational disposition of “M3”- aggregate of assets v liabilities.

The 1200 trillions exist as insurance frauds (derivatives: cds, cdos, synthetic cdos) that are placed upon illegitimate titles to American Real Estate, within fraudulent pools of RMBS “Residential Mortgage-Backed Securities”… Article one, Section 8, makes zero allowance, We The People must be held responsible for inter-bank, criminal behaviors, particularly as the same provides for “punishment”, for “counterfeiting”, US “Securities”.

The phony “Fed Notes” belong to the bankers and criminal sentencing, shouldn’t be delayed. Since these Filth hijacked American Currency, We The People should keep them to their word and allow them to fund their own paper, by seizing their collateral and private wealth.

Alter Boyz
Alter Boyz
January 21, 2017 10:37 pm

Jeeez,

By the heading/title I thought this was about the rat pigface Rosie.

Oops.

Administrator
Administrator
January 22, 2017 3:41 pm

!!
?

The people who post here regularly are like students in an ‘intro’ class.
It’s like they’ve learned for the first time how an economy works,
How a Government works,
How society functions.

Folks, get over your horror! You see in any class beyond ‘intro’ that the concepts you’re being faced with have been pondered before: You’re not the first generation that existed and you won’t be the last.

I know it’s a lot to have to face in your first post-secondary thinking experience, but stick with it.

It’s not that bad!
Reply

Fucking with ya! says:
January 21, 2017 at 9:57 am

Stucky says:
January 21, 2017 at 8:31 am

Correct me if I’m wrong …. but, that doesn’t sound like the real Admin.
Reply

TrickleUpPolitics says:
January 21, 2017 at 8:34 am

I agree. It’s insulting and condescending for one thing.
Reply

Administrator says:
January 21, 2017 at 8:37 am

I would have put ‘condescending’ before ‘insulting’ myself. The general always preceeds the particular.
Reply

Administrator says:
January 21, 2017 at 8:34 am

You’re right, Stuck. I would never let you down like that!
Reply

Stucky says:
January 21, 2017 at 9:58 am

Hey! Quit that! I never said any of that!!!!!
Reply

Starfcker says:
January 21, 2017 at 10:00 am

What’s goin’ on, Goons???
Reply

Administrator says:
January 21, 2017 at 10:01 am

I will not have any of this on this site! Stop that!
Reply

Anon says:
January 21, 2017 at 10:07 am

Federal Reserve and Yellin is a creature of congress. Trump has some very pointed “trump cards” he can use, and because of who he is, he would probably have little problem using them.
If Yellin and the board try to do something crazy, Trump could literally come out with a pointed speech the next day highlighting the mechanism the Fed uses to cause income inequality. He already has a primed audience…is there anyone with an IQ over 80 that does not believe the banksters and fed work for the oligarchs? All Trump would have to do is “break the seal” with a pointed speech, and then introduce pointed legislation to “reform the fed”. You think that would not strike fear in to the bankster class as well as many other elite who know how the game is played?
Frankly, I think the “deep state” would over play their hand if they tried something like this, and if they did, I think after the dust settles we would all be better off, since the fed, and deep state, would essentially have committed suicide.
Reply

Bea Lever says:
January 21, 2017 at 10:13 am

But seriously, more hypotheticals, please!!!!
Reply

Francis Marion says:
January 21, 2017 at 10:10 am

Did you guys know I stole my name from a Revolutionary War general and that I seek out unmerited attention from my posts? I’ve never actually accomplished anything in my life…

TampaRed
TampaRed
  Administrator
January 22, 2017 7:23 pm

Sybil,time to get back on your meds .

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