Thursday, May 25, 2017

Setting Up Trump For Next Recession

A conspiracy theory out there says TPTB will crash the economy to take out Trump and populism in one fell stroke. I'm always skeptical of conspiracy theories where human stupidity is a better explanation. The Federal Reserve is mainly run by college professors. The smartest of the smartest created Long Term Capital Management and nearly blew up the financial system in the late 1990s. The Fed cut rates in the late 1990s, fearful of Y2K and the fallout from LTCM. Those cuts launched the final vertical move in dotcom stocks. In the 2000s, the Fed held rates low for too long and created the housing bubble. It denied there was a housing bubble. When problems began to manifest, Fed Chair Bernanke said subprime was contained. The Fed did three rounds of quantitative easing, following the Japanese example. It failed in Japan. The Fed thought it would work in America. The results look a lot like Japan. The Bank of Japan tried hiking rates after doing QE and economic growth stopped. The 10-year Japanese government bond was around 2% then, now it is near zero, and at times below zero. The Fed thinks it can keep hiking interest rates and inflation will stay level or increase.

The Cathedral doesn't understand economics (orthodox Cathedral economics says debt doesn't matter), but it understands that it hates Trump. Whatever bad outcomes arise from Federal Reserve policies, Trump will bear the blame. If anyone can flip the Narrative on the Cathedral though, it is Trump. He could blame the Federal Reserve, bankers, globalists, etc. He could savage Republicans who block tax cuts over deficit concerns. There are dissident economists and online forces that will support a counter-narrative. Plan now, because the IYIs at Fed are steering the economy into a credit deflation and recession.

The Trump Collapse Scapegoat Narrative Has Now Been Launched
The media was building the foundation of the narrative from the moment Trump won the election. Bloomberg was quick to publish its rather hilariously skewed propaganda on the matter, asserting that Trump was lucky to inherit an economy in ascendance and recovery because of the fiscal ingenuity of Barack Obama. This is of course utter nonsense. Obama and the Fed have created a zombie economy rotting from the inside out, nothing more. But, as Bloomberg noted rightly, any downturn within the system will indeed be blamed on the Trump administration.

Fortune Magazine, adding to the narrative, outlined the view that the initial stock rally surrounding Trump’s election win was merely setting the stage for a surprise market crash.

I continue to go one further than the mainstream media and say that the Trump administration is a giant cement shoe designed (deliberately) to drag conservatives and conservative principles down into the abyss as we are blamed by association for the financial calamity that will occur on Trump’s watch.

Last week’s sudden market bloodletting is important in this regard; 400 points down is hardly a flesh wound to a 20,000 point Dow, but the media’s reaction to it was very revealing on what the future has in store. Multiple news outlets responded by immediately connecting the drop to Trump and the absurdity surrounding the “Comey memo” — a memo which no one in the public has seen proof of. The claim is that this level of turmoil around Trump might lead to impeachment and that the threat of impeachment would kill the stock market bounce which the media also claims was driven by Trump’s promises of corporate tax cuts. It's a lie built on another lie.

It is interesting to me that the mainstream media never said the market drop was caused by “Comey’s turmoil,” or by “The Washington Post and The New York Times’ turmoil.” No, they called it “Trump’s turmoil.” Last week’s stock dive was, in my opinion, the official launch of the Trump collapse narrative. The establishment was beta testing it for months, but now, the program has gone live.

Every single stock decline from now on, as well as the ultimate economic crash, which will become visible to the public in short order, will be blamed on Donald Trump and conservatives by extension. As I said, he is the perfect scapegoat.

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