THE MARKETS ARE FALLING AS PREDICTED

The financial markets around the world have finally begun to drop, as I have been saying they would. Why are they doing this? The reasons are complex, but easy to understand. To put it briefly, the Federal Reserve and Congress have abandoned their duty of ensuring the safety of our money and instead focused all their attention on scoring political points by convincing everyone that the government can create jobs and cause economic growth. This is a complete fabrication or lie. The only thing governments can do is to collect taxes, and create laws and regulations which affect the economy in the long term. However, a century ago during the First World War, governments realized they could borrow money from the future or just print it, and then spend almost limitless amounts of money which they created out of thin air. This spending pattern creates inflation. Inflation is defined as a period of rising prices, but this is caused due to a drop in the value of money. Putting excess amount of money into an economic system will always reduce the value of the given currency and thus raise prices.

This leads us to our current situation. The financial markets have tumbled because of fear that the Federal Reserve may raise interest rates. The Fed should have raised interest rates during the George W. Bush administration, right after 9-11. It's become too late to try to combat inflation, it is beyond control. I wrote about this on 01/20/2017, specifically I said:

"The amount of monetary inflation in the economy is beyond belief; it has become a super-sized bubble waiting to burst. When the inflation bubble finally bursts, the Federal Reserve will scramble to find enough cash to keep the banking system "liquid". During the 2007 Recession, Congress stepped in and put hundreds of billions of dollars in to the system in order to keep it moving. Basically, taxpayer money was used to prop up privately owned businesses. The taxpayers will never see that money again; it has disappeared into the TARP program. Over the past ten years, the Federal Reserve has pushed Trillions of dollars into the economy hoping it would stimulate a bit of economic growth. Their plan failed"

Now the chickens have come home to roost. Trump can not do anything about this, nor could any other resident of the White House. Congress is powerless, they've already put us in $20 TRILLION debt, they simple don't have any more money to waste. The Federal Reserve is also helpless, their policy of Quantitative Easing failed, and they have no other tools that will help.

What will happen next? An economic disaster the likes of which we have never seen.


http://money.cnn.com/2018/02/06/investing/stock-market-turmoil-global/index.html
https://thetruthstillmatters.blogspot.com/2017/02/the-hubris-of-janet-yellen-federal.html
https://www.investopedia.com/terms/i/inflation.asp
https://thetruthstillmatters.blogspot.com/2017/01/our-money-is-not-safe-hungry-sharks-are.html