The Phaserl


The Federal Reserve Just Made Another Huge Mistake

by Michael Snyder, The Economic Collapse Blog:

As stocks continue to crash, you can blame the Federal Reserve, because the Fed is more responsible for creating the current financial bubble that we are living in than anyone else.  When the Federal Reserve pushed interest rates all the way to the floor and injected lots of hot money into the financial markets during their quantitative easing programs, this pushed stock prices to wildly artificial levels.  The only way that it would have been possible to keep stock prices at those wildly artificial levels would have been to keep interest rates ultra-low and to keep recklessly creating lots of new money.  But now the Federal Reserve has ended quantitative easing and has embarked on a program of very slowly raising interest rates.  This is going to have very severe consequences for the markets, but Janet Yellen doesn’t seem to care.

There is a reason why the financial world hangs on every single word that is issued by the Fed.  That is because the massively inflated stock prices that we see today were a creation of the Fed and are completely dependent on the Fed for their continued existence.

Right now, stock prices are still 30 to 40 percent above what the economic fundamentals say that they should be based on historical averages.  And if we are now plunging into a very deep recession as I contend, stock prices should probably fall by a total of more than 50 percent from where they are now.

The only way that stock prices could have ever gotten this disconnected from economic reality is with the help of the Federal Reserve.  And since the U.S. dollar is the primary reserve currency of the entire planet, the actions of the Fed over the past few years have created stock market bubbles all over the globe.

But the only way to keep the party going is to keep the hot money flowing.  Unfortunately for investors, Janet Yellen and her friends at the Fed have chosen to go the other direction.  Not only has quantitative easing ended, but the Fed has also decided to slowly raise interest rates.  The Fed left rates unchanged on Wednesday, but we were told that we are probably still on schedule for another rate hike in March.

So how did the markets respond to the Fed?

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6 comments to The Federal Reserve Just Made Another Huge Mistake

  • Craig Escaped Detroit

    The “FED” has NOT ended QE & probably never will, but the QE is “hidden” from honest reporting.

    There are financial “tricks” used by the FED to create huge amounts of “hot money”, and one of them is thru the circle-jerk of criminals under the control of the FED (or being controlled by their own fears of a market crash), these “controlled” entities are=
    …the EU,
    …etc. etc.

    Each of them & all of them, “inject” liquidity into the elite groups as needed, continuing to transfer wealth from the world, into the hands of the elites until everything has crashed.

    No matter what is reported or announced by anybody, this is what is happening.

    That is why “WE BE STACKIN’ “. That is why we fill our pantries, and prep everything we need for the ultimate crash.

    There are people in this world today, who are NOT SHEEPLE anymore. We are not just the survivors, but we are protected and will not be slaves and we will not be desperately poor after the crash.

    We will be FREE. We will determine our OWN fate. We will not hand our wealth over to the elites.

  • Alyosha Blue

    After listening to SGT’s ESF video and watching the video from Eric deCarbonel, I’m of the opinion that the Fed works for the ESF, which is tied back to the Treasurer. So, in the end, the Fed has plausible deniability, regardless of what they do.

  • Howard Roark

    It never gets old watching those in COMPLETE denial who have written over and again about the criminality at EVERY LEVEL…describe an action by the criminals as a “mistake.”

    Has the most base instinct for self-preservation been completely wiped out in you…what the fuck!!!?

    THEY. ARE. JEWS. MICHAEL. THEY. WANT. YOU. DEAD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    “There are two life-forces in the world I know: Jewish and gentile (non-Jewish), ours and yours…I do not believe that this primal difference between gentile and Jew is reconcilable. You and we may come to an understanding, never to a reconciliation. There will be irritation between us as long as we are in intimate contact. For nature and constitution and vision divide us from all of you forever.” (Maurice Samuel, You Gentiles, Harcourt, Brace & Co., New York, 1924, pp. 19, 23).

    P.S. The magic glass elevator isn’t coming for you…unread your “Left Behind” books…that was Willy Wonka

  • RandX

    Mr. Snyder needs to see the 5-piece presentation on the ESF. They appear to be the ones passing the orders to the FED.

  • BRF

    The Fed is a front organization for mainly its NY member banks so some blame can definitely be laid there for its owners to collect. But if Rob Kirby is listened to an equal amount or more blame lies with treasury, also banker controlled, which has taken over the sustaining the world economy wrecking bubbles that have reached levels so large words fail in description.

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