by Brandon Smith, Alt Market:
As a part of the increasingly obvious set-up of conservative movements by international banking interests and globalist think-tanks, I have noticed an expanding disinformation campaign which appears to be designed to wash the Federal Reserve of culpability for the crash of 2008 that has continued to fester to this day despite the many claims of economic “recovery.” I believe this program is meant to set the stage for a coming conflict between the Trump Administration and the Fed, but what would be the ultimate consequences of such an event?
In my article ‘The False Economic Recovery Narrative Will Die In 2017‘, I outlined the propaganda trap being established by globalist owned and operated media outlets like Bloomberg, in which they consistently claim that Donald Trump has “inherited” an economy in recovery and ascendancy from the Obama administration. I thoroughly debunked their positions and “evidence” by showing how each of their fundamental indicators has actually been in steady decline since 2008, even in the face of massive monetary intervention and fiat printing by the Fed.
My greatest concern leading up to the 2016 election was that Trump would be allowed to win because he represents the perfect scapegoat for an economic crisis that central banks have been brewing for years. Whether or not Trump is aware of this plan cannot yet be proven, but as I have mentioned in the past, his cabinet of Goldman Sachs alumni and neo-con veterans hardly gives me confidence. In the best case scenario, Trump is surrounded by enemies; in the worst case scenario, he is surrounded by friends.
Trump’s loyalties, though, are a secondary issue for now. The primary focus of this article is to discern whether or not a battle between Trump and the Fed will result in a net positive or a net negative for the public. My position is that any action against the Fed should have happened years ago, and that today, the Fed is nothing more than a sacrificial appendage of a greater globalist agenda. Meaning, conservative groups should be aware that a victory over the Fed is not actually a victory over the globalists. In fact, the globalists may very well WANT a war between the Fed and the White House at this time.
First, some facts need to be established to counter the propaganda claims that the Fed is some kind of innocent victim of a rampaging President Trump or “misguided” conservative rhetoric.
The Scapegoat Setup Continues
The latest extension of the Fed’s propaganda has been initiated, of course, by the mainstream media and liberals in general; you know, the same people that were applauding the (in some cases misguided) efforts of the Occupy Wall Street movement. With Trump’s negation of the Dodd-Frank Act, the media has been looking for any opportunity to assert that Trump is either acting to enrich his corporate friends or that he is an idiot man-child when it comes to matters of business and economics.
This led to some sniping by Elizabeth Warren and Federal Reserve Board Chair Janet Yellen‘s testimony before congress last week. The argument? That Trump was wrong or “lying” when he said that Dodd-Frank had frozen loans from major banks. You can see the glee in media outlets over the stab; a recent article by Vanity Fair, which seemed to focus more on snide ankle biting of Trump than actual evidence, is a perfect example.
Now, in Trump’s defense (or at least, in defense of his position), Yellen is actually the one lying, here. While it is true that commercial lending has expanded, her claim that small business loans have improved is simply false. Even Bloomberg begrudgingly acknowledges that small business loans have fallen by at least 6% since the passage of Dodd-Frank. In Obama’s favorite liberal home-base, Chicago, loans to small neighborhood businesses declined by 49% between 2008 and 2014.
In 2015, Yellen herself argued that small business loans were in decline because small business owners “don’t want loans anymore.” This is a bit like the Bureau of Labor Statistics arguing that over 95 million unemployed working age Americans should not be counted as unemployed in their stats because they really “don’t want a job.” It is an attempt to muddy the waters on the greater issue, which is that the U.S. economy is in considerable danger.
You see, I don’t think Trump was debating that major corporations and banks were not receiving ample loans, I think he was primarily pointing out the disparity in small business loans and personal loans. Yellen and the mainstream media attempted to use one data point — commercial loans, to dismiss the entire debate over loan stagnation.
The Fed Is Culpable For Our Bubble Economy And Trying To Shift Blame Before A Collapse
The fact is, we all KNOW that major corporations and banks have been flooded with ample loans, and much of this capital was conjured out of thin air by the Fed itself through fiat creation and near zero interest rates. We know this because of the $16 trillion in loans made to companies around the world exposed by the revealing (but limited) TARP audit. We also know this because much of these loans have been used to inflate the stock market bubble for the past few years through endless stock buybacks that most companies never would have been able to afford otherwise. We also know that the mainstream investment world is aware of the importance of these loans because they started to panic as the Fed announced its ongoing program of interest rate hikes.
Beyond that, we know that the Fed’s low interest loans and culture of circular inbred lending between corporations and banks have been instrumental in keeping stocks hyperinflated, because Fed officials have OPENLY ADMITTED that this is the case. As Richard Fisher of the Dallas Fed stated in an interview with CNBC:
“What the Fed did — and I was part of that group — is we front-loaded a tremendous market rally, starting in 2009.It’s sort of what I call the “reverse Whimpy factor” — give me two hamburgers today for one tomorrow. I’m not surprised that almost every index you can look at … was down significantly.” [Referring to the results in the stock market after the Fed raised rates in December 2015.]
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