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Central Banks – An EXPLOSION Heard ‘Round The World

Mitchell Feierstein, the author of Planet Ponzi and proprietor of PlanetPonzi.com kindly submitted this original article exclusively for SGT Report readers.

by Mitchell Feierstein, PlanetPonzi.com, via SGT Report:

Why global central bankers’ great monetary experiment is about to explode.

During the past ten years, we have witnessed unprecedented manipulation of stock, bond, and property prices by global central banks. The inflation of these grotesque asset bubbles will not end well as indicators in the USA point towards an economic recession.

For the past twelve years, Ben Bernanke and Janet Yellen have been piloting the US Federal Reserve Bank with the same hubris as Captain Edward John Smith when he cheerily departed Southampton at the helm of the RMS Titanic. The big difference: around 1,500 people died due to Captain Smith’s arrogance and incompetence; whereas, Bernanke and Yellen’s arrogance and incompetence regarding the “magicing-up” of trillions of dollars in global credit as a substitute for consumer growth will end in epic policy failure.

The biggest problem is that inflation-adjusted wages have been flat while central bank manipulation has inflated unsustainable asset bubbles in stocks, bonds, and property markets making the cost of living impossible. As wages have stagnated, DEBT HAS DRIVEN consumption—and the consumers are now tapped out. The claim that the USA’s economy is at “full-employment” is one of the century’s most risible claims. Labor participation has not been this horrible since 1977!

The likely outcome of the Bernanke-Yellen “great economic experiment” is the USA’s loss of USD hegemony followed by a massive global financial collapse, a catastrophic economic depression, and possibly another world war. But rest assured that when, not if, the next crisis hits, our fake-news pundits will all blame the above and the thirty plus years of excess on President Donald J. Trump.

Central bank “interventions” have allowed market valuations to enter the Twilight zone, a place where reality no longer exists. The US Treasury is about to run out of money and Illinois is broke as are most woefully underfunded USA pension funds, and yet disconnected markets trade like they are playing with risk-free assets.

These central planning interventions have created an exquisite garden paradise where princes and princesses happily gallop along riding their unicorns without a care in the world because the omnipotent central bankers have eliminated all political, monetary, geopolitical, fiscal, and economic uncertainties in the stock, bond, and property markets. A wonderful world where prices can only go up, up, up!

In Bernanke, Yellen and New York Federal Reserve Bank President Bob Dudley’s version of utopia, everyone remains convinced our central bank super heroes can easily unwind the Federal Reserve’s $5-trillion-dollar balance sheet with no harmful side effects. In fact, as Yellen cited last week, “It will be like watching paint dry.” Will our divine soothsayer’s forecasts be just as accurate as their asset price, growth, and inflation guesses have been for the last several decades?

Does anyone remember this July 2005 interview with U.S. Federal Reserve Chairman Ben Bernanke?

INTERVIEWER: “Tell me, what is the worst-case scenario? Sir, we have so many economists coming on our air and saying, “Oh, this is a bubble, and it’s going to burst, and this is going to be a real issue for the economy.” Some say it could even cause a recession at some point. What is the worst-case scenario, if in fact we were to see prices come down substantially across the country?”

BERNANKE: “Well, I guess I don’t buy your premise. It’s a pretty unlikely possibility. We’ve never had a decline in house prices on a nationwide basis. So what I think is more likely is that house prices will slow, maybe stabilize: might slow consumption spending a bit. I don’t think it’s going to drive the economy too far from its full employment path, though.”

Or this chart?

So here is a snapshot of the USA’s property market. Similar property bubbles exist in Canada, inflated by Mark Carney, who is now at the helm of the UK’s BoE where the central London property bubble he helped inflate will experience an extreme collapse. What could possibly go wrong?

Have global markets finally reached a zenith after the multi-decade enterprise of monetary central planning engineered by the Bernanke-Yellen Fed using the same groupthink policies adopted by central bankers around the globe that helped spawn the last credit crisis bubble? Have these central bankers all become intoxicated by the same monetary madness?

Albert Einstein said, “Insanity is doing the same thing over and over again and expecting different results.”  Well, our central bankers either have been lying to us for the past decade or they have been dead wrong. In either case, why should a sane society entrust our global financial stability to nonelected officials who have made heinous mistakes and have been wrong more than they have been right over that past thirty years.

Central banks are picking market winners and losers—that’s no longer capitalism.

Central banks are making wildly speculative bets. For example, take a look at the Swiss National Bank’s gargantuan stock positions (nearly $70Billion) in US companies such as Apple, Facebook, Boeing, Tesla, Microsoft, and Amazon. The European Central Bank has manipulated the European Union sovereign bond market to the extent that price discovery and normal functioning market mechanisms no longer exist. The Bank of Japan has experienced three lost decades destroying their economy.

Is it different this time? Sorry folks, it is never different not this time or anytime. Has the West learned anything from Japan’s nearly thirty-years massive policy failures? Nope. In fact, central banks have recklessly tripled down. Central banks have become nothing more than highly opaque, out-of-control hedge funds with unlimited balance sheets run by people who arrogantly believe they can control volatility and markets by distorting reality with no consequences. What’s next? We needed to rein in these rogue central banks years ago. But, it’s too late. When people do wake up they will realize how decades of central bank policy mistakes have caused the biggest financial collapse in history.

Mitchell Feierstein, the author of Planet Ponzi and proprietor of PlanetPonzi.com kindly submitted this original article exclusively for SGT Report readers.

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11 comments to Central Banks – An EXPLOSION Heard ‘Round The World

  • hank

    america loves their gangsters…godfather crap eh what?

    it is a crime scene…period…

  • Craig Escaped Detroit

    I highly recommend going back and watching some of the Max Keiser interviews featuring Mitch Feierstein. Together, they are brilliant, FUNNY, and very well informed about the crap that is happening. I always learn a lot of interesting things when these two get together, and since the interviews are limited to just 12 minutes, they fly by too fast and leaves me wanting for more.

    Often times, (because Mitch is such an interesting guest), Max keeps Mitch on the set for additional interviews back to back (each one aired on the next show).

    https://www.youtube.com/results?search_query=max+keiser+Mitch+Feierstein

  • Craig Escaped Detroit

    Oh, I almost forgot to say that the Max Keiser shows are 25 minutes long (with the 1st half of the show is always a lively discussing between Max & his wife (Stacy Herbert), and the guest interview always starts at the half way point (of 12 minutes or 12.5 minutes).

    I’m following my own advice, and watching the last appearance of Mitch on the Max Keiser show right now (Stacy has a head cold, and sounds stuffy).

    Next, I’ll watch the Max interview with Michael PENTO, it should be interesting too.

  • Craig escaped Detroit

    Have you noticed how Trump is fulfilling his promise to “Drain the Swamp”?

    He’s pulling the swamp creatures (Goldman Sach’s, etc) out of the swamp and putting them directly in Trump’s boat!!! (and putting them in charge of the steering wheel and all the other controls too.) Hahahaha.. (I have to laugh, to keep from crying.)

    It’s like the Merry-Go-Round ride is dangerous because it’s moving too fast, so they fix everything by doubling the speed even more.
    When we lose control of those “horsey rides”, we’re gonna be flying off the carousel like popcorn from a hot skillet.

    I’m gonna laugh my ass off when the DOW finally gets sucked down like a surf board swimmer getting snatched from below by a great white shark. And paper money is gonna be the blood in the water.

    It’ll just be a stain in the water, letting you know something has died. Gold & Silver will be our “shark proof” lifeboat. Instead of a “golden parachute”, the PM’s will be our golden-blimp, floating serenely above all chaos down below.

    How long can the “elites” keep the paper zeppelin flying? .
    But when their “paper zeppelin” rips a big hole in it, it’s going down like we’ve never seen before.
    Even if we have to wait another 3 years for it, or even longer, it just builds up more pressure for the PM’s to go higher & faster. But I hope everything flips over within the next 10 months. I’m just tired of waiting.

    But hey, if things stay like this, for exactly 9 more months (March 2018), and THEN it crashes, it will be the BEST for everybody’s survival BECAUSE everybody will get slapped in the face and need to start their emergency preps at the PERFECT time to PLANT THEIR GARDENS! (Spring planting season).

    We will have made it thru this coming winter with the fewest casualties. But if the crash happens this autumn, then the winter time will see the largest, instant food crisis we have ever seen in the western world.

    Africa, Asia, and Latin America have always been experiencing ongoing food shortages for as long as history can record. Even the bible talks about the famine where Joseph got Pharaoh to stockpile food for 7 good years, and when the 7 bad years came, the nation of Egypt had warehouses full of PREPS and BARTER ITEMS to trade to all the starving sheeple. Egypt bartered & traded their extra food for massive wealth.

    Prepping is biblical. And then bartering your extra preps to become massively wealthy and powerful is something God approves of. Trade a few measures of wheat or barley to the starving people, take all their gold, silver, virgins, etc, and for the next 1000 years, you’ll be the masters of the universe.

    We’ve been stockpiling our extra wealth, food, seeds, silver, and barter items for 7 good years, and now we’ll be ready for the next 7 years (or 7 X 7) bad years.

    Stock up not just on the basics (PM’s, food, seeds, well drilling stuff, water and water tank, rainwater capture, garden chems, bug chems/bug cloth, etc), but don’t forget, that it bad times, DRUGS, BOOZE, Tobacco, guns & ammo, etc, become the MOST valuable barter items.

    Just look at the era of prohibition, it lasted from 1920-1933, yet the “Great Depression” began with the crash of 1929. The consumption of illegal BOOZE did NOT slow down, it just kept going, even got bigger. People, no matter how poor, they still want their stuff, and when they become depressed, they want MORE of it, and the black market will supply it. Prohibition made the mafia & bootleggers rich.

    Just look at every crisis nation, etc, and you’ll see that the BLACK MARKETS operate even MORE efficiently and more open than they do when things are normal.

    I’d advise you to obtain seeds for Poppies, Marijuana, and other “mind altering” stuff, (magic mushroom starter), etc.
    And seeds for Tobacco. Stock up both retail ready booze, in the largest, cheapest price quantities, perhaps some 1 pound bulk tobacco (purchased as “pipe tobacco” reduces the federal taxes by about 90%… the difference in price of a 1 pound bag of “cigarette vs pipe” tobacco, is that the “cigarette tobacco” costs about $40 or $60, and the “pipe tobacco” can be purchased for $9.95.) (The one place I found it most easy to order online, is at http://www.tobaccogeneral.com)

    You should also stock up on at least 100-200 pounds of canning salt (best, easiest, CHEAPEST way is to buy the 40 pound bags of SWIMMING POOL SALT at places like Lowes, Home Depot, Walmart for less than $7/bag).
    Don’t forget, that the average American/European, consumes MORE than 100 pounds of SUGAR per person per year!! It’s not just a sweetener, it’s also a canning preservative for berries and fruits, it has antibacterial properties, AND..AND AND AND..it’s used for making BOOZE!!!

    SO, even if you’re a full blown diabetic, and cannot consume any amount of sugar or booze, you can still make plenty of moonshine and SELL it, trade it, barter it.

    Don’t waste your time on all the little bags (unless you plan on trading bags of sugar), but save money when you buy the biggest bags you can get. Be aware that ANTS and bugs will get into almost ANY container of sugar, unless it seals up really really well. I’d say that the 5 gallon plastic food buckets with the rubber gasket seal, is the most safe way to store sugar for long term, as well as putting it into your unused mason jars, pickle jars, mayo jars, etc.

    My FAVORITE thing to “re-purpose” are those 2 gallon Laundry Soap jugs, with the push button dispenser spout. I rinse them out, and then I can FILL them with gasoline, kerosene, or other liquids. (I NEVER leave them in the “dispensing position” just in case the push button thing fails or starts to leak. I always turn the jug UPRIGHT when not dispensing from it !!!).

    It’s VERY useful for when you gotta mix some 2-cycle oil with gas, for your chainsaw, leafblower, etc. It’s much easier to put the chainsaw up to the dispenser spout, push the button and fill your tank and NOT need to fumble with a funnel, etc. I’ve got a bunch of kerosene lamps, and this system makes refilling very easy.

    • Ed_B

      @Craig

      Lots of good advice, as usual, and a good post. But let me take exception with the idea of “DRUGS, BOOZE, and Tobacco” as barter items. Those who depend on these artificial substances to get through their day are all gonna die when the SHTF because they are totally unprepared to deal with that mega-reality. Few of them have any skills, preps, or real wealth that will be useful when the SHTF, so what will they do? They will turn to crime because that is all that is left for them to do… other than just die, that is. They will become predators on the rest of us. But fear not because they will be dying in huge numbers at the hands of those who know how to defend themselves and are prepared to do it.

      Maybe it’s just me but I would go with the things in life that are really useful. These include seeds, hand tools, building materials, fasteners of all kinds, dry goods such as rice, beans, and paper products, fish hooks and line, .22LR ammo, needles and thread, garment patterns, rope, tarps, extra clothes, boots and shoes, knives, bows and arrows or crossbows and bolts, etc.

      If there is room in the budget for some extras, chocolate, cocoa, candy, coffee, and tea should be good trade items that don’t debilitate those who consume them.

      • Craig Escaped Detroit

        @Ed,
        Funny that you mentioned COCOA (powder), because that stuff has a very long shelf life.

        Just yesterday, I dipped into a tub of cocoa that is about 7yrs old, and no unusual odors or taste. I mixed some into a partial jar of peanut butter, added some honey and stirred it all together and it’s GREAT. Goes good on crackers, pretzels, fruit bars, icing for cupcakes, etc.

        Watching those videos of the guy who eats 50yr old military rations, is quite interesting, and glad he takes respirator (gas mask) precautions when inspecting those bulging, compromised cans. He video tapes how it looks, then disposes of it. But there are so many intact things he eats and tests, giving some very good analysis of some military rations, even back to WW2. Ouch. It proves that well preserved food, although it may often taste like nothing, some of it still has good flavor, and his experience on video, helps to show what types of foods do well, and what things (such as nuts & milk products) don’t do well. He was eating some peanut butter from 1957, and says it was still very good. Hahaha. I’d be scared.

        But at least it makes some of those survival movies more believable when stragglers find and eat some old military rations from long ago.
        Yes, I agree that addicts (and other foggy headed people will die quickly and in great numbers over longer periods), but tobacco, alcohol, poppies and marijuana all have useful properties that are needed in certain situations. Strong pain killer or sedatives are always useful to the medical/health care community. Whether old age arthritis, or end stage cancer patients.

        Marijuana, has medical uses that are helpful to many people, and for those who just need to relax after a stressful event or times may help some people to keep from falling mentally apart.

        I’d say the one product that has the least benefit, is the tobacco. But having even just a couple pounds of it and all the papers, etc, costs only about $30, and will make 60 packs. That’s probably enough for bartering for quite a while. It’s good to have a variety of things, just like you said.

        In any surviving community, the one person who has a complete herbal medicine garden and the books about how to apply all those things, will become the village doctor. High purity, high concentration VODKA will work very well for making alcohol based herbal tinctures for treatments. Herbal concoctions that need to be swallowed, sometimes made with water, other times made with alcohol. Also good for cleaning a wound or area for surgery?
        (Povidone Iodine would be good for surgical prep, even if YOU can’t do the surgery, but if you’ve got a pretty good surgical supply kit, and can find a qualified person to make use of those things, it could save lives.) Even the family dog may need something removed from a paw or some stitches after a fight with some animal, car accident, barbed wire, etc.

        In Venezuela, people die because there is a lack of all types of medical supplies. It’s not hard to buy enough tools for some important surgery, and with a pressure cooker, you’ve got a way to sterilize them. You can even buy a variety of dental tools to extract a bad tooth, and that can save a life from infections.

        I wonder of one of those flexible “bore scope” video viewing devices could be used in an emergency as a medical (body cavity) viewing scope?
        If you’ve ever been laid up in bed, or know anybody who was, then you instantly know how important it is to have some sterile urinary catheters so the unconscious person, of the person who has to lay in bed for a week or more, and cannot get up every 3 hours to pee, for them, a catheter greatly reduces the pain and stress, and they will heal faster.
        Of course, you’ll need a good way to disinfect those things prior to insertion, and have some antibiotics to take if they get a UTI.

        Be well. It’s always great to write back and forth with all you guys out there. Exchanging USEFUL ideas and valuable experiences helps us all.

        • Eric

          I think I have some cocoa powder around here from like 1949. Have never tried it.

          I did just come up with like $45 out of nowhere.

          $25 in nickels and $20 in quarters out of the coffee can.

          It pays to save.

        • Ed_B

          Yeah, the food items that last the longest tend to be the things that are low in oils. Edible oils tend to get rancid, especially if not stored in a cool dark place. I’m using a bottle of olive oil right now that is 4 years old and tastes fine. But I have seen other oils go bad after a couple of years. Saltine crackers also have a short shelf life, often only months, before they become rancid and taste awful. It surprises me that old peanut butter did as well as you describe. That is very high in oil. We buy the big jars of Skippy super chunk PB and it lasts well enough in our non-refrigerated pantry that it is still good after about a year. I would not want to keep it around much longer than that. Better packaging would extend that time, I think. Makes me wonder if one could can PB in Mason jars to help it last longer. If so, I’d buy in bulk and then can it in 8 oz jars so the open time would be short before it was consumed.

          “It proves that well preserved food, although it may often taste like nothing, some of it still has good flavor…”

          Yeah, color and flavor can disappear quickly in canned foods but they very often are still edible. If stored in a cool dry place, most canned food should last for 6-8 years before becoming inedible. Most such foods have only a 2-3 year expiration date but food companies tend to be very conservative with their “use by” dates. Another problem is that the nutritional value of the food declines over time, so even if one eats a good sized meal, they may not be giving their bodies all the nutrients that it needs.

          “Strong pain killer or sedatives are always useful to the medical/health care community. Whether old age arthritis, or end stage cancer patients.”

          Amen to that. If there is anything that will be available in vast quantity when the SHTF, it will be pain… and from many sources. Infection will be a terrible problem for anyone who cannot sterilize wounds. Even a small cut can be deadly if not treated. It’s crude but washing a wound with a dilute solution of swimming pool bleach can be very effective at sterilizing it and thereby saving a limb or even a life.

          “I wonder of one of those flexible “bore scope” video viewing devices could be used in an emergency as a medical (body cavity) viewing scope?”

          I’m betting that one of these would be invaluable to anyone forced to do surgery on someone when they have minimal skills but must do it or just watch the person die. Any kind of penetrating wound, such as from flying glass or bullets would be a lot easier to treat if one only knew exactly where the object to be removed actually was. Spotting internal bleeding would also be a good use of such a scope. Removing a bullet or pieces of glass would be a great 1st step but if there is internal bleeding, that too would need to be stopped without causing additional harm from improper blood flow.

          “In Venezuela, people die because there is a lack of all types of medical supplies.”

          Yes, I have read that too and it is terrible when lives are lost because of the lack of simple but vital medical supplies, antiseptics, or surgical tools. This is a grim reminder of what lies in store for any country that collapses.

          Great idea on the catheters. Most people would over-look that as a possible need. I did. These are especially valuable because anyone who has been injured will probably need more fluids than they otherwise might and will have to void most of that via their urine. I will look into this to see what is available.

          “Be well. It’s always great to write back and forth with all you guys out there. Exchanging USEFUL ideas and valuable experiences helps us all.”

          Same to you, Craig. I agree 100% on info exchange as being a huge benefit for all of us.

  • Allender

    “…the same hubris as Captain Edward John Smith when he cheerily departed Southampton at the helm of the RMS Titanic.”

    Sorry, the RMS Titanic was actually the RMS Olympic…switcheroo by J.P. Morgan for insurance payout on the damaged Olympic. Captain Smith was a patsy….

  • Ed_B

    “But rest assured that when, not if, the next crisis hits, our fake-news pundits will all blame the above and the thirty plus years of excess on President Donald J. Trump.”

    The low information types are the ones remaining in the Leftist Propaganda Press (LPP). They will buy this idea because they do not have the mental capacity to form their own thoughts or to think critically when someone tells them something. The rest of us will recognize this kind of BS as the propaganda / butt covering that it truly is.

    Re Bernanke on the US housing market in 2005…

    I did not recall that particular point in the article but I remember very clearly a couple of years later Bernanke coming on CNBC business news and stating categorically that “Right now is a great time to buy a house”. Less than 3 weeks later, the bottom fell out of the US housing market.

    “So here is a snapshot of the USA’s property market. Similar property bubbles exist in Canada, inflated by Mark Carney, who is now at the helm of the UK’s BoE where the central London property bubble he helped inflate will experience an extreme collapse. What could possibly go wrong?”

    Other than just about everything? Central banking is central planning applied to banking… and we all (should) know that central planning usually sucks. None of us should be surprised at the crap-fest that is coming out of the central banks.

    “In either case, why should a sane society entrust our global financial stability to non-elected officials who have made heinous mistakes and have been wrong more than they have been right over that past thirty years.

    A SANE society would not… so, that tells us the intellectual and mental health status of our society these days. The Fed, and presumably other CBs, have worked VERY hard at convincing people of their infallibility. It’s a lie but a comforting one to some who want someone to make sense of this insane world we are living in these days.

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