We have the left media, we have the right media but there are other points of views still ... what do you think?
Since
the beginning of this year, I have been warning that trade tariffs
initiated by Donald Trump would develop into a full-blown trade war with
China, and perhaps other nations, and that the timing of this trade war
is rather suspicious. Suspicious how? Almost every instance of further
escalation was made by Trump around the exact time that the Federal
Reserve was also making a large cut to its balance sheet or raising
interest rates. Instead of focusing on the fact that extreme volatility
has returned to markets because central banks are pulling the plug on
life support, the mainstream media is holding up the trade war as the ultimate culprit behind the accelerating crash.
In other words, Trump's trade war is acting as a perfect
distraction from the crisis which the banking establishment has now
deliberately triggered.
The initial response to my suggestion by a minority of liberty
movement activists and skeptics was outright denial. Some people argued
that the trade war would be over before it even began and that China
would immediately capitulate in fear of losing the U.S. consumer market.
Others argued that the trade war "had been started by the Chinese years
ago" and Trump was simply "fighting back."
Clearly, the trade war is not fading away as many wrongly
assumed. As I predicted, it is only continuing to grow. And the notion
that a trade war is necessary at this time in defense of the U.S.
economy ignores certain realities. For example, the trade deficit itself
was never "theft" by the Chinese, but a trade between the
Chinese and the U.S. government and U.S. corporations. In exchange for
the Chinese and other trade partners using the dollar as the world
reserve currency (and petro-currency), U.S. elites have arranged a
deficit advantage for China. One could also add China's cheap labor and
low cost manufactured goods as part of that trade as well.
While the American working class got the short end of the stick
in this deal, the government and the corporate cabal certainly
benefited.
Now, if Trump had pressured corporations to bring manufacturing
back to the U.S. in order to reap the rewards of his tax cuts, tariffs
after the fact might make a little more sense. With production back on
U.S. soil we would have more economic stability to weather future crisis
events. Instead, Trump gave corporations a tax cut for nothing. And
instead of using that extra capital to innovate or add value to the real
economy, companies used the money to continue artificially propping up
their own stock prices through stock buybacks.
It should be obvious to most people at this point that Trump has no intention of "winning" the trade war. As I noted just after the G-20 conference and the dinner negotiations with China:
"Of course, the outcome is being touted by both sides as a "win,"
but it is clear that the goal was to head fake the public rather than
actually resolve trade disputes. Will the 90-day delay be seen as "good
for markets?" Possibly. Though, the housing market, auto market, and
credit markets will continue to crash as they have been for the past few
months. I expect this development might buy stocks another week of
rest, but little else. As the next Fed meeting approaches this month and
it becomes clear that they intend to continue hiking rates into 2019,
the false optimism will fade. I also expect that negotiations with China
will fall apart yet again well before the 90-day delay is over..."
This is exactly what has happened, though the G-20 honeymoon ended even faster than I imagined.
The arrest of Chinese CFO of Huawei Technologies, Meng Wanzhou,
has immediately destroyed any possibility of diplomatic negotiations
going forward. The 90 day "truce" set apparently by verbal agreement
during G-20 is likely over mere days after it started. National Security
adviser and CFR ghoul John Bolton admitted in an interview with NPR
that he was aware that Canada was preparing to arrest Meng at the
request of the U.S. while he was eating grilled sirloin with the
Chinese. The claim that Trump was not aware of the situation, to me,
sounds absurd.
The detainment of Meng comes with a host of significant potential
consequences. First, as noted the trade truce is likely dead on
arrival. Second, the possibility of further escalation of tariffs is
much higher (U.S. farmers should not expect a reprieve anytime soon).
Third, there is a chance that China will retaliate by snatching up U.S.
corporate representatives. This is a development I realize the average
liberty activist could not care less about, but the average American
will see such actions as a slight by the Chinese against the U.S. as a
whole. Thus, the false East/West paradigm is further entrenched in the
American mindset.
If this trend continues, the trade war will eventually expand
into a war on the U.S. dollar itself, and when it does, the U.S. will
suffer the worst fiscal crisis in its history. Without the world reserve
status of the dollar as well as continued foreign investment in U.S.
debt, what's left of our economy will disintegrate, and I believe this
is part of the plan.
Meng's arrest is a deliberately engineered "linchpin."
I have written extensively in past articles on DARPA's "linchpin
theory," which is a kind of propaganda exercise more than a theory.
According to DARPA, overly complex systems invite growing instability,
and like a chain of dominoes, the smallest part of that system could be
knocked over by a minor event causing a chain reaction that ends in
total collapse.
Of course, this is a misrepresentation of reality. Complex
systems do not invite instability, they create redundancy, making the
system stronger and more resistant to disasters. Instability is actually
caused by oversimplification of a system; that is to say, centralization
is the true cause of large-scale crisis. As we have seen time and time
again with globalism, the more economically interdependent and
centralized the world becomes, the more vulnerable each nation is to the
calamities of other nations.
DARPA loves centralization and is certainly not going to point a
finger at it as the cause of global distress. And so they have created a
scapegoat of decentralization through linchpin theory.
Linchpin theory also asserts another lie — the lie that most
disasters are a product of "random chance." The problem is that the only
way that linchpin theory works is if disasters are created through
conspiracy, not coincidence.
A system must be purposely weakened over time to the point that
any crisis will translate into a collapse of the entire edifice. Central
banks have done this quite expertly through the use of debt-based
bubbles, followed by fiscal tightening into economic weakness. When you
build up an economy like a great Jenga tower and begin pulling the most
vital pieces in a calculated manner, eventually it's going to come
crashing down.
So which piece represents the supposed "linchpin" in our system
today? Well, any piece might do the trick, but the arrest of a Chinese
corporate executive (which the Chinese will consider hostage taking) at
the very onset of a fragile trade truce is an excellent catalyst and
also an excellent distraction.
In my article 'The Everything Bubble: When Will It Finally Crash?' published in September, I predicted that:
"The Fed’s neutral rate efforts suggest a turning point in late
2018 to early 2019. Balance sheet cuts are expected to increase at this
time, which would also expedite a crash in existing market assets. The
only question is how long can corporations sustain stock buybacks until
their own debt burdens crush their efforts? With such companies highly
leveraged, interest rates will determine the length of their resolve. I
believe two more hikes will be their limit.
If the Fed continues on its current path the next stock crash would begin around December 2018 into the first quarter of 2019."
The timing of the arrest of Meng coincided perfectly with the
Fed's expanded balance sheet cuts. The fed has now shifted from $30
billion per month to $50 billion per month in dumped assets. The Fed is
also set to raise interest rates to meet the neutral rate of inflation
this month. This is something that has not happened in decades. And
corporate stock buybacks are dying in the last quarter of 2018, as the
cost of borrowing to prop up equities is now too high. In response,
stock markets are beginning to plunge, and this time there will be no
significant bounce back because without Fed stimulus or buybacks, there
is nothing left to keep things afloat.
To reiterate, the trade war is hitting a nexus, a point of
extreme escalation just as the central bankers are about to kill the
U.S. economy by tightening into economic weakness. The Meng snafu will
be used by the mainstream media to draw the public's attention away from
central bank activities and toward the trade war. Everything Trump is
doing is helping the banks to hide their culpability for the crash.
Why do the banking elites want a crash in the U.S.? There are
numerous reasons and gains to be had. For an in-depth explanation, I
recommend my article 'The Economic End Game Explained.'
To summarize, globalists are setting the stage for what they often
refer to as the "global economic reset." This reset is essentially a
major crisis event which will be exploited by globalists to centralize
the system even further, into a one world currency and one world
economy, governed by the banking elites through institutions like the
IMF and the BIS.
The U.S. economy and the U.S. dollar must be diminished in order
for this to happen. And with conservatives supposedly "in control" of
the U.S. government and the U.S. economy at the time of the crash, guess
who is slated to get the blame? I'll give you a hint: Not the central
bankers...
In the meantime, the globalists hope that the majority of the
world will buy into the fallacy of linchpin theory. They hope everyone
will blame decentralization and "complexity" instead of centralization
and over-simplicity in the system. And it is certainly possible that the
hijacking of a Chinese corporate official will be held up as the domino
that started the collapse.
To truth and knowledge,
Brandon Smith
Welcome to Elkmont, Alabama. A blog dedicated to the sleepy little Southern town of Elkmont, Alabama and its people. We invite all those with good news, something worth braggin' about or announcements to submit their article to share with the Elkmont community. Pictures are welcome. Please visit often and see what is happening in Elkmont.
Tuesday, December 11, 2018
SOMETHING TO THINK ABOUT....IT'S ALWAYS GOOD TO READ DIFFERENT PERSPECTIVES
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Something To Think About
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