The Federal Reserve Tried To Destroy Our Economy In 2018! They Failed With Us But Were Extremely Successful With Europe, Canada, China & Japan……

Over the last few articles I wrote, many Q Treepers discussed the fact that the Federal Reserve tried to destroy our economy in 2018. Four consecutive quarters of 0.25 interest rate increases. Quantitative tightening of $50 billion dollars each month throughout the year.

From the article linked above:

The Fed, of course, has been raising interest rates, including four increases last year, which unnerved many investors. These days, though, the focus has shifted to what the central bank will do with another tool it previously used to stoke economic growth.

As part of its campaign to rescue the economy after the 2008 financial crisis, the Fed bought enormous quantities of bonds issued or guaranteed by the federal government. Now the question is how quickly, and by how much, it will shrink that pile.

Once an area of interest for only the most intrepid of Fed watchers, the bond portfolio has started to overshadow more fundamental economic concerns, like China’s slowing economy and the government shutdown. Since last year, the Fed has been reducing its bond stockpile by up to $50 billion a month.

Investors increasingly point to the trend to explain the ugly performances of virtually every kind of investment in 2018. Even President Trump weighed in, tweeting in December that the Fed should “Stop with the 50 B’s.”

They caused a major drop in our Equity Markets during the months of October through December. They were successful in lowering our 4th Quarter real GDP rate from 2.6% to 2.2%. They were successful in keeping our Annual real GDP rate under 3.0% (it came in at 2.9%).

They weren’t successful from Q4 2017 to Q4 2018, real GDP still gained 3.0%, up from 2.5% in 2017.

Or in us setting a record for the first time.

They weren’t going to stop until they took a look around the world and realized that the Global Economy was being destroyed because of their decisions. 

Keep in mind that China manipulates their real GDP rate.

Our President and his Killers have them exactly where they want them. There won’t be any rate increases in 2019. Quantitative Tightening has been put on hold. As a matter of fact, our Killers are calling on the Fed to cut rates.

White House economic advisor Larry Kudlow made some news the other day when he said he would like to see the Fed cut interest rates by half a point (.50%).

It sucks when your entire existence is predicated on the Global Economy. They weren’t prepared for a President that doesn’t give a rats ass about the Global Economy. America First is his only priority. Now he is going to use the MORONS to add fuel to our Economic Train.

Lets take a look at the Stock Market from this past week.

https://markets.wsj.com/?mod=Markets_MDW_MDC

  • DJIA – up 1.67% this week & up 11.15% YTD
  • Nasdaq – up 1.13% this week & up 16.49% YTD
  • S&P 500 Index – up 1.20% this week & up 13.07% YTD
  • Russell 2000 – up 2.25% this week & up 14.18% YTD

Winning never felt so good!

21 thoughts on “The Federal Reserve Tried To Destroy Our Economy In 2018! They Failed With Us But Were Extremely Successful With Europe, Canada, China & Japan……

  1. Great info Flep. Always look forward to your articles…compiling so much data and information in a single article. And, presented in a coherent sequence. Thanks.

    So I see this.
    “They weren’t going to stop until they took a look around the world and realized that the Global Economy was being destroyed because of their decisions.”

    SMH. The fricken Fed acting as Globalists, rather than America First. To me, the equivalent of multi National Corporations decisions based on Global perspective. To claify my perspective…
    – Feds should be Main Street.
    – Multi Nationals are correctly, capitalists. Get a pass of sorts, so long as we recognize they are Capitalists first.
    – The puppeteers, manipulating the Multi Nationals, artificially manipulating the cost of goods, are a problem. No way I can amplify that coherently. But do believe it.

    Then I see this.
    “It sucks when your entire existence is predicated on the Global Economy. They weren’t prepared for a President that doesn’t give a rats ass about the Global Economy. America First is his only priority.”

    The Fed really needs to go away. Have never understood why the Fed exists. Seem to muck things up with their intentional manipulating interest rates. Why can’t the free market do this? I really dunno.

    An understatement. Thank goodness we have President Trump. America First…Main Street First!!!

    Liked by 15 people

    1. More great news coming out today! The Economic Train is continuing to steam along picking up passengers and running over our enemies.

      The Atlanta Federal Reserve revised their 1st Quarter real GDP forecast earlier today. We are now 0.1% away to last year’s 1st Quarter real GDP rate.

      Here is why it was revised upward by 0.4% from the last forecast.

      From the article linked above:

      Construction spending continued to gain solidly during February, gaining 1.0% to a seasonally adjusted annual rate of $1,320.3 billion. That’s (±0.8%) above the revised January estimate of $1,307.3 billion, and beating the forecast range.

      The consensus forecast was calling for a -0.2% reading, ranging from a low of -1.0% to a high of 0.4%.

      From the article linked above:

      The Institute for Supply Management (ISM) manufacturing index (PMI) came in at a solid 55.3 in March, beating the consensus forecast. That’s up 1.1 percentage points from February and new orders remain very solid.

      The consensus forecast was 54.2, ranging from a low of 53.0 to a high of 55.5.

      “Comments from the panel reflect continued expanding business strength, supported by gains in new orders and employment,” Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, said.

      “Demand expansion continued, with the New Orders Index returning to the high 50s, the Customers’ Inventories Index improving but remaining too low, and the Backlog of Orders Index softening to marginal expansion levels.

      The New Orders Index came rose 1.9% to a strong 57.4%, up from the February reading of 55.5%. The Production Index gained 1 point from 54.8% to 55.8%.

      From the article linked above:

      Business inventories for manufacturers and trade in January rose 0.8% (±0.1%) from December to $2,013.9 billion, beating the forecast and outpacing sales. They are up 5.3% (±0.4%) from January 2018.

      The consensus forecast was 0.5%, ranging from a low of 0.1% to a high of 0.6%. All data are adjusted for seasonal and trading day differences but not for price changes.

      Cherry 🍒 on top of the sundae!

      Liked by 10 people

    2. Logically, the Fed could have a place in stablizing the economy in the event of major shocks.

      But I have not found a single point in history where the Fed’s actions did anything but make things worst. At best, they are incompetent.

      So what is the purpose of the Fed? If the public motive isn’t working, maybe it’s not the reason. So we have to consider the second motive.

      I hear a lot of whining about other countries doing currency manipulation. Other nations central banks don’t always operate independently from the government as the Fed does. So the govt is in more of a position to manipulate things – ie, whoever has power at any given moment in time. What if the fed were created specifically to create leverage to perform manipulation of the U.S. Dollar worldwide? What precisely was QE if not the U.S. engaging in banana republic style currency manipulation?

      Ah but we have an independent Fed, right? Of course, it’s independent from government. Put more appropriately, it’s independent from We the People. They promote independence, but really they want independence to prevent accountability and maintain their own preferred levers of control. Pretty nice gig there hidden in plain site – they get to have their cake (tell the ppl that the Fed is independent from government manipulation) and eat it to (manipulate it however they like, they don’t have to maintain political power to do so).

      So the D.S. decided to do reverse QE. Oh sure they want to unload their balance sheet – to reload their cannons for next time. But to me there is a blatant attempt to sabotage the Trump economy – and all Americans in the process, thank you D.S. we luv you too. It almost worked too – that’s the scary part. But Trump had done enough realignment on the economy that the U.S. could not only survive it but grow. Amazing genius which is possible b/c VSG knew how things had been mal-aligned and fixed them. Instead of the U.S. taking the full force of QT, the rest of the world is having to carry the load. No wonder then that the Fed slowed down – their handlers couldn’t take the pain that they expected the American economy would pay for! You can bet there are bureaucrats all over the Fed running around like their hair is on fire screaming “What are we going to do?!” – there’s nothing you’re going to do but take your lumps.

      Today is such a wonderful day to be WINNING!

      Liked by 10 people

    3. The simple answer as to why the Fed cannot just go away is that it does things we need.

      At a very basic level, in order for a currency to maintain a stable value and support a huge, nation-wide economy, it must expand (and/or contract) in relation to changes in real economic wealth in the economy. In theory, the Fed does this by managing the amount of dollars in circulation, and by managing the availability of credit (which changes the amount of dollars in circulation without requiring the physical printing of dollars). (As a side note, the concern Daughn and others express here about the Fed increasing the money supply is directed at situations where these increases outstrip actual increases in wealth. These increases are inflationary — they decrease the value of the dollar, lowering the value of our wages by increasing the price of goods.)

      In addition, banking panics in the 19th and early 20th century pointed out the need for a crisis management mechanism big enough to address large scale economic disruptions. In particular, some mechanism needed to be found that would enable the concentration of banking reserves and the use of those concentrated reserves to address both cash flow and lending deficiencies in US financial institutions. Remember banking is all about trust. If people lose faith in banks, they will take their money out of the bank, other banks won’t make loans and/or settlement payments to them, their reserves will fall and if left isolated they will fail. This can happen not only in individual banks, it can happen in groups of banks clustered in a particular region of the country, or in banks concentrated in certain industries (agriculture being an obvious example). And beyond local, individual and regional banking problems, we need to have a mechanism to protect the creditworthiness of the US in world markets, which again entails the need to be able to mobilize massive amounts of reserve capital. In effect, the Fed forces banks to work together in situations where their individual interests may differ from the interests of the nation as a whole. It also monitors the health of banks, along with systemic risks across the entire economy, so as to be in a position to address problems early.

      Another component of this forced working together is the automated clearing house system for banks that is maintained by the Fed. Participation in this system obviates the need for individual banks to check out those to whom it sends inter-bank payments, and on whose behalf it makes payments to its customers.

      Unwinding the Fed would be massively complicated. And to make matters worse, history tells us that there are people in this world who are rich enough (and ruthless enough) to manipulate currency values and/or cause banking panics, creating huge dislocations for their own gain. The Rothschilds, for example, by setting up family run banks in five different European countries in the mid 19th century, became spectacularly wealthy playing banks, currencies and entire countries off against one another.

      This, along with the need for force banks to operate against their individual interests in times of crisis, makes it nearly impossible to leave these functions to the private sector. That said, I do agree the concentration of power in the Fed should be changed.

      Liked by 8 people

      1. Appreciate Fed 101. Some have read and understand.

        Seemingly the Fed screws up rather consistently. No doubt it’s a, “complicated business.” Not sarcasm, it is.

        And, the Fed seemed to provide cover for hussein, who in my mind both demonstrated an inept perspective on economies (National and International) and stood on QE. I suppose QE may have started near the end of Bush 43, but surely eight years of hussein.

        If nothing else,
        – the Fed needs to be accountable. NOT autonomous.
        – Rand Paul call to edit the Fed is probably spot on.

        Admittedly, I am not a trained economist. Just know the Fed screws up fairly consistently. Sort of like a flag waving, that says fix me!

        All, IMHO.

        Liked by 6 people

        1. A good friend of mine has the theory that the cabal plans to pay out all the entitlements promised by the US government — social security, medicare, medicaid, food stamps, etc. — only that it intends to inflate the currency so as to afford this. Payments will be made, but the money won’t buy anything. QE is a set of baby steps along this path (which is why Hussein supported it and PDJT does not).

          Like

  2. I keep screaming about this point. QE easing versus tightening. Makes me crazy. Here’s an easy to explain example. Sure, it is an analogy because of “currency supply” versus balance sheet, but this is the best way to explain the impact.
    It’s often said an increase of ONE penny in the price of gas is equal to a billion dollars being taken out of the economy. It’s an easy comparison.
    Okay – well, under Obama, the FED was pumping currency into the market at a rate of 80 BILLION a month or 960 BILLION a year, adding it to our debt load
    That would be equal to PAYING Americans about $9.60 per gallon of gas, to use the analogy.
    When President Trump came in, the FED stopped the QE and began tightening, to the tune of 50 billion a month, or 600 billion a year.
    The swing would be 1.56 TRILLION a year or about 7.5% of GDP for a 20 trillion dollar economy.
    OR, to use the same analogy of gas prices….
    …. instead of the government PAYING you $9.60/gallon of gas under Obama, they start charging you $6.00/gallon under President Trump.
    BIG impact.
    They’re bastards.

    Liked by 16 people

    1. Easing for Obama, tightening for Trump. THEY WALKED RIGHT INTO CHINA’S TRAP LIKE IDIOTS.

      It’s a very long-term way to make socialism pay. Very ingenious to use RACE to make America dance to the Chinese piper.

      China has sneakily arranged the pieces over decades. SKAREW ‘EM.

      The AMAZING THING about America’s current problems is that you don’t even have to understand how it happened, or how it works. Just HIT CHINA for everything, and it FIXES IT LIKE MAGIC. 😎

      Liked by 16 people

      1. And, it seems as though President Trump knows this and is executing corrective action. Tariffs. Getting Chinese to buy more now. Working towards a fair trade deal. Globally pulling strings that further screw China.

        Winning is addictive! MOAR, please!!!

        Liked by 6 people

  3. Yea, I lost a hell of a lot of money, relative to my pocketbook, from Sept to Dec 2018. Really pissed me off. It was obviously an effort to take the wind out of PT’s economics sails. Those bastards. Damnit. They don’t care about main street.

    Liked by 12 people

  4. This is the ECONOMIC VERSION OF THE TRUMP DOCTRINE. “Take responsibility, SNEAKY LOSERS!”

    Just like geopolitical actors can be forced to bear responsibility for their actions – just as the FED can be forced to bear responsibility for its actions – so can other nations who have taken the BAIT of globalist socialism also be forced to bear responsibility for their actions – specifically making the mistake of getting their own nations hooked on the ADDICTION of “other people’s money” (where “other people” was AMERICA!!!)

    CAN’T STUMP THE TRUMP.

    Liked by 14 people

    1. Wolf don’t be so hard on them. They told the MCM to tell the public there was going to be a recession, they just needed the Fed to do the dirty work for them. It’s not the Fed’s fault that their plan blew up in their faces! lol 😉

      To think that they were going to cripple the economy, prevent Trump from being elected in 2020, and they thought they would just get away with it and no one would be any the wiser! These people really are that stupid. Good thing Felice is the news now!

      Liked by 11 people

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