Will The FED Change? Will Powell Save The FED From EXTINCTION?

With Janet Yellen leaving the FED and Jerome Powell becoming the new FED chair. Will Powell be able to clean up the era of cheap money at the FED and world central banks?

Let me give you my thoughts!

I've written about several issues at the FED and all the other FIAT central banks around the world. With the average world central bank balance sheets up almost 400% and interest rates still close to record low levels. Is there a way for the central bankers to escape their certain faith? Let's look at how the FED has been fighting demise!

As you can see the FED used its interest rate to manipulate the economy and markets to prevent the collapse of the USD system. The average drop to shape the economy was around 7.3%. With that said will the FED manage to control the next crash? The FED thinks they can raise the interest rate slowly over the next years to hit 3%, but even with that how will they manage not to set a negative interest rate? With 4.5% that was the lowest drop, they would still be faced with negative. If the crash comes now, they would be deep in the negative.

The interest rate is their oldest tool to manipulate markets. Their other tools have been to bail out the failing banks and corporations to try to force the economy from collapse. They have put interest rates low, and the constant move up in prices of real estate and stock markets are all brought to you by cheap currency with low-interest rates. The FED has then bought up bad assets together with their friends worldwide. Corporations using debt to buy their shares and free money to people who buy houses that they cannot afford. What could go wrong?

Have the FED and central bank made magic happen? “Would I say there will never, ever be another financial crisis?” Yellen said at a question-and-answer event in London.

“You know probably that would be going too far, but I do think we’re much safer, and I hope that it will not be in our lifetimes and I don’t believe it will be,” she said.

Unless she plans to die soon which I don't think saying this is another way of FED speak. It's like Bernanke telling these quotes:

July 2005

"We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."

Oct. 20, 2005

"House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level, these price increases largely reflect strong economic fundamentals."

Nov. 15, 2005

"With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly."

Feb. 15, 2006

"Housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise."

Oct. 4, 2006

"If current trends continue, the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population ageing is appropriate, as they will likely be richer than we are even taking that burden into account."

March 28, 2007

"At this juncture, however, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained. In particular, mortgages to prime borrowers and fixed-rate mortgages to all classes of borrowers continue to perform well, with low rates of delinquency."

Feb. 15, 2007

"Despite the ongoing adjustments in the housing sector, overall economic prospects for households remain good. Household finances generally appear solid, and delinquency rates on most types of consumer loans and residential mortgages remain low."

May 17, 2007

"All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. The vast majority of mortgages, including even subprime mortgages, continue to perform well. Past gains in house prices have left most homeowners with significant amounts of home equity, and growth in jobs and incomes should help keep the financial obligations of most households manageable."

Oct. 31, 2007

"It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions."

Jan. 10, 2008

"The Federal Reserve is not currently forecasting a recession."

Jan. 18, 2008

(Two months before Fannie Mae and Freddie Mac collapsed and were nationalized) "They will make it through the storm."

Jan. 18, 2008

"[The U.S. economy] has a strong labour force, excellent productivity and technology, and a deep and liquid financial market that is in the process of repairing itself."

June 9, 2008

AP AP
"The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so."

July 20, 2008

"The GSEs are adequately capitalized. They are in no danger of failing."

June 3, 2009

(When asked directly during a congressional hearing if the Federal Reserve would monetize U.S. government debt) "The Federal Reserve will not monetize the debt."

Aug. 2, 2010

"The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again."

This FED speaks utter BS, and if you take another look at the interest rate, it becomes clear that ever since they left the gold standard the currency has failed and ever more currency has come into circulation to prop up the markets creating a bubble of epic proportions.

As I currently write this, I think we saw at least the pre-tremors of the certain market and economic collapse of the fiat system. I'll show you what I'm talking about! As you can see below, everything was down. Let's see how it looked in 2008 right before the crash:

Gold:

Silver:

Stocks:

Bonds:

Looking at this only Monday will tell us if this week's simultaneous selloff in all markets including Crypto is the predecessor to a 2008 crash on steroids?

I think that the FED has run out of monetary ammunition as they used their small ammo all the way up to their big aerial bombs. The only thing left is a financial nuclear holocaust! With this last attempt to save the economy. Scorched earth is coming where the central banks will own everything, and there will be hyperinflations of the currency before the IMF steps in to devalue local currencies against their wanted global experiment of the SDR.

With the want of return of State Authority as Stuart P. M. Mackintosh Executive Director of the G30. The G30 is a group of the most elite banksters that meet to set global policies behind everyone back! They want the new monetary structure with the FSB the Financial Stability Board ran by Mark Carney Bank of England's head. Under that, they use the G20 and then the IMF to enforce the new world order of economics they are proposing!

Some people say the US might go back to a gold standard. Jerome Powell comes in, but that is very unlikely! With no confirmation of the gold is there like the Russian Central Bank just did. It is very undoubtful this will happen. I see Janet Yellen passing the buck to Jerome on the verge of collapse, and it only remains to see if he will let it finally come down!

The hope is that the system will fall and real economics will take over, and maybe a Voluntaryist society will start to grow out of the economic rubble about to come.

Love, Peace and Voluntaryism,

John