Timothy Birdnow

For some time now I have been warning about the dangers of the Federal Reserve and how this ultra-governmental agency could and has in the past manipulate the election results. Well, I'm not alone; Ron Paul has called them out. According to Conservative HQ:

The timing of Dudley’s threats to use Fed monetary policy to affect the outcome of a US election couldn’t come at a more striking time. After all, for more than two solid years Americans have been bombarded with fabricated stories about Russians rigging our elections. And yet here is a Federal Reserve official threatening to do the same exact thing - but this time for real!

Whether it’s the mainstream media, the CIA, the FBI or now the Federal Reserve, more and more Americans are waking up to the fact that there is a Deep State in America and its interests have nothing to do with American liberty. In fact, our liberty is what the Deep State wants to abolish concluded Dr. Paul.

The Fed has damaged the economy in the past, most notably in their manipulation of the money supply leading up to (and causing) the Great Depression. But there are other things; they kept interest rates too low during the Bush era, which kept lending down and so made the Bush era recovery weaker than it should have  been. They pursued a weak dollar policy at that time, too, which sucked manufacturing jobs and "hard" industry out of the United States. This was guaranteed to trigger the real estate boom; low interest rates made real property more attractive because it was something that wouldn't depreciate. With Congressional help in promoting "affordable housing" we had a perfect storm, with everyone invested in real estate rather than industry, and with a weak dollar which  artificially drove up property values. But it was guaranteed to burst, and I do not believe the Fed board was unaware of that fact. In reality, they set the stage for the collapse, and I rather suspect it was a planned play. If not, they were grossly incompetent and should be subject to litigation over the fact. The crash gave us Obama and the subsequent era of democratic socialism.

In other words, the Fed clearly created a bubble.

It should be pointed out the Fed kept interest rates low during the Clinton era to bolster growth. Unlike the Bush era, the rates were not so low as to discourage lending, but low enough to encourage investments. Under Bush the rates were so low that it was more profitable to banks and lending institutions to sit on the money rather than lend it out at no return.

I bought my first home in 1992 at 8% interest. That was a tremendous interest rate at the time. Consider how low it would become - under four percent - and think about how much those falling interest rates helped the Clinton Administration. Clinton stayed in office solely because the economy was so good. Through most of 1998 thirty year fixed rate mortgages [linj=http://mortgage-x.com/general/national_monthly_average.asp?y=1998]those rates remained largely below seven percent.

When the Clinton lawsuit against Microsoft burst the tech bubble the Fed doubled down, reducing rates and thus encouraging the real estate bubble. By 2008 interest rates were dipping below six percent even while industry was being sucked out of the American heartland; people were no longer getting decent jobs to pay for the ridiculously inflated prices of real estate, inflated by the Fed who had greatly expanded the money supply.

In other words, they gave us both Clinton and Obama. Obama never did have a major hike in interest rates while he was in office, but that helped his program as he wanted "sustainable" economic growth aka no growth at all. But the public disagreed.

So Trump comes in during a time of a sluggish economy and the Fed immediately begins raising rates. That was probably good, but they have raised them too far too fast. This at a time when Trump's Administration has been raising tariffs to force China - our major manufacturing rival - to play by the rules. We need to keep the interest rates down until this trade war is over - but the Fed has been pushing them up anyway.

Jerome Powell was a protege' of Janet Yellen, the Keynsian Obama appointed head of the Federal Reserve. Powell has been in Washington most of his life and is the ultimate insider. He will side with the Establishment. I suspect the Fed is timing this to pull the rug out from under Trump, to get the economy to crash just before the election - the way they did to John McCain. The Fed took steps to cause a sharp downturn to the economy just before the elections. They began buying U.S. dept  - cannibalizing the economy. This is like refinancing a car loan with a credit card. Investors understood what that meant, and they responded by sheltering their assets rather than investing.

We've seen this many times, and it always ties with the Federal Reserve.

Watch for some dirty tricks by the Fed in the next six to eight months.

Posted by: Timothy Birdnow at 11:15 AM | Comments (4) | Add Comment
Post contains 949 words, total size 6 kb.