End Fed: Reason # ?

Dear Reader, forgive me for not knowing what number to place beside the factual reasoning point in the title. There are so many and there is no infinity symbol on the keyboard. Nevertheless, this week the Federal Reserve will pause and give us another reason to cry the meme, "End the Fed!"

Fed Minutes...

were disclosed last week. In it the chairman announced that the committee was in agreement to pause on interest rate hikes. The BS was the usual suspects: trade tensions, Brexit and global slowing forecast. This is only a misdirection to the real truth. Fiat currency led economies is collapsing like all fiat economies in the past. The value of money keeps declining which lowers the standard of living in the West. In EM their standard is rising, but it too will soon hit a bump in the road. Like every nation before them that experienced the rapid growth caused by outsourcing from the West, the effects will lessen as EM workers seek better wages and benefits. This is one root cause that is affecting the economy of China. It has reached its inflection point. Now, every stimulus venture by the Chinese government like all Western economies, the return will be less and less. Then, it will turn negative like it has begun in Japan.
There is also the hidden fiat currency by the IMF. This is back-up money when the next crisis hits the global marketplace. The other choice will be the bail-in. Central bankers do not want to use this option because it would alarm people around the world to dump fiat for gold. Under the bail-in procedure, banks can take your deposits to stabilize their balance sheets if default is on the horizon. If you remember the crisis in Cypress, this is what happened to depositors. They never got their money back. It also happened in Greece, but in a lesser form. Greek citizens can take a little of their money every week, but never all of it at once. With that said, this is the central weakness in the central banks switch from gold to fiat.

Real Problem

One of the root causes why fiat currencies fail is the adaptation to Keynesian theory. Yes, government can pick up the slack in GDP by pushing money into the economy or providing temporary work to cover unemployment. This is stimulus. However, there is never an explanation as this debt must be repaid either how or when? The debt keeps building and this is why every fiat nation has excessive debt. Yes, China too! It is just manipulation of what is an asset and what is a liability that covers the revelation. Our government allows the banking industry to not only create excessive leverage,(another reason to end the Fed) but classifies "credit" as an asset. Credit is debt and debt is a liability. This is the first central lie!  

Now, I return back to the latest minutes by the Fed. The real reason why the Fed is pausing in interest rate hikes is because this causes bond rates to expand. Investors will let old lower paying bonds expire. This will cause a chain reaction that lowers balance sheets because the asset is worth less. It gets worse. This will pressure the Fed into another bond buying, QE venture to save the value of the balance sheets in corporations and this activity keeps rates from rising. This is this weeks reason to end the Fed!

Why, you ask?

Because bonds will look attractive to investors with a higher interest rate and with less risk. This is the better way to invest. As money enters into bonds, it comes out of the stock market. This is the real fear of the Fed. They fear the market will decline and the repercussions in perspective to the economy will paint a red flag. Keep in mind, the president has put pressure on the Fed to stop raising rates. What BS says the Fed is independent? They say, yes, sir like the stooges that they are.

Second Opinion?

I'm not alone! Bond fund managers feel the Fed has blinked. They are storing cash for another round of QE by the Fed. The downturn is on the horizon. Columbia Threadneedle feels the likelihood of the Fed doing another bond buying is increasing. Thomas Atteberry of First Pacific predicts a recession in one or two years for the US. Both agree that the three-year Treasury is the perfect play to wait.

Right Now

Canada sees a slowdown. China had its worst report in ten years. Europe has already began easing. It is almost like the ECB is in cahoots with our Federal Reserve. By keeping their rates low, this gives room for the Fed to make a cut in rates or do another QE. Anyway, the chairman of the ECB, Mario Draghi is pausing too. He also is injecting money as in stimulus into the EU. Italy is back into recession. Germany came close. This is not a solid foundation to the EU economy, especially with Brexit  looming.

Negative Rates

If there ever was a red flag, negative interest rates is the siren call. They are still the norm in Switzerland and Japan. This is where the phony game and lies of fiat currency leads too. You better get some gold before everyone else awakens to this fact.
Whatever happened to the BS about the balance sheet of the Federal Reserve? People, they are already bankrupt by any account standards at $4 trillion. When the next crisis hits, it will expand to $8 trillion and they will never mention the word failure with fiat money. Of course, they may decide to purchase assets? They do this in Japan to support the lies of their market and economy. This is proof of the failure of fiat money. In Switzerland or Japan when you deposit a $1000 in a savings account, you get less than $1,000 when you close the account. If those savers bought some gold instead, they could possibly see $2,000 on the horizon. Enough said for another reason why we should End the Fed!