Market Volatility Designed from the Top Down

A stock market roller coaster on par with that of a decade ago is back, and essentially for the same reasons.  No, not just economic fundamentals involving back-breaking debt, corporate profligacies and geopolitical risks, but because said volatility and the asset destruction-slash-consolidation that results are in part due to much longer-term design.  This latest design sees the first investment banker ever to serve as head of the Fed, and one who cut his ‘creative destruction’ teeth at as politically connected of a private equity firm as exists in the global debt-drenched ether.  Despite Wall Street veterans and even the President urging Fed Chair Powell to cease or ease back on interest rate hikes into economic weakness, he’s persisting, because in his eyes, nothing is “Too Big to Fail”, as his earlier years as a Fed Governor made clear as well.

Yet the political theatrics surrounding Powell, Trump, the equity markets & even Treasury Secretary Mnuchin are just that and meant to provide cover for bringing the decade-long easy money gravy train to a close while preparing the macroeconomy for the next major monetary horizon involving digital money and seemingly much more elegant design.  So, do expect further equity, bond and real estate market volatility, along with often confused policy responses, as Thesis and Antithesis, respectively, en route to an eventual Synthesis.  Plenty of chronic economic dysfunctions are imminent so please prepare accordingly.  I.E. Think of where you were in mid-2007…

This 36th episode of Money & Fear will discuss the dramatic, like Secretary Mnuchin’s rallying the regulatory & banking troops merely hours before the stock market had its largest single-day gain in history, along with the relatively arcane, such as what a bond yield curve inversion means.  We’ll certainly also get into Jerome Powell’s background for context into the actions he’s taking, ostensibly on behalf of a wider transatlantic elite establishment which collectively thinks in terms of epochs.

If you’re not a Newsbud member yet, please join and tell others.  For practically nothing, the site gives you unrivaled information covering current, global and economic news that you’re literally not supposed to know.  The site empowers you to stay ahead of the herd … and to think … like gauntlet-running mega-financiers … think.  The time is now to support independent, nonpartisan media, so please consider joining the worldwide Newsbud community today and tell other genuinely curious friends & family out there as well.  Thank you.

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Show Notes

U.S. Regulators Tell Mnuchin Nothing Is Out of Ordinary in Markets

Bank stocks get crushed as the market plummets

This chart may be a key reason the stock market is plunging

Trump reportedly wants to fire the Fed chair, a move that could wreak havoc on the financial markets

Is The Federal Reserve Actually TRYING To Cause A Stock Market Crash?

Chairman Powell Talks Out of Both Sides of His Mouth

An Xmas Miracle: Mnuchin to Meet with PPT Monday Morning to Jimmy Rig Stocks Higher

Most of the S&P 500 is already in a bear market

Is The Federal Reserve Actually TRYING To Cause A Stock Market Crash?

It's Not Just Trump: A Wall Street Chorus Is Calling For Powell's Scalp

Greenspan’s Book Explores U.S. Economy, His Time as Fed Chairman

Jerome Powell Net Worth: 5 Fast Facts You Need to Know

Warren Buffett - profile

Warren Buffett's Wild Ride at Salomon (Fortune, 1997)

Bankers Trust - profile

Jerome Powell - profile

How and When Will the Establishment Pull the Alchemical Plug on Deutsche Bank?

United States debt-ceiling crisis of 2011

Fed's Powell: Ending too big to fail to take years

“Too big to fail” status

Fed taps Jerome Powell to head oversight of 'too big to fail' banks

The Carlyle Group - profile

Pushing On A String

The Fed Is Pushing On A String

U.S. Debt Clock

National Debt by Year Compared to GDP and Major Events

Fed's Kashkari says rates should not go up when job creation is strong and inflation is tame

U.S. Inflation Rate

American Institute for Economic Research – Everyday Price Index

Alternate Inflation Charts – ShadowStats.com

Why your inflation rate won't match the Consumer Price Index: A Foolish Take

What's The Path To The Gold Standard?

7 benefits of a Federal Reserve interest rate hike

What the Fed’s rate hike will mean for America’s wavering housing market

Real Estate Crisis 2.0 What You Need To Know

Yield Curve Poised to Invert – Where Will Fed Go From Here?

The Yield Curve Flattens And Bank Stocks Plunge. Here’s The Connection – And The Prediction

Investors to Corporate America: You've got a debt problem

U.S. yield curve to invert in 2019, recession to follow: Reuters poll

Treasury Flash Crash Inverts 1Y-2Y Curve

Chairman Powell Talks Out of Both Sides of His Mouth

Bloodbath - From Triumphant Truce To Deal Dysphoria In 36 Hours

Mnuchin Called Bank CEOs To Check Liquidity, Calm Markets; Has Monday Call With Plunge Protection Team

U.S. Regulators Tell Mnuchin Nothing Is Out of Ordinary in Markets

The Trade War Is Not The Problem With The Global Economy

Behind the Market Swoon: The Herdlike Behavior of Computerized Trading

The Quants Run Wall Street Now

Chris Powell: There are no markets anymore, just interventions

Fire the Fed

It’s Lose-Lose For The Fed And For Everyone

Somebody Pressed The Panic Button On Wall Street – Bank Stocks And Tech Stocks Crash As The Yield Curve Inverts

The Financial System Is Becoming Increasingly Unstable

The Psychological Warfare Behind Economic Collapse

Treasury Department’s odd attempt to reassure investors may have just backfired

Mnuchin Did Not Preclear Big Bank/Plunge Protection Team Calls With Trump

Paul Volcker, and How He Got a Shock and a Rule Named After Him

Videos

Greenspan Admits The Federal Reserve Is Above The Law & Answers To No One

Chris Powell - There are no free markets anymore, just interventions – GoldSwitzerland Interview

Books

Private Equity at Work: When Wall Street Manages Main Street by Eileen Appelbaum & Rosemary Batt

The Buyout of America: How Private Equity is Destroying Jobs and Killing the American Economy by Josh Kosman

*For additional footnotes and links refer to the Newsbud article link above

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Comments

  1. John Phillips says:

    “Four Trillion lost.” No that is 4 trillion dollars of profit going into the pockets of those in control. The idea that when the stock turns down, that the value disappears or is lost obscures the truth…. The truth; profit taking at our expense. Ever note that 3% inflation created by the Fed turns into a 30% down turn in the stock market every 10 years, thus erasing any gains the public may have achieved. Time for harvest, boys! It’s baked into the cake!

    Everyone…remember the Fed is NOT a federal agency and is owned by private (international banking interests). Thus the Fed owns American and all the assets they have mopped up in the last 10 (100) years. Our Government debt is owned by the Fed. Get the picture.

    You may call the last 10 years a recession, but for most of us it IS a depression and still is. Depressed property values, depressed wages, inflated consumer goods (depressed purchasing power). The assets of the wealthy have enjoyed inflation and are now taking a profit while the common Joe and Jane have experience something completely different.

    And were getting ready to take another 30% hit, a serious hit to our pensions, plus out-of-sight inflation when the tariffs kick in.

    Please be accurate. It’s difficult to hear the truth amongst the economic jargon.
    Best Regards
    John

    • Thanks for your comments and for watching the whole episode. Much of what you said is a given in my analysis, especially the reality of 2007-08 having kicked off a formal Depression, based on said term’s clinical definitions. Even Paul Krugman, of all people, entitled his text “End This Depression Now!” seven years ago.

      The Depression aspect only becomes clear through revealing – indeed – accurate economic metrics, which this program routinely strives to mine & share. Hence the myriad article, paper, video & text citations under every episode. Because said “jargon” is required for the truth to air.

      Thanks again.

  2. John Phillips says:

    Pye
    Any thoughts you wish to share about how the coming Tariffs? Since their announcement I’ve seen a huge jump in the costs of steel in the form of building materials and paper goods which went through the roof.

    Could this herald in hyperinflation? Could our Government under the guise of a shut-down claim “we are broke,” default on the debt and change everything?
    Best Regards
    John

    • True rates of inflation have been tactically suppressed for myriad reasons, not least being the government then avoiding needing to adjust entitlement payments indexed to the CPI, etc. Yet they need to fess up at some point. Perhaps the tariffs fiasco is partly meant to provide said cover.

      I covered the tariffs cover in a prior program but may revisit.

  3. John Phillips says:

    Um
    In terms of inflation and our economic situation, I don’t look to the government to tell me which way the wind is blowing. We know the CPI is a lie!

    Doesn’t look like you wish to speculate on the cover this shutdown provides to all sorts of possibilities with our financial systems, our bankrupt government and its willingness to go to war to protect the dollar and debt structure. It’s not about funding a stupid wall.

    So, I don’t need the government to tell me what I see in stores today either.

    I used to manage retail hardware stores. Retail floor and shelf space IS MONEY and very costly. For the last year I’ve witnessed several big-box stores quietly eliminating floor space (up to a 1/3), reducing the inventory, diversity of item choices and selection in brands. I photographed a display panel just yesterday in a big-box store in which only 40% of the area was occupied by product. No hooks or inventory tags in empty areas. It’s not just slave-master Amazon that is fueling this. These stores are desperately trying to “turn” their stock to maintain cash flow and doing it by many means. The citizen-slave otherwise known as the “consumer” it tapped out and over taxed!

    This is Monday January 7, the Government is still shut down and the Man says he could keep it shut down for months or years!
    Best Regards
    John
    John

  4. tallsexyblonde says:

    Enlightening Pye. Thanks.

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