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Peter Schiff: The Fed Systematically Sabotaged the Economy; What’s Next?
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As you’ll learn here shortly, there is a very good reason the picture above has crowds surrounding a bank. First, in the video below Peter Schiff appeared on Infowars earlier today, and when asked what he thinks about what is happening with the markets, he rather smugly replies, “I’ve been coming on this show for a while now and all along I’ve been saying, “If the Fed raises interest rates, the markets will tank, which is the main reason I kept saying they would never raise rates. I thought they’d have figured it out.” I guess not.
Indeed, Peter has said that to anyone who would listen for the last year, but very few people took him seriously. Usually, the host of whatever show he was appearing on, along with any other guests on the show that day would laugh at Peter, tell the audience we are in a “recovery” like the President says, and Peter would go on his way.
Events are unfolding EXACTLY like they did in 2008 all over again. In the year or so leading up to the “Great Recession” in 2008, Peter was screaming from the rooftops there was a pending sub-prime collapse coming, and no one listened. The major difference between then and now, is this time he’s screaming louder, the crash is going to be WAY bigger, and despite his record with successful predictions, his advice STILL isn’t being heeded by the mainstream… not in public anyway. Mark my words:
THE USE OF THE EXCHANGE STABILIZATION FUND IS TO CONCEAL AN ENORMOUS GLOBAL U.S. TREASURY DUMP ALL TAKING PLACE AT THE SAME TIME. SINCE THE FUND IS USED ONLY WHEN NATIONAL SECURITY IS AT ISSUE, IT MUST BE LIKE A FIRE SALE OUT THERE, AND CONVENIENTLY FOR GOVERNMENT, WE’LL NEVER KNOW THE DETAILS.
YOU WATCH… WHILE GOVERNMENT AND MEDIA OFFICIALS WILL PUBLICLY TELL PEOPLE NOT TO PANIC, AND SAY SOMETHING TO THE EFFECT OF, “YOU HAVE TO THINK OF THIS FOR THE LONG TERM AND NOT SELL,” ANYONE SAYING THAT, ALONG WITH THE REST OF THE POWER PLAYERS ON WALL STREET WILL BE SILENTLY GETTING OUT OF THE MARKETS BEFORE THE BOTTOM DROPS OUT, AND THEY LEAVE YOU TO TAKE THE 40-50% NOSE DIVE!
Two items worth mentioning: 1) The Exchange Stabilization fund isn’t bottomless, so it can’t support a phony floor forever; and 2) As Peter points out, we ARE in a recession now, regardless of whatever mumbo jumbo Obama says, or how Josh “Not so Earnest” in the White House tries to spin things. At the end of the day, when quarterly revisions are done, and we use hindsight to look back on today, the numbers will clearly show that presently, we ARE in a recession, and by trying to cover up the problems for as long as we have been with all the artificial fixes, the piper is now calling.
Surely Obama planned on being able to artificially cover up the massive systemic problems caused by HIS economic policies just long enough to get out of the White House, not even hesitating to hand over an economic neutron bomb to his successor and the American people. Poor Obama, it appears that’s not going to be possible now. To make matters worse for Obama, he insisted on being a petulant and snarky little ass during his State of the Union speech. The partisan attacks, and the ridiculous comment he made about how anyone who says the economy is not doing great is just “peddling pure fiction,” will get re-played over and over in the coming years, and become the butt of many late night jokes. He deserves nothing less.
As Peter aptly points out, if 2008 was called the Great Recession, then this crash will be called the “Great Great Great Recession.” Obama’s State of the Union comments demonstrate that the man is either a clueless buffoon, or a raging sociopath, neither of which is going to bode well for the precious “legacy” he talks about so much.
I won’t spoil the video for you, because I’ve only covered the first 3 minutes of a 15 minute interview. In the remaining portion, Peter confirms that the situation the country now finds itself in, is 100% Due to the Feds Antics, and if anyone gets any funny ideas about QE4, people should run for the hills. With each round of Quantitative Easing, we delay the crash, but compound the problem exponentially. There is only one cure: A crash and a return to sound money practices.
After the interview with Peter, is an article by Michael Snyder which should send cold chills down the back of all Americans who don’t have their cash under the mattress. As people try to figure out just how bad this crash is going to get, and try to figure out how best to prepare, know this: In 2008, U.S. banks held about 187 TRILLION in financial derivatives. Today, the six largest U.S. banks hold roughly $278 TRILLION in those same financial derivatives. Not only should people fear a meltdown of biblical proportions, but Michael explains that the major banks are actually pledging YOUR deposits as COLLATERAL on all their derivative swaps.
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Are banks in the world’s great Western powers (and one superpower) preparing to confiscate your accounts in order to quench their insatiable appetites for your private property (i.e., your money)? That’s very likely coming to a bank near you soon, says one observer.
Seasoned journalist financial and geopolitical analyst Mark Nestman, of Nestman.com, wrote in a recent column that “Cyprus-style bail-ins” are on the horizon, as embattled Western and Asian governments eye ways to perpetuate their shell-game economies.
In particular, Nestman reported:
On November 16, leaders of the G20 Group of Nations — the 20 largest economies — made an important decision. The world’s megabanks now have official permission to pledge depositor accounts as collateral to make leveraged derivative bets. And if they lose a bet, the counterparty to the contract has first dibs on your money.
The governments of these 20 countries are now supposed to put these arrangements into law. Most, including the US, have already done so.
Nestman, a founding member of The Sovereign Society — a liberty-minded, free-market-promoting organization established in 1998 to help people protect their investments from over-reaching governments — says most people have no idea that the G20 nations have implemented such a scheme, “because it was mostly ‘more of the same’ — the latest plan to have central banks inject trillions more dollars into the global economy.”
However, he continued, the G20 also backed an onerous plan which its creators call “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution.” That, he says, is not something that would inspire most people to read, because it deals primarily with “the minutiae of the global financial system,” he wrote.
“But this proposal profoundly changes the rules for banking globally, and not in a good way. Deposits in banks that are ‘too big to fail’ will be ‘promptly recapitalized’ with their ‘unsecured debt.’ This avoids those nasty taxpayer-funded bailouts that proved so politically unpopular during the 2008-2009 financial crisis,” he wrote.
The biggest portion of unsecured debt is individual bank deposits; insolvent banks, he notes, will simply recapitalize by converting individual depositor accounts — checking accounts, of course, but also money market accounts and CDs — into stocks.
As such, then, when depositors put money in a bank, they will incur the same risks as someone buying a stock. Nestman says banks will essentially be taking your money to a horse racing track and betting on a nag.
In addition, Nestman observed:
The G20 has also officially declared that derivatives — the toxic contracts Warren Buffett calls “financial weapons of mass destruction” — are secured debts. Since your bank deposits are now only unsecured debt that the bank has pledged to a secured creditor, guess who gets your money if the bet goes the wrong way for the bank? Answer: It’s not you.
Heads, the bank wins. Tails, you lose.
In the U.S., Nestman notes, 100 percent of deposits are “insured” — that is, protected from loss, up to $250,000 per account, by the Federal Deposit Insurance Corporation (FDIC). But he further notes that the FDIC has less than $1 to back up every $100 worth of deposits.
“This is still a lot of money — $54 billion at the end of September,” he wrote. “But it’s dwarfed by $6 trillion in insured deposits, not to mention derivatives contracts with a total value of nearly $300 trillion.” So the failure of just one large Wall Street bank could deplete the FDIC’s fund.
Nestman advises anyone who has money deposited in a “too big to fail” bank to get their money out now, before “SHTF.
Read his entire report here.
FOR MORE GREAT MATERIAL FROM JIM WILLIE:
Jim Willie: U.S. Dollar is Now a Matter of National Security Due to Poor Decisions
Jim Willie: Armageddon Coming to U.S. With Trillions Exposed In Derivatives
Jim Willie, The Fed’s Week of Reckoning, and an Isolated United States
Jim Willie: After Banks Fail, Government Seizes IRA’s, 401k’s, and Pensions
Jim Willie, the Crumbling Global Economy, and the Dollar Crisis
Jim Willie: What Do the Oil Black Market, NATO, and ISIS Have in Common?
Jim Willie; One on One -Taking Questions On the Most Pressing Matters of the Day
Jim Willie: The Fed, Yellen, US Dollar, and Negative Interest Are a Joke!
Jim Willie Explains U.S. Nuclear Threats to China & Russia Over Challenging the Dollar
Jim Willie: What Will It Mean If the Yuan Gets Reserve-Currency Status?
Jim Willie and 20 Reasons Why Quitting Prepping After September Was Wrong
Jim Willie: The Mid East Carnage Left by the American Wrecking Ball
Jim Willie: The Fractured Bond Market and the Economic Collapse
FOR MORE GREAT MATERIAL FROM PETER SCHIFF:
CNBC Actually Admits Peter Schiff Was Right… Again (Video)
Peter Schiff: Due to the Feds Antics, the Market is Very Dangerous Now
Peter Schiff: 2015 Was The Worst Year Since 2008 and Stocks Still Dropping
Peter Schiff: Janet Yellen Strayed From Her Own Plan and Went Nuts!
Peter Schiff: Higher Spending During Holidays Does Not Fix Screwed Economy
Peter Schiff and “If The Economy Is Fine, Why Are So Many Large Retailers Imploding?”
Peter Schiff: Take a Good Look at the “New” American Dream!
Peter Schiff: Did the Fed’s Luck Run Out On Friday the 13th?
Peter Schiff and “The 4 Harbingers Of Stock Market Doom”
Peter Schiff and Reagan Advisor: Complete Economic Collapse Immediately Ahead
Peter Schiff: Warning! Economic Storm Clouds Ready to Rain
Peter Schiff: Death of the US Dollar Is Imminent; Fed Out of Options
Peter Schiff: 11 Trillion In Global Stock Losses and Awful Jobs Report
Peter Schiff: “The Fed Admits Rates Could Stay at Zero Forever”
Peter Schiff with Mr. “I Have No Fear Of an Economic or Stock Market Collapse”
Peter Schiff Explains Why Financial Bubbles Are Ready to Pop
Peter Schiff: Everybody Is Preparing for Wrong Outcome in US Economy
2 Day Crash That Was Larger Than Any 1 Day Market Crash In U.S. History
Peter Schiff On China’s Currency Devaluation and the Federal Reserve Board
Peter Schiff: Greece Was a Sideshow. Americans Need to Worry About Starving
Peter Schiff: China and Switzerland is Killing U.S. Dollar
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will the bankers and politicians get away with it again, or have americans had enough yet?
really what are we thinking there are a lot of us and a few of them
It just amazes me that they announce their planned theft ahead of time now.