General Stock Ideas

[gfp927z]

The US could probably stop this emerging markets currency crisis if the Fed would simply pause in their rate hikes for a while. That would halt the dollar's rise and take pressure off the countries with large dollar denominated debt. The other solution would be for Trump to stop the trade war shenanigans.

History shows that Fed tightening during the 1930s, combined with tariffs (Smoot Hawley), turned a mere downturn into the Great Depression. To get the Fed to reverse course and finally loosen credit, FDR actually had to threaten the Federal Reserve with nationalization. Previously, Herbert Hoover had pleaded with the Fed to loosen credit, but they refused. Even Ben Bernanke finally admitted that the Fed's actions had caused the Great Depression.

So - 1) Fed tightening into weakness, combined with - 2) Tariffs/trade war, can cause a global economic crisis. If this is so obvious, then why can't the Fed luminaries see it?

One possibility is that they are ready to bring in the SDRs and are engineering the crisis to do it. That's possible, and it wouldn't be the first time the Fed has deliberately crashed the system. In the 1930s they wanted to see the widespread failure of hundreds of banks that weren't part of the Federal Reserve system. In 1907, the banksters (JP Morgan) purposely induced a banking panic that led to calls for the creation of a central bank, which was achieved in 1913 with the odious Federal Reserve Act.

Another possibility is that the Fed's models (Phillips Curve) are seriously flawed, as Rickards says, and the Fed is merely screwing up. That's possible, but if there's one thing we've learned it's to never trust the bankster cabal -