The Final Swindle Of Private American Wealth Has Begun

Tyler Durden's picture

Submitted by Brandon Smith of,

I began writing analysis on the macro-economic situation of the American financial structure back in 2006, and in the eight years since, I have seen an undeniably steady trend of fiscal decline.

I have never had any doubt that the U.S. economy as we know it was headed for total and catastrophic collapse, the only question was when, exactly, the final trigger event would occur. As I have pointed out in the past, economic implosion is a process. It grows over time, like the ice shelf on a mountain developing into a potential avalanche. It is easy to shrug off the danger because the visible destruction is not immediate, it is latent; but when the avalanche finally begins, it is far too late for most people to escape…

If you view the progressive financial breakdown in America as some kind of “comedy of errors” or a trial of unlucky coincidences, then there is not much I can do to educate you on the reasons behind the carnage. If, however, you understand that there is a deliberate motivation behind American collapse, then what I have to say here will not fall on biased ears.

The financial crash of 2008, the same crash which has been ongoing for years, is NOT an accident. It is a concerted and engineered crisis meant to position the U.S. for currency disintegration and the institution of a global basket currency controlled by an unaccountable supranational governing body like the International Monetary Fund (IMF). The American populace is being conditioned through economic fear to accept the institutionalization of global financial control and the loss of sovereignty.

Anyone skeptical of this conclusion is welcome to study my numerous past examinations on the issue of globalization; I don’t have the time within this article to re-explain, and frankly, with so much information on deliberate dollar destruction available to the public today I’ve grown tired of anyone with a lack of awareness.

If you continue to believe that the Fed actually exists to “help” stabilize our economy or our currency, then you will never find the logic behind what they do. If you understand that the goal of the Fed and the globalists is to dismantle the dollar and the U.S. economic system to make way for something “new”, then certain recent events and policy initiatives do start to make sense.

The year of 2014 has been looming as a serious concern for me since the final quarter of 2013, and you can read about those concerns and the evidence that supports them in my article Expect Devastating Global Economic Changes In 2014.

At the end of 2013 we saw at least three major events that could have sent America spiraling into total collapse. The first was the announcement of possible taper measures by the Fed, which have now begun. The second was the possible invasion of Syria which the Obama Administration is still desperate for despite successful efforts by the liberty movement to deny him public support for war. And, the third event was the last debt ceiling debate (or debt ceiling theater depending on how you look at it), which placed the U.S. squarely on the edge of fiscal default.

As we begin 2014, these same threatening issues remain (along with many others), only at greater levels and with more prominence. New developments reinforce my original position that this year will be remembered by historians as the year in which the final breakdown of the U.S. monetary dynamic was set in motion. Here are some of those developments explained…

Taper Of QE3

When I first suggested that a Fed taper was not only possible but probable months ago, I was met with a bit (a lot) of criticism from some in the alternative economic world. You can read my taper articles here and here.

This was understandable. The Fed uses multiple stimulus outlets besides QE in order to manipulate U.S. markets. Artificially lowering interest rates is very much a form of stimulus in itself, for instance.

However, I think a dangerous blindness to threats beyond money printing has developed within our community of analysts and this must be remedied. People need to realize first that the Fed does NOT care about the continued health of our economy, and they may not care about presenting a facade of health for much longer either. Alternative analysts also need to come to grips with the reality that overt money printing is not the only method at the disposal of globalists when destroying the greenback. A debt default is just as likely to cause loss of world reserve status and devaluation - no printing press required. Blame goes to government and political gridlock while the banks slither away in the midst of the chaos.

The taper of QE3 is not a “head fake”, it is very real, but there are many hidden motivations behind such cuts.

Currently, $20 billion has been trimmed from the $85 billion per month program, and we are already beginning to see what APPEAR to be market effects, including a flight from emerging market currencies from Argentina to Turkey. A couple of years ago investors viewed these markets as among the few places they could exploit to make a positive return, or in other words, one of the few places they could successfully gamble. The Fed taper, though, seems to be shifting the flow of capital away from emerging markets.

The mainstream argument is that stimulus was flowing into such markets, giving them liquidity support, and the taper is drying up that liquidity. Whether this is actually true is hard to say, given that without a full audit we have no idea how much fiat the Federal Reserve has actually created and how much of it they send out into foreign markets.

I stand more on the position that the Fed taper was actually begun in preparation for a slowdown in global markets that was already in progress. In fact, I believe central bankers have been well aware that a decline in every sector was coming, and are moving to insulate themselves.

Is it just a "coincidence" that the central bankers have initiated their taper of QE right when global manufacturing numbers begin to plummet?

Is it just "coincidence" the taper was started right when the Baltic Dry Index, a global indicator of shipping demand, has lost over 50% of its value in the past few weeks?

Is it just "coincidence" that the taper is running tandem with dismal retail sales growth reports from across the globe coming in from the final quarter of 2013?

And, is it just a "coincidence" that the Fed taper is accelerating right as the next debt ceiling debate begins in March, and when reports are being released by the Congressional Budget Office that over 2 million jobs (in work hours) may be lost due to Obamacare?

No, I do not think any of this is coincidence.  Most if not all of these negative indicators needed months to generate, so they could not have been caused by the taper itself.  The only explanation beyond "coincidence" is that the Federal Reserve WANTED to launch the taper program and protect itself before these signals began to reach the public.

Look at it this way - The taper program distances the bankers from responsibility for crisis in our financial framework, at least in the eyes of the general public. If a market calamity takes place WHILE stimulus measures are still at full speed, this makes the banks look rather guilty, or at least incompetent. People would begin to question the validity of central bank methods, and they might even question the validity of the central bank’s existence. The Fed is creating space between itself and the economy because they know that a trigger event is coming. They want to ensure that they are not blamed and that stimulus itself is not seen as ineffective, or seen as the cause.

We all know that the claims of recovery are utter nonsense. Beyond the numerous warning signs listed above, one need only look at true unemployment numbers, household wage decline, and record low personal savings of the average American. The taper is not in response to an improving economic environment. Rather, the taper is a signal for the next stage of collapse.

Stocks are beginning to plummet around the world and all mainstream pundits are pointing fingers at a reduction in stimulus which has very little to do with anything. What is the message they want us to digest? That we “can’t live” without the aid and oversight of central banks.

The real reason stocks and other indicators are stumbling is because the effectiveness of stimulus manipulation has a shelf life, and that shelf life is over for the Federal Reserve. I suspect they will continue cutting QE every month for the next year as stocks decline.  Will the Fed restart QE?  If they do, it will probably not occur until after a substantial breakdown has ensued and the public is sufficiently shell-shocked.  The possibility also exists that the Fed will never return to stimulus measures (if debt default is the plan), and QE stimulus will eventually be replaced by IMF "aid".

Government Controlled Investment

Last month, just as taper measures were being implemented, the White House launched an investment program called MyRA; a retirement IRA program in which middle class and low wage Americans can invest part of their paycheck in government bonds.

That’s right, if you wanted to know where the money was going to come from to support U.S. debt if the Fed cuts QE, guess what, the money is going to come from YOU.

For a decade or so China was the primary buyer and crutch for U.S. debt spending. After the derivatives crash of 2008, the Federal Reserve became the largest purchaser of Treasury bonds. With the decline of foreign interest in long term U.S. debt, and the taper in full effect, it only makes sense that the government would seek out an alternative source of capital to continue the debt cycle. The MyRA program turns the general American public into a new cash stream, but there’s more going on here than meets the eye…

I find it rather suspicious that a government-controlled retirement program is suddenly introduced just as the Fed has begun to taper, as stocks are beginning to fall, and as questions arise over the U.S. debt ceiling. I have three major concerns:

First, is it possible that like the Fed, the government is also aware that a crash in stocks is coming? And, are they offering the MyRA program as an easy outlet (or trap) for people to pour in what little savings they have as panic over declining equities accelerates?  Bonds do tend to look appetizing to uninformed investors during an equities route.

Second, the program is currently voluntary, but what if the plan is to make it mandatory? Obama has already signed mandatory health insurance “taxation” into law, which is meant to steal a portion of every paycheck. Why not steal an even larger portion from every paycheck in order to support U.S. debt? It’s for the “greater good,” after all.

Third, is this a deliberate strategy to corral the last vestiges of private American wealth into the corner of U.S. bonds, so that this wealth can be confiscated or annihilated? What happens if there is indeed an eventual debt default, as I believe there will be? Will Americans be herded into bonds by a crisis in stocks only to have bonds implode as well? Will they be conned into bond investment out of a “patriotic duty” to save the nation from default? Or, will the government just take their money through legislative wrangling, as was done in Cyprus not long ago?

The Final Swindle

Again, the next debt ceiling debate is slated for the end of this month. If the government decides to kick the can down the road for another quarter, I believe this will be the last time. The most recent actions of the Fed and the government signal preparations for a stock implosion and ultimate debt calamity. Default would have immediate effects in foreign markets, but the appearance of U.S. stability could drag on for a time, giving the globalists ample opportunity to siphon every ounce of financial blood from the public.

It is difficult to say how the next year will play out, but one thing is certain; something very strange and ugly is afoot. The goal of the globalists is to engineer desperation. To create a catastrophe and then force the masses to beg for help. How many hands of “friendship” will be offered in the wake of a U.S. wealth and currency crisis? What offers for “aid” will come from the IMF? How much of our country and how many of our people will be collateralized to secure that aid? And, how many Americans will go along with the swindle because they were not prepared in advance?

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StacksOnStacks's picture

Swindle?  Check on Max Keiser's Maxcoin.

OC Sure's picture

Counterfeiting is swindle and the cause of the world's ills. End central banking, enable those who carry the rest of the world on their backs to buck them off.

Supernova Born's picture

"The goal of the globalists is to engineer desperation"

Baseless fiat in exchange for actual productive work is the lynch pin for achieving their goal.

Headbanger's picture

"The taper program distances the bankers from responsibility for crisis in our financial framework"

"The Fed is creating space between itself and the economy because they know that a trigger event is coming. They want to ensure that they are not blamed and that stimulus itself is not seen as ineffective, or seen as the cause."


Exactly what I said here many times before !   The Big Banks who OWN the Federal Reserve are pulling out to save their  ass(et)s cause they see the bullshit QE game they were playing to help support their Obama puppet is now falling apart along with all that ass hats political power!

The political and financial scam is over and they know it!   A con man (or central bank) KNOWS when a con has gone bad and gets out fast!

But no, the Central Banks are NOT "dismantling" the global economy to "make way for something new" either

Instead, they played a foolish game of trying to "make something from nothing" by scamming along with a co-dependent government who let the banks get away with it for political gain.

Yes it has been one big conspiracy but not to dismantle the status quo.

It's more like a cooperation of co-dependent parasites trying to gouge as much as they could from the sheeple hosts.

Only problem is, these parasites have bled the victim to death so they're bailing out fast!

Drifter's picture

Who is gonna do that?  Answer: Nobody.  Nobody has the power to do it. 

I grow weary of seeing comments about what should happen.  Those things won't happen, and those comments are wasted space.

AccreditedEYE's picture

The only swindle I see is ZH backing a piece that says we should support a recovery as that will "foil the bankers plan". Are you guys kidding me? How bought are you by hedge fund money? Make no mistake, nothing changes for the better till the whole thing burns down. Then, we don't go "running" to anyone. We take back what was rightfully ours to begin with. Figure it out.

runningman18's picture

Who said we should "support a recovery"?  What does that even mean?

AccreditedEYE's picture

Put A, B, and C together. Stop being spoon fed.

runningman18's picture

That's not really an explanation.  Do you even have a clue what you are talking about?

FredFlintstone's picture

yeah, spoon fed, B, C, G, Twitter, get a clue dude! :)

TheFourthStooge-ing's picture

Classical strawsman. When a point can not be addressed, build another you feel you are able to offuscate.

MeelionDollerBogus's picture

So you're the guy who edits math texts books to keep the quota met for the word "Obvious" in theorems, right?

rwe2late's picture

Unlike some other sites,

ZH has been known to publish articles with which the ZH editor(s) disagree(s).

If you disagree with the article, clearly state your points instead of lodging meaningless complaints about ZH based on a false assumption.

As for your claim to have points of disagreement with the article, allow me to be blunt, you have not clearly stated them.


AccreditedEYE's picture

I used to be like you. Get on twitter. See what goes down and who talks to whom. Again, stop being spoon fed.

monkeyhead's picture

Not even sure what you are talking about. Be explicit.

akak's picture

That must have been one doozy of a blow to the head.


In other words, nobody here knows what the Hell you are talking about, or trying to say.  How about "spoonfeeding us" and making it plain?

TheFourthStooge-ing's picture

Ah, the conspiracy. What, it is another question.

Made me laugh. Everything to kick the can, everything to avoid self indiction.

Buck Johnson's picture

I like Max, but I never heard of Maxcoin. I'll have to check it out. Also we are imploding.

Colonel Klink's picture

Can't swindle what they can't find!

cossack55's picture

The human race has a long history of bundling up assets for disposal

Oldwood's picture

Yes, but it is still a coincidence.

spinone's picture

I call bullshit on this.  If the Fed tapers, and then the market crumbles, the blame will be on the Fed.

OC Sure's picture

The FED owns all the blame regardless.

Oldwood's picture

How many people even know who the fuck the Fed is anyway? The blame will be placed on persons of a predefined group, lets call the the rich. Of course that does not include Jamie or Warren. The "rich" will be the people who prepared for this disaster. We horded our cash and did not participate in the economy to a great enough degree. We were warning others of the imminent collapse, so we willed it to fail, we poisoned the economy with our constant incriminations and declarations of the obvious complete corruption. No, the Fed will be just fine. It is US who will take the blame....and George Bush.

OC Sure's picture

I said the Fed OWNS the blame. I agree with you, obfuscations will mix and the accusations will land not upon the Fed. The media will spin the not so merry go round and you, me, and a few others will know the truth. But All is Never Lost; tell two friends to tell two friends, please.

acetinker's picture

Kinda sound like an Amway representative, but in this case, I heartily agree.

acetinker's picture

Yeah, Brandon does assume that J6P knows what the Fed is, but I'm not sure that's true.  However you may be mistaken about the blame being laid at the feet of "the rich".  Seems to me that "the blame" will be laid at the feet of independent "producers".  We can't be trusted you know, we might provide an "unregulated" item to our willing customers.

Can't have that, can we?

Oldwood's picture

That would be my point. "the rich" will not be the rich but what are referred to as the rich for their purposes, you and me (maybe I am being to assuming that your are not of the actual rich) but regardless they will seek to blame their enemies, and that would be those of us who will speak truth to power.

acetinker's picture

I am not at all of the actual rich. I started with nothing, and still have most of that left.  Obamao tells me 'I didn't build that', and I sorta get parts of that, but I loudly proclaim that I absolutely built the niche I live in, the broad shoulders I stand on notwithstanding.

WillyGroper's picture

More people have become aware than you might think. I find people from all age demographics talking about it & all the other scams. MIC, PIC, MedIC, SS, FSA. I too quit participating, but IMO that cash will only be useful for fires & tp. With the goons I wouldn't put it past them to storm your house to seize pm's. 

things are moving faster.

artless's picture

I agree with your estimate of most people's ignorance and who will be saddled with the blame. And that includes a large part of the readers of ZH who, while they talk a good game, are part of the problem. They'll continue to go to their finance jobs with the belief that their little corner of the field is pure as the driven snow, they'll continue to do business with corrupt and criminal entities like The JP Morgue et al, they'll continue to suckle their teat of the FedGov cow, and then line up in droves to vote for another demagogue, liar, or just simple moron wioth the belief that THIS time, with THIS Presdient, Senator, or Fat Slob Governor it will be different. They will continue to worship the paid killers in the military, the parasite criminla gangs called police, and the incompetent teachers who poison their children with daily doses of propaganda of nationalist state worship of which the likes of Eichman, Goebels and that crew would be proud.

Then they'll turn on the television and watch some pointless horseshit like Breaking Bad so that they aren't left out of the coffee room conversation at "work".

And then they will blame Shrub. Partly because most people are too fucking stupid to have ever read an once of history and probably have no clue as to who are really to blame, where this mess all really began, and what it will take to correct it.

Put it this way: Had the country suddenly woke up circa September 2008 and then by some bizarre chance and twist elected Ron Paul and then Congress and FedGov began to enact EVERYTHING Dr. Paul laid out we would be about 10% of the way there. Given how the vast majority of the 330 million called Americans received the doctor's prescription, I'd say they would shit their collective pants if someone explained what else needs to occur to solve this mess.

Maybe (and this is a big maybe) had Harry Browne won in 1996 we MIGHT have had a shot. At this point it is over. It's math. And math is a bitch that way. There is simply NO FUCKING WAY The US pays off even HALF the 17 trillion it owes. The only way this thing continues is by further monetizing the debt devauling the dollar and rolling on until finally the whole thing blows up.

2008 was a hicup.

MeelionDollerBogus's picture

'course! It aint tha theivin' banksters its them thar erlegal immergrints!

runningman18's picture

The lack of stimulus might be blamed, but it would be much worse for the fed if a crash happened while QE is running at full steam.  It would prove QE is useless, and that the fed is useless.

Shad_ow's picture

So what if the Fed is blamed?  What happens that will make a difference?  What happens to them?  Nothing.

WillyGroper's picture

It's the new girls that fall on the sword or get the guillotine. 

The boys will be sippin drinks with Ken Lay.


FredFlintstone's picture

Maybe there is a Greater Game than the "market"?

ebworthen's picture

They have to crash it again to clear the sheeple's chips off the roulette table.

Then another Hank Paulson stand-in warning of "tanks in the streets" and how the J.P. Morgue must be saved so American's "deposits" are "safe".


I'm pretty sure the boy cried wolf at least twice if not three times.

Redhotfill's picture

Ebworthen you forgot to put quotes around  "American's"   lol  not that any real American owns a part of the Fed.

MeelionDollerBogus's picture

'american' quotes are the most mattering things.

gwar5's picture

I agree with Bandon. CBs gotta try to find another villain besides themselves if they want to live again to roll out another currency.


artless's picture

"CBs gotta try to find another villain besides themselves if they want to live again to roll out another currency."

Nice sentiment but again you assume that any large number of people are anything less than willfully ignorant fools. The FED as it stands today is a violation of the Constitution. FRNs are a violation of The Constitution. No one gives a shit. Even those who purport to be educated resist the idea of dissovling the central bank paradigm while acknowledging its faults.

The Fed, The US Gov could shit in these people's mouths, rape their mothers, and still have their obedience. They have no concept of another way. It would be like telling them that the Sun rises in The West.

Redhotfill's picture

Today's Sheeple are much better conditioned than the Sheeple of even 50 years ago!

krispkritter's picture

I buy here but am not otherwise affiliated.  Just got this in the mail today:

These are awesome...

DirkDiggler11's picture

I buy at Gainesville Coin as well. Good service, hard to beat pricing ion silver.

Ness.'s picture


I don't buy physical precious metals from ANYONE.  I trust the FED with their expertise to control maximum unemployment, monetary instability and the manipulation of long term interest rates.  I kan reed, duh!

The Congress established the statutory objectives for monetary policy--maximum employment, stable prices, and moderate long-term interest rates--in the Federal Reserve Act.



I'm buying Obama's MyRA's... bye NSA NSA!!

clooney_art's picture

I buy from Goldline. They are the cheapest in the planet. They say so in their radio show.

Dr. Engali's picture

I agree with the bulk of this post, and many of us have been saying much the same thing, however there is nothing the fed can do to keep from taking the heat for the eventual collapse. They have inserted themselves at the center of the maelstrom, and there is no way that they will be forgotten.

krispkritter's picture

I'm pretty sure the blame will be deflected to the varied POTUS' that kept them in control, the 'economic forces beyond our control', and the bought-and-paid-for ineptness of the US Congress, among a host of other scapegoats.  If the finger of blame really did descend upon the Fed, it would disappear just as it was born, in a late-night swirl of excuses and lies, etc., only to rear it's ugly head in another guise.  

Raging Debate's picture

Krispkritter - I somewhat agree. The Fed isnt needed anymore, its job of looting for it's owners over. The people will blame the politicians (which in truth is correct as they took the bribe money) and THEN Congress will deflect back on the Fed, led again by Ron Paul to end it. The people will cheer the evil Fed is dead while inside politicos around the world laugh there asses off at the ignorance of the people and how briliant they were to pull off the biggest heist in human history.