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Peter Schiff Explains The "External Threat" Justifying The Fed's Tyrannical Policies

Tyler Durden's picture




 

Submitted by Peter Schiff via Euro Pacific Capital,

Every dictator knows that a continuous state of emergency is the best means to justify tyrannical policies. The trick is to keep the fictitious emergency from breeding so much paranoia that routine activities come to a halt. Many have discovered that its best to make the threat external, intangible and ultimately, unverifiable. In Orwell's 1984 the preferred mantra was "We've always been at war with Eurasia," even though everyone knew it wasn't true. In its rate decision this week the Federal Reserve, adopted a similar approach and conjured up an external threat to maintain a policy that is becoming increasingly absurd.  

In blaming its continued inaction on "uncertainties abroad" (an excuse never before invoked by the Fed in the current period of zero interest rates), the Fed was able to maintain the pretense of a strong domestic economy, and its desire to lift rates at the earliest appropriate moment while continuing the economic life support of zero percent rates. Unbelievably, the media swallowed the propaganda hook, line, and sinker.  
 
Over the summer it all seemed so certain. In mid-August the Wall Street Journal conducted a poll revealing that 95% of economists expected a rate hike by the end of 2015, with 82% expecting the first move to come in September. On July 29, Marketwatch reported that changes in Fed language were the "smoking gun" that made a September move a certainty. I was one of the few who publicly predicted that all the tough talk from the Fed was a bluff, and that there would be no hike in 2015. For taking that stance, I was largely ignored and ridiculed. In a July 16 interview on CNBC's Futures Now (I am no longer invited to be on their television broadcasts), pundit Scott Nations took me to task for making the "outlandish" suggestion that the Fed would not raise in 2015, saying (to paraphrase):
"If price is truth and Fed funds futures are the collective wisdom of everybody in the world, and they are absolutely a lock for the Fed to raise rates by the end of the year, why is everybody else wrong and you are right?"
But now, in mid-September, it has all changed, far fewer economists expect a hike this year. However, despite this dramatic reversal, few have downgraded their forecasts or weakened their belief that the Fed remains committed to tighten policy...eventually. In other words, the Fed has achieved a complete communications victory.
 
Just like it has in prior statements, the Fed painted a picture of a stable and growing economy that was ready for a hike. In fact, in her press conference, Janet Yellen said that the Fed was "impressed" by the strength of the domestic economy. Although such statements began to resemble the film Groundhog Day, no one seems to tire of it.
 
A cornucopia of metaphors should have come to mind: The Fed's bite had failed to live up to its bark; its "open mouth" operations wrote a check that its Open Market Committee was unable to cash; the Fed has become Lucy of the comic strip Peanuts, always promising to hold the football for Charlie Brown to kick, but always taking it away before he kicks it. Instead, the dominant theme of the coverage was that the Fed's understanding of the global economy was just better than the rest of us. It apparently understood that a 25 basis point increase in rates in the U.S. could ripple through to the world markets and could potentially push China's tottering stock market into the abyss. That was a risk it believed was not worth taking.
 
To keep the story line going requires that the steady torrent of negative data be ignored (see manufacturing data in September Manufacturing Business Outlook Survey of Philly Fed). Similar weakness is evident in business investment, productivity, and consumer confidence numbers. Based on those data sets, conventional Keynesian “wisdom” suggests the Fed should be preparing a fresh round of stimulus, not readying its first economic sedative in nine years.
 
The big news is the introduction of "international developments" as an ongoing input into the Fed's rate deliberation process. This addition allows the Fed nearly limitless latitude to perpetually kick the can down the road. After all, it is a great big world, and it will always be possible to find a problem somewhere. A Reuters article issued after the decision describes the new reality (9/18/15, Howard Schneider):
"It is a situation that could leave the Fed stranded in its hunt for a rate liftoff until the entire global economy is growing in sync, and the horizon is clear of risks."
So there you have it. The Fed is no longer just the central bank of the United States, but the central bank of the entire world. As such it will need to consider any possible negative impacts, anywhere, before it pulls the trigger. This isn't just moving the goalposts; it is dismantling them completely, putting them in crates, and losing them in a government warehouse...much like the Ark of the Covenant at the end of the first Indiana Jones movie. 
 
The height of this week's absurdity came during Janet Yellen's press conference when Ann Saphir from Reuters asked her about the possibility that interest rates could stay at zero "forever." While characterizing that likelihood as "extreme," Yellen incredibly stated that she could not rule out the possibility. Of course the absurd suggestion that American civilization may never see rates above zero did not even raise eyebrows in the mainstream media. But the statement itself raises some interesting questions about Yellen's actual thinking. First, how can she really be contemplating at 2015 rate hike, if she cannot even rule out the possibility of rates remaining at zero forever? Second, is she really that naïve and arrogant to believe that currency markets would allow the Fed to hold interest rates at zero indefinitely, without creating a dollar crisis, even if the Fed wanted to hold them there?
 
As I have maintained continuously, rate hike talk from the Fed is just a bluff to disguise its inability to tighten, as even small increases could be sufficient to prick the biggest bubble it has ever inflated. It is no coincidence that the stunning 170% increase in the Dow Jones, that occurred between March 2009 and the end of 2014, happened while the Fed was stimulating the economy almost continuously with QE, and that the rally came to an abrupt end when the QE stopped.
 
The recent 10% correction on Wall Street confirms to me just how sensitive the markets remain to the prospect of any rates higher than zero. In reality, that sell-off was a much greater factor than China in keeping the Fed quiet. That steep correction occurred at a time when most forecasters believed that a September hike was in the cards. For years, they had known that a rate hike was coming, but they always thought it would arrive when the economy was healthy. But when the big day became a clear and present danger, and the economy was still less than optimal, markets began to panic. It was only when Fed officials came out with publicly dovish statements that the sell-off ended. Despite this obvious connection, the markets are still blaming China, despite the fact that big sell-offs in China had been occurring for much of 2015 without sparking follow on panics in the U.S. 
 
As a result, it should be clear that ongoing Fed decision-making is not just "data dependent" (and now we are talking about international, not just domestic, data), but also "market dependent," meaning the Fed won't raise rates if markets sell off sharply on expectations that it will raise. Given these impossible conditions, perhaps a perpetual zero rates are not so outlandish. But the reality is Central banks can't really control interest rates across the spectrum, just the short end of the curve...when markets really panic, they won't be able to stop economically devastating interest rate spikes on the long end. 
 
In the meantime, I can only hope that the foreign exchange and commodity markets are finally getting the picture that the Fed appears impotent. The tremendous rally in the dollar over the past 18 months was predicated on the belief that interest rates would be rising in the U.S. just as they were falling everywhere else. Now that that premise is in tatters, the dollar should be giving back its undeserved gains. Recent moves in the foreign exchange market reveal that this is the case.    
 
When the year began, opinion was divided between those who thought the Fed would move in March, and those who thought it wouldn't happen until June. When June came and went, September became the odds-on favorite. Now those same experts are once again divided between December and sometime in 2016. When will these "experts" finally connect the real dots and discover that the monetary medicine that the Fed has doused over the economy since 2008 has only created a weak and utterly dependent economy. A rate hike is supposed to be a signal that the economy has a clean bill of health. But as the patient fails to recover, another dose of QE will be just what the doctor orders.
 

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Sat, 09/19/2015 - 14:49 | 6569484 junction
junction's picture

Raising the Fed rate is seen by Yellen and accomplices as equivalent to stepping barefoot on a subway third rail. 

Sat, 09/19/2015 - 14:52 | 6569495 Money Counterfeiter
Money Counterfeiter's picture

Bankers coming up with bull shit to justify more printing?  No!   

Sat, 09/19/2015 - 15:21 | 6569569 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is today watch discussion of Fed Rate non-increase on Fox Business News and is amazing how discussion of "it is good, it is bad", "Fed is do right thing, wrong thing for economy". Is make Boris laugh when thinking of if on wild life documentary, host is discuss whether Lion tear out throat of gazelle is good or bad. When bankster is meet to collude on interest rate, is there any question of motive or morality? No, is not think so.

... but what is Boris know!?

Sat, 09/19/2015 - 18:56 | 6570088 Calmyourself
Calmyourself's picture

Unbelievably, the media swallowed the propaganda hook, line, and sinker.  

 I'l just leave this here, no further commentary on our captured complicit traitorous media is needed...  All who are responsible will be judged.
Sun, 09/20/2015 - 09:06 | 6571059 JRobby
JRobby's picture

The last word of the opening paragraph above says it all. (and it is one f my favorites)

ABSURD

Sat, 09/19/2015 - 15:23 | 6569574 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is watching Planned Parenthood BabyParts"R"Us video and is think maybe Planned Parenthood is behind Planned Parenthood video.

Sat, 09/19/2015 - 22:33 | 6570501 Implied Violins
Implied Violins's picture

Would it be morally reprehensible to watch the video while eating popped baby corn?

/side note: I wonder if this is another planned segue towards transhumanism...I'm going to be watching to see if more natural, biological means of helping people heal (e.g. stem cells; not the emotional headline-grabber of baby parts) are vilified in the media and more inorganic means are brought forward as 'solutions'...

Sat, 09/19/2015 - 15:57 | 6569667 RaceToTheBottom
RaceToTheBottom's picture

WS Banksters have the FED's tell.  The WS Banksters know that no rate increase will occur until some indication of economic health is undeniable.  

So every time the stock market reaches a new high or the FED starts talking more about raising rates.  The WS Banksters program their machine traders to follow a decreasing path.

The FED will table any plans (if they ever had them) and use the "market fluctuations" as an indication of how "honest" the market is.

  • Retail is gone from the market or at least an insignificant player.
  • The market is programmed.

 

Sat, 09/19/2015 - 21:47 | 6570390 snodgrass
snodgrass's picture

Problem (terrorism); reaction (we'll save you): solution (totalitarianism)

Sat, 09/19/2015 - 14:49 | 6569486 sprintjump
sprintjump's picture

In other words... buy shit while it's cheap??? I hesitate to tell the ol' lady :p

Sat, 09/19/2015 - 15:02 | 6569520 techpreist
techpreist's picture

Now that you mention it, things *have* gotten cheaper lately, not just gas. If by some chance you haven't been buying any supplies at all despite the many warnings, now is a great time to start. For stacking, the delays indicate you may already be too late.

Sat, 09/19/2015 - 14:51 | 6569490 Mini-Me
Mini-Me's picture

The Fed has destroyed the capital markets, the currency, and the economy.  No matter what they do now, we're headed for an epic crash.  Get ready.

Sat, 09/19/2015 - 14:58 | 6569510 Eyeroller
Eyeroller's picture

Been ready for years. Out of popcorn. Get the shit show over with already.

Sat, 09/19/2015 - 15:18 | 6569547 Bioscale
Bioscale's picture

The miracle is the gold price at this point. I'm going to put a micro tattoo on my left hand with the date once gold and friends will have skyrocketed. And then I will quit reading any news for good.

Sat, 09/19/2015 - 15:44 | 6569643 MrSteve
MrSteve's picture

I checked Friday and the gold eagle spot:premium was about 5%. The silver eagle spot:premium was 20%. Clearly now is the time for gold rather than silver. Junk silver dollars worth $12 (intrinsic) are pitched at $26.

Maybe silver will go up big because everybody in China is gonna being using a roll of film every month in their Kodaks ??

Sat, 09/19/2015 - 15:41 | 6569632 zvzzt
zvzzt's picture

Try sunflower seeds. Switched to them recently - lovely!

Sat, 09/19/2015 - 22:35 | 6570506 Implied Violins
Implied Violins's picture

+1 on seeds. Been eating a lot more raw pumpkin seeds lately, soaked in organic tamari. Great stuff!

Sat, 09/19/2015 - 15:14 | 6569546 nickels
nickels's picture

I loved Mickey Mouse as the Sorcerer's Apprentice.

Sat, 09/19/2015 - 18:23 | 6570014 breadonwaters
breadonwaters's picture

Hey Nicks,  I just used that as an example of what happens when the fed  plays at central planning.  She reminded me this was first seen in Fantasia.

cheers!

Sat, 09/19/2015 - 14:57 | 6569508 Oxbo Rene
Oxbo Rene's picture

Keep the people subjucated, rule the world ! ! ! !

Sat, 09/19/2015 - 14:58 | 6569513 falak pema
falak pema's picture

the enemy without AS the enemy within, the two heads of freedom's call to reform, that defy the Empire; as always!

Sat, 09/19/2015 - 14:59 | 6569514 william114085
william114085's picture

"Unbelievably, the media swallowed the propaganda hook, line, and sinker."

 

I thought we all knew "the media" was given their marching orders by the same powers that control the Fed?

 

 

Sat, 09/19/2015 - 16:40 | 6569761 bonin006
bonin006's picture

Anybody with half brain could figure out by now, after Iraq, Afghanistan, Libya, Ukraine, and Syria that "the media" is no longer a critically thinking entity, but just a propaganda arm of the government. I find it hard to believe Peter Schiff is stupid enough to believe what he wrote. I think it is more likely that he feels saying that would be better for his career/income, but unless/until the media gets ripped a new asshole every time they report such BS it will just keep going on.

Sun, 09/20/2015 - 07:03 | 6570935 new game
new game's picture

what lacks is the simple fact that the fed needs to be ended. oh, that may cause death, like a consiracy to kill the king or queen...

this is the power structure that controls the western world. all power flows from this entity.

creating debt and subjugating it upon the majority, democracy working at its' best, ha...

Sat, 09/19/2015 - 15:01 | 6569517 DarAdder
DarAdder's picture

We have always been at war with the Syrian rebels.

 

Sat, 09/19/2015 - 15:07 | 6569522 franzpick
franzpick's picture

The equally corrupt 2 congressional parties both know the fed will continue to finance the provision of food, shelter, medical care and schooling to 1 MIL low wage illegals and prospective statist voters coming across the porous border each year.  I wish Trump or some candidate would adopt and use my new, comprehensive immigration policy:

                                         THE PATHWAY TO MEXICO

Sat, 09/19/2015 - 15:04 | 6569524 Nutflush60
Nutflush60's picture

When they announce they are rolling over their Treasury Holdings-That is when the problems begin.

Sat, 09/19/2015 - 18:05 | 6569967 BuddyEffed
BuddyEffed's picture

"Announce" may be the operative term here.

Sat, 09/19/2015 - 15:08 | 6569535 coast
coast's picture

I have been doing other things rather than reading internet news, especially zerohodege...zerohedge is great, thats not my point, but most of us here know what is going on.  We know this is going to collapse. ok then.   but we dont know when, or what will happen.  Will they screw up and the world come crumbling down and wars and book of revelations stuff?  Or will they keep it going as a slow drip, drip, drip torture for us all, until we are so screwed up and tired, and brainwashed, that we dont care anymore. I am thinking we need to get off this merry go round. Why are we even taking time to address this satanic bullshit? Are we that much dependent on the system they built that we are now a part of this satanic shit? We need a paradime shift.  I cant do this anymore...every day, gartman said this, and jamie dimon said that etc. just rambling, I got so much more to say, maybe I will drop a note now and then. I am just sick of this shit.

Sat, 09/19/2015 - 15:20 | 6569559 MansaMusa
MansaMusa's picture

@coast:  You're not alone, I feel 9/23 will be the catalyst for what's to come.

Sat, 09/19/2015 - 17:05 | 6569802 Crisismode
Crisismode's picture

 

 

What happens on 9/23?

Shemitah?

If not, what else?

Link please.

 

Sat, 09/19/2015 - 15:30 | 6569596 dogbert8
dogbert8's picture

It does get to be tiresome to read the same doom-and-gloom scenarios every day and then to watch nothing like those scenarios happens.  You want someone to tell you not just that the whole thing will come crashing down, but WHEN, so you can be a bit more ready (as opposed to being in the starting gate and never taking a step out).  I well understand that is not possible, but understanding that does not make it easy to swallow.

Sat, 09/19/2015 - 16:03 | 6569687 SMASH THE CONTR...
SMASH THE CONTROL MACHINE's picture

GOD WILL DO IT AND THEY CANT STOP IT!!!!

  • HERE IS THE REASON .HIGH FREQUENCY TRADING MADE IT ALL POSSIBLE!! IT HAPPENS IN ONE HOUR BABYLON...AMERICA HAS FALLEN IN ONE HOUR!!!!!WHAT THE PROPHETS SAID ABOUT BABYLON

    1. Babylon would be an END TIME GREAT NATION (Rev 17,18; Isa 13:6).2. Babylon would have a huge seaport city within its borders (Rev 18:17).

    3. The Great City Babylon is the home of a world government attempt (Rev 17:18).

    4. The Great City Babylon would be the economic nerve center of the world (Rev 18:3).

    5. Babylon would be the center of a one world Luciferian religious movement (Jer 51:44).

    6. Babylon would be the center for the move to a global economic order (Rev 13:16).BABYLON THE NATION

    1. Babylon would be the youngest and greatest of the end time nations (Jer 50:12).

    2. Babylon would the QUEEN AMONG THE NATIONS (Isa 47:5,7; Rev 18:7).

    3. Babylon would be the most powerful nation in the world (Isa 47, Jer 50, 51, Rev 18).

    4. Babylon would be the HAMMER OF THE WHOLE EARTH (Jer 50:23; Rev 18:23).

    5. Babylon is called a lady, and has the symbol of the Lady (Isa 47:7-9).

    6. Babylon would be the praise of the WHOLE EARTH (Jer 51:41).

    7. Babylon is center of world trade (Jer 51:44; Rev 17:18; 18:19).

    8. Babylon would grow to be the richest nation in the world (Rev 18:3, 7, 19, 23).

    9. All nations that traded with Babylon would grow rich (Rev 18:3).

    10. The merchants of Babylon were the GREAT MEN OF THE EARTH (Rev 18:23).

    11. Babylon is a huge nation, with lands, cities, and great wealth (implied throughout).

    12. Babylon is nation "peeled", or timbered, a land of open fields (Isa 18:2).

    13. Babylon is land quartered by mighty rivers (Isa 18:2).

    14. Babylon is a land that is measured out, and populated throughout (Isa 18:2).

    15. Babylon destroys her own land, with pollution and waste (Isa 14:20, 18:2, 7).

    16. Babylon is a land rich in mineral wealth (Jer 51:13).

    17. Babylon is a the leading agricultural nation of the world (Jer 50, 51; Rev 18).

    18. Babylon is the leading exporting nation in the world (Jer 51:13; Rev 18).

    19. Babylon is the leading importing nation of the entire world.(Jer 50, 51; Rev 18).

    20. Babylon is a nation filled with warehouses and granaries (Jer 50:26).

    21. Babylon is the leading INDUSTRIAL NATION OF THE WORLD (Isa 13, 47, Jer 50, 51; Rev 18).

    22. Babylon is noted for her horses (Jer 50:37).

    23. Babylon is noted for her cattle, sheep and other livestock (Jer 50:26, 27; Rev 18:13).

    24. Babylon is noted for her fine flour and mill operations (Rev 18:13).

    25. Babylon is a nation of farmers and harvests huge crops (Jer 50:16, 26, 27).

    26. Babylon is a huge exporter of MUSIC (Rev 18:22).

    27. Babylon's musicians are known around the world (Rev 18:22)

    28. Babylon has a huge aviation program (Isa 14:13-14; Jer 51:53; Hab 1:6-10).

    29. Babylon's skies are filled with the whisper of aircraft wings (Isa 18:1; Jer 51:53).

    30. Babylon has a huge space industry, has "mounted up to the heavens" (Jer 51:53).

    31. Babylon fortifies her skies with a huge military aviation program (Jer 51:53).

    32. Babylon is portrayed as a leading in high tech weapons and abilities (Jer 51:53; Hab 1:6-10; implied throughout).

    33. Babylon is a nation filled with warm water seaports (Rev 18:17-19).

    34. Babylon is a coastal nation and sits upon MANY WATERS (Jer 51:13).

    35. Babylon trades with all who have ships in the sea year round (Rev 18:17-18).

    36. Babylon is nation filled with a "mingled" people (Jer 50:37).

    37. Babylon is a SINGULAR NATION founded upon OUT OF MANY, ONE (Isa 13, 47, Jer 50, 51, Hab 1).

    38. Babylon is a REPUBLIC or a DEMOCRACY, it is ruled by many counsels (Isa 47:13).

    39. Babylon's governmental system breaks down (Isa 47:13).

    40. Babylon is bogged down with deliberations and cannot govern properly (Isa 47:13).

    41. Babylon's leaders use astrology, seers and mystics for guidance (Isa 47:13; Rev 18:2).

    42. Babylon labored in the occult from her very inception (Isa 47:12).

    43. Babylon falls to the occult just before her end by nuclear fire (Rev 18:2)

    44. Babylon was born as a CHRISTIAN NATION (Jer 50:12).

    45. Babylon turns upon its heritage and destroys it all in the end (Jer 50:11).

    46. Babylon's Christian leaders lead their flock astray in prophecy and salvation (Jer 50:6; implied Rev 18:2).

    47. Babylon's Christian leaders are "strangers" in the Lord Houses of Worship (Jer 51:51).

    48. The people of Babylon are deep into astrology and spiritism (Isa 47:12; Rev 18:2).

    49. Babylon becomes the home of all antichrist religions in the world (Rev 18:2).

    50. Babylon is a nation of religious confusion (Isa 47:12-13).

    51. Babylon turns upon its own people and imprisons and slays them by millions (Jer 50:7,33; 51:35; 39; Dan 7:25; Rev 13:7; 17:6; 18:24).

    52. Babylon sets of detention centers for Jews and Christians and rounds them up for extermination (Jer 50:7, 33; 51:35, 49; Rev 17:6; 18:24).

    53. Babylon has a mother nation that remains in existence from her birth to death (Jer 50: 12).

    54. The mother of Babylon has the symbol of the LION (Dan7:4; Eze 38:13; Jer 51:38; Psalms 17:12).

    55. The mother of Babylon will rule over her daughter her entire life (Dan 7:4; Jer 50:12).

    56. The mother of Babylon will be a state of major decline as the end nears (Jer 50:12).

    57. Babylon is considered to be a lion's whelp (Eze 38:13; Jer 51:38).

    58. Babylon will have the symbol of the EAGLE and builds her nest in the stars (Dan 7:4 EAGLE WINGS; Isa 14:13-14; Jer 51:53).

    59. Babylon turns totally antichrist and is the leading antichrist power at the end (Rev 18:2; Isa 14:4-6).

    60. THE KING OF BABYLON is called LUCIFER, the ANTICHRIST (Isa 14:4-6).

    61. The King of Babylon will rule from THE GREAT CITY BABYLON (Isa 14:4-6; Rev 17: 18).

    62. A world government entity will rise up to rule the world from BABYLON THE CITY (Isa 14; Hab 2, Rev 13, 17, 18).

    63. This world entity will be a diverse entity, different than all other ruling bodies of the world (Dan 7:7, 23).

    64. This entity will be a TREATY POWER ENTITY (Dan 7:7, 23 DIVERSE).

    65. This entity will rise up and use the military power of Babylon the nation to RULE THE WORLD (Isa 14:4-6; Hab 1 & 2, Rev 13, 17).

    66. Babylon is a huge producer and exporter of automobiles (Jer 50:37; Rev 18:13).

    67. Babylon is a nation of CRAFTSMEN, experts in their trade (Jer 50, 51, Rev 18:22).

    68. Babylon is noted for her jewelry of gold and silver (Rev 18:22).

    69. Babylon is a huge importer and exporter of spices (Rev 18:13).

    70. Babylon is a huge exporter of fine marble products (Rev 18:22).

    71. Babylon is noted for her iron and steel production (Rev 18:12).

    72. Babylon has huge corporations that have bases around the world (Rev 18:23, implied throughout)

    73. Babylon is a nation of higher education and learning (Isa 47:10, implied throughout).

    74. Babylon is a nation with a GREAT VOICE in world affairs (Jer 51:55)

    75. Babylon is a VIRGIN NATION, untouched by major war (Isa 47:1).

    76. Babylon has a vast military machine (Jer 50:36; 51:30; Hab 1 & 2, Rev 13:4).

    77. Babylon will be instrumental in the setting up of Israel in the Middle East, and is the home of God's people (Jer 50:47; 51:45).

    78. Babylon will have a major enemy to her north (Jer 50:3, 9, 41).

    79. Babylon's enemy will lie on the opposite side of the world, over the poles (Isa 13:5)

    80. The enemy of Babylon will be a FEDERAL OF NATIONS (Jer 50:9).

    81. The enemy of Babylon will be largely Moslem in make-up (Jer 50:17; Rev 17:16; Psalms 83:5-12).

    82. The enemy of Babylon will have nuclear missiles capable of reaching Babylon (Jer 50:9, 14,; Rev 18:8, 18).

    83. The enemy of Babylon will be noted for her cruelty (Isa 13, 14, Jer 50, 51, Rev 17, 18).

    84. The enemy of Babylon will also have a huge aviation military machine (Jer 50:9, 14, Rev 18:8, 18 implied throughout).

    85. The enemy of Babylon will come into Babylon unnoticed (Isa 47:11, Jer 50:24; 51:2, 14).

    86. Babylon will be filled with her enemies brought in under the guise of peace (Dan 11:21).

    87. Babylon will have all of her borders cut off, and there will be no way of

    escape (Jer 50:28; 51:32).

    88. Babylon will be destroyed by nuclear fire (Implied throughout)

    89. Babylon is land vast land with huge cities, towns and villages throughout (Implied throughout).

    90. Babylon will have been a huge missionary nation for Jesus Christ (Jer 50:11; 51:7).

    91. Babylon would be a home to multitudes of Jews who leave (Jer 50:4-6, 8; 51:6, 45)

    92. The people of Babylon would not know their true identity (Jer 50:6, implied throughout).

    93. The people of Babylon would think they are God's elect and eternal (Isa 47:7-8, Rev 18:7).

    94. The people of Babylon would enjoy the highest standard of living in the world (Rev 18:7).

    95. The people of Babylon would grow mad upon their idols (Jer 50:2, 38; Hab 2:18).

    96. The people of Babylon would go into deep sins of all kinds (Rev 18:5).

    97. The nation Babylon dwells carelessly before the Lord (Isa 47:8).

    98. Babylon becomes proud, haughty, and does not consider her end (Isa 47:7-8).

    99. Babylon deals in the occult, in sorceries and drugs (Isa 47:9, 12; Rev 18:23)These are but a few of the many parameters listed to help us identify this last great nation that the Lord calls BABYLON THE GREAT. America does now, or is in the process of fulfilling each and every one of them. No other nation upon the face of the earth can fulfill these parameters. AMERICA IS BABYLON THE GREAT. There would likewise be a series of SIGNS that would would begin to emerge that would give BIRTH TO, and WATCH THE RISE OF, as well as THE FALL OF AMERICA-BABYLON.

  •    
  • Reply
Sat, 09/19/2015 - 17:57 | 6569950 Born2Bwired
Born2Bwired's picture

This is a lot of babbling...

Sat, 09/19/2015 - 18:24 | 6570018 kahunabear
kahunabear's picture

I dig that song. David Gray, right?

Sat, 09/19/2015 - 18:34 | 6570038 Dexter Morgan
Dexter Morgan's picture

Fuck off already.

Sat, 09/19/2015 - 17:07 | 6569809 o r c k
o r c k's picture

Huh ?  Would you rather be a "sheeple in the dark"? This is history in the making. Might be good to know what truthfully happened. Maybe some persons nerves can't handle the suspense (I mean you might become a babbling Babylonian bull-puckyist like we see here) but hey--the truth hurts sometimes.

Sat, 09/19/2015 - 17:24 | 6569848 coast
coast's picture

good point orck...and I guess that is why I visit zerohedge...and will continue to do so....Just trying to find a balance, and not let it take me too far in their direction...I really apprecaite all of the comments and its nice to be on a website where I find most have a good heart and and learned mind. 

Sat, 09/19/2015 - 15:32 | 6569599 divedivedive
divedivedive's picture

The world needs more fact and less conjecture.

 

Sat, 09/19/2015 - 15:53 | 6569656 Bemused Observer
Bemused Observer's picture

Yep, it's slow torture...you just want to get it over with. It reminds me of that feeling you get when you are nauseous and know you are going to puke, but it never quite gets there...

Make an end of it already, for the love of God and all that's holy!

Sat, 09/19/2015 - 16:20 | 6569719 InnVestuhrr
InnVestuhrr's picture

A poet, cannot remember his name, wrote something VERY appropriate, like:

"the world ends not with a bang, but with a whimper"

If you understand how the system works, then you understand that the regime can keep the merry-go-round going for many more decades.

For example, the US Treasury can issue very long-term bonds, eg 50-year to 100-year, and the FED can buy them at a price that results in yields of only a few basis points. That is an easy way to keep the federal government flush with spending money to keep paying for infinitely expanding entitlement programs while also keeping federal debt payments inconsequentially low.

The primary reason why the USA has this ability to engage in monetary profligacy indefinitely is that there is no safer, better regime and currency for people and capital to flee to - in fact ALL of the other regimes are in WORSE condition that the USA.

There will never be high inflation as the FED measures it because:
1 the USA economy is so loaded down with regulations and taxes,
2 the USA economy is so dominated by low and no skills service jobs and a bloated population that is being further bloated by economic invaders
that the economy cannot run hot enough to generate broad labor-based inflation
AND
declining global economic conditions and currency war result in falling prices of imports, thereby further reducing the inflation the FED watches.

Prepare yourselves for a rest-of-life ride on the ZIRP merrry-go-round.

Sat, 09/19/2015 - 17:06 | 6569807 coast
coast's picture

I agree Innvest...but there are other variables...maybe even spiritual variables...people are waking up, there seems to be what is called a quickening...there is a biblical scripture that says, "this is not a battle between flesh and blood but a battle between spiritual entities",  I cant remember it word for word. But we cant use history or guides such as the petro dollar and endless printing. Other countries are getting sick of the U.S.  People are talking about killing cops, borders are wide open, russia sending troops to Syria, etc... I see your point, but maybe your point is based on things that we see with scales on our eyes...

Sat, 09/19/2015 - 18:05 | 6569968 InnVestuhrr
InnVestuhrr's picture

Last week Bloomberg did a report on a survey which showed that more than 80% of Americans do not know what the FED is or does, have no idea who Yellin is.

Look around OUTSIDE of ZH - eg go to WalMart and talk to shoppers there at random - you will discover that the overwhelming majority of Americans are effectively asleep when it comes to understanding monetary, economic and financial issues.

Sun, 09/20/2015 - 07:17 | 6570948 new game
new game's picture

and they can't add or subtract. the whole system is geared to an eight grader. and that is equel to a 10th grader 20 years ago. so much for our ed system. all we can to do is check in and stay informed, avoid any serious concern until it is warranted and stay under the radar until such an event that awakening is deemed neccesary. we are 1 percenters, knowledged and ready...

Sun, 09/20/2015 - 01:28 | 6570751 My Days Are Get...
My Days Are Getting Fewer's picture

When the gong gets tough, the tough get going.

Truck on and stay prepared - both mentally and physically. 

Sat, 09/19/2015 - 15:10 | 6569536 q99x2
q99x2's picture

My dad said "Janet Yellen is going to shit in her hat and pull it over her ears." He was right. Never argue with pops.

Sat, 09/19/2015 - 16:23 | 6569723 nevadan
nevadan's picture

I watched the press conference and your dad pretty well sums it up.

Sat, 09/19/2015 - 15:18 | 6569552 MansaMusa
MansaMusa's picture

The next QE will be bailing out the insurance claims from a nuked NYC or CHI next week...

Sat, 09/19/2015 - 15:18 | 6569554 The Darwin Mode
The Darwin Mode's picture

"Fed was able to maintain the pretense ... while continuing the economic life support of zero percent rates. Unbelievably, the media swallowed the propaganda hook, line, and sinker." --P. Schiff

I doubt the MSM muppets actually believe the drivel they're required to spew. Maybe some of them are that gullible, but just because a talking head pounds the desk on behalf of Fed wisdom doesn't necessarily mean he or she actually believes it.

Sat, 09/19/2015 - 15:19 | 6569556 ozzzzo
ozzzzo's picture

"Unbelievably, the media swallowed the propaganda hook, line, and sinker."

s/media/propaganda machine/ and then you can believe it.

Sat, 09/19/2015 - 15:21 | 6569566 Inthemix96
Inthemix96's picture

Not a problem, not even a touch, just spread it like peanut butter jelly.

www.youtube.com/watch?v=Jkni_agJaXA

Turn it up and switch off, who gives a fuck?  Put your headphones in and smile.

We will, sort this owt.

:-)

Sat, 09/19/2015 - 15:21 | 6569567 antonina2
antonina2's picture

Maybe this this the pathway to cryptocurrency and RFID cashless society.  You better behave, or we are truning off your chip!

Sat, 09/19/2015 - 15:32 | 6569601 Amish Hacker
Amish Hacker's picture

The Fed is "the central bank to the entire world."

I think that became obvious after Lehman, when the Fed saved its European branch office with trillions in dollar swaps. There's really only one western bank; we should start thinking of it as The Bank.

Sun, 09/20/2015 - 01:25 | 6570748 My Days Are Get...
My Days Are Getting Fewer's picture

This correct for another reason:

 

By destroying Lehman, the authorities created a $14 Trillion hole in the derivative's counterparty system.  Retain Lehman - then, by decree, the derivatives casino could have been closed with everyone netting out to zero.  Without Lehman, the netting-out process produced a $14 Trillion liability, that no nation could cover.

Sat, 09/19/2015 - 15:39 | 6569623 RaceToTheBottom
RaceToTheBottom's picture

"International Developments" also position the introduction of a debt jubilee and migration to the worldwide fiat currency SDR...

Sat, 09/19/2015 - 15:48 | 6569633 tarabel
tarabel's picture

 

 

Mr. Schiff makes a number of points with which I agree, yet I think he has failed to draw more than just tactical lessons from this event.

Whatever else you can say about previous Fed chairmen, they at least understood the need to project an aura of being in control of events and able to manage them. Dammit Janet Yellen is building her career on effective admissions that she has no idea what is going on or how to successfully slay the threatening monetary dragons-- apart from waiting quietly to see what happens next.

Even if the Fed is vigorously at work behind the scenes, which it is, it is projecting an image of people who are increasingly at the mercy of events on a growing, global scale and powerless to do more than simply ride the storm out.

The net result will be a swift growth in the number of people who abandon their faith in the Fed and look to their own lifeboats until such time as the crisis passes. This in turn greatly adds to the burdens the Fed must bear and decreases the resources with which it has available to play the game.

They have severely damaged their own cause with their meek and cowardly actions and, once this reality sinks in, they will move to correct it. I look for a rate hike at the next meeting, not that it will do any good. That horse is already out of the barn.

Credibility is not easy to regain, and does not happen overnight. Since fiat money depends solely on credibility, they have created a major problem for themselves, the country, and the world. They have sold themselves for three months of grace and will have to show concrete results in that time frame in order to have any hope of regaining trust. From whence these fabulous new results will come is anybody's wild guess.

 

Sat, 09/19/2015 - 16:21 | 6569720 Burfman
Burfman's picture

Tarabel I agree.  Also, Peter Schiff has the perfect hedge.  He’s pounding the FED for not raising rates, for delaying normalization and at the same when and if the FED does raise, it could wreak havoc domestically and abroad.  As Max from MI1 said “that’s not a terrible position to be in”.

In all honesty I agree with many of Peter's points, but I also think he is over impugning Yellens motives.  I know he's probably done this, but I would appreciate him detailing this from a different angle, i.e., outlining a reasonable solution to the QE/rate dilemma.

Sun, 09/20/2015 - 06:40 | 6570925 Tall Tom
Tall Tom's picture

Schiff's point is that...THERE...IS...NO...SOLUTION.

 

THERE...IS...NO...SOLUTION.

THERE...IS...NO...SOLUTION.

THERE...IS...NO...SOLUTION.

 

Do you get that yet?

 

THERE...IS...NO...SOLUTION.

Sat, 09/19/2015 - 16:21 | 6569721 RopeADope
RopeADope's picture

You do not have to maintain credibility with people that have no power.

The Fed is maintaining credibility with those that do have power by preventing them from taking losses.

People need to stop making things overly complicated.

Sat, 09/19/2015 - 18:50 | 6570078 tarabel
tarabel's picture

 

 

No doubt true, but the whole point of Yellen doing nothing is to show that their ability to make important people whole again is no longer a sure bet.

More and more capital is being taken off the big financial table and turned into hard assets. People aren't buying dairy farms in New Zealand because they love fresh cream on their cornflakes. They are buying them because they are worried that Janet can no longer hold up her part of the deal. The more this process proceeds, the less money flows into the tax coffers even as the drain on the treasury rises. She has to cover that shortfall. It gets bigger every day. Her resources get smaller. Soon, they will meet in the middle.

Sat, 09/19/2015 - 16:49 | 6569775 didthatreallyhappen
didthatreallyhappen's picture

but, what are their own lifeboats?

Sat, 09/19/2015 - 18:43 | 6570068 tarabel
tarabel's picture

 

 

As I see it, the lifeboats are any asset class that does not depend upon communal success. So long as people maintain faith in the Fed, they still seek growth in their investments and the economy can function reasonably normally.

Without that faith, they move quickly into wealth preservation such as specie and physical cash that offers no growth leverage to the wider economy. This is what killed Jimmy Carter. People became convinced that the system was coming down and thus pulled their assets back into things they could physically control and damn the consequences so far as interest income or asset appreciation was concerned. People were done with trying to make their money work for them and concentrating on simply having something left to work with once the storm had passed.

When the velocity of money becomes a process of direct from the Fed to the banks and direct from the banks to the mattresses, the amount of money being placed into technical circulation must go ultra-hyper-full retard just to keep the system alive at all.

Sun, 09/20/2015 - 01:16 | 6570740 My Days Are Get...
My Days Are Getting Fewer's picture

Confidence can be in one's self or in others.  Confidence is something that is measured.  Confidence factor.  90% is high.  10%  is very low.

Confidence is like momentum, something that is always moving.

Trust is static.  You have it or you have it not.

Trust is not a commodity. It can be earned.  It can be inherited.  Once broken, it can seldom be restored.

The issue here is trust. It has been made manifest - The Federal Reserve is not to be trusted.

Once trust has evaporated, what is left.  Nothing.  Confidence in what.  In whom.

Be prepared for negative interest rates - the only way to fleece those few with net assets now is to charge them a fee for possession.

Sat, 09/19/2015 - 16:29 | 6569738 yogibear
yogibear's picture

With 10,000 baby-boomers retiring daily it's demographics.The Fed can't stop that.

Include the aging Japanese and you get an idea of the demand for the nexct 5 years.

All the refugees from Syria isn't going to make a difference.

Sat, 09/19/2015 - 16:50 | 6569777 who cares
who cares's picture

Peter is again number one! He applies a simple logic: Real Wealth and Growth cannot be created by printing money, the rest follows if you believe in the contrary. The USA, Europe, Japan and company have started a process that has taken its own life. Only a catastrophic occurrence can stop it, otherwise it will lead to its logical ending: depression.

Sun, 09/20/2015 - 10:09 | 6571145 GreatUncle
GreatUncle's picture

It's worse if all the printing expanded the bad debt area ... oooops! There was no way to ring fence good areas to stimulate so you end up worse of in the long run.

The coming depression will be this expanded bad debt that will take decades to clear if ever.

Sat, 09/19/2015 - 17:49 | 6569921 polo007
polo007's picture

According to Bank of America Merrill Lynch:

https://app.box.com/s/2x1jqc1901tv8v00mbqnqjfbu8rrqzzp

The HY Note

Global growth concerns spread from us to Fed

A slow moving train wreck

Today’s Fed decision was the second worst outcome for risk markets, in our view. We have written on numerous occasions that if the Fed didn’t hike rates today initially markets would rally modestly before selling off. The realization that global growth concerns are not only real, but very dangerous right now should cause a risk off environment. And with no room to cut rates, we question the Fed’s ability to manage any further slowdown through what would have to be QE4. However, we can’t see how additional quantitative easing will help, as the goals of QE have already played out: the banking system has recovered, rates are low, investors have driven debt issuance and asset prices to uncomfortable levels, and the housing market has recovered enough to not be a concern.

Furthermore, lower rates don’t help high yield at this point. Whether the 10y is at 2.20% or 2.0%, does the asset class really look all that more compelling? Not in the slightest. In fact, outside of hiking while sounding very hawkish, not hiking and sounding very dovish while expressing concern about the global economy may be the worst thing that could have happened today.

We have been saying for months that the global economy is weak and the Fed’s dovish disposition today only bolsters our view. Europe is about to enter QE2 as inflation and growth remains poor. Japan and Brazil were just downgraded. Commodities remain   under pressure and we think, at some point, the narrative could turn from a supply driven story to a demand driven one. Domestically it becomes harder to argue that a strong dollar and the lack of inflation can be viewed as transitory and this headwind is continuing to hurt high yield corporates. Manufacturing is uneven, consumer spending hasn’t improved in a year, and 2014 real median income was down 6.5% versus 8 years ago (and down 7.2% from the 1999 level). Although auto sales remain strong, we would expect as much given low gas prices, an aging fleet and the fact that auto loans are one of the few places in the economy where it’s easy to obtain credit.

Additionally, high yield corporate earnings remain incredibly weak, with yoy earnings growth negative for the first time since the recession (even ex: commodities EBITDA growth is only slightly positive). Leverage is at all-time highs (again, even ex- commodities) and the High Yield index is more globally exposed than it has ever been (35% of the market generates 45% of its revenue from outside of the United States, and that doesn’t include Energy, which is globally exposed despite not realizing significant direct sales abroad).

Not only are earnings weak, but there has been next to no capex investment, debt issuance has been massive, and buybacks and dividends have driven equity valuations as CEOs and CFOs, afraid to invest in organic growth, have chosen to buy growth instead. And as a result, recovery rates are 10-15ppt below historical norms and defaults and downgrades are creeping into the market. Although we understand many will say its just commodities, is it really? What started as coal weakness 18 months ago became coal and energy weakness. But it wasn’t really just the commodity sectors, as retail was also already weak. Now it’s the commodity sectors, retail and wireline (but definitely not all of telecom). The situation almost seems unbelieveable, as everything that seems to go wrong is explained as being isolated (AMD, well, of course semiconductors are in a secular decline) and treated as a surprise (Sprint).

In our view, the makings are there for a risk off environment for some time to come. For non-commodity spreads to be 400bp tighter than in 2011 makes little sense to us. Replace Greece for a much bigger problem: China. Replace Washington dysfunction and debt downgrade with uncertainty about monetary policy and EM weakness (though we may see Washington dysfunction very soon between this fall’s budget talks and the presidential race looming). Replace US QE with European QE. Additionally, replace   strong earnings growth and margin expansion in 2011 with no earnings growth, a stronger dollar, and higher leverage today. Replace decent liquidity back then with poor liquidity now. And replace the fears of a double dip recession with the potential for fears of a global recession. Though this last point has yet to play out, we think it’s only a matter of time before investors begin to feel as bearish as we do.

The Fed had an opportunity today to hike rates and begin to build a cushion should the global slowdown be so severe it can’t be ignored. Instead, they chose to wait. In our view, this has left them in a predicament as now the rumbles of never being able to increase rates will become even more exaggerated, and when they ultimately do, we think it will be more painful than if they had gone today. We expect as a consequence for there to be more market volatility, more uncertainty around the Fed’s motives and belief in the economy, and therefore more downside risk. Most importantly, however, the acknowledgment of weakness only bolsters our view that we are in the midst of the beginning of the end of this credit cycle, and we warn investors to tread carefully not try to be a hero into year end.

Now is the time that investors need to be managing risk rather than looking for alpha. 1 or 2 names will destroy the performance for what has otherwise been a good set of holdings. Remember what many have forgotten over the last 7 years, credit returns are skewed to the downside. The best case scenario is to earn coupon and the ultimate payment of principle. The worst case scenario is 40, 50, 60 or more points of loss.

We’re in the midst of watching a slow-moving train wreck, and in our view the Fed confirmed as much today.

Sat, 09/19/2015 - 17:54 | 6569943 khnum
khnum's picture

wonder if back in 72 the Chinese could see they were going to be the biggest bubble to be blown,busted and looted by the banker robber barons in history

Sat, 09/19/2015 - 18:30 | 6570033 luna_man
luna_man's picture

 

 

A corner indeed, CRIMINALS have entered and the citizenry can't help to be hopeful.

 

remember, it's the american dream we crave that keeps this bubble growing

Sat, 09/19/2015 - 18:57 | 6570093 tarabel
tarabel's picture

 

 

I wish well-intentioned people would stop lumping me into their "we" categories. Not banging on you, but this just seems like the place to make the observation.

The individual citizens are not obliged to move as a herd in any one direction. The true American Dream is to blaze your own trail even if nobody else sees the value in it. Mine took me way out of the city onto a bought-and-paid-for ranch with a well and soon-to-be-operational solar electric system. How that helps produce any gross collective national financial bubble is beyond my comprehension.

But yes, there are criminals busy in the corridors of power. I don't want anything from them and I wish they would leave me alone-- which they pretty much do. Too busy working their urban tax farms to go out into the barrens looking for nickels, I suppose.

Sat, 09/19/2015 - 18:49 | 6570076 GM_Man
GM_Man's picture

I still remember Scott Nations comments during that interview.  He was acting quit Trump-like in his self-affirmed position of horses ass.  As I commented then, Why did they even invite you onto the show if not to explain your position?  It was obvious that they felt threatened then and their silence now (Where is Scott Nations meme?) is so loud that it is a wonder that anyone would even bother to view them any longer.  They lost crecibility along with their professionalism on that day.  IMHO of course...

Sat, 09/19/2015 - 21:55 | 6570418 rejected
rejected's picture

Money is like oil in an engine. Oil is the lubricant in an engine. Money is the lubricant in an economy. Not enough oil or too much oil and the engine will seize. Pour in a low quality oil,,, as is our case,,, again the engine will seize, only it will take longer. Now, pour in the correct amount of high quality oil and the engine will purr for a very long time. 

You don't need algorithms, complicated formulas or PhD's  to figure that out. Just good old common sense,,, which seems in short supply these days.

Sun, 09/20/2015 - 01:11 | 6570737 honestann
honestann's picture

For some odd reason, I feel like poking fun at myself.  It seems I'm batting 500.  Years ago I said in ZH the federal reserve would never raise rates, so, got that one right.

But I was also sure Bernanke would be replaced by Paul Krugman, so, got that one wrong.

So I guess we can't make an honestann was right video for youtube.

Aw, sucks.  I really did think they'd choose Krugman.

Bummer.  No, wait.  What am I saying?

Hmmm.  Yeah, bummer.  Better to get the collapse over with the sooner the better, which surely Krugman would have done faster than anyone else (that I can think of).  Now that I think about it, maybe that's why they didn't choose Krugman... they want to kick the can down the road as long as possible.  Now why didn't I think of that before?  Oh well.

Sun, 09/20/2015 - 08:35 | 6571008 Harry Balzak
Harry Balzak's picture

Janet's a dipshit meat shield.  She is one of the few with a decent resume (on paper) that is also clueless enough to accept the job.  Anyone genuinely qualified is smart enough to know it's a blindfolded jump off a high-rise--it's thriling at first, gets you a lot of attention, but you know it's going to end with a splat.  You just don't know when.  She'll take the bullets as Krugie and others hide behind her. 

Wouldn't be surprised if Krugie was offered the position and turned it down.  Krugie knows Keynesianism is bullshit.  Like all good sociopathic sophists, it's not about 'truth', but obtaining a prominent and lucrative position espousing tripe that can be used by politicians to perpetually avoid accountability.  That's his product, and it's immensely valuable.  

What could be more lucrative for an economist than embracing a pseudo-ideology legitimizing government management of everything?  That is, until the system fails.  

His fatal mistake will be assuming he's part of the aristrocracy when the system comes apart.  

 

Sun, 09/20/2015 - 22:41 | 6572636 honestann
honestann's picture

Yes, won't the look on Krugie's face be priceless... when the mobs skin him alive?  Oh yes, that poster will hang on a great many walls after SHTF.

But, there is something appealing about the term "Feddie Kruger".  Surely that would become his pet name if he was elected chairman of the federal reserve.  After all, he would proceed to shred the world economy to pieces.

Hopefully a great many predators-that-be think they are on the list to get a spot inside the Valhalla Sector... but aren't.  What's that place called?  Mount Weather or something?  I can never remember that name for some reason.

Mon, 09/21/2015 - 04:04 | 6573681 Harry Balzak
Harry Balzak's picture

LMFAO!  Feddie Kruger.  This should be your youtube video.  

"Hopefully a great many predators-that-be think they are on the list to get a spot inside the Valhalla Sector... but aren't."

Oooo...there you hit it...from the perspective of low-level or peripheral players this is THE big problem with American oligopoly/aristocracy .  Way too much uncertainty.  

In the past it only affected the elected, their political appointees and close advisers/staffers.  Now, it permeates the economy and culture much deeper than ever before--right down to state gov full-timers at the assitant executive level (pretty low on the totem pole) and even backwater county governments.  The fedgov provides direct subsidies to so many entities to keep them on a short leash.  It works very well. Little podunk governments actually compete for and embrace federal intervention/ manipulation!

Players in these peripheral environments squander small budgets of a few million dollars while pretentiously strutting around cube farms, convincing themselves they are significant while believing they are respected.  I'll tell you, Ann, many of them are nearly unintelligible and illiterate.  They'll be the most rudely awakened.  

It's not surprising why this happens.  Allgov (fed/state/local) has spent 110 trillion since 1983 on just this sort of thing.  For all the waste it eventually has an effect, mostly establishing itself with funding and staffing mechanisms to expand/entrench fascism.  One thing gov employees can do is protect themeselves with bureaucracy.  

I'd love to see it unravel, but not more than being free. 

Sun, 09/20/2015 - 01:36 | 6570760 My Days Are Get...
My Days Are Getting Fewer's picture

For some at this portal, fatigue is setting in.  Damn this shit - I don't want to follow anything anymore.

It is time to put your hand on a hot stove and become reacquainted with the second degree burn.

If you stop being prepared, the day will come when the events will seem like a bolt of lightening has ripped up your ass.

Stay curious my friends.  

Sun, 09/20/2015 - 10:02 | 6571134 GreatUncle
GreatUncle's picture

In 2008 they should have let the bad debt / malinvestment collapse. Instead they created a liquidity junkie that without stimulus is the walking dead. Then we end up where we are today where a larger and larger portion of any stimulus is now being used to support the malinvestment because it has grown in size instead of being cauterised.

Options people, options ... In basic terms for the FED it ends in one of these stimulus,stagnate or tighten.

1.) Simulus , keeps growing the economy and the faster growing malinvestment, real growth has been swamped by this if not destroyed leads to 2.).

2.) Stagnate, do nothing you find the malinvestment grows even though the economy is at 0% growth, its the return on investment, the rentier economy,interest etc.. The FED can set 0%, ordinary people still have to pay this rentier existence not privvy to the free liquidity handouts.

3.) Tighten raising rates, well you will be hated under 1.) & 2.) anyway but under 3.) you put a line under all that malinvestment THAT SHOULD HAVE OCCURED IN 2008.

1.) & 2.) are the same just a different timeline and 1.) becomes 2.) anyway or 3.) puts a line under the ever growing malinvestment and allows real growth to occur.

Sun, 09/20/2015 - 11:53 | 6571388 theyjustcantstop
theyjustcantstop's picture

I was not surprised with yellens no rate increase, her words were very re-affirming to me.

when nipr came out of her mouth, my thinking seemed to be on track, ecb's what ever it takes qe, got thier nirp within 2yrs.

there's been a war on Americas savers since 1913, when american politicians advocated their sworn oath to uphold the constitution, and turned americas monetary policy over to foreigners, and politicians have never changed it, it pays to good to change it.

it's  not made public very often, and probably never mentioned in public school but it took those forgieners exactly 20 yrs. to BANKRUPT america.

it should be mandatory reading, google 1933 Americas bankruptcy.

til  my dying day I believe, all ss withholdings, which started in 1933, til present went to the wolrld bank, imf, the BIS, as bankruptcy negotiated payments.

 

every ivy-league economist is taught in the first semester of their freshman year, the economy is ruined by those who save, and don't borrow.

then they spend the rest of their schooling, and life scheming with politicians how through legislation, they can legalize theft from Americans, of course amassing huge amounts of money for themselves, and crony politicians.

why would the foreigners who control Americas monetary policy rock the boat, they don't want to kill the host their slowly bleeding dry. and all the blood money is going where they want it to go.

 

 

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