"The Fed Is Holding A Hand Grenade In The USA Bunker"

Tyler Durden's picture

Authored by Howard Kunstler via Kunstler.com,

Can you see those swans coming in for a landing on Pond USA? They’re not exactly black swans, because you knew they were out there circling, but they’re dark enough against the twilight’s last gleaming to give you the heebie jeebies.

Troubles and portents of more trouble are stacking up as we approach the Ides of March zone of financial turmoil. You must surely surmise that a debt ceiling impact, a Federal Reserve interest rate hike, and the election of a Dutch anti-EU leader all scheduled for that one day are a good start on the greater unravel to follow. Glowering in the spotlight at center stage will be President Donald Trump, designated bag-holder of the Deep State and its myrmidons. And what’s in that bag he’s holding? Just a couple of shit sandwiches and a hair shirt for his journey down the lonely road to exile. But getting rid of Trump would only leave the Deep State with a bigger problem: itself. That is, an economy and a society that can’t be governed by any means.

I think many professional observers-of-the-scene are missing something in this unspooling story: the Deep State is actually becoming more impotent and ineffectual, not omnipotent. Case in point: RussiaGate — come on, let’s finally call it that — the popular idea that Russia hacked the 2016 presidential election. It’s popular because it’s such a convenient excuse for the failure of a corrupt, exhausted, and brain-dead Democratic establishment. But all the exertions of the Deep State to put over this story since last summer were negated this week by two events.

First, there was former NSA Director James Clapper’s appearance on NBC’s Sunday Meet the Press show with Chuck Todd featuring the following interchange:

Does intelligence exist that can definitively answer the following question, whether there were improper contacts between the Trump campaign and Russian officials?


We did not include any evidence in our report, and I say, “our,” that’s N.S.A., F.B.I. and C.I.A., with my office, the Director of National Intelligence, that had anything, that had any reflection of collusion between members of the Trump campaign and the Russians. There was no evidence of that included in our report.


I understand that. But does it exist?


Not to my knowledge.

And so what to make of the RussiaGate histrionics served up by CNN, The New York Times, the WashPo, NPR, and sundry tools as Senator Chuck Schumer (D–NY)? What I make of it is a growing civil war in the government itself, and perhaps something arguably like sedition.

Second matter: this week’s release of Wikileaks’ Vault-7 trove of purloined government documents. These seem to suggest that US Intel agencies have acquired the ability to spoof any activity on any sort of computer or program that makes it impossible to track the identity of any hacker and, what’s more, gives US Intel a tool to make any party appear culpable for any given case of hacking — meaning that if so called computer hacking “footprints” had been discovered linking Russia to the Hillary-DNC-Podesta emails, those footprints could have been engineered by US Intel itself… meaning further that any so-called “evidence” of Russian election hacking could not be proven one way or the other.

Now, this might be too fine a point for the RussiaGate partisans, but I don’t see how it fails to moot the issue. The partisans are still finding other ways to propagandize. On Thursday evening, NPR ran a story about Russia breaking a missile agreement with this wrap-up from correspondent David Welna:

WELNA: Still unclear is how President Trump, an admirer of Russian President Vladimir Putin, might respond to Moscow’s defiance. David Welna, NPR News, Washington.

That lapse of newsmanship is the kind of thing that makes me (a still-registered Democrat) want to support the defunding of NPR.

All this hugger-mugger may be further mooted by the financial disorders of Spring 2017. Don’t underestimate the Federal Reserve’s eagerness in sending Trump on the road to political perdition with his shit sandwiches and hair shirt. The Fed’s board of governors knows full well that their interest rate hike could sink even the carefully fabricated Potemkin appearance of a healthy economy. It would also create more dire debt-servicing problems for the US Treasury when and if the debt ceiling problem ever gets resolved. They’re holding a hand grenade in the old USA bunker and they’re getting ready to pull the pin. Just watch.

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freewolf7's picture

They bring a hand grenade, we bring a missile.

Looney's picture

What’s more dangerous?

<<<   The Fed’s hand grenade with a rotary dial

<<<   A smartphone with a spontaneously exploding battery

Looney  ;-)

froze25's picture

A smart phone with the CIA spying through it.

DeadFred's picture

Waiting for a 0.5% rate hike. That's a grenade.

Winston Churchill's picture

I thought it was a truck full of nitro-glycerine.

I doubt Yellen has the strength to pull a grenade pin.

The planned demolition is still on course for a one world currency in 2018.

Hat tip to the Economist.

espirit's picture

That one-world currency you mention wouldn't happen to be digital currency, eh?

Excuse me while I go change my wet shorts.

DownWithYogaPants's picture

Hmmm a Kuntslur article that made sense from stem to stern.  I'm shocked!

stant's picture

Don't we have the war thingy first,? they better get a leg up

Bluntly Put's picture

It could be, maybe not the 0.5% part but the next 2 hikes. Didn't Larry Summers suggest the fed had to be able to drop the prime rate at least 2% to get any stimulatory effects? That means they have to raise it to at least 2.0%, then drop it 2% to zero, then we flatline or go negative.


Postmodern Realist's picture

Isn't this rather like using cash to pay down your credit card so you'll have more room to borrow?

HRH Feant's picture
HRH Feant (not verified) Thought Processor Mar 10, 2017 4:48 PM

The IRS has received 6 million fewer tax returns than at the same time last year. That made me smile.

Did they go Galt? I sure as hell hope so. That is how you starve the beast.

freewolf7's picture

The Fed is not the USA.

Koba the Dread's picture

That's stupid, too! The Fed owns the USA.

GunnerySgtHartman's picture

Can we launch that missile towards the Eccles building?

BigFatUglyBubble's picture

They should be branded traitors working against the interests of USA for giving massive loans to foreign entities.  Get those drones to work...

Koba the Dread's picture

That's stupid! How many missiles you got?

order66's picture

Not before one more leg higher in stocks.

Fiat Burner's picture

Hopefully they blow themselves up.

http://endthefed.org/shop/ ---> Gold accepted as payment! End the fucking Fed.

Sledge-hammer's picture
Sledge-hammer (not verified) Mar 10, 2017 4:03 PM

Sometimes we are too smart and clever for our own good.  Look not to these idiots on the high end.  We can not control what the psychopaths and imbeciles do on the high end.  But, we can take care of and control ourselves on the low end.  Thus, take care of you and yours on the low end.  Free you mind, and your a** will follow.

voxale's picture

Bring up the Holy Hand Grenade!

skinwalker's picture

When a man seems most secure is when he is vulnerable.

TeethVillage88s's picture

So what is the Trump move if TBTF and Treasury walk in and say "Mr President, we have a big problem with liquidity, shrinking markets, too much consumer credit, declining real wages and income... we need to consider options for bailouts or bail-Ins"???

- I think President Trump might ought to say well Bankruptcy and Debt Write-offs are the only way to protect the tax payers... even if it means closing banks, capital flight, banks moving off shore, or many other horrible things... We need to repair Social Security and Pension even if pension take haircuts... the people need to be able to continue to spend in our economy... the FBI & DOJ know how to do this... and we can set up Resolution Trust Corporation again

https://fred.stlouisfed.org/series/BKIRTCA641N (RTC Failures)
http://research.stlouisfed.org/fred2/series/BKFTTLA641N (all institution failures)
https://fred.stlouisfed.org/series/BKIFSCA641N (S&L failures and Assistance)
https://fred.stlouisfed.org/series/BKIFDCA641N (FDIC Failures
http://research.stlouisfed.org/fred2/series/USNUM (total Banks)

BigFatUglyBubble's picture

Nah, he'll give it to them.  Here's a hint: don't listen to his words, watch his hands.


"Signs and symbols rule this world, not words nor laws."


espirit's picture

It may already be long gone.


"There has never been a protracted war from which a country has benefited."

-Sun Tzu-

g&#039;kar's picture

Yellen is sort of shaped like a hand grenade

Due North's picture

We should be so fortunate as a people and nation that the " governors " of the Fed and all their closest family and affiliates would all gather for a group hug with a pinless grenade held close to their chest......

Aloha12's picture

'that makes me (a still-registered Democrat)...'


LyLo's picture

He's a member of a party that cheats during its own internal deliberations, and there is strong evidence it cheats in the general election which is a crime.

By continuing his membership after what was revealed over the course of the campaign, he's endorsing it. 

The Clinton/Obama axis really have destroyed that party.  You are right; it completely discredits him to say he's STILL a Democrat.  And this is from a former Democrat, btw.  (Feels like it's been a while that I've been Republican, but actually it was right after I voted for no one in the 2012 primary, and no one almost beat Obama in my state.  Really set of a lightbulb about that party for me.)

espirit's picture

"The Clinton/Obama Axis of Evil."

I think I'm gonna use that one later ;)

SmilinJoeFizzion's picture

What happens to the "market" if she sits on her hands and does jack shit. Everyone short the Ides may get their collective assholes ripped to pieces

HRH Feant's picture
HRH Feant (not verified) Mar 10, 2017 4:53 PM

I like learning new words. Had to look up the definition for myrmidon. Sounds like the perfect description for the thugs wearing black and covering their faces in Berkley.

With regard to this being "close to sedition," oh hell no, call it what it is with regard to Obama and pals: this is sedition and treason. Such acts meant summary execution in the past.

Batman11's picture

1) Raise interest rates 

2) Crash the markets

3) Blame Trump

Sounds like an idea.


Snaffew's picture

the markets are on a heroin junkie's euphoric high with or without interest rate hikes...when the heroin runs out (Fed asset purchases), then like any junkie, they will crash and crash hard until the next fix comes in.

Consuelo's picture



"That lapse of newsmanship is the kind of thing that makes me (a still-registered Democrat) want to support the defunding of NPR."


A cursory listen to a top-of-the-hour news broadcast in either television or radio media, easily identifies the 'editorial license' (read: Politicization) of nearly all subject matter - from politics to human-interest stories and most in between.    They're no longer ashamed, embarrassed or afraid to express their Bolshevism in full display.   

gregga777's picture

What group has controlled the Goldman Sachs Feral Reserve System for nearly 4 of the past 5 decades? What group, led by luminaries such as Senator Upchuck Schumer, is leading the charge to destroy Donald Trump's Presidency? What group makes up 99% of the neoconservative membership that led the United States into the disastrous wars in Afghanistan, Iraq, Libya and Syria? What group, lavishly funded by World War 2 war criminal George Soros, is behind the Black Jew Bloc that are rioting in the streets? What group uncritically supports Apartheid Israel and the Ukro-Nazi regime in Kiev?


In.Sip.ient's picture

The FEDs supposed position:


1) Raise interest rates 

2) Crash the markets

3) Blame Trump


Problem is... who gives a (!) if the market crashes???

This would just as likely win trump points with the

electorate as anything.  Afterall, it would be "the man"

giving it hard to "the men" ...


The key reason for raising interest rates is to improve

"real" investment, as that REQUIRES capital accumulation.

Real investment may not do any favors to the current

denizens of WS, but it will do wonders for Main St.

business and the new incumbents of WS. 


Seen in this light, lets see if you can figure out

why a large part of the USA might be saying

"bombs away"!!!


whatisthat's picture

Give me a break, James Clapper was sited for purgery - he is a slim bag and cannot be trusted...

Pop3y3too's picture

"Brother Maynard, bring out the Unholy Hand Grenade of Antitrump!"

loveyajimbo's picture

Kuntsler is a spineless wimp.  remember during the campaign, he was crapping all over Trump... now he attacks the left and the "deep state".  How to tell this imbecile roach's opinion any given day?

Check the way the wind blows.

Ignorance is bliss's picture

Maybe Kunstler just changed his mind. When the gobalists revealed themselves and it became apparent that America would be sacrificed he probably rethought his position. No one is married to bad ideas..

FYI..I contributed to the Trump campaign and voted for him. However, I'm not married to the idea. If he betrays us, I'll turn on him.

Stormtrooper's picture

Come on Donald.  Just do it!  Issue that general pardon to all who wish to drain the swamp.  The gears packed, magazines loaded, weapons sparkling clean and dead on target.  Tens of thousands, hundreds of thousands, probably millions just chomping at the bit to do our duty for OUR country.  Give us a 2 week blanket pardon and it will get done!

Ignorance is bliss's picture

There are two vacant seats on the Fed board. Trump can nominate people to fill those seats. It will be interesting to see if the Fed tries to act before Trump can insert his people.

TheEndIsNear's picture

Integrity used to be a thing of value.