Zero Hedge: Back on November 7, just one day before the Russell, cryptos and most risk assets peaked for the year and perhaps this cycle, we asked a simple question yet one which the “expert punditry” immediately dismissed as it was – what else – just more conspiratorial thoughts, to wit: “Did The Fed Just Set The Stock Market Up For A Crash?”
Of course, on its face this would seem preposterous: after all, the Fed’s entire legacy over the past 13 years has been merely creating hyperinflation among financial assets (and creating the largest wealth and social divide the US has ever seen), while doing everything it could to keep real-world economic inflation subdued to avoid the risk of an inflationary meltup (like the one we have now).
Furthermore, crashing the market in a hyperfinancialized world such as this one, where the value of financial assets is now more than 6x US GDP would immediately lead to a major recession, if not outright depression.
And yet, without a sharp slowdown in the economy, one catalyzed by sharply tighter financial conditions and multiple rate hikes (yesterday JPMorgan joined BofA in predicting seven rate hikes for 2022), the runaway inflation crisis that has crushed Biden’s approval rating will only get worse until we finally reach a breaking point where the Fed will lose all control over inflation expectations, sparking what may become hyperinflation, currency debasement and collapse (as BofA warned last week) and the end of the Fed itself which will no longer be relevant in a world where a 2% inflation target is no longer applicable.
That’s why we suggested that while the Fed does want a mild recession to cool down the economy, the Fed can ill afford a full-blown market crash Read More …
Opinion: Pop quiz: Why did Joe Biden shut down America’s dominance as the world’s #1 energy producer on his first day as president?
- A. To undo every achievement of the Trump presidency
- B. To get gas prices to rise to force electric vehicle purchases
- C. To stop climate change
- D. All of the above
The obvious answer is D, and that is why $5-$7 gasoline is in our future. It is planned, and the resulting economic crash lines up perfectly with Klaus Schwab and the World Economic Forum’s planned Great Reset:
- Steer the market toward fairer outcomes
- Ensure that investments advance shared goals, such as equality and sustainability
- Harness the innovations of the Fourth Industrial Revolution to support the public good, especially by addressing health and social challenges
The hidden agenda key words ‘fairer’, ‘public good’, ‘equality/sustainability’; always result in a protected governing class that live lavishly.
“You can’t make an omelet without breaking a few eggs” or, it is impossible to achieve something without there being bad or unpleasant side-effects.
To put the 1796 adage by François de Charette in today’s language: Crush volatility, spark a huge sell-off, and inflation will go down which means assets deflate. It has to happen.
So, it just could be that the Great Reset will result in a crash of Biblical proportions:
Revelation 6:5-6 The Black Horse Rider carries scales with which to measure the comparative value of money and food
When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.”
A quart of wheat, representing one person’s food for the day, will cost a day’s wages. But many will be forced to buy barley, a less expensive food usually used for animals. Three quarts of barley will also cost a denarius, but only the 1% will still be able to afford the luxury of oil and wine. Affordable access to economic commerce will be strictly limited.
So is this it? Are we on the verge of authoritarian government and hyperinflation?
Just ask our neighbor to the north whose bank accounts are frozen:
Thanks to VS for contributing to this post