Fed to Blame for Stock Market Selloff?

0
400

The New American: The first selloff in early October was triggered by the rise in the 10-year Treasury note — which jumped from 3.06 percent to 3.26 percent in just three days. This is the Treasury security most sensitive to changes in the Fed Funds Rate, the primary lever the Fed has in its arsenal to cool off the economy.

That was the early warning that the party was getting too noisy and something had to be done about it. Wall Street reacted with a 500-point sell-off on the Dow on Friday, October 5.

The market began to rebound, gaining back much of the loss, when the Commerce Department dropped its bomb: Housing starts were off because of — guess what? — rising interest rates.

It didn’t matter that 80 percent of the S&P 500 companies reported earnings exceeding expectations. It didn’t matter that unemployment is at decade lows, or that real wages were rising. The Fed has determined, in its infinite wisdom, that the party was getting too rowdy. It was long-time Fed chairman William McChesney Martin who said that the Fed’s job is to “order the punch bowl removed just when the party was really warming up.” A more accurate assessment is from Rudi Dornbusch, the German economist who spent most of his working life in the United States, who said bluntly: “None of the U.S. [economic] expansions of the past 40 years died in bed of old age; every one was murdered by the Federal Reserve.” more …

Opinion: Former Senator Ron Paul, who tried unsuccessfully for decades to audit the Fed’s books, said this:

“The Fed is both corrupt and unconstitutional. What most people don’t realize is that the Fed — created by international bankers such as the Morgans and Rockefellers at a private club off the coast of Georgia — is actually working against their own personal interests. Until that happy day when the Fed is abolished, citizens, taxpayers, workers, and investors will have to navigate their economic futures that are being manipulated by the Fed.”

The Federal Reserve controls short term interest rates. Doesn’t sound like much until you realize that the entire US economy revolves on them. Raise them too much and business slows down – lower then too much and business takes off.

On October 3, Fed Chair Jerome Powell said ‘rates are a long way from neutral’ putting fear in institutions that the Fed was ending the market rally with significantly higher interest rates.

The Fed did no such thing under the last president.

It was a decade of zero interest rates that made Obama look like he actually had a clue how to run a $19 trillion dollar economy. Want proof?

But zero interest rates were not all Obama enjoyed. Then Federal Reserve Chairman Ben Bernanke instituted quantitative easing (money printing) creating $4 trillion counterfeit dollars to bail out the banks.

I believe what we are seeing is a mini-foreshadowing of a financial collapse (Rev. 6:5-6) to come. After the church is removed (1 Cor. 15:51-51; 1 Thess. 4:16-18) and the final dictator arrives (Rev. 6:1-2), the all powerful US Federal Reserve (Fed) and its cousin the European Central Bank (ECB), will be under the control of one man (Rev. 13:1-2) to do as he pleases (Daniel 11:36), even creating a single global currency (Rev. 13:15-17).

Yes, Virginia, private corporations run by men called Central Bankers are that powerful.