For at least the past 40 years, the American economy has been a smokescreen of heavily rigged markets and financial manipulation, compliments of the private Federal Reserve banking cartel. Whenever the money masters see that their financial Ponzi scheme is faltering or on the verge of failure, they flood the economy with stimulus money, screw around with interest rates, and generally kick the can of collapse down the road.
Every so-called "recession" since 1981-82 has not truly been the real thing as recessions have effectively been outlawed by the powers that be. Monetary policy is such that the American "free market" economy is never truly allowed to correct itself because the Ponzi Protection Team is always right there to rig it back up again.
Each time this happens, the bubble economy grows larger and larger. Eventually it will pop no matter how they try to rig it, and the longer they play the boom-and-bust game, the bigger the inevitable bubble burst will be.
"Massive 'emergency' stimulus that became permanent policy has created a bubble economy in which low interest rates and unlimited credit for those who are more equal than others has sparked demand for income-producing assets, which then sparked a speculative mania," writes Charles Hugh Smith from the OfTwoMinds blog.
"We've habituated to both the bubble economy and the speculative mania so that these are now considered normal. But behind the comfortable normalization, something counterproductive has taken hold: we're now addicted to the bubble economy and its crazed twin, speculative mania. If the bubbles pop and speculators go broke, the economy and financial system will both implode."
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(Related: Did you catch what intelligence expert and whistleblower Jeffrey Prather had to say about the coming total financial collapse, which will be followed by the Mark of the Beast?)
Housing bubble a product of Fed's market socialization efforts
If we had a true free market economy, there would not be endlessly printable fiat currency, for one. Capital would also have an actual cost attached to it, effectively preventing a bubble economy from ever forming in the first place.
"Without ZIRP (zero-interest rate policy), capital actually has a cost, and the bubble economy cannot survive if capital has a cost," Smith says. "Once capital has a cost, then speculation becomes risky, and speculation cannot survive if risk actually has a cost."
"Having made unprecedented, permanent stimulus the bedrock of the economy, there's no stopping the runaway train: should the bubble threaten to burst, the only possible response is to push stimulus to new extremes. These new extremes become normalized and once normalized, the counterproductive internal dynamics of these extremes are conveniently ignored."
Contrary to popular belief, the United States has a socialist economy, not a free market one. The current housing bubble is a product of the Fed buying trillions of dollars of mortgage-backed securities, which is socialism that benefits property owners at the expense of renters – but it keeps the Ponzi scheme intact, so it persists.
Once the Fed reduces interest rates back down to zero, which is coming, "doom spending," as Smith calls it, will once again commence. The runaway train of endless money creation will trigger more inflation, eventually followed by hyperinflation and total collapse.
The rich will get richer while the poor get poorer until the house of cards inevitably crumbles. Because the can has been kicked so many times, the coming collapse will be massive.
"Rather than guarantee the permanent expansion of all the good things, outlawing recessions guarantees a monster recession as our innate ability to normalize extremes and slip into blissful complacency will shatter in unexpected ways," Smith warns.
"Those who came of age after 1982 have never experienced a real recession, and so they're unprepared for anything other than guarantees of rescue and permanent expansion."
No matter how they try to rig it, the current financial infrastructure will eventually implode – the question is: when? Find out more at Collapse.news.
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