FED HOUSE OF CARDS – THE SECRETS YOU NEED MOST
The Fed in 2007, left open a digital attack. Allowing leverage to mortgage pools and super pools of trillions upon trillions of borrowed dollars world wide a Super Bubble was created. The Fed using old models and charts fully obsolete as a new AI digital market was whirlpool sucking money into ETF and electronic trading – for the first time in history – were laws were all local to nations and electronic trades were all in the cloud without monitoring or over sight. By apply old rules the Fed became increasingly antique and obsolete as a body to regulate anything.
The Fed “is” a private stock firm owned in total secret by the banks they can’t regulate anyway. In 2008 to 2010 an economic beta to bail out BAD BETS their banks made and global banks made to save the system melting down was initiated. Tens of trillions of tax payer borrowed money bailed out BANK BAD BETS and created a new problem a SUPER DEBT BUBBLE world wide. No one knows YET how that experiment will turn out for the entire world system modeling.
During the period from 2010 to 2018 the world markets of leveraged circulation spiraled into a 440 trillion capital flow dynamic from 80% controlled by human choice and decisions in market BOX TOP RULES from 1930 to 1999. Today 90% of Capital dynamics move outside central banker control or influence by AI super money pools with AI wars spiraling ever into new frontiers that have zero history.
From 1933 to 1999 Short Super Selling to manipulate asset prices was illegal and controlled by depression laws. In Dec in the last three hours of the Bill Clinton Administration we see A ( three hours before Christmas congress break ) a UNANIMOUS VOTE OF CONGRESS to tear down all the Depression rules of law. Now unlimited leveraged margin trading would propel digital markets with AI including stock buy back manipulations – two trillion in just the USA in just 24 months with zero history to guide investors the SEC or anyone to what is really going on in real time. Without the most significant REGULATORY RE-THINK since the great depression some economists and me believe the global financial system is at risk beyond any prior period in human history.
Short Selling with AI has transformed from a hedge ( and it was always a bad idea buying stock you don’t own or pay for as you are short that stock as a side bet upon which way future markets in any and in every asset class you can name – may go in the future time frame ). It is gambling that created the Great Depression but not with global AI in consolidating money super pools – the risk today within SUPER DEBT of 100’s of trillions in the system is terrifying.
The Fed is racing to create a cushion for the next financial shock. They need interest at market rates normalized to 7% up from less than 1% over the past ten years. So they can crash it down again to preserve the system. Untold Trillions would be required by the debt allowance to do another bail out of Bank BAD BETS inside casino capitalism no longer exists from any source. The OVER LEVERAGE can sink the system. Totally. IN a week of time now with AI.
Panic creates zero liquidity we call LIQUIDITY EVAPORATION DAY or LED DAY. All AI trades to sell and no one is buying as values move from todays DOW to 6400 DOW with 100’s of trillions in world wealth lost and deflation as prices and wages crash create what we call THE GREATEST DEPRESSION of human history as a risk.
It seems to many economists and Crammer and me – that – it is wise to normalize the ten years of FREE MONEY SUPER DEBT BUBBLES world wide over say ten years versus ten months as the Fed is now doing. The Fed information is simply in error using old models that no longer apply today.
The crash of 2008 was created by a weaponized digital attack using short selling. We advised planners they had to outlaw SHORT SELLING for a short period of time ( forever would have been wise ) which in fact they actually did to stop the digital warfare attack. You can read Kevin Freemans THE SECRET WEAPON to see data and proofs for this reality not theory.
The problem is the digital weapons since 2007 have become far more mature. Far more economically lethal. As with super sonic nukes we have no defense for flash nukes to our financial trading system when digitally fired. They are being test fired off and on right now.
No one wishes to have the system fail not even those who can execute the failure as now we are all in this together. Still messages can be sent to world leaders. China can assure Trump knows a DEAL must be moderated to their needs not just the USA needs. Trump has all the cards but they can destroy the system itself and in their ( Axis of Evil ) asymmetrical warfare modeling their advisers are convicted they can win such a war with the west.
The Fed is not considering these elements of the new CASINO CAPITALISM that have no historic data to draw from – economically – the world from 2008 forward with 100 trillion of money flushing into the global system to prevent SUPER CRASH and the GREATEST DEPRESSION ( billionaires refer to globally as THE EVENT today preparing themselves and their inside circles for it ) – we go where no economy has gone before.
If one over simplifies, we have a giant PIG in the world money python ( system ). The BIG is a SUPER DEBT BUBBLE of short term debts at 1% where it is impossible to raise interest this fast and frequently – say 300% up on all loans turn over now in ten months – and rising to 500% for the turn over in 2019. Economically it can not be done in such a short time frame.
As the Fed is backward looking to charts and graphs and the new economics looking forward require new vision, discipline and rules, with greater care for UNINTENDED CONSEQUENCE of market distortion and manipulations outside any regulatory frame work in the all DIGITAL CASINO. Until a new global NO NATION LEFT BEHIND G 100 PROTOCOL is invented we are running totally blind today. The system is spiralling out of any control – can you not feel just that?
The Fed as cause agency is raising interest too high to fast to allow the DEBT PIG the SUPER DEBT BUBBLE to work out of the system. TIME. Time is the economic asset missing. Time to forge a REGULATION PROTOCOL – TIME to make profits to retire debts – say a ten year normalization over a ten month normalization. The risk is gynormous to Fed mis calculations. The majority suggest they are antique in their policy and simply wrong.
Market instability inside a SUPER DEBT BUBBLE greater than anything known by humanity disallows for errors with Digital AI trading velocities. It will take years to even begin to appreciate the moving issues of AI against AI manipulating market prices which is unwanted and not outside brilliant folks to RE-REGULATE moderating unwanted wealth consolidation and pig in python SUPER DEBTS – which over time – can work out. Time is the asset of economics to be most respected.
The Fed in fact has no urgency and can make normalization more elastic and they must or should given the MEGA RISK they are forcing upon the system right now. Also keep in mind pre election why NOW why is all this taking place pre election. If you believe election manipulation is a facebook post you are so naive. Manipulation is economic by global capital flows with AI controlling it all. We are not aware of under the table messages being conveyed right now between leaders but it is frantic to be sure.
Trump has been consistent and unyielding in messaging. Trump has FRAMED IT RIGHT such that future global system instability will hold the Fed responsible. The Fed has a zero sum game in raising interest to market instability today. The Fed gains prestige confidence and support by suggesting TIME is required to assure stability in market normalization as a core policy asset. A ten year normalization plan defines a pattern to normalization that permits the Debt SUPER BUBBLE the market is seeing in 2019 as not sustainable moving forward, against the old chart data in the new digital global casino capitalism, to which the Fed must also regard with accomodation with other central banks. The IMF and World Bank seeking stability first and prudent normalization second, would provide greater perspective of the Debt Super Bubble globally as the lenders of very last resort most impacted by error in Fed policy to rush normalization.
The house of cards is real. The Debt Super Bubble is the weight on the economic systemic. The nations of the world and their enterprise attempting to accommodate the 2019 Debt Super Bubbles they all must manage, against a soaring 100% percent interest elevation in only ten months with an equally soaring Dollar cost burden as world reserve currency are nearing a brink from which there well be in fact, no return as a zero sum game of the ultimate unintended consequence.
The new factor of DIGITAL LEVERAGE presents a potential of new economics for a digital LIQUIDITY EVAPORATION DAY whose panic as the core system seizes up entirely, globally, without customary time or any tools to recover from becomes the principle new risks moving forward in new digital economic modeling over which no human system has gone before today.
The house of cards needs re-enforcement systemically. This is NOT our fathers market place and AI controlling it all is evolving far faster than regulatory frame works. Consideration for TIME as the core economic missing asset to normalize we submit is the missing equation requiring very serious Federal Bank consideration moving forward on policy.
Submitted by: Berny Dohrmann – Investment banker economists joined by many others
Note; To see stocks submitting record all time earnings dis-rewarded with profit taking and massive price destruction is not normal or customary defining new weapons of short selling manipulations for political versus economic factors not seen in markets of the past. Consider the new history unfolding to charts never seen or experienced before. Pundits attempting to place data into old models and boxes remain increasingly frustrating in the new digital market place.