Many of my articles for the Trends Journal in 2020 had a common theme: the stock market and cryptocurrencies were going higher. As predicted, both the stock market and crypto have skyrocketed, hitting new, all-time record highs as 2020 came to a close.
Another common thread in my articles has been that the U.S. dollar free fall would accelerate. Recently, the U.S. dollar hit a multi-year low versus other world currencies.
As we begin the new year of 2021, I am here to tell you again that these trajectories for the stock market, cryptocurrencies, and the U.S. dollar will continue.
Although not apparent from the “outside,” the U.S. economy is actually in full-on collapse. In the last week of December, first-time unemployment claims came in at a staggering 885,000. This follows another forecast I have warned about in my articles for the Trends Journal: the U.S. economic meltdown would get worse. Currently, the U.S. debt and trade deficits are ballooning again. This trend, which I have called correctly, will continue.
I have also written frequently that the Federal Reserve would vastly inflate its balance sheet. In March of 2020, the Fed’s balance sheet stood at $4.1 trillion. In December, it was well on its way to doubling.
The Federal Reserve’s frantic effort to inflate its balance sheet is going to continue as well. Its swelling balance sheet is causing a gigantic ripple effect across the spectrum of asset classes, and we are seeing this in real-time: the hyper-inflated stock market, record high price action regarding cryptocurrencies, and the dollar free fall.
What most people do not realize is that the Federal Reserve is funneling trillions of U.S. dollars to other central banks around the world in a mechanism called “currency swaps,” and this process is accelerating. It is, however, commonly known that the Fed is vastly inflating its balance sheet by creating cash out of thin air and buying debt. Known as “quantitative easing,” the process of the Fed buying the debt with cash created out of thin air has pushed the stock market into record territory.
This quantitative easing process is also robbing the U.S. dollar of purchasing power. The action of the Federal Reserve is creating epic distortions across the entire global financial system, threatening a total meltdown in the debt market. The Federal Reserve is desperately trying to prevent, for now, a credit freeze, which will affect the entire financial system. (A “credit freeze” is a complete lock-up of the monetary system.)
Understand that none of what the Fed is doing is by accident, nor is it a plan to fix the current system. They are deliberately attempting to bring about a global debt crisis to usher in a wholly new financial system.
Problem, Reaction, Solution
It is always the same method of control: Allow a problem to manifest itself, wait for the public reaction, and then offer a pre-determined solution.
The current actions of the Federal Reserve, in concert with other world central banks, and the distortions now existing in the markets, is, by design, all a setup.
It’s only a matter of time before the world faces a debt crisis on a truly epic scale brought about deliberately by those in charge of the financial system. These same entities will wait for the public outcry… expect pandemonium in the streets. And then they will usher in a new system, again under their full control.
by Gregory Mannarino, TradersChoice.net
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