from Birch Gold Group:

The phrase “don’t fight the Fed” is an unfortunate but popular delusion. It presupposes that the central bank has limitless power to direct the economy because it can print limitless money. I’m not sure where this idea comes from, but consider the fact that anyone today who is under 30 years old was barely old enough in 2008 to understand or care about the credit collapse. These people spent their formative years knowing only stimulus and QE. In their minds, this is the norm, and they think it always works because they haven’t yet witnessed a collapse.

I would say a better phrase for the 2020s is “The Fed is not going to save you”; the Fed is not a superhero and it does not have the power nor the inclination to protect the little people from economic folly. This should be readily apparent today, as the COVID-19 pandemic continues to spread and the central bank can’t seem to cure it with Quantitative Easing.

My position has always been that the Fed has no intention of saving the economy, only making it appear as if they care. This is evident in the fact that they created the Everything Bubble in the first place with years of near zero interest rates, then abruptly hiked interest rates into economic weakness, just like they did during the Great Depression. All it took was a few rate increases to cause stock markets to plunge in December 2018; liquidity was strangled and repo markets became unstable. Jerome Powell knew perfectly well that this would be the result; he openly discussed it in the minutes of the October 2012 Federal Open Market Committee.

The Fed ignored the decaying economic conditions of historic national debt, corporate debt and consumer debt, all the while claiming that the U.S. economy was “strong” and “in recovery” in their Beige Book assessments. The financial elites were lying. They knew they were lying, and they knew that the system was on the verge of a breakdown. What they needed was an event that would provide cover for the crash that they created, and lo and behold, the “lucky” coincidence of the coronavirus outbreak appears.

Now, all the buildup to the crash will be forgotten by the masses and the mainstream financial media. The fact that the central banks set this collapse in motion will be overshadowed by the pandemic, and the virus will be blamed for everything (alongside nationalism, conservatives, “selfish” people that want their freedoms and defy lockdowns, etc.).

To be sure, the lockdowns are the final nail in the economy’s coffin, but it was the Fed that dug the grave. For now, Fed stimulus is achieving little other than stalling the free fall of stock markets; the rest of the economy is done. The Fed knows it, but the public doesn’t see it yet.

With the word “reopen” on everyone’s minds right now, hopes are high, but it is a false hope. According to the elites own schematics for handling the pandemic, the plan is to use a kind of “wave theory” in which the economy is reopened for a short time – perhaps a month – and then closed again for another couple of months. The goal is to cause the spread of the virus in the span of that month and then use the spike in infections and deaths as an excuse to close everything down again. The public does not seem to be aware of this plan, even though it is openly admitted.

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