The so-called stock market crash in recent days comes in the aftermath of the January 26th record (just a week or so ago), when it reached (another) all time high, with the Dow Industrial Average hitting 26,616 points. Also, during Trump’s first year in the White House, the markets grew by more than 45 percent, yet the nefarious FISA memo arrived on Friday and all Hell broke loose. Mere coincidence, or it’s something more than meets the eye?
Some talking heads in the mainstream media are arguing that Trump trying to improve the economy by cutting taxes and deregulation are causing inflation concerns. Here’s a quote from The Guardian, a left wing outlet (emphasis added):
US stocks took a further steep plunge on Monday, with the Dow Jones industrial average dropping 1,175 points, the largest one-day points fall on record and erasing all the gains made so far this year. The drop came after another bad day on global markets as investors reacted to global equity losses overnight and concern that central banks will increase interest rates in response to inflationary pressures from surging global economies.
All the economic indicators are solid. Jobs are at all-time highs. Unemployment is at historical lows. The GDP is rising and many companies are reporting historical earnings and massive lump sum gains due to the Trump tax cuts, and the tax cuts have not even taken effect!
Peter Schiff, who correctly predicted the 2008 financial crisis years in advance, suggests that it’s the FED who is sabotaging the markets, via increasing interest rates hastily (and intentionally, I must add). Here’s Schiff via TheStreet:
“Despite its independence, the Federal Reserve may quietly want a bear market that takes down a president that loves tweeting about the stock market. I don’t know if the Fed has much love for Trump,” he said, adding that the Fed had the markets’ back during the Obama Administration.
“Maybe the Fed would be happy to see a bear market that could be blamed on Trump.” Schiff thinks the markets could easily correct 20%.”
Schiff’s assertion has a certain ring to it, just like truth does, if you come to think about it and you’re savvy with FED’s monetary policies during the Obama era. Let me quote from an article written on January 30th:
All bubbles in the economy are owned by the Federal Reserve, who is now slowly pulling the life support from the US economy by raising interest rates. ZIRP (zero interest rate policy) is now over, so is Quantitative Easing (helicopter money, the pillars of Obama’s “recovery” via fiat/cheap money), and with interest rates raising citing fears of inflation (also created by the FED via its monetary policy), the companies will not be able anymore to buy back their stock via cheap overnight loans. The era of cheap money is over, and Trump will be held accountable for the planned collapse of the US economy sooner rather than later. Just wait and see.
Since the Donald entered the White House, the Federal Reserve, which is as federal as Federal Express, has increased interest rates 4 times for a grand-total of 1%, while Barry Obama was royally served by the FED’s most generous policy ever (he only got interest rates raised once in 8 years, and that happened in 2015).
Now, if you ask me, the FED raising interest rates is seminal with regard to the motive for the market down turn in recent days. However, another (plausible/additional) motive would be the market responding to the endemic government corruption during Obama-era revealed on Friday by the declassified FISA memo. Criminal activity in Obama’s FBI and DOJ is not really news for the informed reader, but what’s new and disturbing is the new administration’s lack of action (read AG Jeff Sessions sleeping at the wheel) when it comes to dealing with Obama-era corruption.
What’s your take on it?