investmentresearchdynamics.com / Dave Kranzler /
The economic reports released this morning added to the near-continuous flow of information reflecting a U.S. economy that is likely contracting, for the most part. Perhaps the only “fundamental” variable not contracting is the hot air coming from the Fed.
In today’s release of its “services” PMI, Markit explains: “The US economy is going through its worst growth spell for three and a half years…and the worst may be to come as the greatest concern is the near-stalling of new business growth.”
The core durable goods new orders index released today dropped for the 13th month in a row – Zerohedge points out that it is the longest “non-recessionary” stretch of consecutive monthly drops in 70 years.
In fact, a good argument can be made that if a bona fide rate of inflation was applied to the Government’s GDP calculations, the U.S. economy has not produced real, inflation-adjusted economic growth since 2006. Review the work of John Williams’ Shadowstats.com for evidence of this fact.
The Swiss National Bank admitted that it has spent $470 billion on currency manipulation since 2010. Given the Fed’s refusal to disclose any information about its currency swap programs – including denying all FOIA requests on this matter – there can be no doubt that the Fed has been actively funding the SNB’s endeavors. The same goes for the SNB’s huge U.S. stock portfolio, which includes insanely overvalued gems like AAPL and AMZN.
We are witnessing the western Central Banks’ last gasp at preventing total systemic collapse. The Fed et al were able to defer this event in 2008 with many trillions of direct money printing – deceptively marketed as “Quantitative Easing” – and many more trillions of direct Government income and spending subsidization. After all, a Government willing to underwrite and guarantee 3% down payment, subprime credit mortgages is creating nothing more than a form of “helicopter money” dressed in drag.
The post The System Will Implode When Central Bank Intervention Fails appeared first on Silver For The People.