The Entire Global Economy Now Hinges on One Thing

03/30/20168 Comments

by James Corbett
March 29, 2016

As I write these words we are now only hours away from The Most Important Event Ever to Happen in the History of the Global Economy. Investors are bracing themselves. Markets are anticipating. Journalists are spilling Olympic sized swimming pools of ink on writing headline after headline after headline after headline after headline after headline about this, the deciding economic event of our time.

If only this math actually added up.

No, the great event is not the announcement of the discovery of free energy. Or a major new technological breakthrough that will revolutionize industry and increase productivity. Or even an innovative new theory for how to pull us from the brink of the global derivative black hole collapse. It's something entirely more ordinary: words.

That's right, with just a few magic words uttered at today's meeting of the Economic Club of New York, Fed chair Janet Yellen will cause entire markets to rise or fall. A single declarative sentence could strike down a small country. An effusive adjective could cause an entire industry to boom, a disparaging remark could cause that same industry to collapse. A rising intonation, an arched eyebrow, a significant pause, even a semi-colon could be the difference between rags and riches for millions of workers around the world.

Just imagine what she could do with a dangling participle.

Sound ridiculous? It is. Yet nevertheless this is the situation we've arrived at.

As I've noted before time and time again in this column, we have entered the "New Normal" where fundamentals do not matter at all, only perception. Do you believe the Fed has solved the market meltdown of '08? Then they have solved it. Do you believe the skyrocketing debt and geyser of excess liquidity created in the last decade are not a problem? Then they are not a problem. Do you think Janet Yellen can speak rising stocks or a falling dollar into existence? Then she can.

The long story short: the MSM has been playing up the idea of a "Fed revolt" in recent weeks. Don't get your hopes up. Sadly, this revolt has nothing to do with an angry public finally learning the truth about the Federal Reserve and running the banksters out of town.

Although such a revolt is fun to think about.

Although such a revolt is fun to think about.

Instead, it's to do with Yellen's much-scrutinized remarks at this month's Federal Open Market Committee press conference. After the remarks were run through the usual round of tea leaf reading and innard scrying, it was decided that Yellen was telegraphing a slow down in the rate hikes that the Fed had been projected to engage in this year. In the last couple of weeks, four of the 17 FOMC members have spoken out of turn to say they disagree with this approach and will be voting for or advocating a quicker rate hike schedule, with the first one as early as next month.

So at today's meeting of the Economic Club of New York, where Yellen will be giving an address, markets around the world are on the edge of their seat to see if Yellen will maintain her dovish stance on the Fed's monetary approach this year or if she will adopt to the bear's advanced schedule.

If you don't believe me that this is a Big Deal that is Driving the Global Economy right now, just look at any of the major financial rags in the last 24 hours. They have explained rising European stocks and sliding futures and a strengthening dollar and easing gold and modestly lower American stocks and who knows what else on the mere anticipation of Yellen's speech today.

Maybe her speech will explain how this guy ever got a TV show

Maybe her speech will explain how this guy ever got a TV show

Of course, Yellen is not the first person to have this seemingly infinite power over the global economy. Bernanke had it before her. And Greenspan before him. And presumably every Fed chair before him, too. There's a reason they're called the Gods of Money and Greenspan was referred to as a Wizard whose use of the words "irrational exuberance" popped the dotcom bubble.

In this system, central bankers conjure economic reality into existence merely by speaking the words. The very essence of magic. Now it's Yellen's turn to have the power to conjure.

That would explain why she's taken to wearing this hat in public all the time.

That would explain why she's taken to wearing this hat in public all the time.

If all of this seems insane to you, then congratulations. You're right. It is insane. But in a system that has been constructed around the whims of the central bankers, this is the result: an economy where one bankster technocrat has the power to push the economy off a cliff or to keep the whole thing levitating simply by commanding it to do so.

For those looking for a solution to this situation, the answer is obvious. Run (don't walk) away from the banksters' rigged game. Every step toward disassocating yourself from the bankster system is a step away from this insanity. Alternative and complementary currencies, cryptocurrencies, credit unions, barter, P2P, community organizations, food independence. All of these things are vital steps to be taking if we ever hope to get off the craziness of the central bankster carnival ride otherwise known as the status quo.

Or you could just sit around waiting for Janet Yellen to set the world economy straight.


What could go wrong?


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Comments (8)

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  1. James,

    Thank you for the article. Very informative. The link below is likely to be of some interest to you, as it speaks directly to the BIS project to move towards a global currency like the bancor, and also addresses some of the paradoxes surrounding the move to this multilateral financial system. Short read and worth the time.

  2. Also, for CR members that would like to review the Basel III Banking Regulations of the Bank for International Settlements, follow the link below:

  3. whysoserious says:

    She has long hairs growing on her chin
    Very disturbing

  4. LiquidEyes says:

    Clearly, no amount of money will help you to buy your way out of looking like a goblin.

  5. tgmolitor says:

    The wicked witch of the Fed is “meddling with the primary forces of time preference,” paraphrasing Howard Beale in the movie Network.

    The very purpose of the interest rate in a free-market economy is to create equilibrium between borrowers, investors, and savers.

    Time is a factor necessary for production, and unique in the sense that we cannot economically allocate it like other inputs. The choice of time is always “sooner or later” and never “more or less” (as is the case with other input factors). Interest rates help us determine how soon we should consume a good, or how long a production process should be.

    Protect yourself against the consequences of an artificial rigging of the market for money. Time is being manipulated at every Fed meeting.

  6. Neo says:

    who are you?
    the global consequence of this system is willing to action all our unimportant lifes. Pls do consider: “intercontinental exchange” and leave the muppet show of FED out of considering…
    tnx for your comprehension

  7. thetimbryant says:

    Good message. This is centralization at its core. The world economy centralized on the words of one person. If this isnt a cause for decentralization, I’m not sure what else is.

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