This Could Be Very, Very, Very Bad News For Trump…

The most important congressional hearing in decades will begin at 10 a.m. on Wednesday.  Attorney Michael Cohen was Donald Trump’s “fixer” for more than a decade, but now he has turned completely against Trump, and on Wednesday he is going to give the House Oversight Committee as much damaging information about Trump as he possibly can.  In fact, as you will see below, he plans to testify that Trump committed “criminal conduct” after he entered the White House.  Of all the challenges that President Trump has faced so far, this could potentially be the most difficult by a very wide margin.  If Cohen gives the Democrats enough ammunition, they will likely attempt to initiate formal impeachment proceedings.

When you are an attorney, you often learn the deepest, darkest secrets of your clients.  And normally you aren’t supposed to share those secrets with anyone, but Cohen is headed for prison and so he doesn’t really care about the consequences anymore.

If you have not been following the Michael Cohen saga closely, the following summary from Vanity Fair will help you understand how we got to this point…

For more than a decade, Cohen served as Donald Trump’s personal lawyer, business consigliere, and all-around doer of dirty deeds, as he’s put it. In early 2018, however, Cohen and his former boss found themselves at odds over an alleged hush-money scheme. Cohen quickly became the subject of a federal investigation, an infamous early-morning visit from a dozen F.B.I. agents armed with search warrants, and a constant victim of Trumpian Twitter invective. In the process, Cohen also became an unlikely, and formidable, player for the other side in the Mueller ordeal—a man with crucial knowledge about both the Stormy Daniels affair and the Trump Tower Moscow saga, who, after some time and major changes in his position within Trumpworld, was willing to spill. This impression was amplified when Cohen implicated the president under oath while pleading guilty in August to campaign-finance violations, among other financial crimes, and in November to lying to Congress. The following month, he was sentenced to three years in prison.

More than anyone else in the entire country, Michael Cohen could be the key to taking down the Trump presidency, and the Democrats know it.

Cohen spent more than 10 years taking care of Donald Trump’s problems, and now he is going to air that dirty laundry for all the world to see, and this has the potential to be completely and utterly disastrous for Trump.

We’ll see how bad it is tomorrow.  Perhaps Cohen’s testimony will not be as bad as the left is hyping it up to be.  But multiple mainstream news outlets are reporting that Cohen plans to testify about criminal actions that President Trump committed “after he assumed the presidency”…

A person familiar with Cohen’s planned testimony said he was prepared to testify about “criminal conduct” by Trump after he assumed the presidency. The person, who was not authorized to speak publicly, declined to characterize the conduct but said it happened during Trump’s first year in the White House.

In other words, Cohen could be about to give Democrats the justification that they need to try to impeach Trump.

During the 2016 election, Cohen made a very large “hush money” payment to adult film actress Stormy Daniels, and Cohen was ultimately convicted of a campaign finance violation because that money was never reported to the FEC.  On Wednesday, Cohen reportedly plans to provide documents to Congress that will prove that Donald Trump wrote a check to reimburse him for that payment “after he became president”…

Michael Cohen, President Donald Trump’s former lawyer and fixer, will provide documents to the House Oversight Committee on Wednesday that he says prove Trump’s “illicit” acts, according to prepared congressional testimony obtained by POLITICO.

The documents include a check that Trump purportedly wrote after he became president to reimburse Cohen for a hush-money payment to the adult-film actress Stormy Daniels, who alleges she had an affair with Trump. Cohen says the money came from Trump’s personal bank account.

Personally, I don’t believe that “hush money payments” should be considered “campaign expenses” that must be reported to the FEC.

But it doesn’t matter what I think.  Cohen was convicted of a crime for making such payments and not reporting them, and if these payments were ordered by Trump then Democrats believe that he is guilty of the same crime.

In addition to “criminal conduct” committed by Trump, Cohen also plans to allege that Trump “made racist remarks in front of him”

More broadly, Cohen will go into personal and character accusations against Trump, saying the president made racist remarks in front of him such as questioning the intelligence of African-Americans, according to the person.

These is no law against making such remarks, but without a doubt such testimony could be extremely damaging to Trump.

Needless to say, the Trump administration is deeply disturbed that Cohen is being given this opportunity to testify before Congress.

Cohen lied to Congress before, and Sarah Sanders told the press that it is “pathetic to see him given yet another opportunity to spread his lies”

White House spokeswoman Sarah Sanders called Cohen a “disgraced felon” and said that “it’s laughable that anyone would take a convicted liar like Cohen at his word, and pathetic to see him given yet another opportunity to spread his lies.”

In the end, Republicans that are loyal to Trump will defend the president and will try to discredit Cohen any way that they can.

On the other side, Democrats could finally feel like they have the ammunition to get rid of Trump once and for all.  If Cohen’s testimony goes the way they are hoping, I anticipate that the major news networks will be full of talk about impeachment in the coming days.

Even if everything that Michael Cohen is alleging is true, I don’t think that Trump committed any impeachable offenses.

But of course the left sees things very differently.  They have been desperate to take Trump down for a very long time, and now they may finally have their golden opportunity.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters. His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News. From there, his articles are republished on dozens of other prominent websites. If you would like to republish his articles, please feel free to do so. The more people that see this information the better, and we need to wake more people up while there is still time.

Uh Oh – Please Tell Me That The U.S. Is Not About To Go To War With Venezuela…

Is the United States about to be dragged into another pointless war that will drag on for years?  Have we learned nothing form the wars in Vietnam, Afghanistan and Iraq?  When Juan Guaido boldly declared himself the new leader of Venezuela during an opposition rally on January 23rd, everybody realized that something was up.  There is no way that he ever would have done that unless he knew in advance that the United States was going to publicly back him.  And when John Bolton appeared at a White House briefing with “5,000 troops to Colombia” scribbled on a yellow note pad, it became exceedingly clear what was about to happen.  Diplomatic pressure would be used to try to force Venezuelan president Nicolas Maduro from power, but if that didn’t work then regime change would be achieved by force.

Maduro has seen this playbook before, and he has told the Venezuelan people that if “the North American empire attacks us, we will have to defend ourselves”.  He is officially freaked out, and for good reason.

The push toward war is officially on, and over the weekend Donald Trump told CBS reporter Margaret Brennan that sending U.S. troops to Venezuela is “an option” that is being considered…

MARGARET BRENNAN: What would make you use the U.S. military in Venezuela? What’s the national security interest?

PRESIDENT DONALD TRUMP: Well, I don’t want to say that. But certainly it’s something that’s on the – it’s an option.

Yes, Nicolas Maduro is an absolutely horrible leader, but do we get to overthrow the governments of other countries just because we don’t like who is in charge?

And how would you feel if somebody else decided to attack us because they don’t like who is in the White House?

The U.S. was the first major power to recognize Juan Guaido as the “legitimate” president of Venezuela, and now the UK and most other European nations have also backed Guaido.

But Russia and China continue to back Maduro, and so that sets up a very interesting situation.

Will the western powers go ahead with their plans for regime change even though the international community is divided?

In particular, Russia has a very strong incentive to keep Maduro in power.  The following comes from Zero Hedge

“Russia is now so deeply invested in the Maduro regime that the only realistic option is to double down,” writes senior fellow at the Carnegie Moscow Center Alexander Gabuev.

He details in a Financial Times op-ed that Moscow-based state oil giant Rosneft owns two offshore gas fields in Venezuela and further has “stakes in assets boasting more than 20m tonnes of crude.” But as embattled President Nicolas Maduro faces US-led efforts to oust him in favor of opposition leader Juan Guaido, billions are on the line for Moscow making its interest in preserving the regime run deep.

So just like in Syria and Ukraine, the U.S. and Russia once again find themselves on opposite sides in a very tense conflict.

This crisis could end very quickly if Maduro steps down, but that isn’t going to happen.  In fact, he was quite defiant when the major European powers decided to recognize Guaido…

He also rejected European calls for elections, saying: “We don’t accept ultimatums from anyone. I refuse to call for elections now – there will be elections in 2024. We don’t care what Europe says.”

And he warned Trump that this will be a war that “will leave the presidency stained with blood”

“Stop. Stop, Trump! Hold it right there! You are making mistakes that will leave your hands covered in blood and you will leave the presidency stained with blood,” Maduro warned during a combative interview with the Spanish journalist Jordi Évole. “Why would you want a repeat of Vietnam?

That certainly doesn’t sound like someone that intends to throw in the towel.  Maduro has the Venezuelan military and the Venezuelan police solidly behind him, and former State Department official Eric Farnsworth thinks that it is unlikely that Maduro will leave without violence…

“If people are not prepared to take steps designed to support the nascent Guaido government, this could flop and that would be a huge setback,” Farnsworth said. “Does that mean the ultimate answer is U.S. troops? I don’t think that’s a healthy conversation to have. If Maduro wants to have U.S. troops at his doorstep, he’ll start targeting U.S. citizens.”

Farnsworth said the only scenario where Maduro is pressured to leave without violence involves Russia and China becoming convinced that Maduro’s potential successor would be better for them than the status quo and working with the international community on a transition plan. Russia and China continue to recognize Maduro, and Russia has sent aircraft to Venezuela amid reports that Maduro is looking to remove gold reserves from the country.

If the U.S. wants Guaido to be successful, he is going to need military help, and that would mean a full-blown invasion of Venezuela.

A full-blown invasion of Venezuela would be an ugly, bloody war.  Without a doubt, the U.S. would ultimately win, but global opinion would turn against us very rapidly just like it did during the wars in Vietnam, Afghanistan and Iraq.

We live at a time of wars and rumors of wars, and hopefully this will just turn out to be one of those rumors.

Because going to war with Venezuela is one of the stupidest ideas that I have heard in a very long time, and President Trump must not do it.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites all over the nation.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

The Trump Administration Is Warning That The U.S. Economy May Not Grow At All During The First Quarter Of 2019

This government shutdown is really starting to take a toll on the U.S. economy.  On Wednesday, the chair of the White House Council of Economic Advisers made an absolutely stunning admission.  We all knew that the global economy was slowing down, and we all knew that U.S. economic activity was beginning to sputter, but up until this week the Trump administration had always insisted that we are not heading for a recession.  Well, all of that changed on Wednesday when Kevin Hassett publicly admitted that we could end up with zero GDP growth during the first quarter of 2019

A top economic adviser to President Donald Trump told CNN on Wednesday that the US economy may show no growth in the first quarter if the federal government shutdown lasts much longer.

White House Council of Economic Advisers Chairman Kevin Hassett said in an interview with CNN’s Poppy Harlow that he was not overly worried about the long-term effects of a government shutdown. But after Harlow asked him if the United States could wind up with zero GDP growth this quarter, he conceded that it was possible. “We could, yes,” he said.

With much of the government currently closed, and with no end to the shutdown in sight, it is inevitable that the economic numbers for the first quarter are not going to look as good as they could have been.

But if this shutdown lasts for the entire quarter, that could easily push us into an economic contraction, and that would send shockwaves all over the planet.

And at this point there is definitely a possibility that this shutdown could go on for a couple more months.  Neither side intends to give in, and things are starting to get very personal.  On Wednesday, Nancy Pelosi made it exceedingly clear that she will not allow President Trump to deliver the State of the Union address at the U.S. Capitol until the shutdown ends under any circumstances…

House Speaker Nancy Pelosi dug in Wednesday on her call to delay the State of the Union address even after President Trump vowed to proceed with the speech next week, sending a curt letter making clear she will not allow the event to take place during the government shutdown.

Reacting to Pelosi’s letter, Trump told reporters at the White House “we’ll do something in the alternative,” suggesting a speech of some kind will still happen next week.

This truly is unprecedented.

Donald Trump is the very first president in all of U.S. history to be “disinvited” from delivering the State of the Union address.

And the hundreds of thousands of federal workers that are not receiving paychecks right now are really starting to get restless.  A lot of them have been living paycheck to paycheck, and so missing a couple of paychecks is a really, really big deal to those people.  As Marketwatch recently noted, some of them are actually “turning to food banks to feed their families”…

Within just a few weeks into the government shutdown, people are struggling to cope. We hear stories about people turning to food banks to feed their families. We hear stories about people who are in dire straits because they can’t get loans. We hear stories about people who can’t pay their mortgages. That’s not even one month into the shutdown.

If something this minor can cause such widespread pain and suffering, what would we see if a real crisis actually hit this nation?

Of course the truth is that most Americans are simply not prepared to handle much of anything, and this is a point that Mac Slavo made quite well in one of his most recent articles

Almost 60% of Americans have less than $1000 in savings for a rainy day fund or an immediate emergency. It’s been ten years since the Great Recession left many Americans jobless with no money, and it appears most have learned nothing. The government shutdown serves as a painful warning and preview for what will happen once unemployment rises from 50-year lows.  Americans are far too dependent on others, including the government, for their survival.

For now, many that are struggling financially due to this shutdown are trying to bridge the gap by going into more debt.

And if the shutdown doesn’t last too much longer, that might work for a lot of people.

But it is very dangerous to go into too much debt, and a large portion of the country has already crossed that line.  For example, one recent survey discovered that approximately a third of all Americans are “afraid they’ll max out their credit card when making a large purchase”

Despite the dangers of high-interest loans, more consumers are testing the limits of plastic.

To that point, more than 1 in 3 people —or 86 million Americans — said they’re afraid they’ll max out their credit card when making a large purchase, according to a new WalletHub credit cards survey. (Most of those polled considered a large purchase as anything over $100.)

The only easy way out of this government shutdown would be for one of the two sides to completely fold, and that would be politically disastrous for whoever decides to do that.

The battle lines have been drawn, and this political game of chicken is going to go on until somebody blinks.

And if nobody blinks for a couple more months, the economic consequences of this government shutdown are likely to be quite severe.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites all over the nation.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

On Sunday Night, A “Super Blood Wolf Moon” Will Cross Over The White House On The 2nd Anniversary Of Trump’s Presidency

Could it be possible that a “harbinger of doom” is about to cross directly over Washington D.C. on Sunday night?  Some people seem to think so, and they are pointing to passages in the Bible such as the one where Jesus warns that there will be signs in the sun, and in the moon, and in the stars during the end times.  I am sure that there will be a lot of debate about this all over America as the weekend progresses, but what we do know is that the eyes of the world are on Donald Trump right now, and a “super blood wolf moon” will cross directly over his house on Sunday night.  But it isn’t just any ordinary night.  It turns out that this will happen on exactly the second anniversary of Trump’s inauguration.  Over the past several years there have been a number of very strange “coincidences” surrounding Donald Trump, and now this is one of the strangest of all.  Could it be possible that someone is trying to tell us something?

On the other side of the planet, this eclipse won’t be visible.  For example, nobody in China will get a glimpse of it at all.  But it just so happens that this “super blood wolf moon” will be visible from every U.S. state

The lunar eclipse will be visible at the end of this month, as the Moon is coated in a foreboding red hue. This year’s eclipse is a particularly rare type of blood moon, known as a Super Blood Wolf Moon. The occasion is often marked with fear for many, having formerly been regarded as a sign of the end times. There will be few areas which escape the scarlet satellite, including the USA, where every state will catch a glimpse.

A “super blood wolf moon” is quite rare, and the next one will not happen for many years.  If you are not familiar with this term, it basically means that three lunar events are happening simultaneously

“Super Moon” – a full moon that appears bigger than normal because it’s at its closest point to Earth during its orbit.

“Wolf Moon” – a Native American term used to describe the first full moon of the year.

“Blood Moon” – the moon appears to be reddish in color during a total lunar eclipse as the sun, Earth and moon all line up.

On Sunday night, the moon will be much bigger and brighter than normal, and during the eclipse it will appear to be blood red.

And according to the Express, it will be visible in Washington D.C. for a total of 5 hours and 12 minutes…

– Beginning: Sun, January 20 2019, 21:36pm

– Maximum: Mon, Jan 21 2019, 00:12am

– Ends: Mon, Jan 21 2019, 02:48am

– Total Duration: five hours and 12 minutes

But just because this event is strange, does that mean that it has to have some sort of special significance?

Not necessarily, but many spiritual leaders are warning us to be watchful.

For example, this is what Pastor Mark Biltz is saying

“Trump was born on the night of June 14, 1946, within 15 minutes of a total lunar eclipse and 700 days before the state of Israel was established,” Biltz said. “When he was sworn in as president on Jan. 20, 2017, he was 70 years old, seven months and seven days. Also, very significantly, the super blood moon also falls on the Jewish holiday of Tu B’Shevat. Even more significant is the fact that there was another blood moon on Tu B’Shevat last year. Last year, the blood moon was seen over the Middle East, and this year, will be seen over the U.S.”

Biltz said that from a biblical standpoint, having two blood moons on the same biblical holiday two years in a row is very significant.

And in a Charisma News article about this eclipse, Rabbi Fish is warning that we are entering a time of “great human suffering”…

“This is the period we are entering now,” Rabbi Fish stated baldly, emphasizing that the Western nations are about to enter an extremely challenging era. “There will be great tragedies that will bring down governments and great human suffering. Only by doing God’s will can tragedies be avoided or lessened.”

Lastly, Pastor Paul Begley is boldly proclaiming that now is a time for urgency

During an online sermon, the preacher said: “Obviously these apocalyptic signs in the heavens are pointing to a catastrophic event that is just on the horizon.

“We don’t know when – just because you’re going to have a Super Blood Moon on January 20 and January 21, doesn’t mean on January 22 all hell’s going to break loose.

“But then again it doesn’t mean it won’t, ok, so there’s these signs that are starting to be revealed.

“The urgency folks is now. Right now, ok? The urgency has begun.”

Whether Sunday night’s “super blood wolf moon” ultimately means anything or not, the truth is that we certainly have entered apocalyptic times and 2019 is certainly shaping up to be a very troubled year.  We are in the midst of the longest government shutdown ever, the two largest economies on the entire planet are engaged in a trade war, the global economy is steamrolling toward a recession, anger and frustration are rising to dangerous levels in our society, very strange and unusual signs are happening all over the world, and the crust of our planet is being shaken by one large seismic event after another.

Global events are starting to accelerate, and it looks like 2019 is going to be quite a chaotic year.  So whatever you may believe about Sunday night’s “super blood wolf moon”, the truth is that we all need to get ready for tough times ahead.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

January 20: A ‘Super Blood Wolf Moon’ Will Cross Over America On The 2nd Anniversary Of Donald Trump’s Inauguration

On the evening of the 20th of January, a very strange phenomenon will happen.  A total lunar eclipse that has been dubbed a “super blood wolf moon” will appear in the sky above America.  The entire eclipse from beginning to end will be visible from every single location in the continental United States, but much of the rest of the world will miss out on this experience completely.  For example, the eclipse will not be visible at all anywhere in China.  Some would argue that it is just a coincidence, but it is almost as if somebody arranged the timing of this “super blood wolf moon” so that it would be seen specifically by people living in the United States.  And it just so happens that this “super blood wolf moon” will occur precisely on the second anniversary of the inauguration of Donald Trump.

Of course some of you may have never even heard of a “super blood wolf moon”.  Basically, what that term means is that a “super moon”, a “blood moon” and a “wolf moon” will all be happening simultaneously.

A “blood moon” happens during a lunar eclipse when some of the sun’s light is still able to reach the moon.  The following comes from USA Today

Although the moon is in Earth’s shadow, some sunlight still reaches the moon. The sunlight passes through Earth’s atmosphere, which causes our atmosphere to filter out most of the blue light.

Some sunlight reaches the Earth’s atmosphere, which envelops the moon and gives it the rich color.

A “super moon” happens when a full moon coincides with the moon’s orbit being within 90 percent of its closest approach to Earth, and that can make the moon look much bigger and brighter than normal

A super moon occurs when the full moon is at the closest point of its orbit to the Earth, which is also called the perigee.

That makes the moon look extra close and extra bright – up to 14% bigger and 30% brighter than a full moon at its farthest point from Earth, known as the apogee, NASA said.

Lastly, a “wolf moon” is simply “the year’s first full moon”

This will be the first lunar eclipse of 2019 and the last total lunar eclipse until 2021. It coincides with the year’s first full moon — a “wolf moon” in the folklore tradition because it occurs at a time of year when wolves howl outside villages — and comes when the moon is slightly bigger and brighter because it’s at the closest point to Earth in its elliptical orbit.

Since it’s a so-called supermoon that’s being shadowed, some media outlets have dubbed this eclipse a “super blood wolf moon.”

So is it significant that all three of these things are happening at the exact same time on the second anniversary of Donald Trump’s inauguration?  Well, Pastor Mark Biltz sure seems to think so

“Trump was born on the night of June 14, 1946, within 15 minutes of a total lunar eclipse and 700 days before the state of Israel was established. When he was sworn in as president on January 20, 2017, he was 70-years-old, seven months and seven days. Also, very significantly, the Super Blood Moon also falls on the Jewish holiday of Tu B’Shevat. Even more significant is the fact that there was another Blood Moon on Tu B’Shevat last year! Last year the blood moon was seen over the Middle East and this year will be seen over the U.S.”

In ancient times, a “blood moon” was considered to be a sign of impending doom, and some Christian leaders are pointing out that the Bible says that the moon will be an important “sign” during the times that the Bible refers to as “the last days”.

For example, the following is what Luke 21:25-28 says in the Modern English Version

25 “There will be signs in the sun and the moon and the stars; and on the earth distress of nations, with perplexity, the sea and the waves roaring; 26 men fainting from fear and expectation of what is coming on the inhabited earth. For the powers of heaven will be shaken. 27 Then they will see the Son of Man coming in a cloud with power and great glory. 28 When these things begin to happen, look up and lift up your heads, for your redemption is drawing near.”

And this is what Joel 2:31 says in the Modern English Version

The sun will be turned to darkness, and the moon to blood, before the great and awe-inspiring day of the Lord comes.

Last but certainly not least, this is what Revelation 6:12 says in the Modern English Version

I watched as He opened the sixth seal. And suddenly there was a great earthquake. The sun became black, like sackcloth made from goat hair, and the moon became like blood.

Ultimately there will be a lot of debate about what this “super blood wolf moon” could possibly mean, but at this point nobody really knows.

But it does seem very odd that it is happening exactly on the second anniversary of the inauguration of Donald Trump.  Whether you love him or you hate him, in America today it seems like the entire world revolves around Trump.  The mainstream media has been fixated on him since the moment he first announced that he was running for president, his decisions are deeply affecting the lives of every man, woman and child in the whole country, and everybody in the entire nation simply can’t stop talking about him.

Even when I write articles that have nothing to do with Trump at all, most of the comments that my readers post are still about Trump.

Many believe that the fate of the United States appears to be inseparably linked with Donald Trump, and I am sure that my readers will feverishly debate whether this is a good thing or a bad thing.

But without a doubt, 2019 is shaping up to be a very challenging year, and later this month a very strange omen will appear directly in the sky over America on the second anniversary of Trump’s inauguration.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

Is The Federal Reserve Actually TRYING To Cause A Stock Market Crash?

The Federal Reserve has decided not to come to the rescue this time.  All of the economic numbers tell us that the economy is slowing down, and on Wednesday Fed Chair Jerome Powell even admitted that economic conditions are “softening”, but the Federal Reserve raised interest rates anyway.  As one top economist put it, raising rates as we head into an economic downturn is “economic malpractice”.  They know that higher rates will slow down the economy even more, but it isn’t as if the Fed was divided on this move.  In fact, it was a unanimous vote to raise rates.  They clearly have an agenda, and that agenda is definitely not about helping the American people.

Early on Wednesday, Wall Street seemed to believe that the Federal Reserve would do the right thing, and the Dow was up nearly 400 points.  But then the announcement came, and the market began sinking dramatically.

The Dow Jones Industrial Average lost 720 points in just two hours, and the Dow ended the day down a total of 351 points.  This is the lowest that the Dow has been all year, 60 percent of the stocks listed on the S&P 500 are in bear market territory, and at this point approximately four trillion dollars of stock market wealth has been wiped out.

We haven’t seen anything like this since the last financial crisis.  This is officially the worst quarter for the stock market since the fourth quarter of 2008, and it is the worst December that Wall Street has experienced since 1931.

It is insanity to raise interest rates when stocks are already crashing, but the Federal Reserve did it anyway.

They knew what kind of reaction this would cause on Wall Street and in other global markets, but that didn’t stop them.  The financial world is in utter turmoil, and this move by the Fed has definitely added fuel to the fire.

Could it be possible that they actually want a stock market crash?

Some are suggesting that the reason why the vote was unanimous was because they wanted to send a “strong signal” to President Trump.  He has been extremely critical of the Federal Reserve in recent weeks, and this could be a way for the Fed to show Trump who is really in charge.

They are calling this “the Trump economy”, but that is simply not true.  And when Barack Obama was in the White House, it wasn’t “the Obama economy” either.  Ultimately, it is the Federal Reserve that is running the economy, and they fiercely guard their independence and their authority.

President Trump knows that the only way that he is going to win in 2020 is if the economy is doing well, and he also understands that higher interest rates will slow the economy down.

So essentially the Federal Reserve has a tremendous amount of political power in their hands.

During the Obama era, the Fed pushed interest rates all the way to the floor and kept them there for many years.

But now the Federal Reserve has raised interest rates seven times since Donald Trump took office, and four of those rate hikes have been under current Fed Chair Jerome Powell.

Needless to say, it certainly doesn’t take a lot of imagination to figure out how Donald Trump is feeling about Powell at this moment.

Meanwhile, we continue to get more indications that the U.S. economy is heading for difficult times.  Just consider the following news about FedEx

FedEx shares are plunging after what Morgan Stanley called a “jarring” cut to its annual forecasts, suggesting global growth is slowing far more than most expect – in fact, the bank hinted at the possibility of a “severe recession” unfolding – and prompting expectations of an “uber-dovish hike” by the Fed.

The global logistics bellwether slashed its outlook just three months after raising the view, reflecting an unexpected and abrupt change in the company’s view of the global economy amid rising trade tensions between the U.S. and China. Not only were the cuts were deeper than the Street expected according to Morgan Stanley analyst Ravi Shanker, but everyone is pointing to the following comment from the press release: “Global trade has slowed in recent months and leading indicators point to ongoing deceleration in global trade near-term.”

To see the term “severe recession” used in such a context is more than just a little bit alarming.

The last time the U.S. economy went through a recession, millions of Americans lost their jobs and we saw a wave of mortgage defaults unlike anything we had ever seen before in modern American history.

Are we about to go through something similar?

Earlier today, a CNN article also used the term “recession”, and it discussed the fact that investors now want big corporations to focus on paying down their debts instead of buying back shares of stock…

Fears of an economic slowdown — or even recession — have turned a spotlight on the debt that businesses piled up during the past decade, when borrowing costs were historically low.

For the first time since the Great Recession, investors want companies to prioritize paying down debt rather than investing in the future or share buybacks and dividends, according to a Bank of America Merrill Lynch survey of global fund managers.

But stock buybacks are one of the only things that has been propping up the stock market.  The only way for the bubble to continue is for corporations to go into dizzying amounts of debt in order to fund massive stock buybacks, because the Federal Reserve clearly does not intend to support the markets right now.

At least for the short-term, the Federal Reserve could have calmed the markets and encouraged economic activity by leaving interest rates alone.

In the end, they decided not to do that, and that makes one wonder what they are really trying to achieve.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.

Top Economist: “If The Fed Raises Interest Rates Tomorrow They Should All Be Fired For Economic Malpractice”

The Federal Reserve is responsible for creating the stock market boom that we have witnessed in recent years.  Are they now also setting the stage for a stock market bust?  After hitting an all-time high earlier this year, the Dow has plunged more than 3,000 points from the peak of the market, and it would appear that it would be extremely irresponsible for the Fed to raise interest rates in such a chaotic environment.  In addition, evidence continues to mount that the U.S. economy is slowing down, and everyone knows that raising interest rates tends to depress economic activity.  So it would seem that it would not be logical for the Federal Reserve to raise interest rates at this time.  In fact, economist Stephen Moore told Fox Business that if the Fed raises interest rates “they should all be fired for economic malpractice”

“The Fed has been way too tight. They made a major blunder three months ago with raising the rates. It’s caused a deflation in commodity prices. And I will say this, David, if the Fed raises interest rates tomorrow they should all be fired for economic malpractice.”

If the Federal Reserve raises interest rates and indicates that more rate hikes are coming in 2019, it is quite likely that the markets will throw another huge temper tantrum.

But as Jim Cramer has noted, if the Federal Reserve make the right choice and leaves rates where they currently are, we could potentially see a significant market rally…

“Today was a dress rehearsal for the kind of rally we can get if the Fed does the right thing tomorrow and repudiates the idea that we need a series of rate hikes in 2019, not just one more tomorrow,” Cramer said Tuesday. “If we get the Fed on board, expect more positive action like we had this morning before the market gave up much of its gains.”

Unfortunately, there is a factor that is complicating things.

In recent weeks, President Trump has been extremely critical of the Federal Reserve and Fed Chair Jerome Powell.  If the Fed decides to leave interest rates where they are, that could be interpreted as them giving Trump exactly what he wants, and it is likely that they do not want to be viewed as siding with Trump.

This is yet another reason why we need to end the Fed.  The Fed has become just another player in the game of politics, and the truth is that the Federal Reserve is a deeply un-American institution.  Our founders intended for us to have a free market capitalist system, but instead we have an unelected panel of central planners setting our interest rates and running our economy.

Since the Federal Reserve was created in 1913, there have been 18 major economic downturns, and now we are heading into another one.  Central banking manipulation endlessly causes boom and bust cycles, and hopefully this time around the American people will finally decide that enough is enough.

As losses on Wall Street mount, hedge funds are starting to go down like dominoes, and that is going to cause huge problems for some of our largest financial institutions.  For example, we just found out that Citigroup could potentially lose 180 million dollars due to bad loans that it made to a prominent Asian hedge fund

It’s not just hedge funds that are blowing up left and right: so are the banks that are lending them money.

Citigroup is facing losses of up to $180 million on loans made to an unnamed Asian hedge fund which saw major losses on its FX trades Bloomberg reports citing a person briefed on the matter. The hedge fund and Citi “are in discussions on the positions and how they should be valued” which is usually a bad sign as when it comes to FX the mark to market is, at least, instantaneous. Bloomberg adds that the situation is fluid and the eventual losses may end up being smaller depending on how the trades are unwound.

We haven’t seen anything like this in 10 years, and if the Fed raises interest rates this new financial crisis could begin to escalate quite rapidly.

At this point, even former Fed chair Alan Greenspan is urging investors to “run for cover”

The former Federal Reserve chairman who famously warned more than two decades ago about “irrational exuberance” in the stock market doesn’t see equity prices going any higher than they are now.

“It would be very surprising to see it sort of stabilize here, and then take off,” Greenspan said in an interview with CNN anchor Julia Chatterley.

He added that markets could still go up further — but warned investors that the correction would be painful: “At the end of that run, run for cover.”

The markets were calmer on Tuesday because everyone was kind of waiting to see what the Fed would do on Wednesday.

The decision should be obvious, but unfortunately things are never that simple.

We live in very uncertain times, and the shaking of our financial system has begun.

Get Prepared NowAbout the author: Michael Snyder is a nationally-syndicated writer, media personality and political activist. He is the author of four books including Get Prepared Now, The Beginning Of The End and Living A Life That Really Matters.  His articles are originally published on The Economic Collapse Blog, End Of The American Dream and The Most Important News.  From there, his articles are republished on dozens of other prominent websites.  If you would like to republish his articles, please feel free to do so.  The more people that see this information the better, and we need to wake more people up while there is still time.