Something very strange happened when KWN was interviewing Michael Belkin, the man who advises the largest sovereign wealth funds, hedge funds, pension funds and institutional money in the world. He was asked what he was saying to his clients that oversee the biggest money on the planet in London, Tokyo, New York, and elsewhere in Europe, Asia and North America as well as how gold would benefit in this cycle. The KWN staff had multiple copies of the audio interview and on different computers the staff tried everything possible to rescue Michael Belkin’s response but in the end it was clear that the powers that be had made it impossible for that portion to be broadcast across the globe. It had to be completely deleted. Fortunately KWN was able to reach Michael Belkin and he shared what the powers that be did not want the public to hear. Here is what Belkin warned is coming:
What The Elite Did Not Want The Public To Hear
Deleted warning from Michael Belkin’s KWN audio interview: “The Fed kept the Fed funds rate at zero percent for eight years (2009-2017) for no reason. Now they are raising the Fed funds rate at a snail’s pace — 25 basis points — 3 or 4 times a year. Starting from zero, they will never get the fed funds rate high enough to start cutting it before the next recession. In the last two recessions, the Fed had to cut the fed funds rate by 5% (500 basis points) to get the economy to turn around, from 6.5% to 1% (Dec 2000 to Jul 2003) and from 5.25% to zero (Sep 2007 to Dec 2008). With the current fed funds rate at 1.25%, the Fed has little room to cut rates when the economy hits the wall. The Fed wants to get rates up to 2%-3% before the next rate cut cycle starts. Got that? The Fed is raising rates to cut them and reducing its balance sheet to expand it. Let that sink in.
The Fed’s Worst Nightmare
They waited way too long to cut rates and a (business cycle) contraction will force their hand into a policy reversal. The Fed’s worst nightmare is causing a depression via a too-tight monetary policy. The Fed probably wants to cut rates by 5% in the next recession, which is inevitably coming. The current US expansion is now 103 months long, more than twice the length of the average expansion. The economy is held up by a speculative stock market bubble that the Fed created with ultra-low interest rates. When stocks begin to trade down, consumer confidence will fall, spending will drop, retail sales will decline, companies will cut back production, unemployment will rise, etc. The Fed will be forced to ease monetary policy and cut rates again.
Bernanke repeatedly said Fed policy is 98% talk, 2% action. All they care about is creating false consensus expectations so they can manipulate markets. The Fed’s words are bullshit, designed to deceive. Behind closed doors they know exactly what I’m saying is true, that a recession is approaching and they will have to reverse monetary policy, but they don’t want you to know it. Why raise rates now? What’s the big urgency? They totally blew it, interest rates should have risen 5 years ago but they did QE3 instead. Now they are raising rates to cut them.
Fed To Lower Interest Rates To Negative 2% – 3.5%!!
Look at the numbers. The Fed funds rate stands at 1.5%. 1.5% minus 5% = negative 3.5%. Get the picture? With central bankers accustomed and entitled to any and every insane monetary policy, what’s to stop the Fed’s Powell (Trump’s low interest rate person) from cutting US interest rates to minus 3.75% and doing QE4 in the next recession? The lunatics are running the asylum….To continue listening to Belkin discuss what other market shocks and surprises to expect in 2018 as well as why gold and silver are set for a massive surge in the coming year CLICK HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: James Turk – Gold & Silver Bulls To Crush The Shorts In 2018 CLICK HERE.
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