Jan 22 2017

Friday’s inuaguration marked a pivotal event in the world’s fight against Globalist plans to install a tyrannical one world government.

But Trump’s success will ultimately dependent on whether he is able to create the macroeconomic and financial conditions to revive America’s manufacturing base and prosperity.

The private Federal Reserve chaired by Janet Yellen has already declared war against Trump and his plans for prosperity by raising the interest rate for only the second time since 2008 in December.

Now Yellen has signalled she intends to accelerate the interest rate rises to reach a “reasonable” target of 3 or 4%, although she must know this increase will crush the econmy.

Yellen’s argument that rate hikes are necessary to control a heating economy are flawed. The data do not support her argument. Core inflation is just 0.1%. Core retail sales in December were falt at just 0.4% and job growth also slowed that month, adding only 156,000 jobs.

Yellen herself admitted that “the economy is growing more slowly than in past recoveries, and productivity growth, which is a major influence on wages, has been disappointing.”

“While wages improved, growth remains subdued and is still sluggish compared to a decade ago. And for all of 2016, the economy added just under 2.2 million jobs, the smallest gain for a calendar year since 2012. Many part-time workers say they would still prefer a full-time job, clouding the picture, and the labor-force participation rate, those with jobs or actively seeking work, remained near a four-decade low despite a slight uptick in December to 62.7% from 62.6% the prior month,” says the Wall Street Journal.

Yellen knows very well that her plans to raise interest rates to a staggering 3 to 4 % in this sluggish economic environment will have a very strong recessionary effect. That is why she lowered rates to 0% to try to keep support behind Globalist minion Barack Obama.

Higher interest rates mean less disposable income to spend on products both for the Federal Government as well as Americans, who have historical levels of personal debt.

It is the scale of the federal, state and personal debt, that means that even a tiny increase in interest rates can have devastating impact on the economy let alone 3 or 4 %.

“Based on these estimates we can really see the expected impact of higher interest rates on what was a substantial increase in national debt during the Obama administration. Between 2015 and 2020, the percentage of annual federal spending being diverted to cover net interest payments on our national debt is expected to grow from 6.1% to 11.1%. Ouch!”

“Over the past 75 years, the net interest paid by the federal government on our national debt has ballooned from $889 million in 1940 to an estimated $229.2 billion in 2015. Below you can see a 75-year history of just how quickly net interest payments have grown, based on data from the U.S. Office of Budget and Management (OBM).”

Especially vulnerable are Americans who have to pay artifically inflated mortgages on a low income and uncertain job market. An economic downturn could lead to a new round of foreclosures, undermining political support for Trump.

“The latest statistics from the Federal Reserve indicate consumer debt in the United States continues to increase, reaching nearly $3.6 trillion in April 2016. According to statistics published by the Census Bureau, that works out to over $11,140 in debt for every man, woman and child that lives here in the United States.

Anyone thinking that statistic isn’t alarming needs to keep this in mind: the $11,140 per person doesn’t include debt associated with mortgages.

Companies are not going to open new factories if there is no market to sell their products, no consumer purchasing power and if money for investments in production facilities costs too much to borrow.

To enter a virtuous circle of prosperity, the salaries and disposable income have to be enough to buy the goods produced. If they are too little, there is a recession. If they are too much, there is inflation.

True, Trump has promised tax cuts. But his Treasury pick Steven Mnuchin said he is in favour of collecting more taxes through the IRS by increasing staffing levels. Deductibles may also change. The net effect of the tax cuts may, therefore, be nullified.

So, unless Trump makes radical changes to monetary policy, the Treasury and Federal Reserve, America is heading into a Globalist engineered recession and Trump’s voters will feel the economic pain.