JD Heyes – Natural News Sept 20, 2022
The country is not only continuing to suffer economically under President Biden and a Democrat-controlled Congress, but it is now teetering on the verge of collapse, according to a billionaire funds manager who said last week he sees “cracks everywhere.”
In an interview with CNBC’s “Squawk Box” on Thursday, Barry Sternlicht, the chairman and CEO of Starwood Capital, said he believes Americans are facing a major recession if the Federal Reserve proceeds with several more rate hikes as a means of curbing inflation, which is reportedly the central bank’s plan.
“The economy is braking hard,” Sternlicht told the financial news outlet, according to the Daily Caller. “If the Fed keeps this up, they are going to have a serious recession and people will lose their jobs.”
He went on to predict that ongoing Fed rate hikes will cause “cracks everywhere” throughout the economy and in particular in the suddenly fragile housing market as prices have begun to drop, finally, after reaching record highs over the past year (meaning they were overvalued, just like before the 2007-08 “Great Recession” crash).
“This is the steepest increase in rates in history — especially since Volcker – but the background of the country today is so different than when Paul Volker was chairman,” said Sternlicht.
“Look at the housing market, [the Fed has] caused a crash of unprecedented proportions,” Sternlicht told the financial news outlet. “500,000 single family home sells, new sells, is the lowest since 1952. We are going to have a major crash in the housing market, and housing prices are going down. You are seeing housing prices correct.”
He also said an expected Fed rate hike of .75 percent at the central bank’s next meeting in October will hit middle America the hardest.
“Take the consumer that you just mentioned, he is paying higher rent. He is actually paying more for food. And he is paying more for gas,” said the CEO and investor. “They [the Fed] are attacking the economy with a sledgehammer, and they don’t need to.”
Sternlicht is not the only economic analyst who sees a dumpster fire ahead for the U.S. economy and Americans who don’t have mansions on Martha’s Vineyard.
Other analysts have said that the Fed’s actions are necessary in order to dampen demand for goods and services, which is currently driving record inflation.
“My takeaway is that inflation is nowhere near being done, and the Fed has a long way to go. The standard theory since last year has been that the Fed needs to destroy demand. That means putting people out of work. It also means undercutting the housing market. My key assumption is until we see a sustained reversal in home prices, we’re unlikely to see inflation come down significantly,” said Forward Observer’s Mike Shelby in a note to subscribers last week.
“Fed chair Jay Powell is still dealing with the ‘wealth effect,’ where Americans still feel comfortable enough to go out and spend money,” he added. “I’m not seeing demand destruction yet, and this is Powell’s big problem: as long as Americans still feel wealthy enough to go out and spend money like they have been, we’ll continue to see higher inflation.”
“I’m expecting home prices in most markets to see a substantial decline. I think recession fears will kick into overdrive as we get closer to 2023. And as we get closer, consumer demand falls, and the Fed will likely curb inflation – nowhere close to their target rate of 2%, but I do think the Fed will be able to take the edge off and get closer to 5% annual inflation,” Shelby added.
Get ready for the economic shockwave that is coming, thanks to a combination of bad government policy and overspending by Congress.
Sources include:
I wonder of it ever occurs to anyone that money is a made up thing. If you went back to the “bad” old days, money didn’t exist. Then, you were a part of a community and you did your thing and got your share of the food. Now you slave away for the rich turds that own everything, giving them all your “money” because they’re “good people” and so much better than you.
All that “economists” care about are profits, both for themselves and the “shareholders” (other rich gits). They don’t care about the workers or the workers families – they can die in a ditch if it’s more “profitable” that way.
And it gets even worse across nations. Everyone is against “globalism” because they don’t want immigrants and they don’t want to lose whatever’s left of their “culture”. But they don’t mind “globalising” all the other countries. The whole world watches american tv, eats american food, buys american “tech”, uses american websites, plants american seed in their fields and burns american oil. But that isn’t “globalism”, because the whole world turning into america wouldn’t be bad… right?
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Did the “wealth effect” cause the drastic increases in food and fuel prices we’ve seen over the past year and a half? Are people buying more food because they feel wealthy? This is nonsense.
The “wealth effect” is something very different from what is described here…it’s the effect of giving trillions in free money, created at the touch of a computer keyboard, to billionaires and corporations during the so-called pandemic. And THEY are the ones who are now spending that largesse into the economy and creating the inflation.
The middle and working classes are, if anything, purchasing fewer elective goods and services in order to provide adequate food for their families and obtain enough fuel to get to work each day. The Elites, fat on their ill-gotten freebies, are now shifting the costs of this government-sanctioned crime–and the blame–to the middle and working classes.
“If the Fed keeps this up, they are going to have a serious recession and people will lose their jobs.” .. Well, “the Fed” is owned and controlled by some international Jew gangsters, satanic Jews literally hellbent on the abject degradation and ultimately the utter destruction of everyone and everything not of their tribe of homicidal maniacs, so they couldn’t give a standing piss about triggering a recession or millions of poor slobs losing their jobs.
In fact, the demonic Jew “bankers” would actually prefer that, since it would allow them to steal the last bits of what they haven’t stolen already via their evil machinations. It would also mean they would be abiding by their criminally insane “law” which calls for the destruction of the non-Jew.
The “central bankers” need to be slaughtered for humanity to have a prayer of survival, let alone success.
> The “central bankers” need to be slaughtered for humanity to have a prayer of survival, let alone success.
Yeah, but don’t hurt any of the rich people. They’re so very important in the scheme of things. Who’d buy all the cars and houses? Who’d make up all the rules for everyone else to follow? Who’d own all the land?
Heads up on the stock market wave count. According to one elliott wave market technician, the DJIA is poised to sell off
https://danericselliottwaves.org/
https://danericselliottwaves.org/wp-content/uploads/2022/09/wlshdaily-12.png
Today, I got home from work early enough to watch Fed chairman Jerome Powell speech live. I also opened a live stock chart, so I watched the chart action while JayPow spoke. The market dropped violently just 30 minutes before his speech, rallied during his speech, then sold off at the end of the day. Such volatility is the canary in the coal mine. The market is teetering on a big sell off but the bulls are keeping it propped up.
So why is this important? Because we are about to witness the biggest stock crash in human history. So why not pay attention and witness it fully?
What did Powell say? He said very clearly the Fed is going to raise rates and fight inflation. And he said they would not lower rates early, they would continue raising rates and selling assets (QT) until inflation dropped back down to 2%. Ha! All the Fed pundits on Youtube got it wrong, they were all convinced of a Fed pivot (lower rates).
Well Virginia, if you are a monetarist, the Fed increased the money supply by the greatest amount in US history: M1 shot up like a bat out of hell:
https://fred.stlouisfed.org/series/M1SL
So good luck taming inflation! IMO interest rates are going to the moon as the US credibility and creditworthiness go into the shitter. Biden just appointed some Satanist fudge packer and Biden’s nutrition czar says Fruit Loops are more nutritious than chicken!
Biden is an unhinged lunatic, and he is doing the US Treasury no favors because he is causing a loss of confidence in the US Government.
Now I ask you, why in the hell would you lend the the USA which is 32 trillion in debt, and has no intention and NO ABILITY to pay off it’s debts in real terms. Thus a huge credit crisis is coming.
And IMO (after some meditation on this) I think the threshold for mortgage panic is 8%. Mortgage rates just got to 6.5%. When it costs 8% to purchase an overinflated home, real estate is going to crash also.
Umbra Bellator comment is spot on, now that everyone is fully in debt they are going to pull the rug out and cause the biggest crash, then when everything is down 90% they can buy it up cheap.
“Economics”–because Jews want a piece of the money whenever it changes hands anywhere in the world and on any scale
Yup, and the fake news perpetrators are putting the blame on Biden!! He’s an idiot, and can’t find his ass with either hand other than the MonkeyPox mask. The economic collapse has been going on for over 100 years and started before 1913! And soon the SHTF!!!
Solution – End the f’k’n Federal Reserve and claw back the $quadrillions pirated!!!
From the Blue Collar Thinktank (BCT).
I’m thinking Goldbacks baby.
Actual Gold currency in small denominations.
The State of N.H., Wyoming, Utah
currently recognize them, and the value
is tied to the spot price of gold.
The Federal Reserve? DOiK!
You tell me fellas –
“I’ll give you digital (101010 bit coin),
inflated Fed Debt notes (dollars), Venmo or
a Goldback for that 5-pounds of potatoes?”
Think about it.
“Billionaire fund manager”
Thanks for your insight – thief.
Relax big boy – BCT says
“forgive my debt or grind your teeth over it
either way we ain’t paying”
we know this all . therefore we
dont need to be economists !
Simple–buy barterable goods, learn bushcraft, pay off your rmortgage (but make sure you have enough left for property tax!) pay off all debt (after all, your money will soon be worthless anyway…why keep it in a bank with CBDC coming?), buy enough food for a year or two, grow food-raise food, learn about naturally grown super foods (lamb’s quarter, purslane, dandelion leaves, etc.), get out of the cities…and, if you have the nerve, buy guns with cash and ammo as well, get armour piercing bullets to shoot the bodyguards, and invade the rich (just don’t eat them…do you really want to be a cannibal?) And for all you Christians out there, stop turning the other cheek, since you don’t know what it means anyway! (Did Christ so it as you think it means? Just ask the “moneychangers” He overthrew!) Get out of the system!
It’s not just the US but all countries around the world that have been had by the “owners” of the world. The financial pyramid is just as, if not more complex than understanding that it is the financial system that has brought us here into a debt that can never be paid and by design. Within this pyramid, what part of the system actually owns the means of production of debt?
The “Stakeholders” would be the ones that have incorporated every entity on earth and requires admiralty law to function as the ones that issue the bonds are the ones that are the source of a system that has never truly functioned for the benefit of anything or anyone making life irrelevant and the value of what is not theirs an “asset” in their own imaginary accounting system. Now that it is going virtual, and far beyond fiat, money moves at the speed of the ability of the computing systems but there is only on that holds the (Computer language of a multitiered set of synchronization points i.e. such as bit coin) actual master key, as shown in the movie trilogy Lord of the Rings there is one that owns them all.
Investors will be wiped out as common and preferred stock and even bonds do not guarantee any true value and the system as a whole is a sham.
More than once, I went through a whole book on economics meant for students looking for just one grain of information, but there aren’t any, because, as with physics, the plebs have to be kept in the dark and out of power