Economic Contagion? Central Banks Are the Real Culprit

The mainstream news has been awash lately in talk over the danger of economic “contagion,” primarily due to lack of dollar liquidity in emerging markets. This lack of liquidity is being pegged as a trigger for instability in stocks, bonds and forex markets around the world, and this time around it is the nation of Turkey that is being called a potential trigger for a fiscal domino effect spreading through multiple countries.
by Brandon Smith
We have heard talk of “contagion” before. Not long ago, Italy’s political shift toward a supposedly populist government led to fears of debt contagion within the European Union; this is still a valid concern, just not for the reasons the mainstream financial media usually presents.
The issue of contagion must be examined through a different set of parameters besides those shoved in our faces by the financial media. In their world, everything is a matter of unpredictable cause and effect; everything is random and coincidental. Everything is chaos waiting to happen, and when crisis does strike, all can be blamed on a set of unrelated but interconnected scapegoats.
They will claim it was the “populists,” conservatives, conservative philosophy or the notion of national sovereignty. Or they will blame it on even more abstract concepts of “human greed” and “individual selfishness.”
These excuses for unstable systems and disasters stem from a propaganda ploy developed by DARPA called “Linchpin Theory.” It is the widely promoted idea that human systems collapse “naturally” when they become “too complex,” and all it takes to start this collapse in motion is a single well placed “linchpin” pulled at the right moment. In other words, DARPA wants you to believe that there is no such thing as organized conspiracy and that all disasters are caused by chance.
I wrote extensively about this subject in my article “The Linchpin Lie: How Global Collapse Will Be Sold To The Masses,” published in 2013.
Of course, the linchpin idea and the notion that overcomplexity is to blame for all the world’s ills helps globalists greatly. For if human systems need to be streamlined or “simplified”, what better way to do this than to get rid of sovereign nation states, governments and economies and centralize everything down into a one world economy, a one world government, a new world order?
What linchpin theory ignores is the careful strategic planning required to position all the geopolitical dominoes in a perfect chain so that they can be knocked over by that one person, country or event.
Human systems actually tend to lean toward redundancy when we are left to build these systems ourselves — meaning, humans prefer to decentralize to a point. We do not like having ALL decisions bottlenecked through a single dictatorship. We do not like having all our resources controlled by a single source. We do not like having all trade and commerce and communication dominated by monopolies. We do not like our safety determined by a single watchman. We often end up rebelling against centralization because it is actually centralization that breeds weakness in systems, not complexity, which gives us checks and balances.
The protection of complexity is created through decentralization.
When we look at the true causes of numerous economic and political crises around the world, we usually find globalists and their agent institutions right at the center. Foremost of these institutions are central banks.
In my article “All The Old World Systems Are being Deliberately Torn Down,” published in November of last year, I warned of several trends which would likely lead to economic instability. One of these trends was the possible breakup of NATO starting with Turkey. Turkey’s leadership under Recep Erdogen has been increasingly erratic and violent, most notably after the highly suspicious and likely fake military coup attempt in 2016. The coup gave Erdogen a perfect rationale for his consolidation of power, all while his political opponents could be systematically rounded up and imprisoned.
The “thwarted coup” narrative has been popular lately. First in Turkey and then in Saudi Arabia under Mohammad Bin Salman — two nations that are quickly plunging into even more aggressive dictatorship and that are vital to the United States strategically and economically. Over the past two years, both countries have become more distant as allies. Saudi Arabia has consistently discussed moving away from its arrangements to continue holding U.S. treasury debt and using the dollar as the petro-currency. Turkey has consistently discussed breaking from NATO and ending its arrangement to allow U.S. military assets to stage within its borders.
Another narrative that has been popular lately has been the idea that the global trade war will be the cause of all our economic displacement for years to come. The trade war is a perfect distraction, providing the chaos fuel necessary to allow central banks to pull the plug on economic support and then blame the resulting crisis on various random “linchpins.” This is exactly what they have been doing.
In terms of stock markets, I think it has now been clearly established that the Federal Reserve’s balance sheet cuts and interest rate hikes are the main cause (if not the only cause) of stock rallies and declines. Almost every major decline in equities takes place within 7-10 days after the Fed dumps assets from its balance sheet. One can study the Fed’s progressive cuts over the year on their own website and compare them to the moves in the Dow or S&P.
In July, for example, I told my readers to expect a recovery in stocks due to the Fed freezing balance sheet cuts during that month. The Fed held the balance sheet steady for most of July, only cutting a mere $12 billion at the end of the month.  As a result stocks rallied.  In August, the Fed has already cut over $20 billion and will probably cut more in the next two weeks, which would indicate an aggressive fall in stocks this month into September. The Fed controls when and how stock markets crash… at least for now.
This correlation and obvious causation are rarely if ever mentioned in the mainstream. Instead, we get talk of “contagion” caused by Turkey and the trade war.
The Fed’s balance sheet cuts do not only cause havoc in stock markets. Emerging market economies have grown increasingly dependent on the flow of cheap dollars and financial assets precipitated by the Fed’s stimulus measures over the past decade. If you were wondering where most of that bailout money and quantitative easing money were going over the years and you did not study the audit of TARP, then you might be surprised to find out that trillions in no interest overnight loans were going to foreign banks and corporations rather than U.S. banks. This included emerging market nations.
Countries like China, India, Brazil and even Turkey all used easy cash flow from central banks like the Fed to prop up their bond markets, and manipulate their currencies as well as their equities. India, for example, openly complained about the Fed’s move to raise interest rates and cut the balance sheet, warning that it would cause instability in global markets dependent on dollar circulation.
The Fed’s unwind of QE is hitting emerging markets first and mostly in terms of currency values.  The stronger dollar (relative to forex trading) is causing extensive havoc in forex trading and other sectors as investors pull funds from emerging markets due to a less favorable exchange rate.  But this does not necessarily mean that US based assets will benefit.
The U.S. economy is next on the chopping block as corporate debt now sits near historic highs. The only other safety net for U.S. stocks the past few years has been corporate stock buybacks, which corporations have been funding with no-interest loans from the Fed and other banks. As the Fed continues to raise interest rates, corporate debt costs will skyrocket and these stock buybacks will shrivel. After this happens, each new cut of the Fed’s balance sheet will result in an even more dramatic fall in the Dow.
Ultimately, emerging markets are going to look for alternatives to the dollar as the world reserve if they don’t get a supply of the fiscal stimulus drug they have become so addicted to. This is already happening in China and Russia as they dump U.S. Treasurys and de-dollarize in favor of other assets like gold.
So, we have international markets suffering from liquidity withdrawals due to the Federal Reserve, we have U.S. stock markets under threat of reversal due to Fed interest rate hikes and balance sheet dumps, and we have the dollar’s world reserve currency status under threat as multiple nations seek out alternatives after feeling jilted by the Fed taking away the punch bowl.  Multiple tentacles are wrapped around the global economy and all of them attached to the same source.
It would appear that the only “contagion” is that of central banks; most of all the Federal Reserve. Yet, all we hear about in the mainstream is talk on the trade war and linchpins like Turkey. The public is being regaled with lies, conditioned to accept false explanations about the true cause of a crisis that is about to occur; a crisis which central bankers are deliberately engineering so that they can later promote the philosophy of “simplification” and one-world centralization as a cure-all.
You can contact Brandon Smith at:

br*****@al********.com











18 thoughts on “Economic Contagion? Central Banks Are the Real Culprit”

  1. DUH!…GEEEEEEEE!…I was wondering WHEN anyone would SEE this about the BANKOHOLICS (Mostly WHITE FAKE Jews!)…OoooH! Lets not forget their latest “Arrangement” called the BRICS Alliance…Using their latest FIAT currencies known as Cryto-currency…Falsely called a Quantum currency system?!
    My Oooo MY…Guess THEY forgot that MONEY has NO FUTURE….IN ANY KIND!
    MAKE NO MISTAKE FOLKS…THIS SO-CALLED NEW FINANCIAL SYSTEM IS “THE MARK OF THE BEAST” CURRENCY!

  2. Bottom line is, all non-western countries beholden to and exploited and veritably economically imprisoned by central bank, reserve banks– should stand up and as one and overnight nationalize the reserve banks holding them hostage.
    In my humble opinion, its the only solution for a world bedevilled by a greedy and ruthless global few, since forever determined to rule the planet and enslave us all.
    Only when countries reclaim their banks and financial independence, will a new global financial system become a reality.

    1. That is a GREAT start for counties to do AT FIRST…BEST IS WHEN WE NO LONGER NEED “MONEY” ANY MORE AT ALL!
      The mastery of “Alchemy” will replace Money, and that is God-Man/Woman’s real destiny!

  3. Yep, even without the trade war or the Turkey contagion, collapse is inevitable, fiat is done. Global debt now stands at $250 Trillion (318% of GDP). Breakdown below:
    Non-financial corporate debt: $74 trillion
    Government debt: $67 trillion
    Financial debt: $61 trillion
    Household debt: $47 trillion
    Its crazy, it doesn’t even include the derivative bubble which could be somewhere between $500 trillion to $1 quadrillion…whatever the hell that means Lolz It doesn’t happen overnight but when it does happen, it can gain traction very quickly. Entire national currencies will be popping around the globe. Venezuela and Argentina already have. The whole thing would start to fall apart at the periphery first, then gradually collapse inwards towards the center. Turkey, Japan, Iran, Brazil, South Africa…then India and southeast Asia…then the EU…then China…then on to Washington DC.
    But I disagree with Brandon, there is no alternative to king dollar. The dollar will end where all fiat currencies end, but between the here and there, before extinguishing its final breath – the dollar will be the strongest currency in the world, simply bcuz there is no other reserve currency. What happens after as the dollar gets into this super-spike is anybody’s guess. Some say IMF will roll out the SDR as the new reserve currency, some say WW3 (I highly doubt this) but one thing is for sure, none of it is gonna be pretty.
    “”Lenin is said to have declared that the best way to destroy the capitalistic system was to debauch the currency. Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million can diagnose.” – John Maynard Keynes

    1. There WAS a certain Man who threw OUT the “Money-Changers” operating at a Temple…REMEMBER What he said about THEM???
      Bankoholics are worst ROBBERS OF ALL TIME!
      Yet if ANYONE attempts robbing THEM…They will throw their “Canon-Law” book at them!
      Isn’t THAT BASS ACKWARDS to anyone here YET???
      MONEY is a “Slave System” and DEBT THE SLAVE MASTER…GET-IT???

  4. Silent Weapons for Quiet Wars rings a bell. I wonder how many people have opened their eyes since this documentary was shared on the internet. Of those, I wonder how many of them have gone back to sleep and I also wonder how many people that others would have told about this book?
    Are we really waking up?

    1. Consider this Shapie, Mencken said
      “The fact is that the average man’s love of liberty is nine-tenths imaginary, exactly like his love of sense, justice and truth. He is not actually happy when free; he is uncomfortable, a bit alarmed, and intolerably lonely. Liberty is not a thing for the great masses of men. It is the exclusive possession of a small and disreputable minority, like knowledge, courage and honor. It takes a special sort of man to understand and enjoy liberty — and he is usually an outlaw in democratic societies.”
      I’ve long suspected this statement to be true. We have about 2 or 3 generations that have been thoroughly indoctrinated by gov’t. The great masses, they know something is wrong and yet they’d still prefer the lie rather than the truth, simply bcuz the status quo is all they’ve ever known and has come to accept it as part of life.
      The ruling class in every society could care less what flavor of -ism the plebs want, they will subvert the system (state/gov’t) and then use its laws and military to enslave the masses. This is true anywhere you point in the map.
      It is this idea that needs slaying in the minds of the masses. Once this change takes place, I believe that the world would transform in a heart beat. For that to happen, after the collapse, somebody has to take the lead, I’m kinda looking at the Americans to be able to start something. They maybe be few in numbers left in the US, but there are still those who truly understands liberty and they must win no matter what.

      1. Who ever wrote THAT Pile of BS, is LIVING Proof WHY Governments DO NOT WORK…ALONG WITH WHY RELIGION…Which equally keep people dis-informed about WHO WE are.
        The DAY is FAST approaching when BOTH Religion and Government will be EXPOSED for what they are.
        The “Awakening” of God-Man/Woman will NEVER come from Religion or Government…ONLY from “Divine Providence/Prime Creator”.

      2. Sentido Kumon,
        I totally agree with what you have mentioned there. Many generations have been indoctrinated into as Kenneth would put it HIS-STORY! Thanks also to the brainwashing of our teachers who knew no better either than getting a high over their pupils pass rates – another ego trip.
        We don’t need a lead once free( unless you are referring to a lead as in a movement) but I am worried about those that will wake up the day it happens. ( Kenneth you won’t like this) But in Revelations it mentions of the coming of Christ and that there will be those who will simply go mad on his/her arrival. I am not sure about one particular entity as in JC however, but yes a prime creator. This awakening that more and more people are experiencing has been gradual for me and many others, a shocker at first but then I knew something was wrong many years ago. It is the research and the communication of like minded people sharing knowledge that certainly is finishing this masterpiece off. They are getting closer to finalisation though, which is a serious worry, but like you I have hope and strength to pursue the truth and see them for what they are.
        Kenneth I agree, it is BS to those that are awake and getting others ready, but we are still living in their system( even us awakened ones which gives them strength) which they are implementing each and every day. The masses continue to dig their graves as some of them realise this fate but yet say “there is nothing that can be done about it”. ‘Man of little faith’, I declare, but this again falls on deaf ears.
        Can I ask you how your family feel about this scenario that we are in? Can they see it, did they see it before you did?
        The Golden rule: Do unto others as you would like them to do unto you. Peace

  5. Hi Shapie, yes as in a movement. Wish I could start something in my country, problem is, there’s not a single soul I know of here that shares my views. East Asians, particularly the Japanese, Koreans, and Chinese are highly nationalistic, these people would rather eat rock than go against their gov’ts. Europeans are cucked so only the Americans are left. It is only in the US where I see something that can get started, after the collapse that is. They must, however few they are, at least for those who truly believe in liberty, do something. They should know that they will never be able to get their country back if they just remain spectators. Kinda like a “now or never” thing really.

    1. There a People on this planet that are VERY “Knowledgable” (Man-Kind types) but KEEP that knowledge as a “Advantage” over those that don’t know…Keeping MOST of the population in the dark (Like we see NOW)
      It was ALWAYS their belief to do this in REBELLION to “Prime Creator’s Purpose for creation and God-Men/Women (Hu-Mans)
      This explains WHY these “Fallen Ones” have people REGISTER at birth…That way They can keep track of who’s coming (And Going) so as to TRADE them on the International stock markets (The TRUE Value of markets)
      The purposely keep everyone they can BLIND to REALITY of WHO they ARE.
      THESE EVIL ONES WILL BE REMOVED FOREVER SOON…Because they KNOWINGLY kept “Darkness” over the masses.
      Since there is NO DEATH for Divine providence’s God-Man/Woman they really won’t miss out on ANYTHING…Ignorance is forgivable, thus can return.
      NOT SO FOR THE REBELS
      My family is “Asleep” for now, but since I was blessed by finding out REAL TRUTH…I try and do as MUCH a I can to SHARE what I KEEP learning everyday.
      YES there will be a SHUT DOWN…OF ALL EVIL.
      Prime Creator will NOT BE FOOLED BY ANY “OTHERS” OF THESE SO-CALLED “ENLIGHTEN ONES” (ELITES!)

  6. To ADD…Most of the so-called “Enlighten-Ones” had their BEST chance to be “Forgiven” way back at 9/11/2001…But chose to keep rebellion going instead.

  7. So I have just re-read this article and done a little bit more researching. So the western nations decide that they are going to “plant” this virus and hence install fear back into the people of the DRC. This is to get these innocents and the government at hand which is corrupt as hell to notice them as ‘GODS’, their saviours to this world but yet are the producer of the plague itself! This is done to guarantee that the people of the third world will continue to exercise trade with the west or it will be their own downfall. I wonder if Glen Thomas (WHO)and most of the entire team of AIDS researchers were assassinated because of their knowledge of these outbreaks and causations? MH17 will continue to be a mystery – but not for much longer.
    I come back to China’s role with this one belt project that is making headways through Africa. The main financier is the China Development Bank which by the way is incorporated in the Cayman Islands. Most of its investment companies and financiers also originate from the Cayman Islands. Its main auditor is PWC? Its Headquarters are in HK, I would have thought that Beijing would’ve been more appropriate, but I guess not when considering that this bank could very much be western owned but masked with Chinese directors. Our evil doers have moved their filth around and disguise themselves as do gooders elsewhere.
    A company to keep an eye on 😉

    1. Shapiemau
      OBOR….One Belt One Road.
      The financing of the project; Cayman Islands, PWC and Hong Kong, certainly indicates a possibility of “western” interests.
      I have always felt uneasy about the need for such a project bearing in mind, the state of the economies of developed nations and, the debt burdens of both, developed and emerging markets.
      Economies and, the BANK$TER whirled of Finance seem set to IMPLODE.
      I have long harboured the suspicion that OBOR is simply a method of “movement” for the elite/CRIME $YN-DICATE$ ….Organs……Brothels……Opium…..Rockets…
      aka……People/Drugs/Organs and Arms TRAFFICKING !
      Reference Chinese leadership/Commerce/Finance etc, I get the impression that like western nations China is dominated by the joo$…….Kaifeng Jews, in this case.
      If true, the “interests” of “whirled” Jewry, would work, HAND in GLOVE with each other, hence the appearance of western finance in the OBOR project and, the
      WHIFF of organized crime that waft$ past my nostrils !
      * * *
      CHINA ……..Kaifeng “chinese”…aka……the…. UBIQUITOUS….ashkeNAZI khazars.
      China and the Khazar Zionists
      http://vaticproject.blogspot.co.uk/2015/01/china-and-khazar-zionists.html
      “During the Ming Dynasty (1368–1644), a Ming emperor conferred seven surnames upon the Jews, by which they are identifiable today: Ai (艾), Shi (石), Gao (高), Jin (金), Li (李), Zhang (張), and Zhao (趙); sinofications of the original seven Jewish clans’ family names: Ezra, Shimon, Cohen, Gilbert, Levy, Joshua, and Jonathan, respectively. (VN: I highlighted the “Li” name since that is one of the 13 bloodline names we profiled on Vatic Project, a while back.)
      Interestingly, two of these, Jin and Shi, are the equivalent of common Jewish names in the west: Gold and Stone.” (See here)
      Jews (VN: KHAZARS/Ashkenazi Jews) had in fact arrived in India via the Silk Road almost 1000 years ago, well before Marco Polo made his way to the Court of the Grand Cam (Khan) in distant Cathay (China) in the late 13th century……..
      There were even high-profile Jews in the Chinese Communist Party, including the American Jew Sidney Rittenberg and the journalist Israel Epstein. (See here)
      http://vaticproject.blogspot.co.uk/2015/01/china-and-khazar-zionists.html
      * * *
      The American mercenary behind Blackwater is helping China establish the new Silk Road
      https://qz.com/957704/the-american-mercenary-behind-blackwater-is-helping-china-establish-the-new-silk-road/

      1. Great research about HOW the FAKE Jews got control over the Chinese (The World actually)…EXCEPT…NOWHERE does it address WHO the REAL JEWS are, because it makes all the difference in the world to IDENTIFY WHO THEY ARE…Even HITLER knew who they ARE, and Quoted” American HAS the REAL Jews…BLACK RACED People!!!
        He didn’t do it for the love of blacks, BUT he Hated the Zhazar’s WORST than Them!
        OUR-Story is LOADED with Proof of this FACT all over the Internet (Here is ONE;
        http://www.youtube.com/watch?v=bCHj4Lr2_M/
        The BLACK race ARE the “Cradle of HU-Man Life”, and the info proving this FACT is available all over the PLANET.
        So Ask yourself: WHY DOES THE WHITE MAN CONTINUE TO “HIDE” THIS TRUTH…FROM “HIS-Story”???
        They MUST be VERY Scared about the WORLD FINDING OUT ABOUT THIS “FACT”!
        Funny…They Do Talk about the Zhazar’s a Lot lately…BUT REFUSE to mention WHO THE REAL JEWS ARE!
        WHY IS THAT MISSING FOLKS???

  8. OH, and by the way…NONE of Their “High-Tech Toys” will be able to Save THEM from WHAT’s coming at THEM!
    Namaste!

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