Financial
establishment threatens crisis, recession again as Trump surges in bid for U.S.
independence from globalism, By Robert Romano
“A Trump win would sink stocks.” “Economists: A Trump win would tank the
markets,” shrieks Politico. These are just
some of the headlines the American people have been treated to in the closing
days of the election cycle, all intended of course to inspire fear of a win by
Donald Trump in the election. Basically, it’s just voter suppression by the
financial and political media and establishment. But we’ve seen this movie
before.
Just months ago, international news
agencies were pounding the United Kingdom with similar predictions of doom and
gloom if that country left the European Union in the Brexit vote.
Even the Bank of England got in on
the act. “Such a vote might result in an extended period of uncertainty about
the economic outlook, including about the prospects for export growth. This
uncertainty would be likely to push down on demand in the short run,” the central bank said in an unusual
statement on the now-passed referendum.
The statement continued,
“Uncertainty regarding the supply side of the economy might also increase,
reflecting any alterations to product or labor market regulation, adjustments
in labor flows or changes in the rate of technology adoption as a result of
different arrangements governing foreign trade and capital flows. A vote
to leave could have significant implications for asset prices, in particular
the exchange rate.”
None of it was true of course.
Here the Bank of England was simply
attempting to scare voters, threatening a recession or worse if Brexit
occurred. This is actually a pattern among
financial institutions, like Citigroup, which regularly issue warnings any time
voters or legislatures might democratically express their sovereignty, for
example, by electing Donald Trump.
Numerous warnings were issued by
banks and credit rating agencies should Greece leave the Eurozone. It would touch of a financial crisis, lead to a breakup of
the currency bloc and touch off a stream of defaults by bondholders. Same if
the European Central Bank did not intervene and buy Italian and Spanish bonds.
Similar warnings were issued in the U.S. in
2011 when Congress briefly considered
conditioning an increase in the national debt ceiling on a balanced budget
amendment to the U.S. Constitution. Not raising the debt ceiling and borrowing
trillions of more dollars would threaten a financial crisis and trigger a
recession, the banks said.
In 2008, if Congress did not vote to
bail out banks that bet poorly on U.S. housing, it would trigger a depression
worse than the Great Depression. So the banks got hundreds of billions of
dollars from Congress, and then hundreds of billions more from the Federal
Reserve, which created money to buy back worthless mortgage-backed securities.
And oh, we got the worst recession
since the Great Depression anyway.
Even puny little Iceland was threatened when bailing out the failed Icesave bank came up, and
foreign investors were going to lose some money. They were threatened with
credit downgrades and the like. Not enough?
If the global trade agenda is not
advanced by adopting the 12-nation Trans-Pacific Partnership the largest trade
agreement ever it will be Smoot-Hawley all over again, tariffs galore and a
return to the worst days of the Great Depression.
This happens all the time. The most
powerful banks and news agencies in the world regularly use fear to influence
sovereign legislatures and peoples to vote and act against their own interests
by threatening retaliation, reprisal and recession. These are the tools of
tyrants.
With the exceptions of Iceland which rejected a referendum in 2011 to bail
out foreigners who invested in Icesave and Great Britain, which left the European Union, few ever defy these powerful
forces.
Even though there’s no reason not
to. Nothing bad happened. In fact, in Iceland, which did not bail out its banks,
the recession was shallower and unemployment dropped faster than other European countries, where the banks were bailed
out. In the UK, there was a brief correction on the markets, which in turn
corrected in a matter of days, but no financial crisis.
All the establishment does is issue
hollow threats when it doesn’t get its way. Everything will start the global
financial crisis in earnest. Nonsense.
The truth is, should the American
people assert their independence on Tuesday by electing the anti-globalist
Trump, perhaps it will teach these elites a lesson against governing by fear
and crisis. Enough is enough. America first.
Robert
Romano is the senior editor of Americans for Limited Government.
Comments
Wall
Street may be planning a stock dip in retaliation for a Trump victory, but it
should be short-lived. Actually, Trump’s corporate tax reduction will result in
a higher stock market.
Norb
Leahy, Dunwoody GA Tea Party Leader
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