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The “Soft Landing” Lie: A Global Economic Slowdown Is Already Underway

May 8, 2024

By Brandon Smith

If people have learned anything from the past few years of Ivy League elites and TV talking heads feeding them economic predictions, I hope they finally understand that the “experts” are usually wrong and that alternative analysts have a far better track record. Whenever establishment economists make a call the opposite generally turns out to be true.

By extension, alternative economic predictions are usually well ahead of the curve – What we talk about might be labeled “doom mongering” or “conspiracy theory” today. In three years or less it will be treated as common knowledge and the mainstream “experts” will claim that they “saw it coming all along” while taking credit for financial calls they never made.

This has been a long running pattern and it’s something those of us in the alternative media have come to expect.

For my part, I warned for years about the threat of the impending stagflationary crisis which ultimately struck hard in the “post-pandemic” US. The establishment gatekeepers denied such a thing was possible. When it happened, they claimed it was “transitory.” Now, they argue that a soft landing is imminent and there’s nothing to fear from trillions in helicopter money being pumped into the system. They claim nothing of significance will change.

I also predicted that the Fed would create a Catch-22 scenario in which interest rates are raised into economic weakness while inflationary pressures expand. I suggested that the central bank would keep rates higher for far longer than mainstream analysts claimed. This is exactly what has happened.  My position is simple – The Federal Reserve is a suicide bomber.

Who are you going to believe? Independent economists who have proven correct time and time again? Or, the Ivory Tower guys who have been consistently wrong? I’ll say this: If success in economics was actually based on merit and correct analysis, people like Paul Krugman or Janet Yellen would have been out of work a long time ago.

As for the ongoing narrative of a soft landing, the question I have to ask is HOW exactly they are going to make that happen? First, let’s clarify why central bankers are the problem (along with the governments they covertly influence)…

Central Banks Are At The Core Of Economic Troubles

There are only two logical reasons for central bank induced inflation: To hide the effects of a massive deflationary slowdown caused by too much debt, or, to deliberately trigger a currency collapse. Both motives could apply at the same time.

Central bankers don’t just facilitate this inflation at the behest of governments, they tell governments what to expect and what to promote to the public. Anyone that claims otherwise has an agenda. Central banks write their own policy and control their own mechanics. Governments have no say whatsoever in their operations, as Alan Greenspan once openly admitted.

The reality is, governments go begging hat in hand to central bankers and the banks decide whether or not to give them that sweet stimulus nectar. Politicians engage in collusion with central banks on a regular basis and they defer to bankers on an array of economic decisions. Economic advisers to the US president almost always include high level central bankers who then cycle right back into the Federal Reserve.

Central banks and their private international counterparts are in control, political leaders are simply pawns. Whenever there’s a crash the public focuses on government while the central banks fade into the background and avoid all scrutiny.

Inflation Addiction And The Ultimate Catch-22

Inflation for banks is a tool for fiscal change, but also social change. It’s not a coincidence that financial crisis events always lead to more centralization of global power into fewer and fewer hands; this is by design. Inflation allows the establishment to delay or initiate a crisis with greater precision.

An even more powerful tool is the WITHHOLDING of stimulus and cheap money once an economy is addicted to the flow of fiat.

I have been arguing for many years that central banks were constructing a situation in which the system is utterly dependent on fiat stimulus in order to maintain the illusion of growth. If the bankers return to lower rates and QE, inflation will continue to explode. If they stay with higher rates and a trickle of stimulus then a global crash is inevitable.

It’s one or the other, there is no soft landing when trillions in money creation are at play in such a short period of time. Central banks must return to near zero rates and QE if they hope to prevent a debt implosion. This might seem like a soft landing scenario at first, but when CPI ramps up (as it is starting to now at the mere mention of rate cuts) consumers will be hit even harder.

I’ll ask this question once again because I don’t think some people are getting it: What if their goal is to create a crash?

The Great Global Slowdown Has Already Started

In the past six months both the World Trade Organization and the World Banks released statements warning of an impending global slowdown. After an initial surge in exports and imports caused by massive pandemic stimulus measures, the effects of the helicopter money are now fading. By the end of 2024, global trade will register the slowest growth since the 1990s.

The UN also suggested growth deceleration was coming in the next year due to falling investments and subdued global trade. Keep in mind that the alternative media has been warning about this outcome for the past couple years at least as covid funding dried up. Globalist institutions are simply informing the public at the last minute; too little, too late.

The World Bank asserts that global trade is flatlining and international trade data supports this theory. China’s export market plunged by 7.5% in March, far more than expected and well below the 2.3% decline predicted by a major poll of mainstream economists by Reuters.

By the end of 2023 European exports declined by 8.8% compared to a year earlier and the union barely avoided a recession (according to official numbers). All hopes in Europe rest on the possibility of a steeper drop in inflation and central bank interest rate cuts. As I have been saying since 2021, don’t get too excited about banks lowering rates. It’s not going to happen at the pace that investors want, it’s not going to bring back QE anytime soon and when they do cut rates CPI will immediately spike once again causing panic among consumers.

I suspect that, after an initial rate cut event and an inflation resurgence, central banks will return to tightening with even higher rates in 2025.

In the US, a net importer of goods rather than a primary exporter, consumer volume has been in steep decline. Due to inflation, Americans are buying less goods while paying more money. And this is how inflation skews economic data. Higher prices on goods make retail sales look great, but in reality people are simply paying a higher price for the same amount of products (or less products).

Consumer credit data shows a steep decline in debt spending; credit card delinquency is at all time highs, APR is at all time highs and debt growth has collapsed in the past couple of months. Considering that the American consumer is a primary driver of global exports, it makes sense that international trade is now plummeting. Consumers are broke. The covid stimulus party is officially over and inflation is dragging the market down.

The IMF has recently noted the signs of global slowdown but, as usual, they argue that a “soft landing” is imminent. In other words, they claim there will be no serious repercussions for the economy. They do mention one interesting caveat in their analysis – The danger of global conflicts “derailing” the supposed recovery.

War leads to rising protectionism, the IMF says, and protectionism is a big no-no. In a world economy based on forced interdependency this is partially true, but the bigger picture is being ignored. The world economy should be built on redundancy, not interdependency. Interdependency creates weakness and the potential for dangerous domino effects. This is a fact that globalists would never willingly admit to.

For now, it appears that the global slowdown will become undeniable in the next six months, either right before the US elections in November, or right after. Central banks have chosen to create this Catch-22 and they are, for whatever reason, stalling the big drop. My theory? They have a scapegoat (or scapegoats) in mind and they’re waiting for the right time to unleash the next chaotic event. Covid is gone, so they’re going to need a war, multiple wars, or political conflict in the west and in many other parts of the world as a distraction.

 

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Brandon Smith

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  • Roundball Shaman May 8, 2024 at 11:43 am

    “… I warned for years about the threat of the impending stagflationary crisis which ultimately struck hard… The establishment gatekeepers denied such a thing was possible… they’re going to need a war, multiple wars, or political conflict in the west and in many other parts of the world as a distraction.”
    .
    There is a saying that has been around a long time in politics: “People vote their pocketbook”.
    .
    Basically what this means is that if people are doing well economically, this benefits those currently seated in power – mainly a referendum on the President. And when people are hurting financially, they vote against the seated President. Or in our case today, the installed Resident.
    .
    Well this old saying about voting your pocketbook might still hold true but it now has a challenger as being a Presidential referendum. And this is: “People vote their level of Wokeness”.
    .
    Wokeness has become 21 Century religion for the World. As the old-line religions have lost vitality and their moral compass… something had to fill that void. And thus we have
    ‘Wokeness’… and to a secondary degree, ‘The Science!’ which has also become another of today’s modern-day religions.

    People will still vote their pocketbook but might just allow their level of Wokeness to prevail to reflect their political and social wishes.
    .
    Resident Biden’s spinmasters can try to make the economy look good. And for the upper crust… it is in fact very good. But for real Americans who live normal lives instead of lives of enabled privilege… the economy (to use another economic term)… simply sucks. That Giant Sucking Sound that Ross Perot talked about years ago now can be taken to mean that the Resident Biden Regime has sucked the life out of the economy for real Americans. Thus… the American Economy sucks. And real Americans are hurting and hurting badly.
    .
    As for Central Banks, They are tools of the Devil. They seized control of the World’s financial lives and They twist everything to benefit Them and those seated in power who bow their heads in reverence to the Banksters. They are an abomonation.
    .
    The whole notion of conjuring fake money out of thin air and treating hat as real money is as funny as it is tragic A total severing of reality and full investment into madness and worthless currency.
    .
    We – the People of the World – are caught in a Clown World led by financial geniuses who should be wearing clown suits instead of fancy banker clothes purchased with Monopoly Money.

    • Amuzed_Traveler May 13, 2024 at 7:41 pm

      We, the people of the world, are caught in clown world because we don’t have the Courage or Will to stop it. Full stop.

  • Jay May 8, 2024 at 12:05 pm

    Yes, i believe that is true that the government goes hat in hand, begging and bowing down to the central banks for money. This also means that bankers can subtly or not so subtly demand changes in laws and international policy about the time politicians come begging for money.

  • Ray Charles May 8, 2024 at 12:59 pm

    My vote is for war(s). War fulfills two goals, keeping people scared and not thinking correctly and decreasing the population.

  • Steve May 8, 2024 at 2:17 pm

    My favorite line lately is weathermen are around to make economist look good.

  • Black Cat May 8, 2024 at 7:35 pm

    We are seeing a fairly significant increase in second home/VRBO rental homes going up for sale. People flocked into these properties like tulip bulbs in the Netherlands but the bubble has done popped and the early stages of exiting appear to be happening now.
    (Central Rocky Mountains outside Breckenridge area.)

  • Christian B Adams May 9, 2024 at 3:09 am

    “They have a scapegoat (or scapegoats) in mind and they’re waiting for the right time to unleash the next chaotic event.”

    Biden’s re-election campaign looks so bad, you’d almost be forgiven thinking that they’re going to “let” Trump win right before the crash happens.

    • Avatar photo
      Brandon Smith May 9, 2024 at 6:59 am

      Yes, he’s ten points behind Trump in every poll. Unless there is blatant election fraud on a scale that is undeniable, Trump will be President in 2025. Right in time for the global downturn to accelerate. Plus, think about all the data fraud that has been going on under Biden, including employment numbers. That all goes away when Biden exits, making it look like there was a “sudden” crash in stats when Trump walks in.

  • Naatok May 9, 2024 at 6:13 am

    Head Like a Hole
    by Nine Inch Nails

    God Money
    I’ll do anything for you
    God Money
    Just tell me what you want me to
    God Money
    Now me up against the wall
    God Money don’t want everything
    He wants it all

    (Refrain):
    No you can’t take it
    No, you can’t take it
    No, you can’t take that away from me
    No you can’t take it
    No, you can’t take it
    No, you can’t take that away from me
    Head like a hole
    Black as your soul
    I’d rather die
    Than give you control
    Head like a hole
    Black as your soul
    I’d rather die
    Than give you control

    God Money’s
    Not looking for the cure
    God Money’s
    Not concerned about the sick among the pure
    God Money
    Let’s go dancing on the backs of the bruised
    God Money’s
    Not one to choose

    (Refrain)

    Bow down before the one you serve
    You’re gonna get what you deserve
    Bow down before the one you serve
    You’re gonna get what you deserve

  • AL May 9, 2024 at 9:58 pm

    It makes me think that the entire reason Trump is not in jail long ago is that he may have to be the “selected” president to be at the helm when the house of cards collapses. I can’t imagine Biden taking the fall. And I can’t imagine Biden being the “war time” president with blood on his hands. Can this Trump trial circus charade go one for another few months unnoticed while the central bankers decide who will be in the hot seat next year? It seems that Trump has a planned exit one way or anther. Jail or the presidency.

  • Serge May 10, 2024 at 5:30 am

    “Due to inflation, Americans are buying less goods while paying more money.”
    Same situation in Europe.

    “If success in economics was actually based on merit and correct analysis, people like Paul Krugman or Janet Yellen would have been out of work a long time ago.” Agreed 100%.
    Also consider that: indeed people like Janet Yellen or Paul Krugman can “be wrong” in their economic analyses or…knowingly lie to the public to mislead them.

  • Serge May 10, 2024 at 10:32 am

    “Incredible”!!!: JP Morgan CEO Jamie Dimon reveals his oracle skills…:
    https://cryptorank.io/news/feed/74eb4-brics-jp-morgan-ceo-predicts-major-us-financial-crisis
    CLEARLY, Something Big is happening..

    • Avatar photo
      Brandon Smith May 10, 2024 at 10:41 am

      Interesting…Dimon suddenly sounds a lot like me. That’s a little scary, I admit.

    • Serge May 10, 2024 at 10:46 am

      P.S:
      Your past article “Explaining the end of the economic game.” (2014) is more than topical. It was during this period that I discovered your work.

      • Avatar photo
        Brandon Smith May 10, 2024 at 10:53 am

        I should probably go back and read through some of my older work. I’ve written thousands of articles over the past 18 years and I’ve lost track of some of my predictions.

  • Serge May 13, 2024 at 11:17 am

    In addition to economic issues, there will also be political intrigue.
    Here’s a great article by JHK:
    https://kunstler.com/clusterfuck-nation/monster-mash-up/
    No doubt about it: 2024 will be a chaotic and “exciting” year.

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