How The Fed’s “Nuclear Option” Is Threatening Our Economic Freedom

As if GDP growth crawling at 0.7% in the fourth quarter of 2015 and the stock market tanking in 2016 isn’t enough to scare everyone, something even more frightening is coming.

What’s happening is that the soldiers of fortune at the Federal Reserve have devised an insidious plan to solidify their control over free markets and America.

This prescription envisions banks lending cheaply and consumers spending robustly, spurring economic growth and propping up beleaguered markets.

But, as I’m going to show you today, the reality is quite different.

This isn’t just an insane policy, it’s a MAD (mutually assured destruction) policy, the equivalent of a “nuclear option” in economics and finance.

Here’s what the Fed wants you to believe, what’s really going to happen, and how, if the Fed wins the battle it’s about to wage, Americans will lose their war for economic freedom.

Here’s everything you need to know…

After causing the credit crisis by manipulating interest rates too low for too long, the Fed had to rescue big banks by implementing ZIRP, their zero interest rate policy, and then quantitative easing (QE).

The one-two punch allowed insolvent big banks to borrow at no cost (ZIRP) to buy trillions of dollars of U.S. Treasuries, which they’d re-sell to the Fed for fat profits under the $4 trillion buyback scheme (QE).

Too bad ZIRP and QE never trickled down to the economy at large, evidenced by GDP growth averaging less than 2% over the past eight years. Instead, the bulk of the Fed’s “stimulative” efforts pumped up various asset classes, especially stocks.

Now, with economic growth faltering, recessionary fears mounting and increasingly volatile stocks slipping, the Fed is floating the idea of a negative interest rate policy, or NIRP.

But instead of spurring (actually trying to force) lending by banks and spending by consumers, NIRP will have the opposite effect on banks and consumers, and magnify the dangers facing savers and investors.