A Fed-Engineered Recession?

The Federal Reserve indicated it is looking to begin tapering its balance sheet in September, but also revealed concerns over weakening inflation data, and the beleaguered President who is unable to get his “pro-growth” fiscal policies started.In the past, Republican presidents Ronald Reagan and George Bush were able to initiate pro-growth fiscal policies in tax cuts and other policie [Outsider Club logo] A Fed-Engineered Recession? [Dennis Slothower Photo] By [Dennis Slothower]( Written Saturday, August 19, 2017 The Federal Reserve indicated it is looking to begin tapering its balance sheet in September, but also revealed concerns over weakening inflation data, and the beleaguered President who is unable to get his “pro-growth” fiscal policies started. In the past, Republican presidents Ronald Reagan and George Bush were able to initiate pro-growth fiscal policies in tax cuts and other policies that stimulated growth for small businesses. Given this success, the Federal Reserve felt justified in delivering recessions early in their Presidencies by jacking up interest rates. Given the growing divide by the moderate Republicans who are joining with the Democrats to block Obamacare and likely tax cuts, the Fed may well have engineered a recession with President Trump fully hogtied and growing more politically isolated day after day. Keep in mind that big business tends to run left and has been well groomed under the Obama administration, so it is not altogether surprising to see a number of CEOs choosing to use the situation of the President’s failure to sufficiently condemn white supremacists as an opportunity to resign from the President’s two advisory groups. These two big-business advisory groups, the “Manufacturing Council" and the "Strategy & Policy Forum” haven’t met since last February so they have been dysfunctional anyway. So, on Wednesday the President said, “rather than putting pressure on business people of the Manufacturing Council and the Strategy & Policy Forum, I am ending both.” It is no wonder the stock market doesn’t seem to know what path to embrace. The propaganda of stimulus via Republican fiscal policies is looking less and less likely, with Republican Senate Leader Mitch McConnell unable to deliver anything productive to the President from the Senate, whether by design or sheer ineffectiveness. [Strange Map Unlocks Secrets for Wealth]( You see the grey states on this map? Every time one of them lights up, a handful of stocks goes absolutely crazy. While only eight states are currently supporting this breakout industry, the others will be lighting up very soon... Once the whole country is green, you'll have missed your chance for up to 2,162% gains in what will be the biggest investing trend of the next decade. You simply can't wait another minute. [Click the map below to get started today.]( [green-map-animated]( New Recession Signs Meanwhile, notice what is happening to industrial production. We are slipping into recession as I have been warning! This economic situation is not going away! [708117-industrial-production]( On Thursday, we learned that industrial production missed expectations — at 0.2% in July from 0.4% in June. Manufacturing production shrank -0.1%, damaged by a 3.6% plunge in motor vehicle production (the demand for cars is plunging now). Technically, the stock market is breaking down through some key long-term support levels, especially in the small-cap stocks. It is now becoming more apparent that July was indeed the top in the Russell 2000 index, our leading market index, as it tested support levels again today and broke well below its 200-day moving average and most recent low. [70817-Russell2k]( I’ve Invested My Family’s Livelihood Into This Stock (You Should Too) Some might call it a “fool’s gamble” to push my chips all in on this one stock. And yet, it’s the best investment decision I’ve ever made. Because I’m investing in an industry no one is talking about, but they will. I’m invested alongside the likes of Jeff Bezos, Peter Thiel, and Bill Gates. In 2015, I first mentioned this opportunity, and no one listened. Well, 2017 will be the year this stock play pays off handsomely. I can include you. [Click here to discover the stock I invested in.]( After Thursday's selling the Russell 2000 has zero gains for 2017. This isn’t to say that the Russell 2000 can’t try and bottom around previous lows at the 1342-1351 support levels but it is exceptionally vulnerable, as breach of these support levels could bring on fast market selling, with sell stops being triggered now. I think the OTC is also very vulnerable as market breadth, the technical underpinning of the Nasdaq Composite, is plunging now. Prices are beginning the process to revert back to mean averages. [70817-NASI]( [A Reclusive Financial Forecaster Is Out With A Shocking Discovery]( He’s authorized me — and only me — to share five charts with the public that show Wall Street is about to crash 73%. This man has made more correct forecasts than anyone in the business — starting all the way back in the 1960s. Today’s “gurus” look to him for guidance. He’s called everything from the stagflation in the 1970s... to the rise of Islamic terrorism... to the real estate and market implosion of 2007. But he’s calling this “the most disturbing market forecast I’ve made in 50 years.” [You’ll meet him right here.]( Remember — if the McClellan Summation Index drops to -500, a long-term bear market signal is generated in the Nasdaq Composite via this indicator. What is also worrisome is the equal weight of the Nasdaq 100 has just dropped to an all-time relative low. [70817-Nasdaq100-equal-weight]( This illustrates that up to this point most of the work, even within this index, has been done by a handful of big tech names, which also got smacked in the nose. Once again, seasonality factors point to a black storm right before the August-September-through-October time period, where investors would be wise to put capital preservation as their top priority. I am concerned that too many have forgotten how a bear market develops. To your wealth, [Dennis Slothower Signature] Dennis Slothower Editor, [Wall Street Underground Profits]( Dennis Slothower has been leading a small but profitable group of investors to some extraordinary profits in both good markets and bad over the course of a 38+ year investment career, starting as a stock broker in 1979. In 2011 Dennis was named the top performer by Hulbert Financial Digest for avoiding the Crash of 2008. Now, he is bringing his extensive experience to the public through [Outsider Club]( and [Wall Street Underground Profits](. For more about Dennis, check out his [editor page](. *Follow Outsider Club on [Facebook]( and [Twitter](. [NOIC_conf2017_300x250]( Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [Bill Gates: A Bigger Threat Than Nukes Or Climate Change]( [This Map is Worth $22 Billion]( [Medical Marijuana's Breakthrough Moment]( [No-Brainer: Spending $20 Billion to Save $55.5 Billion]( [I'm Adding This To My Portfolio In The Coming Months]( Related Articles [What's Really Behind This Week's Sell-Off]( [No-Brainer: Spending $20 Billion to Save $55.5 Billion]( [This Map is Worth $22 Billion]( --------------------------------------------------------------- This email was sent to {EMAIL} . 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