The Fed Is Scared To Raise Rates, Ron Paul Warns "Everything Is Too Vulnerable"

Tyler Durden's picture

Submitted by Mac Slavo via SHTFPlan.com,

The system is teetering on edge, and nearly everyone in the financial sector is waiting for one decision – will the Fed finally raise rates?

Ron Paul has made a bold prediction that the Federal Reserve likely will NOT raise interest rates, something which would have enormous consequences in the market, because it is hesitant to do so with so many negative risk factors the market already faces.

Fed Chair Janet Yellen – and most in the financial sector – know how much is impinging upon the possible decision to raise rates after years and years of quantitative easing have pushed the limits of stimulating the economy. According to CNBC:

By Paul’s reasoning, the Fed is too scared to raise interest rates in the middle of an already weak recovery and risk sending the U.S. economy back into recession, or worse… The Fed chief “does not want to be responsible for the depression that I think we’ve been in the midst of all along,” Paul added. “Everything is vulnerable, so we’re living in very dangerous times,” Paul added.

The banks have basically become junkies to constant cheap money, and QE3 has gone so far over the edge and upside down that pensions, insurance policies and savers can no longer earn future value through basic investment.

 

But according to the former Congressman and presidential candidate, big trouble in China, or our own potential economic breakdown, may be enough to call off action by the Fed because bigger problems may prevail.

Ron Paul told CNBC:

She’s going to be more hesitant to raise rates because she sees how fragile the global economy is… I could be wrong, but I don’t think they are going to raise interest rates.”

 

“I think there’s going to be enough problems existing, whether it’s the Chinese precipitating some crisis, or whether it’s our economy breaking down,” he said.

Does this count as yet another prominent warning by experts that the U.S. economy is headed for another crash, and perhaps even a prolonged collapse?

The Chinese problems are having a huge impact in America right now, with so much reliance upon China for global trade. Now that instability has hit, it is putting significant pressure on the faults and weaknesses of Wall Street and the rest of the U.S.

Ron Paul, a very learned critic of the financial system, is outright suggesting that the central banks are no longer in control.

Right now, the Fed isn’t sure if it can back off from artificially stimulating the economy, because it is making the biggest moves out there.

Simultaneously, it doesn’t know how to maneuver away from that position without rocking the boat enough to create a tidal wave that is certainly going to hurt for someone.

If a Fed rate hike did occur in September, as many reports have suggested, it would be the first increase in nearly a decade – enough to keep the experts up late at night, crunching numbers, to see how bad it could get.

I could save them all a lot of time and sum it up – it could obviously get pretty bad. Can crisis be averted?

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stormsailor's picture

charging into the fray its captain obvious

WonderDawg's picture

No shit. It's been obvious for years that the Fed can't raise rates, but I think his point is valid, we're at historic levels of vulnerability.

Save_America1st's picture
The Fed Is Scared To Raise Rates

with all props to Dr. Ron...

We've known this for years.

It's the 95% of the sheeple with their heads shoved shoulder deep up Kim Kardashitard's big fat fucking ass who don't know what the fuck is going on.

And those fuck-tards sure as hell don't read Zero Hedge.

Stack guns and ammo along with phyzz, and other essential gear, bitchez.

Cuz thos 95%'ers are the reality of what zombie movies are all about.

Kardashizombies is what they should be called. 

I don't hate them...they're just a product of the dumbing down of America.  They don't realize how ignorant and clueless they are.

But they will never understand it no matter how this all turns out.  They will still be turned against the few of us who prepared for what we saw was coming.

Then it's on like Donkey Kong, bitchez.

Captain Debtcrash's picture
Captain Debtcrash (not verified) Save_America1st Aug 17, 2015 8:57 PM

Frankly I don't think they're scared.  They may pretend to be but they will take a the crisis that results and gain more power for the government and banks by banning cash and pushing rates negitive.  Never let a good crisis go to waste after all.  Those who are in the know, and get the wink wink and nod, like Goldman and HSBC, who just bought 7.2 tons of PHYSICAL gold will do just fine.

You might ask why HSBC, the custodians of GLD, from which you can allegedly take physical delivery  when over a million dollars, would need to buy physical gold through the COMEX?  Well that is a good question.

max2205's picture

Just when the Fuck can we all get some interest on our fucking money

 

 

Fuck!

Slomotrainwreck's picture

Can crisis be averted?

NO!

It's too bad that Dr. Paul was too old to become president of the US 7 years ago.

Antifaschistische's picture

"Right now, the Fed isn’t sure if it can back off from artificially stimulating the economy, because it is making the biggest moves out there."

I believe the Fed is completely sure....they pretend like they are considering a move to convince the sheeple that it is actually an option when it's a total bluff...then when the moment comes, they will come up with one more excuse why they are "delaying" the ultimate decision.  lol.  Sort of like the dude that keeps telling his live in girlfriend that he's waiting for the right moment to propose, knowing there's not a chance.

Save_America1st's picture

And furthermore...

 

END THE FUCKING FED!!!

 

It's a criminal privately owned mafia cartel and is NOT Federal.  The IRS is nothing but a violently criminal private enforcement agency used to intimidate and harass the U.S. citizens!!!!!!!

Fuck...we all know it...just keep spreading the word.

I can't tell you how many people to this day I still wake up to this fact.  And they still don't get it right away, as if they're waking up from a foggy fucking dream and you have to slap them around a couple dozen times to get them to wake the fuck up and understand it.

It's fucking amazing. 

“It's easier to fool people than to convince them that they have been fooled.”

~ Twain

 

sleigher's picture

That fact about the IRS is why everytime a candidate for president says they will change/fix the tax code, I know they are full of shit and probably just a puppet.

ali-ali-al-qomfri's picture

i'm concerned now,

how do you kill a Kardashizombie?

shoot it in the ass where the brains are?

Sanity Bear's picture

wear a facemask, the silicone backspray tastes nasty

ejmoosa's picture

One of the reasons so many of know this and have known this is because Ron Paul and others have been educating us since at least 2008.

 

Perimetr's picture

The Fed and banksters have bought trillions in bonds

 

raising the rates will crash their books

 

why would they want to do that?

PlayMoney's picture

You assume they aren't keystone cops flailing around like fish. Wonder if they are flipping through their textbooks trying to figure this out? I wonder if they even realize this would hurt bonds or what it would do to interst rate based derivatives? I remember BB saying all is well last time summer of 2008....wondering if he was just putting on a happy face or are they really that clueless.

Antifaschistische's picture

but...they bought it with counterfeited journal entries.   It's not like they burned any of their 'savings' on it.  So, they'll just by trillions more....but when the .gov pays them back with INTEREST, the interest is real dollars.  So..the way I see it, they're new scam would pay a higher return on their counterfeited JE.

realmoney2015's picture

End the Fed! Love Ron Paul.... He helped wake me up several years ago. Again there is only one candidate who is anti-fed. And his initials are RP. 

We need to show the establishment that Rands campaign is not failing and will be in it for the long run. That's why I'm donating half of every sale of my candles with silver coins (https://www.etsy.com/shop/ScentSavers?ref=hdr_shop_menu) to Rands  oneybomb on September 7th. Just put in the buyers notes what you think of the federal reserve to make your sale a special sale to support  Rands campaign. Any sale with a special buyer note now through September 7th will qualify, if it has the buyer note!

End the Fed!

Savyindallas's picture

I participated in all of Ron paul's money bombs  - won't do so with rand unless he makes a definite and clear move to revoke his pro-Zionist, anti-iran positions. Sheldon Adelson will never give him any money  -if he did - I want nothing to do with Rand. 

realmoney2015's picture

Rand said he would end all foreign aid including to Isreal in the last debate. That's pretty much the most non-zionist that you will get.

JoeSilverBack's picture

Real Money, Rand said not a penny more, that's about as clear as you can get. I'll support Rand just as I supported Ron. It's too bad we don't have anyone else running that  wants to end the fed, good luck with your candles I think that's a great way to spread the word of real money. 

Chupacabra-322's picture

"By Paul’s reasoning, the Fed is too scared to raise interest rates in the middle of an already weak recovery and risk sending the U.S. economy back into recession, or worse… The Fed chief “does not want to be responsible for the depression that I think we’ve been in the midst of all along,” Paul added."

Most important sentence of that passage is:

"The Fed chief does not want to be responsible for the DEPRESSION that I think we've been in the midst of all along."

glenlloyd's picture

Ben Bernanke - "No rate normalization during my lifetime"

PlayMoney's picture

I pity the fool long stocks if she raises rates. I usually buy the SPY right before she speaks and the market goes up when she says no hike....as they cheer easy money. Usually in for not more than 30 minutes. I'm getting scared she might be just fool enough to do it and might sit this one out.

 

If she does EMs probably go down first then it works its way here. CNBC cheerleaders sit around scratching their heads wondering what happened and panic to find a guest to explain it. Or they just blame it on the minute amount of snow left on pikes peak. 

OldPhart's picture

Everything ia awesome, and fuck these shits.  Pour your money into the market and feast on their deseerts.

 

The only thing my money is going into is silver and gold, the physical stuff.

SMG's picture

What if the Oligarchy decided that now for whatever reason was time for some fireworks to happen?  Then they would raise rates.

Remember the Fed acts on the orders from it's masters, not for some kind of common good.

Mr Poopra's picture

If the rates are raised now, it is the beginning of a deliberately controlled implosion.  It would be just too destructive to not be considered deliberate.

I think it would make more sense to extend this as long as possible, more jawboning about "soft growth", and more QE probably with China as the excuse.

SMG's picture

I don't really know honestly.  They're not being straightforward about what they're going to do.  So I'm left to guess like an out of the loop peasant.

PlayMoney's picture

I think they just continue their 5 years  of just trying to talk up rates. "We will raise in a few months"...HA. And it appears people tend to actually buy into it. Data doesn't support it in any way. Dollar would go up, hurt home and auto sales, and lord knows what it would do to the interest rate based derivatives and bond market. I don't think people realize how destructive a 25 basis point raise would be in our economic status.

yepyep's picture

This whole the fed is gonna raise rates narrative has been hilarious.

These clowns are not raising rates until the markets force it, and by that time there will be bigger problems.

 

The amount of people ive seen coming out saying september october rate hike who should know better and falling on their swords over this has been sad to say the least.

Yellen's jawboning on this has always been "data dependent" and the data stinks.

 

If they just go ahead and do it anyway though, there will be fireworks, i hope people are prepared just incase :)

 

bluskyes's picture

but this time they mean it

OldPhart's picture

But this time it's different.

nmewn's picture

Ya know, I "rolled over" in bed the other night and gave myself a huge bump on the head.

The fed IS NOT going to raise rates.

knukles's picture

A California bed time love story:
A guy was lying in bed with his new girlfirend after some sooper dooper great sex and for the next hour she was gently rubbing his nuts.  Which he loved.  So he askes her why she likes rubbing his nuts. 
To which she replied; "Because I miss mine so much."

nmewn's picture

;-)

I don't know if Bernanke panicked or did it on purpose but the end result will be the same. Sleeping with a 20 trillion dollar tranny hooker and only paying .25% brings Bubba (formerly known as Daisy) into the picture...lol.

buzzsaw99's picture

well if they do raise rates then china could move all their usd into a money market and get that sweet, sweet, 0.50%. woohoo!

nmewn's picture

Kinda fucked ain't they?

tarabel's picture

 

 

S/He who raises rates first risks being tagged as the person who causes the next Depression. That's all you need to know about the long-term options for recovery. 

Dr. Engali's picture

The fed doesn't need to raise rates. The "strong dollar" is doing the job for them. As far as rates go they may do a token raise then a wait and see to save face, but we will never see fed funds above 1% again.

ebworthen's picture

All Ponzi schemes come to an end, eventually, and the FED has a whopper on their hands.

adr's picture

If a .25% increase in an interest rate causes a depression, it proves you have been in one all along.

The Carbonator's picture

The FED won't let the shit show self destruct while the Commie in chief is in office.

As soon as he is out they will make sure the bottom falls out.

Savyindallas's picture

rates won't be raised. But how long can the markets go up with zero interest rates? This can't go on forever  -without setious inflation  -can it? 

Mini-Me's picture

It's like a swim instructor telling his student that he can swim, but he's too afraid to take the floaties off and discover the truth.

The truth is that we've been in Fed-induced coma for the last 15 years.  Whether Yellen willingly raises rates or the bond market forces her hand, this whole Ponzi scheme unravels. 

B2u's picture

Time to end the FED.

kchrisc's picture

Guillotine the Fed. Audit the heads.

Liberty is a demand. Tyranny is submission.

MASTER OF UNIVERSE's picture

The FED cannot raise rates and must continue to dance on the head of a pin until the whole thing flies apart like a transport truck retread on the highway. I agree with Dr. Paul that a rate raise is unlikely.

kchrisc's picture

Oh, what will the grifting and plundering thieves do:

Raise rates as part of an engineered collapse of the dollar so as to further profit from it and the resulting misery?

Allow the dollar to collapse on its own without a plan to further profit from it and the resulting misery?

You can call a friend if you need.

Liberty is a demand. Tyranny is submission.

kchrisc's picture

"By Paul’s reasoning, the Fed is too scared to raise interest rates in the middle of an already weak recovery and risk sending the U.S. economy back into recession, or worse… The Fed chief “does not want to be responsible for the depression that I think we’ve been in the midst of all along,” Paul added. “Everything is vulnerable, so we’re living in very dangerous times,” Paul added."

Attributing humanity to a cabal of psychopathic grifters and thieves is a mistake.

Liberty is a demand. Tyranny is submission.