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The Real Reasons Why The Fed Will Hike Interest Rates
Submitted by Brandon Smith via Alt-Market.com,
For the past several months, the chorus of voices crying out over the prospect of a Federal Reserve interest rate hike have all been saying essentially the same thing – either they can’t do it, or they simply won’t do it. This is the same attitude the chorus projected during the initial prospects of a QE taper. Given the trends and evidence at hand I personally will have to take the same position on the rate hike as I did with the taper – they can do it, and they probably will do it before the year is over.
I suppose we may know more after the conclusion of the Fed meeting set for the 16th and 17th of this month. August retail sales data and industrial production numbers have come in, and they are not impressive even with the artificial goosing such stats generally receive. However, I do not expect that they will have any bearing whatsoever on the interest rate theater. The Fed’s decision has already been made, probably months in advance.
The overall market consensus seems to be one of outright bewilderment, so much so that markets have reentered the madness of "bad news is good news" as stocks explode on any negative data that might suggest the Fed will delay. The so-called experts cannot grasp why the Fed would even entertain the notion of a rate hike at this stage in the game. Hilariously, it is Paul Krugman who is saying what I have been saying for the past year when he states:
"I really find it quite mysterious that the Fed is eager to raise rates given that, they’re going to be wrong one way or the other, we just don’t know which way. But the costs of being wrong in one direction are so much higher than the costs of being the other."
Yes, why does the Fed seem so eager? Every quarter since the bailouts began no one has been asking for interest rates to increase. No one. Only recently has the Bank for International Settlements warned of market turmoil due to the long term saturation of markets caused by low interest policies, yet it was the BIS that had been championing low rates and easy money for years. The IMF has warned that a U.S. rate increase at this time would cause a market crisis, yet the IMF has also been admonishing low rate policies, policies that they had also been originally supporting for years.
Confused yet? The investment world certainly seems to be. In fact, the overall market attitude towards a rate hike appears to be a heightened sense of terror, and I believe this has been amply reflected in global stock behavior over the past three months in particular. With thousands of points positive and negative spanned in only a couple of trading sessions, stock market indexes around the world are beginning to behave like seizure victims, jerking and convulsing erratically.
This has, of course, all been blamed on China’s supposed economic “contagion.” But you can read why that is utter nonsense in my article “Economic crisis goes mainstream – What happens next?”
The bottom line is, the Federal Reserve has been the primary driver of the massive financial bubbles now in place in most of the world’s markets, and much of this was accomplished through ZIRP (zero interest rate policy). Hopefully many of the readers here can recall the tens of trillions of dollars of overnight lending by the Fed to international banks and corporations that was exposed during the initial TARP (Troubled Asset Relief Program – aka bailout) audit. You know, the trillions in lending that mainstream naysayers claimed was "not" contributing to the overall debt picture of the U.S. Well, reality has shown that ZIRP and overnight lending has indeed directly and indirectly created debt bubbles in numerous areas.
The most vital of areas at this time is perhaps the debts accrued by major banks and companies that have relied on overnight loans to facilitate massive stock buybacks. It has been these buybacks that have artificially supported stocks for years, and whenever ZIRP was not enough, the Fed stepped in with yet another QE program to give particular indicators a boost. The main purpose of this strategy was to ensure that markets would NOT reflect the real underlying instability of our economic system. The Fed has been pumping up banks and markets not only in the U.S., but across the globe. Why? We'll get to that, but keep in mind that it takes time and careful strategy to wear down a population and condition them to accept far lower living standards as the "new normal" (and it takes a sudden crisis event to convince a population to be happy with such low standards given the frightening alternative).
Even with near zero interest, companies have still had to utilize a high percentage of profits in order to continue the stock buyback scam. We have finally arrived at a crossroads in which these companies will be forced to either stop buybacks altogether, or await another even more comprehensive stimulus infusion from the Fed. A rate increase of .25 percent might seem insignificant, until you realize that banks and companies have been cycling tens of trillions of dollars in ZIRP through their coffers and equities. At that level, a minor increase in borrowing costs swiftly accumulates into untenable debts. A rate increase will kill all overnight borrowing, it will kill stock buybacks, and thus, it will kill the fantasy that is today's stock market.
This is why so many analysts simply cannot fathom why the Fed would raise rates, and why many people fully expect the introduction of QE4. But we need to ask some fundamental questions here…
Again, as Krugman ponders (or doesn’t ponder, since I believe he is an elitist insider with full knowledge of what is about to happen), why does the Fed seem so eager to raise rates if the obvious result will be a drawn out market crash? Is it possible, just maybe, that the Fed does not want to prop up markets anymore? Is it possible that the Fed’s job is to destroy the American economy and the dollar, rather than protecting either? Is it possible that the Fed is just a useful tool, an institutionally glorified suicide bomber meant to explode itself in the most populated area it can find to cause maximum damage for effect? Wouldn’t this dynamic go a long way in explaining why the Fed has taken every single action it has taken since its underhanded inception in 1913?
Will the Fed raise rates this week? I still think the Fed may "surprise" with a delay until December in order to give one more short term boost to the markets, but as I read the mainstream economic press I find the newest trend indicates I could be wrong. The trend I am speaking of has only launched in the past couple of days in the mainstream media, as outlets such as the Financial Times and CNN are now publishing arguments which claim a Fed rate hike is a “good thing”. While it may be a "good thing" in the long run as it is vital for everything that is over-inflated in our economy to fall away and leave that which is real behind, a return to true free markets without ZIRP manipulation is NOT what the mainstream media is promoting.
The mainstream pro-rate hike arguments are in most cases predicated on completely fabricated notions of economic recovery. CNN states:
"At a time when the U.S. economy is chugging along at over 2% growth and the unemployment rate reflects almost full employment, there’s not much of a case for the Fed’s key interest rate to remain at historic lows…"
As I outlined in my series written at the beginning of this year titled “One last look at the real economy before it implodes,” any growth in gross domestic product (GDP) is a farce driven primarily by government debt spending and inflation in particular necessities rather than recovery in the core economy and on main street. And, unemployment numbers are the biggest statistical con-game of all, with more than 93 million Americans not counted on the Labor Department’s rolls as unemployed because they no longer qualify for benefits.
For a couple of months, some of the mainstream has pulled its head out of its posterior and actually begun asking the questions alternative analysts have been asking for years about the potential risks of returning market volatility and “recession” (which is really an ongoing program of hyperstagflationary collapse) in the wake of a world without steady and open fiat stimulus. Yet, suddenly this week certain MSM establishment mouthpieces are claiming “mission accomplished” in the battle for fiscal recovery and cheerleading for a rate hike?
What this tells me is that the narrative is being shifted and a rate hike is indeed on the way, perhaps even this week.
It is important to note that this stampede over the edge of the cliff is not only being triggered by the Federal Reserve. Most central banks and China's PBOC in particular is definitely part of the bigger problem, but only because China is working alongside international bankers to further their goal of total economic interdependence and centralization. China’s avid pursuit of SDR (special drawing rights) inclusion and its close relationship to the IMF and the BIS must be taken into account if one is to understand why the current fiscal crisis is developing the way it is.
China has recently announced it will be opening its onshore currency markets to foreign central banks, which essentially guarantees the inclusion of the yuan into the IMF’s SDR global currency basket by the middle of next year. The IMF’s decision to delay China’s inclusion until 2016 was clearly a calculated effort to make sure that they did not receive any blame for the market meltdown they know is coming; a meltdown that will accelerate to even more dangerous proportions as central banks begin to move away from the dollar as the world reserve and petro-currency.
In preparation for the global shift away from the dollar, China has begun dumping dollar denominated assets at historic levels while Chinese companies have begun reducing the amount of dollars they borrow for international transactions. Is this selloff designed to liquidate assets in order to support China’s ailing markets? No, not really.
China has been planning a decoupling from the U.S. dollar since at least 2005 when it introduced yuan denominated “Panda Bonds”, which at the time the media laughed at as some kind of novelty. In only ten years, China has slowly but surely spread yuan denominated instruments around the world in order to make China an alternative economic engine to the U.S. China, working with the BIS and IMF, have set the dollar up for an extreme devaluation and the U.S. Treasury has been set up for inevitable bankruptcy; and guess who will ride to our rescue when all seems lost? That's right - the IMF and the BIS.
Will the Fed’s rate hike make U.S. bonds more desirable? Probably not. After a short term initial boost U.S. debt instruments will return to the path of de-dollarization. In the end, I believe the Fed rate hike will encourage more selling by the largest bond holders who will seek to make as much profit as possible until the bottom begins to fall out of the dollar. As China continues to sell off their treasury and dollar holdings, there will come a time when other global investors will feel forced to sell as well to avoid being the last idiot holding the bag when extreme devaluation takes place.
The Fed rate hike is a kind of openly engineered trigger event; one which will likely occur before the end of the year. The major globalist players within the BIS and IMF are separating themselves from this trigger as much as possible today, while warning of a coming crisis they helped to create.
The Fed seems to be a sacrificial appendage at this point, a martyr for the cause of globalization and centralization. Bringing down the U.S. and the dollar, or at least greatly diminishing the U.S. to third world status, has the potential to greatly benefit the Fabian socialists at the top of the pyramid. Such a crisis makes the idea of centralization and global economic administration a more enticing concept.
With a complex and disaster-prone system of interdependence causing social strife and chaos, why not just simplify everything with a global currency and perhaps even global governance? The elites will squeeze the collapse for all it’s worth if they can, and a Fed rate hike may be exactly what they need to begin the final descent.
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We've been kind of wondering if the Chinese have secretly forced their hands behind the scenes?
Seems very logical in an illegal, satanic, NWO, sort of way...
The Fed needs to re-arm.
Ray Dalio on monetary policy: http://www.planbeconomics.com/2015/09/ray-dalio-talks-fed-policy-china-a...
Gibe me back my intellectual proptery bro....only room for one hammer and sickle in here
The real reason?
http://image.b4in.net/resources/2013/09/18/1379523384-monkey_grenade_2-e...
That pin is just gonna fall out sometime.
https://www.youtube.com/watch?v=Zi92pRbG8ms
And escalation of the war in Syria will be the necessary cover event/scapegoat for the collapse... that is a real(!) concern
rate hike, oh yea, we are all fucked again...
no rate hike, ha still fucked in the ass...
1/4 pt, ha...
rates should be at 3-4 percent.
end of story..
Yea, I like that theory much better. It's simple and easy to do. Our glorious deciders can't tie their own shoes.
To have intellectual property, one first must have intellect. Besides, you got part of a star in yours. Apples n oranges.
Great! My CD's will go fron 0.04% to 0.05%
Long live the thieving jew banksters!
FFS.. if a measly 0.25% is going to upset everything then the rubber band between the teeth and the hand is overextended.
This is what happens Larry when you F@#k a Stranger in the ass.
This is Madness (crowds and fucking with the natural order of things never ends well... BUT they think they are the smartest people in the room)
I confess.. I like swimming naked
"The Chinese" are controlled by the same global masters. There are no enemy nations, all are under the control of the same puppetmasters.
Maybe.
Maybe not.
millions of displaced refugees make it necessary to eliminate borders, countries and turn everything over to the elite. They will ensure those that have will get only what they need. The Pope will explain this clearly next week. He is the moral spokesman for the elite.
My money is on Brandon being wrong again. He is an expert onj everything accept being right.
He's been right about most things including the downturn this year, but no one is right all the time. At least the guy makes an effort to inform people. What have you ever done, buddy?
Yellen may look like a harmless little old granny but don't let appearances deceive - she is a hardened dangerous criminal.
indeed. expand expand expand... then.. predictably.. collapse
predictable CB behaviour...
P < P + I
QuE Sera, Sera........
Real=/Actual
They would do it because they kept promissing it for the last 3 years. If not, Fed would lose all of its credibility!
My money is on the Fed raising. I think they have been preparing for the aftermath recently by letting the markets tank and just as they have done several times over the past few weeks, they will step in and prop the markets back up
Who give a F@#K if the markets take a Hissy Fit. You will continue to have your blood flow around your body and you will feel hunger (if your not American) you will continue to Shit (and if American, it will smell like dead meat and your ass will be so large , wiping it will present a great challenge). Fact: the interest rates are at emergency lows... I think you should re read that!! then realize that smell is 9 year dead green shoots.
Jim Grant: Fed will hike 25 basis points http://finance.yahoo.com/video/jim-grant-fed-hike-25-201500556.html
OECD trims growth outlook but urges Fed action this week http://www.reuters.com/article/2015/09/16/us-economy-oecd-idUSKCN0RG10W2...
World Bank economists warn Fed hikes may be bumpy for emerging markets http://www.reuters.com/article/2015/09/15/us-usa-fed-flows-idUSKCN0RF1F5...
A rise in market expectations for U.S. interest rates as the Federal Reserve starts to normalize policy could cut capital inflows to emerging markets by as much as 45%, World Bank economists said in a paper published on Tuesday.
Do these World bank retards know that these EM's have huge dollar postions that they will unload. Which will flood the FX market with dollars. Which will uptick dollar velocity, which will uptick inflation which will lead to more selling ?
Good point Spitzer, but they know, they know.
dup
If history is any guide, an "elite" few know this and will be well-positioned to profit...
Come on due, you of all people knows that bullshit walks and money talks...
I hope these dumb bastards do raise the rates, that way everyone will put the blame on them where it actually belongs. They seem terrorizing people with this rate hike threat and like the FED itself this is getting old... do it fuckers!
Apparently Obama has signed something allowing social behavioral experimentation on the American population. Granted they have been doing this all along illegally but now they seem to want it to be funded and in the open. Based on the language and the British versions of similar bills they will be looking into how to control and predict our behavior. If you encounter any weird surveys or suspect that you may be in a situation that is rigged for social experimentation be sure to fuck up the accuracy of their data as much as possible.
<----- Rate hike or no rate hike, WE are fucked
<----- Rate hike or no rate hike, THEY are fucked
I have no idea what they are going to do. They are probably sacrificing a goat at the base of the stone owl and reading the entrails as we speak. Yellen is probably wearing a thin white robe and her big arangutan titties with giant saucer sized areolas are flopping all around on her stomach as she speaks in tongues..... your welcome. ( :
Nah I reckon with a blood moon tetrad completion .... 4x7 (magic Shemitah no.) = 28
THE 28th Sep.
Put a ring round it folks. LOL
Anyone got some Israel -Iran news for spice?
[Just kidding . . . maybe]
https://www.youtube.com/watch?v=wz-PtEJEaqY
I think this says it best.
Dammit, now I have to go brillo my eyes.
Dude, WTF.... you made me spit out my bagel.
Utterly Brilliant! Laughter is the wealthiest currency. This is exponential!
Interests rates may rocket to .0000000001% at any moment now, prepare accordingly.
Will one little rate hike risk collapse? If it collapses, it won't get up.
Not really. Because they will be net negative still. But sentiment and bullshit rules so maybe
With what is going on in Asia right now who knows what the impact could be. As we speak the markets in Asia seem to be doing okay but it seems to be a daily touch and go situation. If they don't want any more trouble you would think the last thing they would do would be raise rates.
Schiff might be right they may nearing the point of losing control, one would think that they wouldn't want to flirt with disaster but eventually the disaster is coming anyway so it really just depends on what their agenda is. So we wait for the saggy tittied Oracle of Delphi to speak.
Those aren't tits. Her last face-lift raised her balls.
JEEEEEZ!! Hike the fucker already!!!!!!!!!! The ONLY real meaning is the extra 25 basis points the .gov will need to be paid on the interest on OUR national debt. Something in the tune of 20 trillion +. Something that is impossible to pay, so fucking raise it, or not, wtf.
25 basis points on $18 trillion is $45 billion/yr -- we will soon be talking about a lot of money.
And that's not counting all the debts accrued through Social Security and entitlement programs. It'll be a bloodbath.
Where in the world did you get all that insight on why the Fed is going to raise the interest rate..wow you have covered all the bases..I guess this is why Janet (yellin..duck for cover) does not get a good night's sleep...
YES THEY WILL, NO THEY WON'T, YES THEY WILL, NO THEY WON'T,YES THEY WILL, NO THEY WON'T,YES THEY WILL, NO THEY WON'T, _JOHNLGALT
First the crash, then the war
I like the article, but don't buy the conclusion as to why. The Fed, The EU, are examples of central planning and everyone can now see the failure that central planning is. China is just going through the motions when it comes to SDRs, which is just another ponzi, which is a game that robs producers. China is a producer. They resent having to play. They don't need or want the ponzi.
The bankster game is much simpler. Take what you can, while you can, any way you can. Sometimes, previously successful parts of the ponzi must be sacrificed in order to save critical parts.
Raising rates will derail equities and everyone will rush to treasuries. Mission accomplished.
On the contrary, central planning has not failed the banksters. They are the real central planners. This is about power consolidation and control of people and resources. The SDR will be the new global currency.
I'm not opposed to a more global society. I welcome it. I just do not want it being administered by criminal banksters and puppet syndicates AKA national governments. I'm sure local governments will still exist under the umbrella of the New World Order. The disease of banksters needs to be eradicated from the world. Then we can truly have a peaceful global society.
Hussman is right it's not what the Fed might do, it's what they've already done that will cause a world of hurt
So, the Fed shovels a bunch of money out to people who use the cash to invest in China indirectly through purchase of assets in offshore counterparties that pay high interest and do not lock up capital in ways that it cannot be extracted readily-- as would be the case of direct investment in China.
Now, with China faltering, it is time to close out that particular money tree and move things back to the US. EM countries are screaming in terror because this puts them in between diving demand for their products from China and a sudden burst of demand for their remaining supply of capital. No sales. No capital to shift production into other fields of endeavor.
Regardless of what the Fed does, the money is moving back upstream but its efforts will accelerate the flow. Those are the only two options: death by a thousand cuts or one quick slash to the femoral.
Been good to be you guys for a while, but now it's suck time.
Let's raise interest rates with deflation, massive (Real) unemployment, negative (Real) GDP, a quadrillion in derivatives of which at least 10% are tied to interest rates, and a housing bubble.
Yea...THATS the ticket!
Dovie'andi se tovya sagain (It's time to toss the dice)
The Daily Economist
'Savage Harvest"
How a young Rockefeller died at the hands of cannibals.
https://www.youtube.com/watch?v=ZOrrVQCSe-c
Saw it on netflix...gave it 5 stars...I liked the plot
Speaking of pedophiles, I saw that there is an organized attack underway against the PA attorney general who busted two states attorneys not only covering for that pedophile coach but storing and sharing child pornography. She is not backing down but these creepers are highly organized, they are coming after her for obstruction of justice and a bunch of other crap. Surprise surprise..
This story is huge, we are trying priests dying before testifying, Sandusky coverup, and states attorneys who are supposed to be prosecuting these bastards emailing and passing around pics of babies that are pornographic suggestive. They will ruin her to keep this from being exposed because it shows how high the problem goes.
"Kane had fired prosecutors Frank Fina and Mark Costanzo for sending and receiving emails containing pornographic images, some with suggestive images relating to statutory rape and child pornography."
"On April 15, 2005, the district attorney for Centre County, Pennsylvania, Ray Gricar, disappeared without a trace. Gricar opted not to prosecute Sandusky in 1998 when the first major allegations surfaced concerning the sexual predatory practices of Sandusky."
"Retired Archbishop of Philadelphia Anthony Belavacqua was due to testify against a former aide, Monsignor William Lynn, for covering up for pedophile priests in the archdiocese. Belavacqua, who was 88, and reportedly suffering from cancer and dementia, died at Lankenau Hospital on January 31, 2012, just a few months after Sandusky was indicted on 40 counts of sex crimes against young boys and just before a judge ordered Belavacqua to tesfty at Lynn’s trial."
This is one of the best stories that Jones guy has ever had and it isn't being covered, it is huge. http://www.infowars.com/pedophile-enabling-prosecutors-and-officials-try-to-run-pa-attorney-general-out-of-office/
What a retarded post. It did not adequately answer it's own question: Why is the Fed going to raise rates if it is such a bad thing (according to them)?
Because they do as they are told.
Bad= Good.
Got it?
oh, geez,
WHY?
"Because they are told" is not a reason.
Why? Why are they being told to do that?
Cui bono?
You want reason? Rationality?
Where you been?
I've been here.
There is always a reason why a CB would fuck up its own economy, its own stock market and their own sycophantic F.I.R.E. economy. Maybe this move helps the TBTF banks. If so, the article should show how. Maybe this move helps destroy the Russian economy. But this article totaly ignores this. This article does not give one reasonable reason.
When they, the CB's and the TBTF institutions make a move, it is for a reason. It always in the end will benefit them. In this case, it's like chess, they may sacrifice a bishop or a rook to get the final CHECKMATE. My question is what is it that they are after if this move will hurt the U.S. stocks and economy?
You ask me where I've been. Here since the blog days. You?
Farmerbraun: Yes, that explains it: 37 weeks and several days.
Take the cotton off from your ears and place them in your mouth.
Yeah right. ZH is the "real world". LOL.
Brandon did answer the question. The nwo will be built on the ashes of the USA and the USD. Out of chaos, order.
From the article:
The Fed seems to be a sacrificial appendage at this point, a martyr for the cause of globalization and centralization. Bringing down the U.S. and the dollar, or at least greatly diminishing the U.S. to third world status, has the potential to greatly benefit the Fabian socialists at the top of the pyramid. Such a crisis makes the idea of centralization and global economic administration a more enticing concept.
With a complex and disaster-prone system of interdependence causing social strife and chaos, why not just simplify everything with a global currency and perhaps even global governance? The elites will squeeze the collapse for all it’s worth if they can, and a Fed rate hike may be exactly what they need to begin the final descent.
It's about replacing one system of control with an an even greater system of control while making everyone beg for that control.
That is plain silly.
There are more rational reasons why, that I can come up just on the top of my head.
1. To destroy Russia (and any possible usurper). Like they did with the previous commodity bear market in the late 80's and early 90's.
2. To keep alternative currencies down. This includes the best alternative currency there is: gold.
3. Etc.
Raising rates will not destroy Russia. There is no comparison between today's economic conditions and those during the 80's. If anything, the roles are reversed and the U.S. is in Russia's position. Besides that, Russia works closely with the BIS and IMF just like China, and Putin has called for a global currency system just like every other political puppet. The banksters aren't trying to bring down Russia, they are trying to bring down the U.S. and the dollar to make way for a global currency system. A rate rise won't help the dollar's supremacy either, as the article already explained.
Wow!
Read the articles here.
Ever hear of Nuland, Ukraine, Syria, the mounting war of words between US, Europe, vs Russia? Ever hear of US soldiers or mercs in Ukraine. Crimea much? There was a video here of a soldier in Ukraine speaking in a USA accent. etc. etc.
NEWSFLASH: Someone shot down a Malaysian passenger plane over Ukraine. The USA and EU blame Russian and Russia blames them.
Dude!
The US does not want and will not tolerate even the idea of a possible rival. They even wrote it down in the PNAC document. That is why our military is bigger than the rest of the world combined, or close to it.
How did we bring down the USSR? Part of it was a commodity bear market that destroyed Russias economy. Look at the charts of oil etc and superimpose them on the History of USSR.
And even if the USA's reason for raising rates is not to bring down Russia, then there is some other reason. My point is that the thesis of this article is poor.
No, you're not looking at the bigger picture. The USSR was created by the banksters, read Antony Suttons book on Wall Street and the Bolshevik Revolution. The banksters create divisions and wars in order to consolidate power when the smoke clears. They always have. The politicians in the BRICS are just as controlled as those in the U.S. If the top elites in the BRICS and in the U.S. are actually at odds rather than the conflict being staged, then why are the BRICS so anxious to join the IMF global currency system in the SDR? Why does Russia and China work so close with the BIS? This whole crisis is about laying the groundwork for a global currency and global government, pure and simple. Don't buy into the bullshit of East versus West.
When all is said and done it will be the U.S. in ruins, not the BRICS. But I guess we'll just have to wait and see.
Its not East v. West, but there is real rivalry because, for example, big players get killed. There has always been rivalry. There's rivalry at the office and in every other human endeavor. How did rivalry suddenly vanish among the global kingpins who got to be same because they have the biggest egos and are the world's most competitive, most rutheless bastards?
When you talk about Anthony Sutton and the bankster scam that became the Bolshevik Revolution, or banksters financing Hitler, you are talking about bankster scams run against the rest of the world. But those scams don't work so well anymore. People have caught on, are catching on.
Russians have read The Protocols. Probably the Chinese have too. I don't think the leadership in either of those countries want to part with their patrimony to a bunch of Zionist banking gangsters again. The rivalry this time, is between the people and the banks. See Lord Acton.
The "people" are clueless, unfortunately for your thesis. Wishful thinking. Yeah, I wish it too, but that doesn't make it any more likely.
Right now, I agree with you, but the trend is my friend. COLLAPSE will wake up a lot of sleep-walkers.
A one-world-currency system might solve some problems, but it will create just as many, if not more new problems.
Meep meep.
"Will the Fed raise rates this week? I still think the Fed may "surprise" with a delay until December in order to give one more short term boost to the markets"
You just fucked your entire story up with that comment --- uh - they will raise raise --- but they might not
FUCK YOU
Uh, no guy, that's not what he said. Read the whole article. He said they will raise rates before the end of the year, it's just not guaranteed to happen tomorrow. Calm the fuck down and have a beer or something.
If the Federal Reserve increases rates, one of many reasons could be to protect china, because China needs someone to make responsible for. So the crisis continues in china (it wouldn't be their fault) and the us could deflate a little bit it's stock market. A win win
To protect China?
China and all of the rest of the world are begging, beseeching, praying and hoping that the USA does not raise rates.
China hasn't been "beseeching" anyone for low interest rates, they'll get more bang for their buck while dumping all those treasuries. Besides that, what banks and governments say in public is not always what they actually want.
Again, as Krugman ponders (or doesn’t ponder, since I believe he is an elitist insider with full knowledge of what is about to happen), why does the Fed seem so eager to raise rates if the obvious result will be a drawn out market crash? Is it possible, just maybe, that the Fed does not want to prop up markets anymore? Is it possible that the Fed’s job is to destroy the American economy and the dollar, rather than protecting either? Is it possible that the Fed is just a useful tool, an institutionally glorified suicide bomber meant to explode itself in the most populated area it can find to cause maximum damage for effect? Wouldn’t this dynamic go a long way in explaining why the Fed has taken every single action it has taken since its underhanded inception in 1913?
What the fuck is that about --- WHY would they do that? Oh just because -- for the fun of it.
You are a fucking total clown.
This article is utter rubbish
My point exactly.
Some people just can't handle the idea that the Fed is here to screw the U.S. rather than save the U.S. It makes perfect sense given their actions. A rate hike will only create more havoc in our economy in the near term. Like the article said, no one asked for it, so why are they so eager to do it unless they want to create chaos? In the words of Rahm Emanuel - "Never let a good crisis go to waste..."
I would concur with the notion that the oligarchs are not Americans. Their roots may go back to American corporations but they are multinationals. They have villas in Capri and the South of France and town houses in London, Berlin, Moscow and Madrid. It is very easy when you are strolling down the Avenue des Champs on a summer evening arm in arm with a super model to convince yourself that you are the master of the universe and a citizen of the world. Such thoughts are hubris.
The world is organic and self-organizing. We are at the end of growth. At some point we are going to push up against Liebig’s Law of the Minimum and something will break. At that point the system will cascade down to a lower level of complexity. In the process much will be lost never to be regained.
Social chaos is reigniting tribalism. Barriers are going up. Borders are being closed. The devolution is well underway.
all written 2000 years ago ....
probably 3500..
The FED thinks that if they raise rates they will have more room to move around instead of dancing on the head of a pin 24/7/365. The logic would be right if the economy was on a rebound but it ain't, and neither is the FED. The notion that they are attempting to force a blowout is false. The rate raise is merely another facet of extend & pretend that characterizes the last five administrations. Short-termism makes corporate America nervous in the long run, and the CBers know it all too well. Free money forever is about as sound as housing prices always going up. Eventually, the lies don't work anymore and the Muppetts take their money out of investing all together rendering the banks incompetent to centrally govern via the CB.
Well the reason why not is revolution and lack of military cohesion.
It's giving a lot of credit to all these incompetents, from FED to chinese. They just try to manage things they are not supposed to control and it will end up in flames. It's so stupid that we feel to elaborate a theory for it while it's just plain greed and stupidity
take a look at yellen..she is the classic "mark"at the poker table..the Fed is for the banksters, they will win no matter what happens today..one and only mission of the fed- keep the banksters solvent.
FED has many good reasons to hike the rate but most of all it's because they destroyed bond market by destroying liquidity of liquid sovereign bond market and made further ponzi scheme QE impossible when the scale of global economy collapse and ongoing deflationary death spiral is finally revealed .
Here is more about it:
https://contrarianopinion.wordpress.com/economy-update/
The world is FED-UP with American monetary policies. The Development of the AIIS and BRICS is to counter Americas reserve currency status.
With half the world applying for membership, and already approved to AIIS (many USA allies) it is coming to pass that America will soon be held accountable for their fiscal policies, and their debt.
With this loss to America(reserve currency status) the USD will depreciate exponentially over night.
So, the question remains, for now, what will be the new world currency?
YUAN?
EURO?
POUND? (doubt it)
Two of three have the gold to back it up...does America?
The brilliance of FIAT money as recent history has proven... 35 quadrillion Zimbabwa dollars= 1 USD
"So, the question remains, for now, what will be the new world currency?"
Thinking outside of the box.......does it really matter?
Once a player on a Monopoly Board Game gains full control of all of the property, what purpose does money/currency serve? It loses it's purpose.
Is the end game near?
I recently ventured into London City and used the buses. To my horror, cash was not accepted anywhere. I had to use a contactless Debit card. No bus driver asked me my destination and I had no clue how much was being taken from my card until I viewed my bank statement. It appears a cashless society is being implemented, whether or not it is wanted.
Just for the record:
Release Date: August 12, 2009
“The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”
Release Date: August 10, 2010
“The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”
Release Date August 9, 2011
“The Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent. The Committee currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.”
Release Date: August 1, 2012
“The Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”
Release Date: July 31, 2013
“The Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored.”
Release Date: July 30, 2014
“In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate,the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percentinflation.”
Release Date: July 29, 2015
“The Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation."
Heard enough bullshit yet? No. I thought so. You want more
The USD will rally. Get a life.
The Chinese, the Saudis and others would like to be paid something on their large holdings of Treasuries. The U.S. banking cartel may actually require that taxes be collected to transfer this purchasing power to the Chinese, Saudis and others. The cartel may be a little nervous about the response to the fiscal tightening that will necessarily accompany the hike in rates. The stock market will be hit with a 2-fer...(watch the long end...) They seem nervous. Stanley Fischer, our "minder" told his patrons that there isn't really any inflation....so that means the dual mandate is just inconvenient at the moment. He doesn't have the balls to say "we aren't counting 94 mln Americans as in the labor force, that's why the number looks so great, and has trended down in step fashion with the expiration of benefits." I think they are waiting to see if "surly American" extends beyond the ZH cranks. The policy of the last eigtht years has shielded the very folks who could cause trouble...you know, speak up, run for office, write editorials. The professorial class has watched their TIAA-CREF (holds Yellen's money)...assets grow. That may be about to end.
"Wealthy elites squeezing crisis for all its worth"?? Is this the story of Zerohedge?
1 trillion for pensions...
1 trillion for health care...
150 billion for education...
813 billion for defense...
35 billion for protection...(wtf is protection?, condemns?)
92 billion for transportation....
the list goes on --- http://www.usgovernmentspending.com/year2015_0.html
conclusion: it doesnt seem like another 45 billion on an interest rate hike is going to bring the country down...
maybe its just me.
reduce indoctrination, err, education to 100 billion and its a done deal.
Rumsfeld: We misplaced two trillion dollars..(maybe they can go find it now)..
Or how about a few less tanks/bombs in the midle east?
Were they not putting almost 100 billion a month to keep the stock market propped up?
Why would they raise rates? Because the dead wood is unsustainable. A raise in rates gives a controlled crash vs Zimbabwe money.
The dead wood gets cleared. Ready for the next round up after considerable pain.
What economy in the world is the most balanced? The US. - Mfg. and resources/food.
China - mfg.
Russia - resources
EU (as a whole) - people dump
The ME - resources and barbarians
When the super crash comes what you want to look at is food. Who has it to sell. Who needs to buy.
ammo, toilet paper and alcohol too :-)
Excellent article but the globalists will lose. They did not engineer this collapse it is due to world economic history playing out. The Chinese behavior, which is outlined nicely above is typical of Chinese thought throughout history. The coming global chaos will indeed engender a new world but not with a bigger technologically based ultra strong control base because that is the cause of the collapse ie too much mind control , too much robotics, too many control freak globalists leading to human inefficiencies beyond imagination. Instead we are going to see a world based more on community cohesion, respect for human dignity, efforts to make humans as using machines in their proper place as tools for quality of life improvements not for the degrading of all human and animal and plant life as it is now.
I wish.
The coming world will be based on death. The 1940s on steroids. Rage.
Hate is the currency of the NWO. Nothing will get right until that burns out. Divide and conquer is the order of the day. No where more evident than in the "free thinkers" of ZH.
Exactly. The 'rulers' are now more exposed than ever. They are so close to achieving their end goal, but in their desperation they have made mistakes and their shadows are being removed. Too many people are awakening and getting too close to discovering 'their' system and secrets.
They need a brand new, multi-national cover to hide behind, a refined 'global' slave system.
It is not about who has the most money, but who CONTROL'S the most resources.
For a snapshot of the infrastructure to achieve that see Technocracy Rising - Patrick Wood, and Jade2 AI Internet of everything. It's apparently being trialed now under title Jade Helm 2015:
http://caravantomidnight.com/caravan-to-midnight-episode-363-patrick-woo...
Great source here on AI, population control etc: http://level9news.com/
See the two embedded clips here with the orange CtM (Caravan to Midnight) logo. Both have players in them, that you can listen to without a subscription to CtM.
@1:35 smart dust/nano receiver/processor chip in:
The Secret Break Away Civilization You're Not Supposed To Know About
https://www.youtube.com/watch?v=PIslNwtz4EY
exactly what the pope is going to say when satan addresses congress on the 23rd........lol, dream on my friend.
Something like that anyhow.
The Fed is blind. They don't see the disconnect between what their propaganda says and the reality of what is going on. No way will they snap to reality and begin to honestly work for the better of the country. They will continue the "everything's fine" meme and hike. I'll bet Obama's gonads on it. After all he's damn sure not using them.
The Fed must be eliminated to get the global currency and global governance. To get there, first the Fed needs to be discredited (check), then they have to cause more difficulties for people (working on that now) and then a solution must be presented (to come later in the form of a world-peace global solution run by the same people as before)...
... and it has to be publicized that the Fed is the source of the problem, so they can be vilified along with Wall Street. 10 years ago most people did not even know the Fed existed, much less what they do.
... not sure who will be caught in the fallout.
A sufficient enough rate hike
may serve to completely demolish any credibility still held
for the viability of the US federal budget.
The 'austerity crisis' could then become an opportunity to gain more power.
...and produce sufficient chaos to require the cancelling of next year's elections.
Everything the author says is probably true, and I have no doubt our leaders are villains perfectly capable of doing exactly what the author claims... but, I don't think Lucy is ever going to let Charlie Brown kick that football. At least not until Obama is out of office, then the collapse can be blamed on someone else, ideally a free market proponent.
The Fed raising rates is the same meme as an Israeli peace deal. They'll talk about it till their blue in the face and your ears fall off - but actually do it?
Fuck no. Not on this planet. Not ever.
"My greatest flaw. I surround myself with idiots."
- Victor von Doom
"Is it possible that the Fed’s job is to destroy the American economy and the dollar, rather than protecting either?"
The FED says it has a different dual mandate. Low unemployment, with a new record 94 million not working, and +2% price detablization annually.