A slow down?
A stock market correction?
Leni
Unemployment has gone up recently.
Everything is short term investing for me:(
Downward spiral in treasuries. There will be a race to the exit. Everybody knows that our federal government will not pay back lenders. The only question is when we default, not if.
Since the unemployment will not be getting anywhere near 7%, fiscal policy should remain basically the same.
They’re not removing the punch bowl.
They have said they will continue to buy 85billion/month of treasuries and mortgage backed securities.
They’re going to do this until the dollar collapses.
They’re in a hole and are keeping on digging.
They cannot withdraw and sell the treasuries because that would collapse the market. Who would buy so much junk? Answer: No one!
And yes, I’m ready for what’s coming.
BS.
If they do, the whole house of cards will come crashing down. The only thing keeping maybe 50% of the population afloat is transfer payments from the Federal Government. And that INCLUDES any company or other government organization that depends on Government $$ [so, 50% might be way low].
Think about it. Interest rates have actually gone DOWN as Government borrowing has exploded. This has accelerated in the last 4 years, but is not new—its been happening since 1981. If interest rates increase, even a little, Government borrowing costs explode and the System crashes of its own weight.
The Power-that-Be won’t let that happen. So interest rates will stay low. Ben will print until (eventually) hyper-inflation kicks in big time.
Yeah, maybe in 2015, according to the last whole word on that from the FOMC. Some authors like to cite one or two members of the FOMC, but that’s brought some erroneous information to us before. Caution, IMO, before Bernanke announces real decisions. Shorters and currency warriors have been busy, though. Beware big decreases in revenues from further declines in domestic production and exports, if the dollar continues riding artificially, internationally high in this funny global economy.
BTW, when the Fed does eventually tighten up (not now, IMO), yields will soar, which will put a stop to government’s ability to pay the debt. Bond collapse, interest rates will soar. Activity will stop. Government will begin repudiating large chunks of debt and administering “haircuts” to investors. Austerity measures, including drastic tax hikes. Pensioners will suffer their unforeseen haircuts. Our currency will be adjusted way down to make way for resuming exports, etc. Ugly political consequences. No enforcements against local agricultural or small manufacturing competition/starts.
See Argentina.
The goal has always been for a One World Currency, a One World Government and a One World Religion.
The Fed expires in 2013 and so does the Federal Reserve Note (aka US Dollar). Better to spend them on real assets while you still can.
the bottom line:
1. uncle sugar is taking away some sugar.
2. uncle sugar will still be spending way more than currenty taken in.
3. commodity prices are increasing.
4. energy prices are increasing.
5. taxes are increasing.
6. obamacare taxes kick in and are increasing over the years.
7. education costs are increasing.
8. jobs in general, and well-paying jobs are not increasing.
9. we are considering amnesty to 11-20 million mexicans here illegally, adding millions to the benefits systems already being told to do more with less.
10. average folks taxes going up through expiring tax policies that helped them, ending deductions and credits/writeoffs.
What is coming is the big squeeze. It’s going to shove what’s left of the shrinking middle class into the poverty class.