Not only is the American economy on life support and has been for many years now, but the world's economy is in much worse shape. The Fed is the culprit here. When all should be economically sound, this group of eggheads will throw a wrench into the cogwheel of progress.
All Soros and his colleagues have to do is pull the switch and voilà , it will happen. The global elites will not be defeated. They are not going to give up the fight, especially since Trump, his staff and a large swath of Americans are pushing back against their evil deeds.
Small increases in the federal funds rate will not tank the economy. The expected stimulus will vastly overreach this monetary policy.
Too easy to foresee. Let’s hope Trump has already put great minds on this, because a recession may be the only correction available for the false Obama bubble.
“And according to CNBC, a “coming stock market correction” could be just around the corner”
One of the first problems here is they are quoting C-NBC...nothing but crap. It’s propaganda.
Really don’t believe the Federal Reserve has the type of power described. Interest rates were low following the economic catastrophe of the Iraq and Afghan wars compounded by the anti capitalist regulations and policies of the Obama administration because the economy was quite dormant. There was little demand for capital since there was little real economic growth . The demand for capital was low ( hence low interest rates) as was the demand for industrial commodities such as copper, aluminum, steel and oil. If Trump follows through with the rescinding of Obama’s anti capitalist regulations and taxes, lowers the Federal budget deficit and ends the war on carbon energy sources, the economy will grow. There will be a demand for capital, so interest rates will rise despite the agonizing meetings and musings of the Federal Reserve. The economy will expand and Trump will benefit politically.
Try can try
Not really. The FED is trying to restore sanity one quarter point at a time. Crony capitalism had to be cut back eventually.
If the $600 Trillion Derivative bomb goes off, then Katy bar the door.
Mark Faber (aka Dr. Doom) predicts it could be as much as an 80% crash, as that is how overvalued he sees this market.
But what do I know?
Not much, but the more I read, the parallels between today and 1929 are poignant and striking.
I remember, right after the end of WWII, the general thinking was that the U.S. would slide back into a ‘30s-type Depression.
What they failed to realize was that people had TONS of money socked away because they couldn’t buy many consumer goods. Once the War ended and consumer production began, the economy took off.
I’m thinking somewhat along those lines now, despite the debt burden. Corporations sat on their money because of obama’s anti-business policies, and now that the White House is fumigated, that money will be put to work.
Zero Hedge had an article within the past week that in October (when Hillary was supposed to win) and the projected 4th Q GNP was pretty good that they were going to keep rates low in 2017. Since then, forecasted 4th Q growth rates declined (which means you don’t raise rates) and Trump won.
We should audit the Fed. It is part of the swamp.
A Trump E.O. would create other currencies, such as,
U.S. Note, Texas Dollar, North Dakota Dollar,
JFK Red Seal dollar.
This is a simple solution to the fed reserve.
Not an economist, nor did I sleep in a Holiday Inn Express last night but how does consumer confidence and general market optimism factor in? Everyone I talk to recently are now bullish on America and optimistic that Trump could be “the guy” to pull it all together. Some are talking fresh mom and pop start-ups if Trump can make deregulation happen, even if the capital costs them more when they decide to jump in than it might today.
There is ALWAYS the possibility of anything...........
People get rich over words such as "Possible", "Maybe", "Potential", "Could"..........
Wish I could figure out how to cash in on that crap........
The Fed will raise rates to crater the economy and the RINOs in congress will help by refusing to give Trump the antidote in the form of the tax cuts he wants.
The Fed’s logic is illogical. It ignores the macro-economic factors of both inflation and GDP growth MORE than it acts on the phony “unemployment” figure, which we KNOW, with today’s low labor participation rate is more phony than a two dollar bill.
Some economists may say it is merely an “academic” error of the economic analysis staffs and leaders at the Fed, who are overwhelmingly eggheads from egghead city and not folks with “out in the economy” business or financial experience.
Others, like this article, may think the folks at the Fed are smarter than many know them to not be, and are just going to error on purpose, because of who is in the White House right now.
Having read more than one book lately on just how dumb so many at the top of the chain at the Fed are, I am on the fence as to their greatest problem - they are just too political, or they got where they are through the Peter Principle (rose to their level of incompetence).
For the powers the Fed has, they have it made even above politicians. They can make the most egregious mistakes, gravely harming the country, get away with it and suffer even less consequences than some politician who, because of their record, lose office and can’t get elected again.
I have learned enough since 2008 to understand that the Fed could have prevented the crisis, and instead chose to join the chorus of cheerleaders for the “new economy”, “affordable housing”, massively rising debt, and uncharted financial transactions (”derivatives and CDOs) amounting to more than the economies of the world), while they kept saying conditions were manageable, even when the first canaries in the coal mine had begun to sing.
All the top Fed officials should have been fired in 2008, not out of any partisan interest, but of the national interest. If they weren’t so stupid, they would have listened and respected a few dissident voices within, they would have been shouting with all their institutional strength at the rest of the federal government and taken their own fuel (low interest rates) off the housing bubble fire. By the time they did the bubble was already bursting, with its virus of subprime debt within.
bkmk
Small problem with that thesis. The market reacted very positively to a slight rate increase. Many people here are just insistent that debt is this massive issue, and that to prevent inflation, we need to have fewer dollars. Well, they got it.
Personally, I don’t think debt is at all reflective of the state of the US economy, which hasn’t been properly valued in 25 years to account for the vast, overwhelming increase in productivity from computers. In other words, we could print money from now til doomsday and probably not make up ground on the real valuations of US assets.
The global elites may not be as bulletproof as they think they are.
The Atlanta Fed just cut its Q1 GDP forecast from 1.2% to 0.9%, a number which if confirmed would be the lowest quarterly print in year, just two hours before the Fed’s rate hike quite humorous. As a reminder, the number was as high as 3.4% one and a half months ago. Retail sales are also falling off the table. Despite these facts they continue to raise rates. The stock market is feeding of the FED “confidence” in the economy.
I just read an article on the debt ceiling. I’m now pretty convinced the Deep State and the New World Order globalists are going to attempt to crash the economy. When there’s a crisis, there is panic and fear. When there is panic and fear, people will reach out to anyone for a solution. They will surrender their freedom, their rights, and their very being for “security.” This is when the globalists will make their move.