100%... but if one has to get cut, it won't be the EBT Nation
Posted on 09/20/2015 11:30:44 AM PDT by Jack Hydrazine
Yellen has inherited a complete nightmare.
Thursday’s decision to delay yet again the long-awaited liftoff from zero interest rates is illustrating that the world economy is totally screwed.
There is a lot of speculation about why the Fed seems so reluctant to “normalize monetary policy”. There are of course the typical domestic issues that there is low inflation, weak wage gains in the face of strong job growth, a hike will increase the Federal deficit and then there is the argument that corporations that now have $12.5 trillion in debt. All that is nice, but with corporate debt, our clients are locking in long-term at these levels, not funding anything short-term. Those clients who have listened are preparing for what is to come unlike government which has been forced to shorten the average duration of their debts blind to what happens when rates rise, which will be set in motion by the markets – not Yellen.
The Fed is really caught between a rock and a very dark place. Yes, they have the IMF and the world pleading with them not to raise rates for it will hurt other debtors who borrowed excessively using dollars to save money.
The Fed is also caught between domestic policy objectives that dictate they MUST raise rates of they will bankrupt countless pension funds and international where emerging markets will go into default because commodities have collapsed and they have no way of paying off this debt that has risen to about 50% of the US national debt.
By avoiding the normalization of interest rates (hikes), the Fed has encouraged government to spend far more than they realize because money is cheap. This will eventually light the fire under the economy helping to fuel the Sovereign Debt Crisis. There appears to be no hope for the Fed and they will be forced to raise rates only when they see asset inflation in equities. Then they will have no choice.
This is the worst possible mess and the longer they have waited to normalize interest rates, the worst the total crisis is becoming for they will have zero control over the economy and once that is seen, holy Hell will break loose.
2015/2016 (or 5776 of the Jewish calendar) is going to be a wild ride! Hang on!
Myb wheelbarrow has four wheel drive!
After considering the source (gold investor), I think the same; the metals are getting ready to make another large run. I've been watching the availability of physical silver drop considerably. Many silver products on APMEX are now out of stock and premiums over spot are similar to what they were at the height of the silver prices two years ago.
Just a heads up. Diversity, due diligence, and caution; and as always, beans and bullets first.
Bill Holter - All That’s Left is a Reset
https://www.youtube.com/watch?v=YpZZHeVwFPU
due to my doing, we have some credit card debt too..paid off one card and I hope I have enough time to pay the others....we have a fixed mortage and a fixed car payment....and I have a very sound job.....
oh, they were so bold and proud when they denounced Romney and voted for bammy or third party or didn't vote...they were so principled...
and so stupid....
if people don’t get their govt bennies and their SS, they can not pay off car or credit cards or their homes....iows....THE BANKS DON’T GET PAID....and the govt either, since we have no income.
Preppers’ PING!!
Hat tip to metmom for the heads up!
Where do you get those prices? I just bought a dozen eggs for $2.79.
Romney is a liberal. So is Obama.
I'm not a republican. I'm a conservative.
/johnny
Thanks for the link.
AMMO
FOOD
OTHER STUFF
well, when you’ve got elderly parents you’re ALWAYS gonna be in debt to the Hospitals.
and let MORE non Americans OWN our land? Screw that
The Dow will go down 923 on 9/23.
5.56mm, salt, whiskey, rice and beans.
Bfitm
Where do you live? Midtown Manhattan? Hawaii? Those prices are waaaay out of synch w/what I see.
Now to the topic at hand...it was said, multiple times, that debtors will be in a world of hurt. I think it will be the lenders who actually feel it worse. I think back to the demise of the steel industry in SW PA. Entire neighborhoods went vacant (many still abandoned) but efforts were made back in the early 80s. in Allegheny County Common Pleas Court, to FORCE renegotiation on mortgages BEFORE foreclosure, of the suddenly unemployed. I don’t remember all the specifics, but I do remember that foreclosures/sheriffs sales eased. So I have a hard time believing that millions will suddenly be homeless—I just see the unraveling of society as we know it.
100%... but if one has to get cut, it won't be the EBT Nation
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