Why? Cheap fossil fuels drives our economy. You cannot shock it to go green. Inflation, open borders, COVID vaccines, crime, and a corrupt/incompetent government at all levels will be the cause. Taxes will have to increase to cover the Trillion dollar spending increases by the Democrats. You cannot blame Trump on this one. The Democrats own it and Biden signed these bills.
As with Jimmy Carter, interest rates will rise. I lived though the Carter years and Biden is making the same mistakes. It is very possible inflation will return to 1980s level and when it does, based on history, the Fed will raise interest rates to 12-15%. For those of you who haven’t bought a house yet, get off the couch. I remember paying 21% interest on. $60,000 house in 1980. It was insane. We had to wait days to get an appointment at the bank. T-Bills will be back in demand very soon. The stocks to buy after winter is over will be travel, solar, and oil stocks. They are going to get hammered. Furthermore, retailers count on November and December for 75% of their revenue. They aren’t even close. Be ready by being cash liquid for some great bargains in the stock market.
The Fed can NOT control inflation right now. It is not politically expedient to do so. They may SAY they’re going to do something, but what will actually happen will be the opposite.
A substantial sell-off is coming soon IMO. Market valuations and leverage are sky high. Plus there are legions of “investors” who have never before witnessed a prolonged and severe correction. The rush for the exits will be something to behold.
The Bidumb administration will just laugh it off, as they always do.
No, definitely not.
We’re NOT headed for a recession. We’re headed for a collapse.
The FIAT currency systems of the world are at an end... over the next few months, there will be a total collapse. It must be.
The only way to bring on PM-based NESARA/GESARA is thru FIAT collapse.
Do you remember the term ‘stagflation?’ Interest rates combined with inflation..... enough said....
Faster than a speeding bullet.................
Made a correction.
I agree with much of your sentiment, but wouldn’t it make sense to save cash, wait for these sky-high interest rates, and then buy a home? Surely, the housing market will crash with a substantial increase in interest rates. Then, after buying, refinance your mortgage when the next group of globalists calls for lower rates.
New highs do not come at the start of a bull market.
If the fed signals they will raise rates sooner, rather than later, the market will rotate from risk on (stocks) into interest bearing vehicles.
People seem to be expecting an increased taper from the Fed’s buying of bonds. Thats not a market mover per se. However, the Fed has to address inflation. The only way they can do this is to raise interest rates. This acts like towel—slopping up the cash running around.
The problem is that the government continues to pump MORE cash into the system. A quick look at the M1 (money supply) over the past couple of years is downright scary.
So, are we headed to a recession? Sure. This happens every time we peak in our markets. But will it arrive suddenly or in an expected manner? That is the big question.
“Are we headed for a recession?”
Yes, and the recession started on January 20, 2021 at precisely noon, Eastern time.
The Reagan-Volcker Recession was like a depression in my rust belt town (Pittsburgh) Towns in the metro area hollowed out & are atill awful. People in the mill towns who could leave, left. Horrible. It was necessary, but very bad.
Carter may have been making mistakes. Obama 3.0 is not. They want to crash the economy. Other Western nations are doing the same via extreme covid measures. How can Australia's economy possible survive the things they're doing?
Welcome to the Great Reset.
Recession? Take a look around. The civilization is crumbling. Soon decent, rational people will be in survival mode amongst the decay.
...and when it does, based on history, the Fed will raise interest rates to 12-15%...
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The Fed doesn’t have the guts to raise the fund rate to 2% much less 12%. The market is addicted to free money and the Fed doesn’t give a damn about inflationary effects; doing everything to either negate its existence by playing with the CPI or flat out gaslighting.
Except, 'they' were handing out trillions last year for blm and the rest of America to burn and loot. Every president runs up the debt, the next one does the same. They all are to blame for the situation we are entering.
A mere recession? If we’re lucky.
Even if the Fed raises interest rates, cheap oil will not be allowed to return.
This will keep the global economy suppressed.
The supply chain crisis will not end either.
We are not getting out of this painlessly.
If you can’t see that we are already in the middle of a recession your brain is up inside a small tube.
I-bonds are yielding 7+%