So very true. The market has not been based on current economic reality for years, but pumped due to past QE 1 and 2, ZIRP, and other factors. We have several financial WMDs (including derivatives) out there now, and it seems that Yellen, the Fed, and globalist forces want to burn down the house and crash the economy, rather than allow Trump to succeed.
If the economy was barely growing with interest rates near 0% then it’s safe to say that the U.S. dollar doesn’t even have a basis in the U.S. economy anymore. Its value is now driven by foreign interests.
Trump could default on all the debt the US owes to the Federal Reserve Banks and see who is Yellen then.
Honor the foreign debt holders, just cut the Bankers out.
This https://realinvestmentadvice.com/the-questionable-state-abusive-use-of-economics-part-2/
makes too much sense.
“The continuous and immediate democracy of the price system is what calls into question the results of artificial adjustment schemes — those results being that any adjustment to this voting system would, in effect, benefit a small group of individuals at the expense of the larger group; yet this is the nature of the adjustment schemes championed by all sorts of different groups and governments. The adjustments pursued include “parity” pricing, tariffs, “stabilizing” commodities, and price “fixing”, among many others; their commonality is that they disrupt the democratic price system, allow a smaller group to inhibit the desires of the larger group, and are still being used.”
Without tax cuts, raising rates will cause disaster.
Obama and Soros know this, but Ryan and McConnell are too stupid to realize it or they still carry Obama’s piss bucket.
If an economy can’t handle a One Percent interest rate, then it it’s not worth trying to save. Let it die. Too much of the stupid money has gone into “it’s like Uber for X” and “it’s like AirBnB for Y” and the newest “revolutionary” “company” which is little more than four guys with a thousand lines of software.
Every globalist looks like a supervillain from a James Bond movie, or Cruella Deville..
This article is nothing more than a conclusion desperately looking for ways to justify itself.
A 1% or less short term interest rate isn’t “high” by ANY definition.
The use of a 10 year average GDP over the last 10 years (which includes the financial crash and the horrible Keynesian response to it) is useless except for pointing out that liberal solutions don’t work.
If the author wants to come up with reasons for a market crash they need to come up with much better justification.
If it wasn’t a Conservative in the White House, Yellen would say:
Inflation is still small, GDP growth remains weak and even though unemployment has fallen, the actual labor participation rate must be considered. Altogether the data suggests an economy that is not yet ready for an interest rate increase.
Or she could have been totally honest and said:
We’ve got the economy running in a dependence on our financial opium and now we’re going to take it away and make it all look like it’s Trumps fault.
We disagree. The market has not been based on economic reality-—except the REAL valuations of the computerized economy haven’t been CLOSE to properly valued for 20 years.
QE-1, 2, through 20 are still behind the proper values of where our economy isand Trump’s release of “animal spirits” will send it soaring further.
Why is it we never see a very successful pundit unless they are trying to manipulate the market with FUD?
bmp