Posted on 10/31/2022 3:29:56 AM PDT by tanstaafl.72555
The Federal Reserve is most likely going to raise interest rates by three quarters of a percentage point again on Wednesday, its fourth straight supersized hike. And it’s still possible another rate increase of that magnitude could come in December.
But the big question for many investors – and American consumers – is whether the Fed will send the economy into a recession with these massive rate increases.
There are hopes that any downturn would be mild, but this is uncharted territory for the Fed. Former central bank chairs Alan Greenspan, Ben Bernanke and current Treasury Secretary Janet Yellen never had to raise rates this many times in a row by such large amounts.
(Excerpt) Read more at edition.cnn.com ...
He whose name must not be mentioned (first name rhymes with "Don" last name rhymes with "Maul") and his crazy band of flying monkeys were yodeling about this for decades. They have been screeching that the collapse of the US Dollar is GUARANTEED by our reckless spending and bankruptcy producing combo of statism... the welfare state at home and the warfare state abroad.
Well.... it is here, and even CNN is admitting it. The collapse (and it is going to be horrific!) is LIKELY to be imminent. No one knows of course exactly when, which gives the normalcy bias cretins time to mock, jeer and imagine themselves secure. Maybe it will come this month, maybe this year, and maybe a bit further down the road.... but the cake is baked. We are bankrupt, no one wants our sh*tty bonds anymore, the Federal Reserve is now a money losing entity, and the international banking system is teetering on collapse (Credit Suisse is back in the news... check it out).
What to do?
Get your savings OUT of US denominated assets. The dollars collapse when it comes is going to be brutal, fast, and so severe that literally trillions of dollars of "wealth" is going to evaporate overnight. Anyone in bonds will lose everything. If you have equities, keep them in companies with NO DEBT, positive balance sheets re: operating costs, growing and not dying industries, and producing stuff necessary to basic survival (think XOM and the like).
2) For God's sake put some of your assets in gold and silver... like, in your hand. SLV and GLD are NOT secure assets. You don't own the metals themselves, cannot demand it, and they are derivatives, like the crazily fraudulent futures market. Play them if you like if you are looking to increase assets to buy the physical, but have some physical in your hand. The problem with this is at this time, gold and silver are considered "assets" and not money.. and when the equities market semi vaporizes, these "asset prices" are going to plunge along with all the others, so you may witness a decline that is stomach turning. However, when the fed begins to warble "WE MUST SAVE THE ECONOMY, NOW IS NOT THE TIME FOR CAUTION, TURN ON THE PRINTING PRESSES!!!" and the talking heads on CNBC nod sagely in agreement, and the American sheeple howl for a savior... the final nail is in the coffin of the dollar..... and at that time I don't believe there will be gold and silver AVAILABLE for purchase. 3) Get positioned in commodities. Lumber, grains (prices are about to blow up in grains as Russia just shut down a MAJOR route for wheat export out of the Baltic region), etc. The problem there is that the easiest way to position yourself there is also the most risky. Futures trading is insanely leveraged and you are (again) likely to see massive selloffs there before the dollar market gets flooded and prices zoom. 4) Become more self sufficient, and develop relationships with reliable people who have skills. Electricians, plumbers, auto mechanics, hvac, and a plethora of skills in gardening, food prep, basic farming... those will be worth more than the gold mentioned above. While you are at it, get out of the cities. 5) Get a gun and learn to use it. 'nuff said here 6) Figure out who God is and get to know Him. Get a modern translation of the Bible and read it. Start with the gospel of John in the New Testament. The peace, confidence, stability, and knowledge that a savior and father is in control will far far far far transcend any of the first four points above.
Over the centuries, civilizations have risen, thrived, and then collapsed due to internal rot and horrible financial decisions (as well as other things). People who imagine the USA is somehow "different" are terribly deluded.
The car is careening downhill toward the cliff and there are no working brakes. COULD we get out of this mess? Sure. God can do anything. But it ain't likely.
Take the above for what you think it is worth. Good luck.
Just wait until after the midterms.
CNN will be blaming the downturn on the GOP majorities.
Mark my words.
I’m not an economist, but I do understand the essence of the problem that inflation was caused by the flood of dollars into the economy.
How does the feds cut back on the money, to make it more valuable?
Insanity. Like if the car is low on oil you correct the problem by letting the air out of the tires.
Arguably, just me, but if the Dollar collapses, most of world’s currencies, at least Western currencies, will likewise collapse or suffer horrendously.
Not sure there is any true ‘safe haven’ other then maybe metals or bitcoin and the like. I am no economist, etc. so dunno.
This nightmare has a deliberate act against the American people and we must pressure the new congress to act relentlessly to punish those who did this
It’s all so Soros-esque, isn’t it?
good question. The fed prints money because the US Gov (repubs and dems) are insistent on spending money they dont’ have. It boils down to something that simple.
Problem is, fed spending has become so intertwined with the overall economy that to stop it would also bring about the collapse of the economy.
I don’t see a way out, here.
I am looking for a depression that will dwarf the 30s boondoggle. Of course, I am a bible banger who believes God is involved in all this, and judgment on an apostate culture figures prominently in my evaluation. If this is true, then that same God can and will take care of His people and actually use horrific events to demo His love and care for them.
That makes my “nothing we can do at this point” perspective a little less savage.
Inflation is a excess of money. Money created by the Fed to fund fiscal deficits, and money created in the private sector by borrowing and investment. If the Fed can’t stop Congress from running huge deficits, the only recourse is to slow down the private sector to rein in inflation.
Me, I’m buying things now that I may not need for a year or more, because in inflationary times it’s best to own STUFF. No I’m not buying gold. My precious metals are lead, and brass.
Even BEFORE they get into office. Like the ridiculous children that they are. And in 3 months before next session there will be more ridiculous bills and policies shoved in that will make it worse.
I also understand the idea of intrinsic value. An economy that has been rubber-band stretched into notional value is going to want to find its way back.
So, I do understand what is coming and I think I have a pretty good idea as to how bad it will be when it does.
Yes, this will be a crazy lame duck session.
Reagan raised interest rates and it worked.
Interested to see what happens now.
If the dollar becomes worthless,gold and silver won’t save you.
This is true.... although it was not Reagan, but Paul Volker. The problem here, though, is the debt. Our national debt (98,000 dollars for every man woman and child) is so huge that raising interest rates beyond 4% would make ALL TAX REVENUE CONSUMED BY SIMPLY PAYING INTEREST ON THE DEBT. We simply cannot raise rates enough to make a significant dent in inflation, and everyone knows it.
If we went back and calc’d price inflation the way they did in the 70’s it would be up around 19% which would require interest rates AT LEAST 15% or better. We simply cannot do that... and everyone knows it.
We are dead.
The economy is already imploded. If you wont stop spending, than you must raise rates to fix it.
Easy fix.
With exception of DOD, parks, Treasury, ICE, and Coast Guard,
furlough the entire US Federal government for a year. States can care for themselves.
At the end of that time let congress decide what is important.
Go from there.
Act Like we were Nuked and started over, from scratch from the original Constution.
If the dollar becomes worthless,gold and silver won’t save you.
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I am not sure what logic you are using there, but I think I will avoid it, once I figure out what it is.
So they’re going to break real estate inflation with sledgehammer interest rate hikes. Looks like a racket is about to submerge.
CNN could try running honest stories about what caused inflation. That way the same mistakes won’t be made again. But it is more important to support a demented moron that caused this mess.
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