Posted on 12/06/2016 8:07:38 PM PST by Rockitz
Is Janet Yellen trying to screw Donald Trump?
No, I’m not asking for possible titles to a porn movie (“Trump Gets Janet Yellin’” or “Trump Puts Down Ol’ Yellen”). But it really does seem like the Federal Reserve Chair(wo)man is out to get the Donald.
Yellen recently told Congress’s Joint Economic Committee that an interest rate hike could be imminent if “incoming data provide some further evidence of continued progress toward the committee’s objectives.” Markets have already priced in a hike of a quarter to a half of a percentage point. For now, stocks continue to reach historic highs and the dollar is strong, even as Yellen and her central banking cohorts begin to ease on the gas.
But will Yellen’s gambit plunge us into a recession is the question. Just because Wall Street is gorging on high returns doesn’t mean the economy is sound. For eight years and running, the Fed has kept interest rates near zero percent in an attempt to spark investment and borrowing. Unemployment has gradually shrunk during the Obama years, yet the workforce participation rate remains low by modern standards. Prior to Election Day, two-thirds of Americans were anxious about their economic future.
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If it is indeed Yellen’s plan to tank the Trump presidency on her way out by raising interest rates, the Donald should fight back. He should take to his best medium, the TV, and begin making the public aware of the sabotage going on. When Yellen abandons her throne, Trump should appoint someone who is concerned about the dollar’s long-term stability. A few choices off the top of my head: finance writer and all-around mensch Jim Grant, former Director of the Office of Management and Budget David Stockman, commodity guru Jim Rogers, or former congressional representative and arch-Fed-critic Ron Paul.
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(Excerpt) Read more at zerohedge.com ...
Banks own a Govt is a Colony.
Banks owning 3%, 20% of YOU, owning your production, hence the whole state is slavery, also called socialism. Central banks lead us into socialism. They are a cancer.
NO! Hell NO! NFW!!!
The pros and cons of Fed moves are not in my area of expertise.
But being a keen observer of human behavior, I am not surprised that liberals will do everything they can to sabotage Trump, conservatives, and America in general.
On the plus side, I have also observed that the liberals, in their hateful frenzy for vengeance, often fail to consider all the consequences of their actions. It would not surprise me at all if the end result works out well for us. (That doesn’t mean there wouldn’t be some near term pain.)
I’m confident that President Trump and his team can work with any situation and create a positive result.
During the 2008 election, both McCain and Obama suspended their campaigns and went to Washington for a closed door meeting with the crashing banks. They discussed the derivatives mess and were told, “You’d better cough up the bailout money or we will crash the world economy!” It has been continual bailouts ever since, under different names and labels, of course.
There are two reasons all this phony digital money has not exploded into hyper-inflation. One, the inflationary pressure has pushed against an extreme deflationary pressure; we ought to have been in a 30’s style depression since 2008. Two, the dollar is tied to the oil market and since the world must have US-$$$’s to buy oil, there has been a tremendous demand for the fiat currency.
Now the world is looking for a way to get away from the dollar; they can see the collapse coming! But at this moment there are a few alternatives for them. We have a little time if we can figure out what to do. Whenever you’ve read that the dollar is losing it’s status as the world’s reserve currency you’d roll your eyes and think of something else. But you’ve been warned!
Search Engine Further Study: Bretton Woods, Petrodollar Collapse, Derivatives Collapse, Demographic Winter.
But all along, with a high likelihood that a Republican would be elected . . . Trump or not. The only real improvement for now is business and consumer sentiment. They know Trump will be TRYING to do the right thing for the first time in a long, long time. I predict Yellen will do her best to squash a strong recovery. When all is finished, I suspect she will deserve to be blindfolded and marched out to face of firing squad for treason.
But all along, with a high likelihood that a Republican would be elected . . . Trump or not. The only real improvement for now is business and consumer sentiment. They know Trump will be TRYING to do the right thing for the first time in a long, long time. I predict Yellen will do her best to squash a strong recovery. When all is finished, I suspect she will deserve to be blindfolded and marched out to face of firing squad for treason.
Waiting for what? Just curious - with market all time highs - how long have you been completely in cash?
Her and the rest of the global elite have great incentive to sabotage Trump and if it means crippling the American economy to do so won’t hesitate for a second. These people are evil, Dr. Evil wicked and cruel. Paging George Soros and Bill Gates...
Haven't been waiting too long.
Yeah I hear you. That is an old rule of thumb. However there are lots of things in play and raising rates currently sitting at almost zero by 1/4 or 1/2 point every year does not guarantee a market crash. Also the market has a certain amount of it factored in and is expected. Of course once the Feds announces a raise the market may still drop ... but I would be surprised if that alone 'crashes' the market by more than 20%.
The problem with going to all cash is trying to find an entry point back into the market. A good strategy is to put a little in at a time over decades spread among asset classes (including cash) and forget about it aka "lazy investor" portfolios aka coffeehouse investor. You can google if not familiar. These lazy portfolios usually beat the active professional investors ... because no one can time the market. Cheers
... but I would be surprised if that alone ‘crashes’ the market by more than 20%.
https://en.wikipedia.org/wiki/Qualified_dividend
20% is great when you are playing dividends.
Lord Keynes once said, “The markets always over react.” So the trick seems to be about catching the change that has been a long time coming.
If everything goes to hell in a basket, I’ll buy a new sailboat.(Nothing wrong with cash!)
Cheers!
Yellen is one vote out of ten on the Federal Open Market Committee. She can’t raise or lower interest rates on her own. Besides, Trump has been complaining that the Fed hasn’t raised interest rates.
By law the Fed Chair is appointed from the Federal Reserve Board of Governors. None of those people are on it.
Exactly. She knows that the unemployment rate is as corrupt a statistic as ever existed. But the whole fed plays along as if we’re at full employment, when American families are holding onto solvency by the skin of their teeth and the great, huge population of unemployed is magically swept under the rug.
Personally, I also think the GDP number is phony. Because of later adjustments and because of the possibility of carry-over, leveling of numbers from quarter to quarter.
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