“Considering their vast experience and resources, the Fed has to know that their plan to control inflation by raising interest rates rapidly and significantly since 2022, and also tightening credit this year, will likely result in another major crash.”
Given the profligate spending by the federal government over the past few years since Covid, the increase of interest rates was inevitable.
A major crash is likewise inevitable.
From the article:
“1929—After the Fed cut interest rates from 1921 to 1925, the so-called roaring ’20s brought a booming Dow stock market from 1921 to 1929. After the Fed started raising interest rates in 1927, the stock market crashed in 1929 and the economy tanked. During the 1930s, the Fed cut interest rates, but President Franklin D. Roosevelt resisted deficit spending after 1932. The Fed even raised, before lowering, interest rates in 1935 to cause stock market losses and the recession of 1937–38. These policies prolonged the Great Depression until World War II, if not longer.”
I fear our government will instigate a world-wide war to distract from Biden’s corruption and destructive economic policies. Look at almost every politician cheering for a ramp-up of the war in Ukraine. What happened to all the anti-war protesters on the left?