The US markets are 100% driven by the fed, have been for years now. Most of the large companies have been buying back their own shares, with borrowed money. Kind of like a snake eating it's own tail. These absurdities only function on the assumption of super low interest rates, which we've had for almost 14 years now. Now after firing the biggest monetary bazooka in history during covid to bail out the entire system, inflation is raging. In order to save the dollar and quell inflation they must raise rates. The problem is raising rates will pop the everything bubble, and we'll get a huge recession as a consequence.
The US markets are 100% driven by the fed, have been for years now. Most of the large companies have been buying back their own shares, with borrowed money. Kind of like a snake eating it's own tail. These absurdities only function on the assumption of super low interest rates, which we've had for almost 14 years now. Now after firing the biggest monetary bazooka in history during covid to bail out the entire system, inflation is raging. In order to save the dollar and quell inflation they must raise rates. The problem is raising rates will pop the everything bubble, and we'll get a huge recession as a consequence.
Well said- add on top the terminal demographic decline and we see the a deflationary inevitability
...without which, the only line in the Federal Budget will be "interest on the national debt".
I would start going hog wild stabbing and robbing rich people. Duh......whatumean whatyou gonna do?
anything less would be...uncivilized. ;)
Very correct and scary!
OK; but now there isn't a 'Gold Peg' to default from.
So does this now mean:
Help me out here; I want to learn.
I'm pretty sure we will get lower rates again if we go to war with Russia. The FED is pushing us to war.