Sounding ever more like an UrbanSurvival reader, Donald Trump is telling USA Today that Janet Yellen and the Fed should have already raised rates.
But, the Donald thinks they are being held low for political reasons and might not be raised until the next president is in line.
Although such sound thinking is not about to be listened to, and the market is likely already off on another bullish run (with the asterisk of a pullback likely around Thanksgiving), the thinking is sound, nevertheless.
What happens in wildly deflationary times is that the government prints oodles and gobs of money in order to maintain the delusion that inflation is still out there. As long as working people can be hoaxed into that, they will keep up their free-spending ways.
On the business side, though, there is little incentive to build new plant and equipment – after all, it’s Cheaper in China, so who needs American workers.
So the cash piles up. Not just for the bankster scree, but also for the 1% because they have few alternatives other than putting money in bonds.
What ends up happening is low rates beget lower rates and the first thing you know, deflation is a worldwide phenom with the Megalomaniacal Central Bank –a/k/a the ECB – is forced to hold rates at record lows as well.
Monetary policy decisions
22 October 2015
At today’s meeting, which was held in Malta, the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 14:30 CET today.
Damn/…that’s during my nap time… Next week the Fed here will either QE or hold. Dow 25,000 in 2016 has been in our work for a long time. Might ask the doomers where that market collapse is… Futures up another hundred.
Point is that we are still in deflation and it is being covered up by huge money-printing world-wide and that’s just how things are going…sliding sideways until the general deflationary facts become undeniable…and the stock market will explode as it did leading into 1929 and it will be bubble time, once again.
So there you have it: In a nutshell: The set-up for the Fed to either do nothing or simply make up some additional money with another quantitative easing which will puff up everything and hide the sausage a while longer.
Once rates begin to go up, stagnant money in bonds, especially the shorter term sort, will have to go out and find “honest work to do.” For now, though, the bondies are just caching dough while the Fed’s in the rich folks’ pocket. As is, as was, and ever shall be, amen.
Hack and Slash Department
Remember a while back we warned you to be looking for the bad news to come filtering out of Deutsche Bank once they
fired resigned their co CEO’s? Thing like that only happen when things are very, very bad.
Fast forward to this morning and the second wave of this train is arriving as DB is slicing and hacking bonus pools by nearly a third.
Let me see, here: Early June to now: five months. So four or five more months and they should be ask in the headlines again…
She’s a What?
“Hillary Clinton, Ever a Voracious Student, Prepares for Benghazi Hearing” says the NY Times.
Meantime, Veep Joe has tossed in the towel, realizing that Hillary would be too formidable…provided she doesn’t get to court on the email debacle and survives the House grilling on Benghazi.
I know Hillary likes money and power (what else is there?) as evidenced by all those stupid emails requesting me to send her a dollar. ICFBI… I somehow never got to it, though. But money must matter greatly…
So I will step out on a limb here and suggest today might be a good time to sell a personal endorsement for a consumer product. Like, oh, deodorant, for example.
“No sweat…Tougher than the GOP…” I can see it now.
Paul Ryan is NOT Really a Republican
The Obama wing of the Republican Party seems to have secured yet another sell-out Speaker.
This as we notice that headline pointing out 93% of republican voters oppose Ryan’s open door/ “What border?” policies….All of which sound remarkably like the Obama types are pulling his strings. Und?
If this doesn’t make it obvious the Obama wing of the GOP has sold out to corporate interests, how about the large number of democrats who are endorsing him?
That should speak VOLUMES if you pay attention.
Republicans – by the old school definition – were strong on defense, small central government, liberal on civil rights, and believed in balanced budgets and having a border or two.
So which one of those – if any – does Ryan lead on?
No, sir. More like none of the above, as I read it.
Keeping the People Down
Speaking of politics and suppression of freedom, how about the new poll that says 58% of Americans want marijuana decriminalized?
Let me explain how Reality works. What are pimped around as “leaders” in Washington are nothing more than lap-puppies of the corporations which run their strings through the K-Street Mafia which deals out cash, contributions, junkets (though not so publicly), and favors. But if you need a Gulfstream back to the home district…
So what happens is Corporations set up The Booze Lobby and crush the legalization movement and at the same time, insurance types get onboard because there’s a way for them to get out of claims and raise rates…Go read the thresholds in Washington, as an example.
Bottom line is: Ryan and all the Fools on the Hill are ignoring the will of the people.
As always was, and will ever be… gimme an Amen again, brothers and sisters.
Mexican Invasion Picks Up
More than 10,000 in September. Story here adds up to about 10,000 and then how many that we didn’t know about?
U.S. Loses War with Mexico 150-years later. Historians would have never believed it until we put so much fluoride in the water that no one seems to be able to tell, anymore.
Might want to read “Putin Gains Record Support Among Russians Over Syria, Poll Shows.” We used to have presidents like that…Here lately? Not so much.