If the government is surplus spending to the tune of $1-2 trillion per annum, unable to budget its finances, why would it permit its Central Bank to hike rates 7 times over the next year? Wouldn’t the additional interest on the serviceable debt put additional stress on the budget and cause the economy to struggle?
I’ll wait.
Both Fed’s Williams and Lockhart are warning us that they intend to hike rates 2-3 more times in 2016, 1 ahead of BREXIT to boot. And, moreover, they believe 3-4 more hikes in 2017 is the appropriate course of action–because diverging from all other central banks makes sense if you want a really strong dollar and poor export data.
This is planned suicide. Nothing else explains the rationale of the Fed better than the notion that they’re purposely trying to ruin the economy.
As you were. Go buy the dip.
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I’ll believe it when I see it. We all know that these guys are bought by hedge fund daddies in order to propagate bs information.
No offense to hedge fund daddies, I dont think they are in the global elite power circle
You said it best Fly quite some time ago that the FED will never raise rates (significantly). But I find it hard to buy this dip without any further QE unless you pick sectors (gold, oil, etc).
Yes, jawboning about raising rates is the new raising rates, until proven otherwise.
The appearance of wielding influence and power while impotent in the face of 20 trillion in US debt…… ….
This is propaganda to keep commodity prices down, which affect the real economy and force the FED to raise rate. The FED will not raise rate significantly until the dollar is threatened with skyrocketing commodity prices. As long as commodity prices are depressed, they will jawbone about raising rate but will keep rate low in order to accommodate their buddies.
Thinly veiled attempt to control rate of rise in oil prices with $US? …..otherwise without false threat of higher US rates, $US tanks and oil spikes up higher too fast ?
Good bye malls and stores who have business in them.
Piece out
Regards
Chuck Bennett