Congratulations to the Federal Reserve For Finally Winning the Financial Crisis

It took years for them to be at the spot they’re at now — errantly jacking rates higher, like clowns in a slippery showroom, based upon some premise that inflation is running hot — when anyone who’s traveled in America knows there are two different economies — the proverbial haves and have nots. I suppose the have nots do not matter all that much. Aside from their numbers, their economic output is not all that important, might as well cater to the folks in NY and Santa Barbara.

After numerous bailouts and subsequent attempts to extricate themselves from the jambox of zero interest rates, the Fed has finally won over the market. Gone are the days when hikes would be met with acrimonious, heart wrenching, market declines. There was a time, not too long ago, when even the notion of tapering or hiking rates would send stocks seaworthy and into the black. Now the Fed does as it likes.

Today the Fed, led by the very sneaky Jerome Powell, will hike to 2-2.25%, and then warn of future hikes. It’s pretty much a lock for December, and then we’ll go higher in 2019. The Fed will continue to press the faces of the indebted middle class until the economy breaks, cracking it asunder, bringing forth a new crisis by which they could rearrange the chairs on the deck and create a new relevancy for their existence.

Without these faux crisis, I’m afraid public support for this private institution, with the power to lend money with an interest rate to the US, isn’t something tangible.