This doesn’t make any sense to me.
The Fed released that “dot plot” today, suggesting that if everything goes according to plan, rates will go to 1.5% by the end of 2016 and 4% by 2018.
Are they fucking insane? The euro would be worth, what, 0.25 v the dollar and oil $5 if this coup plays out?
In order to get to 1.5%, the Fed will need to raise rates 5 times next year and another 10 times after that.
Actually, if I’m not mistaken, the “Maestro”, Allan Greenspan, jacked rates higher 16 times before nearly ending western finance as we knew it, back in the good old housing bubble days, no?
Will someome explain to me how the Federal government will finance 22-24 trillion in debt when rates are at 4%? I’ll wait.
Anyone want to impart some knowledge as to how the Fed thinks they can get to 4% by 2018, or even 1.5% by 2016?
Stocks are up. Yes, humans are crazy and behave impulsively. I am looking down the road here and cannot fathom the market being okay with this psychotic monetary policy.
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Live for the moment, your piece of shit stawks are up.
You are witnessing the End of the Empire
And yet the world still spins
Prepare for the rising of the Phoenix and the new Atlantis from the Square Mile in London.
This is how: https://www.youtube.com/watch?v=ytc0U2WAz4s
The more Janet Yellen talks the less confident everyone feels. Why is that?
Have to wait and see, I guess.
btw, would a Republican presidency affect rates differently?
costanza
High debt is not a problem unless there is high inflation. When they coincide then the currency and the economy will get hosed and Showtime will finally be correct about everything. This could occur in 2025 or maybe 2035.
or maybe never!
Don’t you get it? They over promise and then under deliver on rate hikes. It’s the new accommodative strategy.
I bet Janet is giving her grandkids silver dollars for christmas.
Most likely a function of inflation expectations? As long as inflation exceeds the actual rate rise by a margin, —> financial shenanigans