Interest rate wars
The Fed is stuck in between a hard place and a grenade, given this option, they will choose the hard place as unless you are looking for a one way to ticket to nowhere you won’t pick the grenade. Note that for most of the last year and even this year we have stated that that Fed would be forced to come out with another QE program regardless of whether it raised rates or not. We will go on record and state this; the Fed has nowhere to go, there is only one option available inflate the money supply or die trying to.
Central bankers worldwide have already started to work on the next level of QE. It’s called negative interest rates, and it’s just a matter of time before it comes to the U.S. The U.S will hold out for a bit longer as they want to maintain the illusion of a somewhat stronger currency. Remember this is a race to the bottom, and so the idea is to finish last instead of first. Interest rate wars (negative rates) is a way for the banks to punish savers and favour speculators.
The Fed is already stalling; this is a clear signal as any that they are already planning the next line of attack. And please do not fall for that mumbo jumbo that the Fed is panicking, having no choice and panicking is not the same thing. The Fed and its friends always win. Those that fight the Fed have a short life span. They have had decades to fine-tune this nefarious art of fleecing the masses, and they are experts at it now.
Those at the top have already used a vast portion of their paper wealth to secure valuable hard assets, so if the entire market were to collapse tomorrow, they would not lose anything. In fact, they will stand to make even more as they will come in and purchase everything in sight. However, the markets are not going to collapse tomorrow, one day in the future they might, but that day is not tomorrow.
The war on Interest rates is on, and you cannot fight a trend in motion, so the U.S will have no option but to join the battle.
This economic recovery is a nothing but a hallucination, and we will prove it without a shred of doubt with one chart.
In the next update, which we are working on, we will provide you with this chart and the data is coming straight out of the Federal Reserve
We have provided many factors indicating that this recovery is a hoax, but instead of fighting the trend, we have taken the unconventional view, that despite the economic recovery being a hoax, the markets are destined to trend higher. The weapon of choice now is to throw increasingly large sums of money at the problem, and this works because the masses are not ready to fight.
The can will be kicked down the road until the road ends or the can become so heavy that kicking the can rip the leg out of its hinges. We are still a long way from that point. The debt is going to increase to a level that will one day be labelled “as insanely unimaginable”. Don’t believe us. Well then tell us what you make of the fact that it took over 100 years to get to $1 trillion now it surges by that amount almost every year.
Conclusion
The fear levels continue to rise, and all our gauges are now in the extreme zones. While the markets could trend lower, they are not going to crash. Instead of a crash, we are most likely going to end up with a great buying opportunity.
The war on interest rates means that deflation will be here for longer than most expect so while Gold will slowly trend higher, it is not likely to explode upwards as the Gold bugs are sitting and hoping and forlornly waiting.
Other articles of interest:
Crisis investing: stock market crashes represent opportunity & not disaster (Feb 23)
Central banks declare war on Citizens (Feb 23)
India overtaking China just a pipe dream (Feb 22)
Top 10 investment resources for Novice Investors (Feb 20)
Central bankers will never lose war on Gold (Feb 18)
