Stimulus Program: Fed Is Gearing Up For Forever QE

Stimulus program: Fed Is Gearing Up For Forever QE

I guess the definition of a lunatic is a man surrounded by them.
Ezra Pound

Stimulus program

Is the Fed playing mind games with the masses, or is it simply another version of Britney Spears’s hit song “Oops, I did it again”? Only this time, they did not.  They keep mouthing off that they are ready to raise rates, and then suddenly, just before the moment to pull the trigger draws near; some unforeseeable event springs up, and they kick the can down the road again.  Two questions come to mind.

Why the intense focus on what the Fed might or might not do; has the press run out of real stories to focus on?  Come on, we are talking about a measly 0.25% hike. In the worst scenarios, this should be treated as a hiccup, not a major tragedy.

Secondly, history indicates that the markets tend to trend higher for up to two years after the first rate hike. Thus, based on this data, a rate hike should be viewed as a positive event as it would indicate all was well.  But perhaps all is not well, and that is why the crowd is panicking at the mere thought of hike.

We, however, believe that this boring Fed might raise rates story is a non-event and have said so many times in the past.

 

Excerpt from Oct 2 2015, Market Update

The Fed is hesitating so much in raising rates because they know that the economy is not really strong.  However, what is more important is they are trying to gauge if the public is buying the nonsense that the outlook is improving via all the manipulated data that is being put out. They will initiate a tiny rate hike if they sense that the public is buying this nonsense. 

To some degree, it appears that the public is buying this nonsense. Whatever move the Fed makes; their ultimate aim is to find a way to embark on another wave of QE.  Look at the World’s markets; while the US markets look okay, the emerging markets are taking a beating and its just a matter of time before the contagion spreads to the U.S.  Flooding the markets with hot money is the only way to prevent this. Market Update Oct 2nd, 2015.

Excerpt from Oct17 2015, Market Update

The Fed is still trying to gauge if the crowd has bought into their drug-induced theme, which states that all work and no play makes Jack a smart chap.  We used to use the word sadly, but is that really the appropriate word to use;  if the crowd does the same thing repeatedly. Perhaps instead of saying sadly, we should instead begin the sentence with; insanely, the crowd appears to be buying into this theme. 

Is the economy really improving? If it is, the real unemployment numbers should be very low. Instead, it appears that 40% of Americans might not be working, if the story below is to be believed.  Market Update Oct 17, 2015

The most recent jobs numbers masked a dark story. Unemployment held steady at 5.1%, but only 59.2% of Americans have a job. The difference is the unemployment rate only counts people who don’t have a job and are actively looking for one. The labour force participation rate is perhaps a more accurate gauge of the economy. It includes people who’ve given up, don’t want to, or can’t work, and it fell to 62.4% last quarter Full story

Based on the numbers above, the economy should be in turmoil, and people should be rioting.

The prevailing atmosphere seems tranquil, yet beneath the surface, a silent suffering persists. The masses, attributing their challenges to external forces beyond their control, endure without voicing their discontent. This passive acceptance perpetuates the status quo. The Federal Reserve, cognizant of this delicate balance, refrains from raising interest rates, understanding that they have managed to create a precarious illusion of stability. They exhibit a reluctance to disrupt this fragile equilibrium by puncturing the economic bubble.

Critics may label the Fed as foolish or myopic, but at every juncture, they have navigated unscathed through the twists and turns of the economic landscape. The Fed’s cautious approach is a testament to their strategic understanding of the intricate dynamics at play. While advocates of precious metals, particularly gold, await a triumphant moment that may never fully materialize, they perhaps overlook a crucial reality.

Even in the hypothetical scenario of gold reaching $10,000, the Fed, equipped with the power of the printing press, remains poised to control the narrative. The argument underscores that, even in the face of substantial shifts in traditional economic metrics, the Fed retains the ability to respond by increasing the money supply. Thus, the notion of gold reaching exorbitant values becomes a moot point when confronted with the Fed’s capacity to adapt and address economic challenges through unconventional means.

Never get caught up in any battle,

In a war, a battle is just one of many. The ultimate goal should be to win the war, not just one battle. Take a moment to assess the situation and then plan your strategy accordingly. The majority of people are passive and complain about their situation, yet they do nothing to change it. They are often used as mere pawns, sacrificing themselves for the greater cause. Don’t waste your time trying to educate or sympathize with them. It will only result in more pain for you.

The masses are known for punishing the wrong people for the wrong reasons, especially when it comes to investing. Being a good Samaritan in the world of finance is a surefire way to get yourself killed. Heroes have short lifespans in this game. If you look back at history, you will see that the masters of deception and the shadowy elite players never come out of the shadows to play the role of a hero or a good Samaritan. These roles are created for the masses, and they are sold a pack of lies that they eagerly buy into.

The Fed is lying when it states the economy is doing well.

No matter what the nuts out there state; the Fed is not hell-bent on raising rates, they are not scared or nervous about anything, and they are not really backed into a corner. They have backed everyone else into a corner, and the ones that are scared are the ones who make these idiotic proclamations.  The Fed might raise rates, but their goal is to find an excuse that the masses will buy hook line and sinker, to come out with another round of QE.

The whole purpose of this experiment is to find out just how far the masses can be pushed with the proper brainwashing. Right now they are taking notes so that future central bankers can build on these lessons and push the envelope even further. There is no repeat of 1929 because they took notes and learned from their mistakes. These guys are nefarious geniuses. They claim to be impotent, but they are omnipotent.  So how do you win? The answer is simple. Throw your silly emotions and bias out of the window and ride on their coattails. End of story.

It is wrong to think that misfortunes come from the East or the west; they originate within one’s own mind. Therefore, it is foolish to guard against misfortunes from the external world and leave the inner mind uncontrolled.  Buddha

 

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2 comments

Tactical Investor

It would be nice if you put back a link back to our site giving us credit for the article. https://www.tacticalinvestor.com. AS it stands, people would think you guys wrote the article. Are you also aware of the penguin issue which could result in a penalty for duplicate content.