The Federal Reserve did not raise rates today. What does this mean? It means we are at the end of history and we are facing the biggest credit collapse in history. Will interest rates ever rise again? Can the Fed even dare to raise them ever again?
The world has never seen zero percent interest rates. NEVER BEFORE HAS THIS HAPPENED. What does this mean? Interest is the price of money – zero means that the demand is way below the supply. In a supply and demand marketplace, zero means that people don’t want the Fed money to the extent the Fed as increased reserves.
People don’t want debt like they used to. Why? They’ve been burned by debt. So what does that mean? The hundreds of trillions of existing debt has no more fuel to prop it up. The only way exponential debt can be sustained is by the constant rocket fuel of more debt.
Inflation remains below 2% and the ZIRP policy remains in effect, for the last 55 months the FED has kept rates at zero. This is unbelievable, everyone is expecting rates to go up – at some time – at least by the end of 2015. But they didn’t and they won’t. We are going into deflation – we are in deflation – zero interest isn’t stopping the collapse.
The stock market was fluctuating wildly. At first the traders are happy. Woohoo – the Fed is not raising rates. The market shoots up. Then the next emotion, fear, settles in – why didn’t the Fed raise rates? What’s wrong? The market suddenly pops and drops.
I have thought for years that America might be heading toward an unprecedented event of total credit collapse. The current credit nightmare of an exponential credit curve is obviously unsustainable. Nothing grows forever, all exponential curves reach a limit. You can not and Nature will not let you borrow forever.
We are buying on credit to just get by. How will it end? Many writer have written about this, but rarely someone with impeccable credentials like the CEO of Agora Financial. Imagine my surprise when I watched Bill Bonner’s latest video – a warning of America’s immediate future. Here is a very short 2 minute video summarizing his concerns:
For the entire leaked video presentation, go here.
For the essay, Literally, Your ATM Won’t Work…. or
The rate of money turnover is still dropping like a rock even though we have zero interest rates! We’ve been screwed by the Jewish owned and controlled Federal Reserve. The entire nation has been bleed dry, zero interest rates is only a symptom of a much larger problem, what is next is the economic collapse of America.
The fact that interest rates are at the lowest point in all of human history is not some good thing, it is a warning sign of a dysfunctional system. Fed policies has fueled the biggest debt cycle in history, the world is choking to death on debt, the potential for the greatest wipeout in history is genuine.