The world is burdened with massive central bank caused debts, the leader of this debacle is the United States Federal Reserve, a private Jewish bank who’s sole purpose is the destruction of the United States. Rate hikes are a distraction to what is really going on – creating money out of nothing and then lending it at interest.
The Federal Reserve is dangerous central bank, by abandoning the gold standard, prices went through the roof, a solid industrial economy was reduced to speculative frenzy as everyone scrambled to beat monetary debasement. The money was destabilized by the Jew. Boom and bust became the new norm.
After a few inflation surges in the 1970’s, everyone started to speculate and borrow ever more amounts of the Fed money until debts surged to unsustainable heights. Once you grab the tiger’s tail and start inflationary policies, you can’t let go. Everyone’s in the game.
Trillions upon trillion were borrowed, but how will the ‘money’ be repaid when jobs are fleeting during the cyclical bust? The entire economy became dependent on inflation, but what happens if inflation stops? Deflation. The debt is only viable with the cheapening of the money, if the Fed raises rates now the system will have a heart attack.
Once the Fed hikes rates they typically increase the Fed Funds rate for many months to come. What will happen to the US economy and stock market if the Fed continues to increase rates? How will students and other borrowers repay as their loans are ratcheted upward with rates?
They will not be able and the market is already discounting that reality. What we are looking at right now is the biggest credit bust in human history, we are in uncharted territory of trillions upon trillions of debts looking for an exit on stage left.
Commodity prices could crash to even lower levels, as debts liquidate, gold and everything else will go down in price per dollar – back to levels not seen a long time ago in pre-inflation eras.
Poor Janet, she has no clue what is going to happen next. Unlucky is she sitting on the pot when it goes bust. The world is about to crash and burn.