Tuesday, August 20, 2019

The Fed is its own problem!

Just see the 1994 Movie "Wolf!"
Will Randall:
What do you do?
Why do you care?
Will Randall:
I don't. I was just making polite conversation.
I'd rather not discuss what I do.
Will Randall:
You know, I think I understand what you're like now. You're very beautiful and you think men are only interested in you because you're beautiful, but you want them to be interested in you because you're you. The problem is, aside from all that beauty, you're not very interesting. You're rude, you're hostile, you're sullen, you're withdrawn. I know you want someone to look past all that at the real person underneath but the only reason anyone would bother to look past all that is because you're beautiful. Ironic, isn't it? In an odd way you're your own problem.
Sorry. Wrong line. I am not taken aback by your keen insight and suddenly challenged by you.

The average rate of interest on the 28 trillion debt outside the United States is .11%. Yes 1/10 of 1%. The US has the highest interest rates in the world with the least risk and the strongest economy. Why?  Because the FED wanted to tank the economy because they hate Trump. How afraid of Trump is the FED?   The FED just put out an embargo that NONE of the Fed presidents can speak about interest rates.

What has happened is that the Fed, instead of lowering short term rates,  kept them way too high. Therefore the market is pricing in much much lower rates because everyone but the 750 PhD's in the Federal Reserve can see what they are up to.  So massive flows of funds are coming to United States bond market because it’s the only bond market that pays in the world.

On Christmas Eve, last year Trump said the Fed is like a powerful golfer who can't score because he has no touch--he can't putt!" It's the gift that keeps on giving!

If the FED cut short term rates to 1% -in one swoop everything would right itself.  Instead this weekend at Jackson Hole Fed Chairman Powell will just talk.  Their reluctance to cutting rates because they hate Trump, will cause the economy to skyrocket because all long term rates will be knocked way down! And Trump by his tweets has forced the Fed into a corner They can admit they were wrong and Trump was right- which they would never do.  But their policies will cause paradoxically a massive boom! Ironic isn't it? The FED, by trying to destroy the economy, will paradoxically cause the economy to boom!

But hasn't that happened to all those who said "Orange Man Bad?" Haha! It's a disease friends--but it only affects the liberal, smarmy, mind who thinks their viewpoints are superior to everyone else!

"Professing themselves to be wise, they became fools!"

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