The Only Way Is Up, Unless It’s Sideways.

“Fight Against Stupidity And Bureaucracy”

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Federal-Reserve-Seal-logo

It has been nine years since the ‘Fed’ put up interest rates in the US. Not a day goes by when some pundit or other is explaining why an interest rate rise is imminent whilst yet another is warning that the US dollar is about to collapse in a heap.

There’s even a fed funds futures market for people to bet which way they think it is going to go.

For what it’s worth, I think the US dollar will weaken from its current position because a lot of the support it is getting lies solely in the belief that interest rates are about to start going up.

Much of that dollar support is created by continual talk from Yellen and the Fed about raising rates. But the fact is that every time they reach the point at which they said interest rates would rise, they chicken out.

us dollar

So why does the Fed keep making big promises that it hasn’t the nerve to keep?

Good question, I’m glad you asked.

Although it might make them look a bit foolish, what their continual rate rise threats also do is to help to discourage speculation in US stocks and bonds – not a healthy thing for any economy.

If they do, do it, I don’t think they will until very late in 2015 – maybe not until 2016.

2016?

But wait.

2016 is an election year.

2016 US Election year

Will Obama deliberately burst Hilary’s Democrat Party bubble by allowing interest rates to rise? He might do it out of spite I suppose. There’s no love lost between them since Obama beat her for the candidacy and then won the Presidential election eight years ago.

But I think the election year may mean we are looking at 2017 for those rate hikes.

So who is right, me and people who think like me or the great unwashed of the media who are still predicting an imminent rate hike.

I wouldn’t bet the farm on it, but I think I might risk a few zero interest dollars that they are wrong and I’m not.

Stay tuned for some gloating or a big spoonful of humble pie come June this year.

humble pie

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The Richest Nation The World Has Ever Known Has Become The Greatest Debtor The World Has Ever Known

“Fight Against Stupidity And Bureaucracy”

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****A Saturday rant****

One day this week, according to all reliable financial sources, the United States of America’s debt burden reaches the $16 trillion mark, or as close to it as makes no difference.

That’s $16,000,000,000,000.00

The richest nation the world has ever known has now become the greatest debtor the world has ever known.

And the problem which began to get seriously out of control under the Bush Presidency is still spiraling out of control under Obama’s regime.

go bananas
go bananas

To add a little perspective to the huge numbers, it took the United States government more than two hundred years to accumulate its first trillion dollars of debt, BUT it took only two hundred and eighty-six days for the most recent trillion dollars of debt to be added. And that was under the  “Yes We Can” and “Change” administration.

So what has changed?

Nothing much.

Yes we can what?

  • Borrow and borrow and borrow again?
  • Let the horrific bankster’s mess run on for a few more decades?
  • Dream up more and more new government programs that we cannot afford?
  • Leave future generations in so much debt that they will never and can never get out from under it, (because there won’t be enough money to pay the interest on the debt let alone repay it)?
  • Continue to stick our heads in the sand while other nations kick our ass?

As I write this I can hear the Fed’s printing presses clunking away producing more new dollars out of thin air, which they will distribute through the banks  –  who will keep most of the money instead of releasing it to individuals and businesses to stimulate the economy and create employment.

Sadly, not only is the nation bankrupt, but the politicians who govern it are too  –  bankrupt of good ideas, intelligence and common sense. Their mentality is, ‘if something isn’t working, don’t change it, just do more of it’.  (Aaaarrrrrrggggghhhhhhh!!!)

Their ultimate solution will be, as it inevitably always is – more taxes and more control! Just wait for those shoes to drop.

In the US, Hawaii and Florida are the only states that grow bananas. I suggest that they start looking for ways to up production because that is the type of republic the politicians seem hell bent turning us into!

****End rant****

naked banana
naked banana