Commodity Trade Mantra

Interest Rates to Remain Unchanged, Extend & Pretend Continues

Interest Rates to Remain Unchanged, Extend & Pretend Continues

Interest Rates to Remain Unchanged, Extend & Pretend Continues


 Interest Rates to Remain Unchanged, Extend & Pretend Continues - Nathan McDonald

The Federal Reserve is concerned about low inflation and won’t move before it sees inflation returning to more normal levels”

Here we are again, back to square one. Economists around the world drank the Kool-Aid and believed that the FED would be raising interest rates come September. I doubted this assumption, noting that a raise in interest rates would have to quickly be reversed, given the cascading effect it would have on the economy, an economy that is already stagnated at best.

The FED, led by the ultra dove, Janet Yellen, has been leading the markets on. Alluding to the fact that a raise in interest rates was on route from the start of this year. This raise in interest rates has met one excuse after another and is once again looking like it will be delayed.

The opening statement is by Stanley Fischer, the vice-chairman of the U.S. Central bank and shows how truly disconnected central planners truly are. Low inflation should be the least of our worries!

For starters, real inflation is not low, it continues to move higher in the cost of everyday goods, that people need, such as housing and food. This at the same time that wages remain stagnant or in some cases, collapsing.

The FED in its most recent press conference, failed to mention the word “September”, which set the markets spinning, as the general consensus among pundits, was that the FED would finally pull the trigger and rates would begin to tick higher.

The new “extend and pretend” date is now set for December. This is laughable, as how many times are people going to fall for this trick? As I accurately predicted before, this date will once again be pushed back once it arrives.

The FED knows they cannot raise rates. They may act ignorant of the facts, but they are not! They know the economy is faulting and the global economy stands on a knife edge, just awaiting a catalyst to begin a renewed downturn.

Sadly, it is not “if”, but “when”. The FED knows this and they will do whatever they can to keep their fraudulent system running as long as possible. No matter the cost, or who gets harmed along the way.

The status quo continues on, extend and pretend is here to stay. This is QE to infinity.



Courtesy: Nathan McDonald

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