US Markets – It Won’t Happen Right Away But Global Pressures Will Be The Main Drivers
Doc joins me today to take a close look at the major drivers in the markets. With US markets continuing their shakiness it’s important to understand what will truly drive the markets into next year. To see the major issues look outside of the US and understand just how connected everything is. We also discuss how the PM complex will fair in this environment.
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I mentioned this very idea a week or two back. Whilst your right in identifying the lack of rationale behind raising rates for such an idea, I dont think it worries those within the Fed as there is a lack of accountability. All they seem to care about is being seen to do the right thing in times of need. One only has to look at how outspoken former Fed chairmen are towards their former organisation to realise their “flip flop” way of thinking. It would appear they are very short sighted and behind the curve when it comes to identifying future consequences due to economic intervention. Whether there is a hidden agenda behind such intervention or not is anyones guess, but yes ultimately this would appear to end badly.
Saturday weekend show October 20.
Ozibatla says:
Just a thought: Is it possible that the Fed is implementing a series of rate hikes now so they can give themselves some ammunition for when the sh*t hits the fan further down the tarck? All the while knowing, that the hikes presently are causing some negative impacts in both the US economy and throughout the world. Essentially, the very rate hikes we are witnessing at present could be the catalyst that throws the world into another recession. Yet at the same time, higher rates could be reversed to help beat the inevitable recession that arrives. Whats that place called between a rock and a hard place?
The Federal Reserve logic “of raising rates so they have room to lower them again when we reach a recession” defies rational reasoning. The very raising of interest rates is going to cause a recession.
Trump was correct in stimulating the economy by lowering taxes.
The recent improvement in the economy was due to this and had absolutely nothing to do with the econo-moronic policies of Obama.
Unfortunately Trump has not yet moved to reduce government spending. He should.
Cutting off chain migration and reducing future welfare is a good step, but will have only a distant effect.
Trump had previously mentioned enterprise zones, but these have not been adopted.
If the Fed continues to raise rates, the sole advantage in that may be the advancement of the timeline of its ultimate death; it certainly will not help the economy.