Thursday, September 17, 2015

Fed Impotence or Guile

Does anybody really think that the structural and demographic drags now present in both the emerging markets and developed markets are going away anytime in the next 5 / 10 years? Overcapacity in everything except cutting edge coders. And I give that 3 years; see www.udacity.com

In any case if the fed does NOT raise, it is basically an admission of impotence since it cannot CUT rates, which would be the action taken if they had room to cut, there is no doubt in my mind.

An institution SO dependent on the illusion of power will HATE to reveal the truth; it is POWERLESS to achieve it's stated goals.

It is possible it has achieved it's UNSTATED goals of transferring vast quantities of wealth to the banks, the people that run them, and that control the fed. So thats been a resounding success.

However politically the jig is about up: See Greece, Spain, Australia, UK, Bernie and the Donald.

If they do raise and the market tanks they have a CRISES to respond to and can acquire more power.

What do you think?

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