Following the FOMC meeting this week, the FED announced a rate hike of 0.75%.
This raised the Federal Funds Rate to a target range between 2.25% and 2.5%.
This was in line with what most commentators expected.
There are a number of things I wish to say about this.
a pause is a pivot
I expect that this will be the last rate rise. I think that with the next FOMC meeting in September, the FED will announce a either pause, or they will pivot. Bear in mind that a pause amounts to a pivot because it represents a change of policy and an end to the raising of rates.
Why would they have to stop raising rates?
The National Debt is extremely high and increasing all the time. This debt has to be serviced. The more the debt increases, the more expensive it becomes to service. In addition to this, higher interest rates mean it the debt becomes more costly to service.
But this is only one part of the picture. This is only concerning Government Debt. There is a massive amount of debt out in the wider Economy. Indeed, throughout the world – many companies, businesses, households and individuals are struggling with debt.
The FED doesn’t want the Economy to collapse under the burden of this debt - not quite yet anyway. It’s in their interests to keep this system going for as long as possible – at least until they deem the time is right.
So they need to have to lower rates in order to mitigate these ever-increasing cost.
This is the reason why we haven’t seen high interest rates since 2008.- over a decade ago.
I could, of course, be wrong. It’s entirely possible that they could carry on regardless. They could keep on raising rates incrementally as they have been doing in recent times. And if they do decide to do that, then eventually the whole Economy will collapse at some point. The Economy is already crumbling. When the entire edifice will finally fall, when it will come crashing down is uncertain.
I should, at this juncture, say that this is a controlled demolition. And given that it’s a controlled demolition they will not only want to get everything right, but they will want to remain in control after the Collapse.
I guess that it really depends what timeline they have in mind for the collapse to occur.
So we shall see what the FED will do. We have a good number of weeks to wait.
And it will be interesting to see what the narrative that they concoct in support of their actions between now and then is. Bear in mind that optics are important to our Overlords. Perceptions are part of their deception.
Anyway, make no mistake, the people at the FED know as well as I do that the Debt Disaster / the Currency Crisis is going to occur some time in the not too distant future. When exactly that is I don’t know. I’m simply a lowly serf and therefore not privy to their machinations.
My best guess is maybe sometime in the beginning of Autumn, or the Fall as Americans refer to that season as.
So we will probably see the Fall in the Fall. Sorry, I couldn’
