Saturday, April 16, 2016

5* .. The Real Reason The Federal Reserve 
Will Not Raise Rates Again
"The U.S. economy is far too weak for the Fed to engage in anything resembling a series of rate hikes. Corporate leverage, household leverage, even the national debt stand at levels that limit the Fed from hiking rates. The Central Banking insiders know this. Which is why Former Fed Chair Ben Bernanke admitted in private luncheons with hedge fund managers that rates would not 'normalize' in his 'lifetime.' .. The Fed is not interested in the economy. It is interested in the bond bubble. All of the talk regarding Main Street, employment, etc. is just that 'talk.' The Fed will not, under any circumstances permit the bond bubble to burst because doing so would implode its true owners: the private banks. The Fed is a privately held institution. The U.S. does not own the Fed. And while Fed Chairs might take some marching orders from sitting Presidents (just as Janet Yellen was recently told by Obama to not raise rates again until after the election), the large banks are the TRUE controllers of the Fed. Bonds, particularly sovereign bonds, are the senior most collateral sitting on the big banks balance sheets. These bonds are what backstops the $700 trillion derivatives market. The vast bulk of these derivatives are based on interest rates or bond yields. What are the odds the Fed would risk blowing up the derivatives market, thereby imploding the very banks that own the Fed?"
- Graham Summers
LINK HERE to the essay

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