Thursday, September 15, 2016

James Turk – How To Survive 
The Coming Financial Storm
"The big question at the moment is whether the Federal Reserve is going to raise interest rates at their meeting on September 20-21 .. I think the odds of an interest rate hike before the November election is close to zero because it is politically untenable for the Fed to hike rates .. The reality is that the Fed is caught between a rock and a hard place. First, we are seeing the failure of their Keynesian policies. They are probably scratching their heads wondering why all their money printing and interventions to bring about artificially low interest rates isn’t working to revive the economy. A lot of PhDs are ending up with egg on their face .. Fed policymakers no doubt recognize that higher interest rates will further weaken economic activity because the debt loan being carried is just too high. More to the point, with a moribund economy, there is not enough wealth being created to service today’s level of debt .. Just look at the U.S. federal government’s debt load, which is now approaching $20 trillion. If interest rates rise to a fair level, say 5%, the government’s annual interest expense burden would be $1 trillion higher – or perhaps a little less to account for longer-term paper issued at a fixed interest rate .. As we saw in the 1970s, the gold price actually soared as interest rates climbed higher. But the federal government was in much better financial condition back then. It could cope with then Fed Chairman Volcker’s policy until eventually real interest rates (interest rates less the inflation rate) were 6%. Mr Volcker reversed the trend of ever-higher inflation and saved the dollar. But he set the economy into a tailspin that was, at the time, the worst slump since World War II .. This time around the Fed does not have the option to follow Mr Volcker’s high interest policy. There is just too much debt today. So in short, something has to give, and it will be the purchasing power of the dollar. Inflation is already rising and for most of this year has exceeded the Fed’s inflation target."
link here to the reference


Anonymous said...

Central Bankers And Einstein’s Definition Of Insanity …

Anonymous said...

Be J. Kerry's daughter?.ka-ching..
No wonder these people never have to go without a paycheck....

John Kerry’s State Department Funneled MILLIONS To His Daughter’s Nonprofit
More than $9 million of Department of State money has been funneled through the Peace Corps to a nonprofit foundation started and run by Secretary of State John Kerry’s daughter, documents obtained by The Daily Caller News Foundation show.

The Department of State funded a Peace Corps program created by Dr. Vanessa Kerry and officials from both agencies, records show. The Peace Corps then awarded the money without competition to a nonprofit Kerry created for the program.

Initially, the Peace Corps awarded Kerry’s group — now called Seed Global Health — with a three-year contract worth $2 million of State Department money on Sept. 10, 2012, documents show. Her father was then the chairman of the Senate Committee on Foreign Relations, which oversees both the Department of State and the Peace Corps.

Seed secured a four-year extension in September 2015, again without competition. This time, the Peace Corps gave the nonprofit $6.4 million provided by the Department of State while John Kerry was secretary of state.

Seed also received almost $1 million from a modification to the first award, as well as from Department of State funds the group secured outside the Peace Corps.

According to The Daily Caller, Kerry and government officials colluded to launch the program and ensure that Seed would get the contract.

Seed lists among its partners many top cronies:

Bank of America
ExxonMobil Foundation
GE Foundation
Gradian Health Systems