Update: Powell gave a speech saying it was time for a “Pause” but that wont be enough we are already on the down slide…
For anyone with a brain it’s been obvious that the interest rate hikes have been too fast. But they are happening to prevent the yield curve from inverting (you get paid more for holding a bond for two years than for holding it for ten years). That inversion means people are frightened. To assuage that fear, you raise rates.
Now we are at it again. Eventually managing the DEBT is simply an impossible hidden shell game where the FED gives the bonds to one set of companies to sell, and gives money to another set of companies to buy. It looks like a normal market but it isnt. That second part is not supposed to happen. When it does it’s supposed to get put on the fed balance sheet. But they funnel profits from other shady dealings (money exchanges that take three years) to get the cash. so you wont see it on the balance sheet. this is why the audit is so critical.
These are listed as “assets” but really much of it are the bad bank loans made to hispanics and blacks and also to all the people who foreclosed. These will never be paid back so they must sit forever on the “asset” side of the balance sheet. They are worthless.
The basic takeaway is we predicted total collapse at 20T and we are now at 22T. How much more can it go. The frightening thing is that this next plunge into recession MAY BE PERMANENT.
Trump is trying to play the growth side economics ala Wilbur Palpatine Ross. But it won’t be enough because of the dysgenic load – we have more unproductive non-whites to pay for as the economy grows so we never escape debt load. This is dysgenics 101 and its the basic trap. So Democrats loading the economy up with low IQ hispanics is a straight line to collapse. And they know that! Because only after the collapse can they bring in Marxism to a needy starving population. Nancy Stalin Pelosi and Castro-Cortez stand at the ready to tell you how to live your life. We should be scared.
What to do? He needs to FREEZE interest rates and CUT the budget. Decoupling welfare from births is the first key step. A set $800 a month. fixed. you don’t get more if you have babies. That will be painful for the existing 22 chillin queens but necessary to stop the next generation. Temporary sterilization would be a good next step if you stay on welfare more than a year. that wont happen. and finally stopping anchor babies legally from being recognized. That is easy, and executive order. so why hasn’t trump done it, it was his promise!