Beware These Mischievous Actions Behind the Fed’s Curtain
Sometimes we get the impression that the Fed has absolutely no clue what they’re doing.
It’s almost like they can’t make up their mind when it comes to monetary policy. On one hand, they’re raising interest rates, but are also leaving the 2018 policy outlook unchanged.
And on the other hand, in spite of the evidence I’ll point to in a second, they’re still talking about “negative” interest rates over at the St. Louis Fed:
It goes without saying that everyone needs to protect their money from these “ivory tower” banking shenanigans. These economists have no “skin in the game” so they make policies without factoring in consequences for those who have their personal savings involved.
Also, when you examine the Fed’s true motivations for considering negative interest rates, there appears to be an underlying strong arm tactic at play here:
If you’re thinking this sounds like a desperate move, you would be correct. Plus, when the Fed uses a word like “incentivize” it usually means “force.”
“Pay No Attention to the Man Behind the Curtain!”
Like the wizard in the movie Wizard of Oz, the great and powerful Fed wants to force banks to quit storing cash and make loans. They think this will stimulate economic growth. Plenty of folks think that they’re dead wrong.
Instead, they may actually be leading the U.S. economy right into the next recession. But it gets worse…
They also want to strong arm corporations to put their cash, loans, and savings into the central banking system.
However, they don’t want you to know they are using the law to force companies into this bad deal. This has the smell of extortion, except the law makes it legal:
But pay no attention to the Fed behind the curtain, everything is okay and you should just lend them your money and then pay interest to them on top of that… right? Wrong.
If this economic policy sounds like a scam to you, you’re not alone…
If it Walks Like an Economic “Duck,” and Quacks Like an Economic “Duck,” Then…
Interest rates are still below 2% and bubbles are forming again in real estate and credit markets. This track record tells us that the previous decade’s economic problems haven’t been solved without negative rates.
And even without negative rates, the Fed is already making the world nervous. As of earlier this month, China is viewing the U.S. treasuries as less attractive.
So what makes Feng Dong and Yi Wen over at the St. Louis Fed think negative rates will solve any of our decade’s worth of economic problems?
If this policy sounds wrong, and feels desperate, that’s because it’s both. Negative interest rates are a desperate move all around. And so are the lessons to be learned…
From a report at Investopedia:
In fact, it has gotten so bad in Japan, the largest private bank wants to leave the Japanese bond markets.
So what can you do to protect yourself against this recent tidal wave of Fed stupidity?
Enter Gold’s “Golden Secret”
Precious metal prices tend to grow significantly amidst market declines, crashes, and recessions as well.
Gold’s “golden secret” is it offers you protection against adverse events like the real possibility of the market crashing because of idiotic monetary policy like proposing negative rates.
And when markets crash, reactive buyers begin snatching up metals fast, which instantly drives up prices. The best move is to get ahead of that.
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