The Federal Reserve makes an emergency interest rate cut, cutting interest rates to zero – March 15, 2020,

 

By the way, this post is being written on a Sunday, by the way, Coronavirus or COVID-19 is basically killing old people or people with existing medical conditions.

So far it’s been a rare occurrence for a person to die of coronavirus if they’re healthy. Most people are beating this virus and the reality of this situation is that humans are probably going to have to live with this virus until a cure is found.

With that said, the global economy has been on life support for more than a decade and everybody knows that debts all over the world will have to be renegotiated. The problem with renegotiating debts is the size of the government in your country.

If your country has a bloated government and the majority of the citizens of ‘said country’ are against Austerity measures, if I were you, I’d stock up on Gold and Silver Bullion NOW!

During the last great depression, the problem started because Franklin D. Roosevelt began not only growing the size of government but also changing the governments’ role in society, it took a long time for the market to correctly calculate the new world looked like with a permanent big government,

 

which by today’s standards would be a small government. The bottom line was during that period of time, the socialists of that era, felt that government intervention was the solution.

 

Socialists aren’t business people, they typically despise the private sector, and in the world today there are enough people who understand the free market that the coming recession or depression will probably occur in a manner none of us can comprehend right now.

 

The bottom line is the Federal Reserve did what Donald Trump asked them to do and now if there’s an actual problem in the world like oh I don’t know maybe a war with an Iran, then the Federal reserve is only left with negative interest rates.

Negative Interest rates work in certain countries because they produce more than they consume, however, zombie economies are depressing, you’re essentially a slave to the central banks and public sectors. I don’t think Powell or Trump realizes what they’ve done, but hey, let it play out how it will play out!

 

I’m not going to pretend I know what’s going to happen, but I suspect, debt renegotiation is on the table, with that said, debt renegotiation requires normalization to interest rates which doesn’t bode well if you live in a country with a bloated public sector, because interest rates will be forced upward!

 

The American dollar, being that the American military is stationed all over the world could be the dollar that experiences the least inflation, however, Americans won’t be able to escape from inflation! So now might be a time to consider purchasing gold bullion.

 

I don’t like Gold stocks, because if there’s a return to a gold standard, governments all over the world will nationalize related industries, which will bring back the speculators who allowed the U.S to severe ties between the U.S dollar and Gold. During a depressionary time, load up on income-producing assets!

 

Federal Reserve slashes rates to zero, restarts QE | finance.yahoo.com