Central Bank Rate Hikes are OVERRATED: The 2007-2008 Housing crash wasn’t necessary. However, OBAMA’s Wall Street Bailout set a Precedence That Most Want to be Repeated. Let’s talk about the Petrodollar – December 10, 2022,
One of the benefits of former President Donald Trump was that he showed anyone wanting to pay attention to the huge problem price controls and other Federal Government regulations were to the U.S. and the global economy. Now in no way do I think Donald Trump was perfect, he created a lot of unnecessary ECONOMIC and financial problems, and I do agree with the Left Wingers that Trump was fascist, but Joe Biden is a bigger fascist, and what most people don’t know about fascism that it’s as an economic system it DOES NOT WORK.
In fact, the only reason economic fascism hasn’t collapsed as of yet is FOREX markets. The foreign exchange markets allow BIG government to appear solvent. The U.S. is 30+ trillion in debt, and we have the dumbest President in U.S. history declaring war on the golden goose laying the golden eggs(Oil). Blaming the central bank is a Libertarian thing, I’m consistent in that I blame DEMOCRACY for Big Governemnt.
I see blaming the central banks as a POLITICALLY expedient way to defer blame from EVERYONE, including myself, involved in the MADNESS of this insane economy, but the truth of the matter is that the world can REJECT this modern monetary theory anytime it wants to, but ignorance is bliss, and people like me have to SELL others on change.
Financial stress reaches highest levels since 2008 – and is costing billions | yahoo.com
I hate to be the bearer of bad news, but high-interest rates are more of an upper-middle-class, RICH people’s problem. If you managed to get a mortgage to buy a home you can only afford because of government subsidies, higher interest rates are going to force you to liquidate. Truth be told, houses have always been MONEY PITS. This is why, in my opinion, all mortgage owners should put down at least 20%, which is how the market had it, I believe, up until the government got involved.
What people tend to forget is what happens after you get people into the housing and other financial markets that shouldn’t be there. These idiots will bid up prices, in fact, many will get good at bidding up prices; Americans are some of the most annoying people when they shop overseas, often bidding up prices unnecessarily because they were given money and resources, mostly afforded to them by beneficial government regulations and a strong U.S dollar.
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So you can’t blame Americans when it’s hard for them to observe the obvious, the central banks, the Federal Reserve, exist mostly to prop up the FEDERAL government, so you have as an example the U.S federal Government having the ability to expand and finance the U.s military because the U.S government can run these massive deficits.
These massive deficits are, ofcourse, leading to more and more inefficiencies in the U.S. economy, as the Federal government has the ability to throw money at every and any problem it can find. Because on the surface, it appears that the U.S. government has found an unlimited supply of money, inevitably, the Marxians feel as though now is the time to push the totalitarian agenda.
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The problem, ofcourse with the Marxian agenda is that Democracy requires an enemy to destroy; currently, that enemy is fossil fuels; now in China and Russia, their Communist governments are well aware that they must control the MEANS OF PRODUCTION; in Western countries, the leaders are getting increasingly dumber, as lobbying efforts have paid off, and ofcourse you could blame the central banks for this, but I think the blame should be on STUPIDITY OF THE PEOPLE/voters many of who want something for nothing.
The declaration of war on fossil fuels is FUELING shortages; as an example, gas prices are declining not because there’s a shortage of oil but because there’s a shortage of ECONOMIC activity. In the U.S., Joe Biden’s administration has created an overly regulated economic environment in which future investments are unclear.
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In other parts of the world, the same is true; western governments are betting big that fossil fuels will be phased out, and it’s for this reason that investing behaviors have changed. But notice that this has little to do with the central banks because, truth be told, market participants can make money even if central bank interest rates were at 20%.
The problem is not borrowing costs; the problem is the regulatory environment. This is one of the problems I had with Donald Trump. He claimed he had the greatest economy ever, but he was too stupid to comprehend or believe that cutting regulations was a good thing. Would there be some hiccups along the way? Ofcourse, there are indeed idiots in the marketplace that need to be flushed out, and for a lot of low IQ investors, when the central banks hike rates, they imagine implosion.
The economy implodes when the government intervenes; some imagine Franklin D. Roosevelt (FDR) as a great U.S President; I see him as an idiot that spoke to the imaginations of Americans at the time that the GOVERNMENT should play a larger role in the economy. People tend to forget that there was a DEMAND for an FDR during that time.
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Americans had grown tired of the Grover Cleveland types, who stayed out of the economy and imagined the market would lead to future prosperity. This demand from the people led to FDR winning elections in a landslide. The Federal Reserve was created because there was a DEMAND for it at the time. There have always been sabotageRs of capitalism because capitalism destroys the need for CENTRALIZATION.
Believers in democracy LOVE centralization because it allows believers in democracy to steal from others. But you see, with energy, if you’re not in control of your country’s energy supply, you’ve lost control of prices. As I’m writing this, OPEC+ has retaken power over the U.S. dollar, and the only way for the U.S. to defend itself is to either cut energy regulations or PRINT/BORROW money and redistribute that money to the UNPRODUCTIVE.
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With that said, you should also be aware of why countries like China, Japan, and even Russia don’t mind that the U.S. dollar remains the world’s reserve currency or that the oil is priced in U.S dollars because the forex markets REWARD countries that hoard U.S dollars but use their own local currencies.
If the purchasing power of the U.S. dollar is strong, the country that will have the most problems are countries with stringent regulations on economic activity. Russia and China actually have LOWER costs of doing business than most so-called western capitalistic countries. Are regulations the fault of central banks? In a way, yes, they are, but these idiot political leaders are being voted in by the people.
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A lot of these voters want something for nothing, and these people, as well as a lot of these western governments, are getting deeper and deeper into debt while the people continue to make more SOCIAL and Climate Justice demands for their governments. Central banks are being forced to raise rates not to screw over the poor but to punish the RICH.
The poor get screwed via the government regulations they vote for, but I remind you that most poor people can’t even acquire debt and if they can.t these poor people have been paying 20% interest on debts since 2007-2008. I think the credit card rates are 20%; poor people never got access to these Zero percent interest rates.
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Only the rich and upper-income middle classes enjoyed ZIRP. Barack Obama bailed out the rich; by the way, I consider people on government welfare and pensioners part of the rich classes because if you’re getting paid to do NOTHING, you’re rich, even if you’re living in a shack, as long as the government or your pension is sending you money to do NOTHING, you’re rich.
Social security, medicare, all of these unearned benefits that the products are forced to pay for; these luxuries only exist in RICH countries, many of which now want to phase out fossil fuels because they imagine their Democracy has the world figured out. Barack Obama’s wall street bailout has affected the entire global economy to believe that fiat money can do things it wasn’t designed to do.
The ‘Armageddon scenario’ of Fed rate at 6.5% would be more benign than feared – JPM | yahoo.com
Interesting times ahead!