Chair of the Federal Reserve Jerome Powell Gives Into Pressure – Stops Raising Rates To Normal Levels! – January 4, 2019
Well, if you’re wondering what’s happening to the U.S Dollar, it appears Jerome Powell has paused rate hikes, Financial markets have been in turmoil over the past several months, in part over concern whether the Fed was on an aggressive rate-hiking path. Well, in my opinion, the rate hikes weren’t aggressive enough and well, the game Obama started will come to an end around the same time I expected, which will be Donald Trump’s second term in office. In the unlikely event that a Democrat beats Donald Trump in the upcoming U.S election, the economic crash will turn into an economic collapse or a New Great Depression which at least by my estimation which forces this planet to change how it views economics.
But what I see coming, is a huge economic crash month’s after Donald Trump is re-elected. Part of the reason I think Powell, is signally a slow down in rate hikes comes from the Government shut down, which I think is going to be the new normal. I don’t think these next 2 years are going to be as productive as Trumps first years in office, the Democrats are stalling and will do everything in their power to make Donald Trump look bad, unfortunately for the Democrats, Trumps regulation cuts have already been made, American businesses, have a lot more flexibility than they had prior and Trump’s economy will be relatively fine, what might be in trouble however are Federal workers, government workers, public servants and all government dependent industries.
I think they’ll have the most problems the next two years and both Trump and Pelosi play the blame game. If you’re wondering where my prediction for an economic crash is derived from it’s the free market. The numbers all across the board are skewed and the numbers are inflated primarily because of the Obama bailout and the near 0% interest rates for the last 10 years. Prices everywhere, with everything, are inflated if U.S real estate prices are inching closer to bubble territory.
The Cost for free-market labor has been replaced with Wall Street profit margins and most Wall Streeters are bean counters, the majority of them don’t know how to operate businesses efficiently, as most of the Hedge fund types are Pump and Dumpers. In the real economy on Main Street, we have to deal with the people directly, if I hire someone that person expects to be paid, if customers have demands, even if their demands seems minuscule when looking at the numbers, ignoring that demand in pursuit of greater profits result in crashes and what’s happened in the world today is that there are a lot of people purchasing crap, what a cut in regulations equate to is quality returning to Main Street, now quality, the small and medium sized business don’t always go public.
In this modern world filled with fiat money and easy loans, what’s going to happen in the next few years is a lot of new companies, are going to spring up that will turn over the Apple cart. There’s a lot of money out there going to work in alternative economies. What I find are a lot of new businesses, who want freedom and want to avoid going public, because most of these hedge fund and other managers who like to buy up companies are actually killing a lot of innovation.
It’s becoming common knowledge amongst new inventors to hold off and wait for the market crash, a lot of new businesses are anticipating a crash in hopes to buy up bloat companies for cents on the dollar. Their bet is similar to my bet, which is they’ll be no bailout this time if Trump wins the coming election Main Street wins and if a Democrat wins the coming election Main Street wins, how Main Street might have to wait 4 more years to make their presence felt. The world is changing, it’s actually changed already, it’s just, well, when you’re in businesses sometimes it’s best to just take your time and let all the old world thinkers enjoy their pyrrhic victories.
Interesting times ahead