Jerome Powell Did Not Say He Was Going To Cut Interest Rate, But The Market Assumes He Will Cut Rates- June 6, 2019,

So, Powell says a few words that in actuality are open to interpretation, however, the market took Jerome Powell’s words as rate cuts. There sure are a lot of rob traders out there lol. Now, if you actually listen to Powell’s words, his focus was on a target inflation rate of 2%, now based on the current trajectory of the U.S economy whose to say he meant a rate cut, how do you know he doesn’t mean a rate hike? The words below are what he said that got the markets reacting

“We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2 percent objective.”

The words “inflation near our symmetric 2 percent objective.” reminded the market of the Bailout Obama years, but I’m not confident that this is what Powell meant, now obviously in the weeks to come Powell will have to clarify his comments, but, a rate cut during a trade war, could have dire consequences, especially because China is holding so much U.S debt and is presently vital to the U.S economy.

What I’ve been saying is that I’m of the belief that there will be a NATIONAL debt renegotiation while Trump is the President of the United States, I actually think this will be the only way the Chinese Communist Party will yield in trade and my position is that this will happen when interest rates are forced upward. What would force interest rates upwards? If interest rates go down and the world starts to dump U.S treasuries. What would trigger the world dumping U.S Treasuries? an interest rate cut of course! The dumping of the dollar will serve as a temporary stimulus to the market, but as I’ve stated many times, what separates the United States from the rest of the world are regressive taxes.

The U.S in comparison to most of the other developed countries uses income taxes to pay for most of its social programs and it’s typically the Democrat-run states find ways to punish consumers with sales taxes. Regressive taxation equates to economic stagflation, I say this mainly because any perceived market boost that’s the result of a U.S economy downturn will be met with an economic crash all over the world.

Which oddly enough would put the U.S in an excellent position to renegotiate their debts. A renegotiation of debts doesn’t mean that the investor of the U.S economy won’t get his return, what it means is that the investor will get less U.S dollars with a higher or normalized interest rate.

So what I mean when I say this in simplified terms is $1 USD today with 2.25% interest rates! might be 0.60 cents after the trade negotiation with 5-10% interest rates. I’ve been saying this for years, and I think this flies over most people’ heads because they forget that it’s the U.S Federal Reserve, which is the equivalent to Federal Express,  dictating monetary policy, there’s nothing Federal about the Federal Reserve, the power in the U.S economy, comes from their system of governance. Money is a faster form of bartering, money doesn’t need to be backed by gold or Oil, however, it doesn’t have to be backed by some form of perceived ENERGY of value! Currently Bitcoin has value!

Regressive taxation as anyone with half a brain knows is a tariff in itself. Consumers forced to pay for their consumption? If most of us were farmers, a regressive tax would mean we’d have to pay for what we consume on our farm, so let’s say to spite the government as farmers, we simply stopped using their currency and instead simply bartered with each other? The government would in those situations would then raise taxes and treat us as criminals or they’d otherwise risk losing power. Let’s be serious, taxation is theft, but consumers being forced to pay an extortion fee to consume is how most criminals make their money.

Income taxes on the other end tax are levied by a government directly on income, how do most people get rich? They barter instead of hoarding INCOME, if I have no income can I be taxed? If you don’t know the answer to this question, then you’ll have a hard time understanding why most business people LOVE the United States!

Oh? You thought the inflated prices you were paying from sales taxes, were helping to take care of the poor? What are you stupid? Do you not know why most stores prefer cash, have you ever seen how the government WASTES tax dollars? Oh, you thought carbon tax dollars were being spent wisely? If you think that regressive taxes work, you’re a freaking moron, Sweden is going cashless and guess what happened to Sweden? Oh yeah, the government said what the hell, let’s open the doors for immigration and lets on the same token control what people can say publically and arrest people who disagree with the Swedish government. THAT’S WHAT REGRESSIVE TAXATION DOES! You’re taxed at every corner, and if there’s no bastion of freedom, your country is forced to join forces with other regressively taxed countries to create a currency called the Euro!

Europe isn’t growing, a growing economy invests in other growing economies, France as an example is all over Africa, the French armies presence in Africa is no secret, and for some odd reason Africa has economic growth problems and political corruption, I wonder why? Could it be race and IQ, or could it be that undeveloped Africa is trying to mimic flawed European Monarchies who abide by flawed economic principals? Socialism works as long as the government has something to confiscate, if you’re a country like Africa that lags behind economically, and isn’t a fan of property rights, similar to China, is it likely that you won’t get sustainable investment into your country?

Now, what is regressive taxation exactly? What’s the concept behind it? Why is it considered regressive, because it contributes to artificially created inflation and it assumes that consumption is inevitable and it also along with regulations fixes prices, what is America known for? LIQUIDATION SALES! You will literally find people dying in the streets of America because of Fire Sales, it’s a new season out with the old in with the new, it’s a common theme with U.S retailers! Oh, the market crashed and you lost everything huh? Well boohoo for you, no we’re not going to grow the government because you made some stupid economic mistakes.

Americans fight against big government, is the American system perfect? I don’t know, but it’s clearly the best system globally. America falls, all of this global trade that you take for granted falls by the wayside, a few years ago Somali Pirates we’re a very real thing, Pirates are suppressed primarily because of U.S presence all over the globe, love them or hate them, there is no country in the world that can do what America currently does and this is bigger than money, America is in an excellent bartering position.

 

Inflation and deflation the semblance of a market still exists in the United States, is it ideal capitalism? Of course not! But it’s a bastion of freedom, it represents that and the Republic of America has a democracy. Sure a country like Singapore might have freer markets, but there are limitations to what a person can do and say in Singapore, plus, of course, Singapore is small and doesn’t have a global military presence. If you put zero value on a countries military, consider opening your mind.

Renegotiation of debts! Sure unforeseen events can occur, but for the most part, until I hear Jerome Powell say the Federal Reserve is cutting interest rates, I’m not going to take his words as a warning call for a future interest rate cut. China isn’t in a good position right now and their hope is that Trump or the Republicans lose the 2020 elections, because if Trump wins another term, companies will leave China in MASS, which may cause the Chinese Yuan to crater, which of course isn’t good for the Chinese Communist Party, because people forget, China subsidizes a lot of industries, it’s not like China is economically kicking the world’s ass fairly on a level playing field.

China is cheating, China is cheating in multiple ways and the longer this trade war lasts, the worst off China will be. Now, what separates Trump from other Presidents is Trump’s approach, Trump is making sure that China can’t use other countries to avoid Trump’s tariffs. The Political Right is rising all over the world, why? Because of Donald Trump, what this entails is more countries on board with putting an end to Chinese theft.

When someone steals from you, you remember it for life. Because China has so many of its own tariffs while at the same time stealing property from others, the Chinese Communist Party has inadvertently created for itself truckloads of enemies, both on the Left and the political Right side of the aisle. The world is starting to unite against China and this as I will state again this will result in Angel investment for the U.S economy.

RENEGOTIATION OF DEBT! it might not happen, but it is’ why I don’t see people dumping the dollar just yet!

Fed’s Jerome Powell signals openness to cut rates if needed on trade tension – financialpost.com

‘Do They Have Enough Ammo?’: Markets Mull Potency of a Powell Put – bloomberg.com

Powell Signals Openness to Fed Cut If Needed Over Trade Tensions – bloomberg.com

Fed chief Powell’s promise sparks market surge – CNN

Powell says the Fed will ‘act as appropriate to sustain the expansion’ – CNBC

Interesting times ahead!