The Politicization of Money: Why The Market Thinks The Federal Reserve SHOULD cut interest rates, but why it would be UNWISE for the Fed to do so – April 9, 2023,

 

So, I’m reading a lot of articles that are stating that the Federal Reserve, like many other central banks, should pause or CUT their interest rates, but you see, if you genuinely believe this, then you obviously don’t believe that money or rule by fiat money is politicized.

Central Bank interest rates have very little to do with economic activity in the overall economy; central bank interest rates have to do with the FEDERAL government. Because U.S. dollars CURRENTLY is the most in-demand currency, there’s a market outside of the U.S. that demands FEDERAL reserve notes. This demand cares very little for the U.S. economy.

Even if the U.S. lost a war or was shown to be weak on the global stage, it’s not a certainty that the U.S. dollar would collapse immediately because you have to remember that for the U.S. dollar to collapse, something else has to replace it. A GOLD standard comes to mind for most people as a replacement, but a Gold Standard would completely change the fractional reserve banking system.

Most market participants like the fractional reserve banking system because it allows PRODUCTIVE ideas to come to market without the delay or hindrance of a gold standard that could definitely complicate things.

However, the problem with the CURRENT fractional reserve banking system in U.S. dollars is idiot politicians like Joe Biden, who imagine a world in which open borders– which I assume for Joe Bidens political agenda doesn’t only equate to more votes but cheap labor? Federal Government Regulations on productivity- It’s not a secret Joe Biden has declared war on fossil fuels as well as his political opposition, HIGHER taxes so Joe Biden is not only raising taxes he’s trying to hire a record number of IRS agents, which are being hired to harass rich people, who by the way, have the resources to hire accountants, lawyers, and PASSPORTS to move to other nations, meaning the IRS harassment will likely hit the upper middle-class, who can’t fight back.

 

Then, what comes to mind is Joe Biden’s social justice agenda, which is a SOCIAL hindrance and regulation to economic productivity, Hey, employer, I now identify as gender fluid, and I want to use any bathroom, and I also will be taking sex change drugs that might result in me not showing up to work for the next few weeks, if you disagree with this employer I can sue you for discrimination. Yes, I’m exaggerating, and that story is pure fiction, but you get my point.

Lastly, PRICE CONTROLS, a lot of unionized employees have wages that keep pace with inflation, and being that inflation is CLEARLY not transitory, inflation is leading to wage increases that CAN NOT be rescinded; wage raises are often overlooked, because it’s hard to lower consumer prices, once the labor is used to higher wages, meaning that employers will either have to fire, automate or raise consumer prices PERMANENTLY.

The Federal Reserve, at the very least, can make fulfilling Joe Biden’s agenda difficult by raising the cost of money, but will they? I have no idea or answer to that question; I’m saying that money is politicized, and your investment decisions should be rooted in reality, not fiction.

 

 

I think interest rates should go up. What people tend to ignore about Ronald Reagan that differs from, say, Donald Trump, is that Reagan used higher interest rates to CUT REGULATIONS, with Trump, in case people forget, Trump who apparently had the best economy ever, was SCARED when Powell raised interest rates a little bit, which oddly enough made money CHEAPER for Trumps opposition to destroy his presidency.

 

Here we are, from a financial perspective, in which the President and his main rival are intentionally or unintentionally POLITICIZING money to such a degree that interest rates should likely keep going up until bankruptcies start showing the world that austerity measures are the only way out of this mess. But as we know, nothing happens in a straight line, so for now, prepare yourselves accordingly.

Interesting times ahead