Why The U.S housing shortage might force interest rates to go up🤔 -November 12, 2021

Americans may have picked the wrong time to vote for an open borders president, because amongst food shortages, there’s also a housing shortage and it’s only going to get worse if the U.S-Mexico border remains wide open. What this ultimately means is that housing prices might continue to rise irresepective of interest rates, yes ofcourse this also equates to rising homelessness as more people are forced to walk away from the homes or rentals, but it also puts the Federal Reserve in this awkward position to force austerity measures.

Most of the problems in Western countries are because of government over-reach, yes the fiat monetary system presents problems as is, but the the governments of the world have done what everyone expected they would do once they didn’t have a Gold Standard to adhere to.

It should surprise nobody that the Democrat Party has dissolved into a Socialist Party, the socialists have figured out the U.S dollar is weaponized and they’re turning that weapon against the American people. Although I believe the ECONOMY i deflating, do not put me in the camp that believes prices aren’t rising. Economic deflation and price inflation are two different things because the CURRENCY is not longer backed by a Gold Standard.

Most people tend to imagine the U.S dollar as real money, I don’t make that mistake, the U.S dollar is the U.S dollar and sure many at the moment consider the U.S fiat dollar a much better alternative to a U.S dollar with a Gold Standard, but you have to understand that this confidence game with the U.S dollar is detatched from the economy.

The market is supposed to set interest rates, a PRIVATE bank is supposed to charge enough to it’s customers to make a profit based on the demands of the marketplace. The central bank is not supposed to base interest rates based on the demands of some politican. Jerome Powell is one very interesting character, if reappointed he could actually break Biden, but worse than Jerome Powell will be if Jerome Powell allows Socialists to dictate Federal Reserve Policy, because if you thought Private Banks weren’t lending now, yu wait until a Socialist becomes chairmen of the Federal Reserve.

This is what I think most people are ignoring, the Federal Reserve is POWERLESS, the market is merely accomodating the Fed with the expectation that returns are coming and things will eventually return to normal, even if that new normal is a bit progressive. But the Private Sector will not be bullied into taking the fall for idiotic financial policy.

Currently there’s a supply shortage of goods and even services in the United States, this prblem is worsening day after day, to combat these problems, the Federal Governent is looking to spend money and INCREASE REGULATIONS and TAXES on the provate sector, thereby pushing the private sector further out into the risk curve.

If this is starting to sound like pure madness, ofcourse it is and this has little to do with more money being out in the market and more to do with how make people consume more as prices increase. Do you follow me here? When it cost more money to buy fewer goods and services, this is DEFLATION! This actually makes the the economy shrink, but you see, there’s a lot of money out there, but even if the governemnt confiscated all of thE money in circulation, you can’t ignore the OUTSTANDING DEBT!

Debt is supposed to be reserved for the private sector to GROW the economy, well if the government is doing most of the consuming of the money it borrows, this deflationary cycle accelerates and forget bankruptcies for a moment, what you’ll get are fewer people willing to innovate or to spend money to innovate. It’s not to say the economy will stop working, but the economy will deflate and once this HYPER-deflation occurs, it will be the duty of the Federasl Reserve to raise interest rates or face EXTICTION! The Federal Reserve DOES NOT print money, it prints BANK RESERVES, private banks distribute money to people and entities it deems worthy.

Private banks do this to make a profit, now if you imagine that Central Bank Digital Currencies(CBDC) will save us, I think you’re ignoring the reality that Marxism doesn’t work. Do you know how hard it is for the governemnt to be responsibile for EVERY SINGLE transaction in the economy? The government already has problems attracting tech experts now, working for the government is STRESSFUL, especially when the governemnt will often use it’s own workforce as a scapegoat for its failures.

All of this has the makings of higher interest rates, but don’t expect these higher interest rates to happen right away, things will probably have to get even worse than they are now. The duty of the Feeral Reserve has always been to prevent DEFLATION! Nothing terrifies a BIG government more than Deflation, this is why governments always want to have control over the money supply.

If I have Gold and Silver and I don’t want to spend it, because the government has created an economic environment that rewards people the government deems worthy, the government will have to negotiate. Rule by fiat currency alows the government to inflate it’s oppositions fiat wealth away. This is one of the reasons some people call the U.S dollar WEAPONIZED and why most financially successful people like being in cashflowing debt.

With that said, to counter it’s own stupidity, expect the government to react by finding more ways to confiscate wealth and when it apears apparent that the economy is deflating because it’s zero prcent interest rate policies aren’t working, I expect the Federal Resrve to raise interest rates, not normalize them but raise them, I then expect rates to possibly go down again and when lowering rates accelerates inflation, that’s when I expect central banks rates to keep rising.

Now, if this doesn’t happen, inflation is going to be rampant, especailly in the United States.

Interesting times ahead!