18 votes

It begins? Brazil

Brazil raises interest rates to 10%.



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Mindless Xmas consumerism

There is no way Fed is doing anything w/ interest rates in this country while mindless Thanksgiving-Xmas-holiday "shopping" season goes on. Like syringes for heroin addicts they've got to keep printing more money & keep low interest rates. There is no tapering for QE.

The day physical deliveries for precious metals start failing will automatically be end of QE & then you get interest rate hikes.

Immoral funding of Military Industrial Complex by Federal Reserve and US taxation system must stop!!!! End illegal/unconstitutional wars! Preserve US currency!
http://facebook.com/NoPropagandaZone
http://twitter.com/the_chiefe71

I'm not so sure.

There is a short game here too. There is a lot of inflation already built up that they haven't cashed in on. Interest rates have propped up property prices and other big items for a while. A short term interest rate hike will cause a drop in prices and a few defaults on big ticket items as people can't afford to refinance their home or realize it's not the same market value as it was when borrowed money was cheaper to borrow. Property prices will drop but people will carry that same debt. Bankers will sift through the default properties and milk those that can hang on. People will sell assets for pennies on the dollar to stay a float. Also, the Fed will run some propaganda about strengthening the dollar now that we're in a "recovery" and give them room to get back to easing for the next bust. My bet...A twelve month mini boom to bust business cycle followed by a prolonged recession just in time for a 2016 puppet to come in chanting promises and pointing a finger at some scapegoats.

Agree/disagree

I think we're in 100% agreement on where things are headed in long term. I'm considering somewhere over course of next 6 month as long term. I feel we're guaranteed to have bond bubble burst within next 6 months & interest rates skyrocket. Stock markets & real estate valuations will collapse.

For the life of me, I can't see how Fed will allow these things to happen during so-called "Holiday" season. They will fight tooth & nail printing money & keep their QE deck of cards up during short term. We can probably agree to disagree on the short-term outlook.

Now, as I said above: I feel only black swan event which could cause things to go helter-skelter in short term is if physical precious metal deliveries can't be met to someone like Chinese central bank during this period. As long as contracts for Chinese manufacturing exports of worthless trinkets get satisfied, Chinese central bank doesn't perticularly care about Holiday season in Western world. There is enormous manipulation of precious metals going on right now thru paper contracts by likes of JP Morgan (maybe HSBC, Deutsche Bank etc.) We don't know what is the extent of these paper contracts representing fake gold or fake silver. If the fake paper contracts get exhausted in short term, game of the criminal cabal get exposed. No Holiday season could then come to rescue for prevention of interest rate hikes.

Immoral funding of Military Industrial Complex by Federal Reserve and US taxation system must stop!!!! End illegal/unconstitutional wars! Preserve US currency!
http://facebook.com/NoPropagandaZone
http://twitter.com/the_chiefe71

You might be right on the ball.

I feel like a mushroom in this...kept in the dark and feed BS. Thanks for your perspective.

Relativity...

...very important in this case.

Good point!

Freedom is the ability to do what you want to do.
Liberty is the ability to do what you ought to do.
"Where the Spirit of the Lord is, there is liberty." 2 Corinthians 3:17