Is the Federal Reserve considering raising interest rates? Considering that this would be death to housing and the U.S. economy as a whole, I’m pretty sure at this point they cannot be seriously weighing this idea. However, let’s consider what would happen if they lowered rates:
-Inflation, possibly leading to hyper-inflation (John Williams has a good analysis of a 2010 hyper-inflation scenario here)
-The final blow to the U.S. dollar, Zimbabwe-style economics and some pretty angry masses
-Gold/Silver emerging as the only real money, creating a run on gold (and gold prices shooting up to around $2200/ounce within a year or so) OR the U.S. government unveiling the Amero and the North American Union, all in the name of saving us, of course! (reminds me of the old Harry Browne quote, “Government cripples you, then hands you a crutch and says, ‘See, if it wasn’t for us, you couldn’t walk.”)
So the European Central Bank (ECB) raised rates today, as expected. They are also putting pressure on the Federal Reserve to raise rates. Bernanke and his goons are well aware that it is much too late to raise. If they did this a few years ago, it would have sent us into recession, but we’d be out of it by now. The longer they do nothing or lower, the bigger the disaster on the other side.
The only real safety right now is to be in gold and silver. Today, gold is down $12 which looks like a classic “dip”, and a good time to load up.
I don’t think Bernanke or any of the numbskulls at the Fed have a clue on what to do. My guess is they are resorting to all sorts of mystical methods right now like following horoscopes, lighting candles, and praying!! If they take action, it will surely doom us. If they take no action, we are doomed anyway- and the blame lies completely on the Fed.
The Bernake Federal Reserve right now is going to go down the path of denial until the bitter end….and is in the same quandary that Norm from Cheers was in many years back when he quipped:
“Women, can’t live with ’em…..pass the beer nuts.”
Inflation and a looming disaster looks like the way it will go down, despite all the rhetoric coming out of the Fed & U.S. government.