Fed Holds Interest Rates Steady and Plans Slower Increases

What happened folks, unemployment is down to 4.7% and since that's the only thing that matters why isn't the Fed raising interests or slowing the rate at which they do raise them?

Could this have to do with Brexit?

The fact that we have had bad jobs numbers all year?

Does gold on the rise an indicator of things to come?

NYTimes

The Fed said on Wednesday, after a two-day meeting of its policy-making committee, that it would not raise its benchmark interest rate, and that future increases were most likely to unfold at a slower pace.

While you guys are debating on what Hillary Clinton ate for breakfast or how how many spoonful's of sugar Trump puts in his coffee the economy has been coming to a screeching halt and it looks like we're entering into another recession.



Not only has Schiff been accurately predicting the market trends and the Federal Reserve not raising interests rates but he claims that they will actually go negative and we are looking at another serious economic recession.

Wells Fargo to Boost Credit Default Swaps as Trading Rises Read more: www.nasdaq.com...

CDS is a derivative contract that allows an investor to place a bet on whether a company or country will default on its debt within a fixed time period. Basically, it serves as protection against the credit risk stemming from holding the debt instrument. Read more: www.nasdaq.com...

All of this on the heels of Wells Fargos move into default swaps.

Schiff says the economy is currently weaker than it was during the aftermath of the 911 attacks and the the .com bubble. The economy can't even handle a 1% interest rate.

a reply to: onequestion

What happened folks, unemployment is down to 4.7% and since that's the only thing that matters why isn't the Fed raising interests or slowing the rate at which they do raise them?

Unemployment rates are manipulated just like gold price is held down artificially.

The numbers of jobless appear low because people have fallen off the searching for a job list. Defacto, statistics reflect less people are unemployed.

From 2015:

40 % of unemployed have quit looking…

Unemployment is only good for a year anyway…

a reply to: intrptr

How is gold artificially held down?

a reply to: onequestion

I think a link to this piece will fit your thread . Bizzaro land of the money changers is what is happening . I some how think that they need the system to collapse but are unable to make it fall the way they need it to so have something that looks like a band-aid but instead of it being on the cut is far removed from it . It will probably result in a very slow death then a crash .

By Mike Whitney June 17, 2016 "Information Clearing House" - "Counterpunch" - On Tuesday, the 10-year German bund slipped into the bizarro-world of negative rates where lenders actually pay the government to borrow their money. Aside from turning capitalism on its head, negative rates illustrate the muddled thinking of central bankers who continue to believe they can spur growth by reducing the cost of cash. Regrettably, the evidence suggests otherwise. At present, there is more than $10 trillion of government sovereign debt with negative rates, but no sign of a credit expansion anywhere. Also, global GDP has slowed to a crawl indicating that negative rates are not having any meaningful impact on growth. So if negative rates are really as great as central bankers seem to think, it certainly doesn’t show up in the data. Here’s how the editors of the Wall Street Journal summed it up: “Negative interest rates reflect a lack of confidence in options for private investment. They also discourage savings that can be invested in profitable ventures. A negative 10-year bond is less a sign of monetary wizardry than of economic policy failure.” (“Money for Nothing“, Wall Street Journal) Bingo. Negative rates merely underscore the fact that policymakers are clueless when it comes to fixing the economy. They’re a sign of desperation.

www.informationclearinghouse.info...

a reply to: onequestion

The usual reaction to more debt and more fiat currency in circulation to cover that debt is a distrust in the currency, and a switch to more tangible assets. The more gold people buy, the higher the price.

Its been a natural trend forever until lately.

Article

originally posted by: onequestion
a reply to: intrptr

How is gold artificially held down?

Here is one persons' stake on gold manipulation.

www.paulcraigroberts.org...
The Fed’s policy of monetizing one trillion dollars of bonds annually put pressure on the US dollar, the value of which declined in terms of gold. When gold hit $1,900 per ounce in 2011, the Federal Reserve realized that $2,000 per ounce could have a psychological impact that would spread into the dollar’s exchange rate with other currencies, resulting in a run on the dollar as both foreign and domestic holders sold dollars to avoid the fall in value. Once this realization hit, the manipulation of the gold price moved beyond central bank leasing of gold to bullion dealers in order to create an artificial market supply to absorb demand that otherwise would have pushed gold prices higher. The manipulation consists of the Fed using bullion banks as its agents to sell naked gold shorts in the New York Comex futures market. Short selling drives down the gold price, triggers stop-loss orders and margin calls, and scares participants out of the gold trusts. The bullion banks purchase the deserted shares and present them to the trusts for redemption in bullion. The bullion can then be sold in the London physical gold market, where the sales both ratify the lower price that short-selling achieved on the Comex floor and provide a supply of bullion to meet Asian demands for physical gold as opposed to paper claims on gold.

a reply to: onequestion

I didn't know rate increases could get any slower. I'm aware of only 1 rate increase since 2008. Am I wrong?

a reply to: CharlesT

Yeah because the economy wasn't getting stronger.

They had to raise it in order to maintain the narrative of the media and the administration.

But they know if they keep artificially raising it they will crash the world economy.

a reply to: CharlesT

Interesting thanks for the info need to do some more reading into that.

a reply to: onequestion


the article I read on Friday...from the ? Kansas City Fed ?... said that the economic metrics that were favored before now are completely un-worthy of being used anymore... & that as far as they, at that Fed Reserve were concerned... a new economic grading model was needed as the 2% inflation model was not working in the present conditions of the economy...
Also that the .37% rate could only be raised by (at most) .25% rate hike to a total of about .67% total as far as the end of 2017.


gold is responding accordingly & despite the TBTF banks buying thousands of 'naked short positions' to hog-tie the value of Gold in USDs... that the larger, world-wide, gold market will eventually overwhelm the TBTF Fed. Banks that create money to 'buy' those fraudulent 'Short' positions



I won't cite any particular economists or statistitions...but King World has a team of note worthy people that either write 250 word news points or make weekly 12-18 minute audios of the trends to note,


example: kingworldnews.com...

a reply to: St Udio

Amazing thank you this is what I've been looking for.

a reply to: onequestion

I was looking at this article about us bonds going negative.
www.cnbc.com...

a reply to: Tarzan the apeman.

Two words;

Buy gold.

originally posted by: St Udioa new economic grading model was needed as the 2% inflation model was not working in the present conditions of the economy...

Well, it only took them 30 years to notice.

Good thing I work in the booze industry. People always need booze. It's almost as good for job security as working in the funeral business.