The Fed is “one and done” for rate hikes. It will not raise rates again.
We called this back in mid-2015. The US economy is far too weak for the Fed to engage in anything resembling a series of rate hikes. Corporate leverage, household leverage, even the national debt stand at levels that limit the Fed from hiking rates.
The Central Banking insiders know this. Which is why Former Fed Chair Ben Bernanke admitted in private luncheons with hedge fund managers that rates would not “normalize” in his “lifetime.”
The Fed is not interested in the economy. It is interested in the bond bubble. All of the talk regarding Main Street, employment, etc. is just that “talk.” The Fed will not, under any circumstances permit the bond bubble to burst because doing so would implode its true owners: the private banks.
———————————————————————-
The Single Best Options Trading Service on the Planet
THE CRISIS TRADER has produced an astounding 325% return on invested capital thus far in 2016.
We have a success rate of 72% meaning we make money on more than seven out of 10 trades. And thanks to careful risk management we’ve seen triple digit returns on invested capital every year since inception.
Our next trade goes out this morning… you can get it and THREE others for just 99 cents.
To take out a $0.99, 30-day trial subscription to THE CRISIS TRADER…
———————————————————————–
The Fed is a privately held institution. The US does not own the Fed. And while Fed Chairs might take some marching orders from sitting Presidents (just as Janet Yellen was recently told by Obama to not raise rates again until after the election), the large banks are the TRUE controllers of the Fed.
Bonds, particularly sovereign bonds, are the senior most collateral sitting on the big banks balance sheets.
These bonds are what backstops the $700 trillion derivatives market. $1 in your typical Treasury is likely backstopping over $300 worth of trades in over the counter markets that are completely unregulated.
The vast bulk of these derivatives are based on interest rates or bond yields.
What are the odds the Fed would risk blowing up the derivatives market, thereby imploding the very banks that own the Fed?
Absolutely ZERO.
The Fed is “one and done” for rate hikes. It was a symbolic move brought about by political pressure after seven years of ZIRP. The Fed raised rates a mere 0.25% and the financial markets entered a free fall. That’s the end of that. Anyone who argues otherwise based on “data” or the “state of the economy” is ignoring the facts of how the financial system operates.
So what does this mean?
The bubble will continue to grow until it bursts. The world has added $57 trillion in new debt since 2007. The fastest growing segment of the debt markets has been government debt, which has grown at an annualized rate of over 9%.
This bubble will burst as all bubbles do. Given the ongoing revolt by Japan and Europe against negative interest rates, it’s only a matter of time before it does.
If you’re an investor who wants to protect yourself from the coming bear market, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.
Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.
To wit… in the last 16 months we’ve closed out 77 straight winning trades.
That is not a typo…
For 16 months, not only have Private Wealth Advisory subscribers locked in 77 CONSECUTIVE winners including gains of 18%, 36%, 69%, even 119%…
But throughout that ENTIRE TIME we’ve not closed a SINGLE loser.
Indeed, we just closed out two more double digit winners yesterday: gains of 10% and 40% opened just a few weeks before
As you can imagine, this track record is a getting a ton of attention, so we are going to be closing the doors on our current offer to explore Private Wealth Advisory at the end of this month.
So if you want to try Private Wealth Advisory for 30 days for just 98 cents, you need to get moving, because the clock is ticking and slots are quickly running out.
To lock in one of the remaining slots…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
Our FREE e-letter: http://gainspainscapital.com/
Follow us on Twitter: http://twitter.com/GainsPainsCapit
