‘Data dependent’ means RATE increase???
The Fed models now show that 2nd quarter growth was 3.7% and 3rd quarter growth will be approximately 2.2%. Unemployment is down to 5.1% and consumer confidence is high. Interest rates have been near zero for over 7 years. Real estate activity has been growing (recently) and consumer debt (spending) has been growing. This MUST mean that our economy is growing and people are generally prosperous! Right? So if our deceived Fed follows their own models we could get a ‘rate’ increase tomorrow! But what is the reality within our markets?
Fed models are based upon math and quantitative gibberish! Reality is based upon observed activity such as our manufacturing of real goods!
We now live in a global village where all is interconnected. When I look at the global picture I see the following:
- Slowing of imports and exports globally
- Manufacturing is slowing as ‘capacity utilization’ is only 77% in USA
- Oil supplies are excessive and price declines mean more deflation ahead
- Australia, China, Russia, Brazil, Canada, and a host of other EM declining
- Disinflation and deflation occurring in most developed countries
- Record low-interest rates (ZIRP) not leading to any real growth
- Commodity prices crashing globally
- Traders follow cyber prices and ignore real supply/demand fundamentals
- Our deceived Central Bankers ignore reality as they create ‘imaginary’ QE
- Global debt and derivatives suppress real growth of wealth
Our deceived economists and Central Bank policymakers continue to promote ‘imaginary’ funny money as their ‘tool’ for growing the world economy. None seems to discern that ‘cyber’ money is ‘funny money’ and that these units of ‘nothing’ can not work to grow our global WEALTH. What is ‘wealth’ in reality? Does creating more QE and cyber ‘funny money’ create real prosperity for our people? Apparently, the models and thinking of our deceived policymakers think so! Europe wants more QE! Japan wants more QE! China wants continuing QE for all their markets! The USA seems to want to stop QE but they continue manipulating our markets with trading gimmicks and deception!
Cyberspace charts and quantitative gibberish is what our elites follow! Our entire global economy is now represented as cyber gibberish!
The FOMC meeting which is now in progress will mostly likely resort to confusion and more false perceptions of reality. The group think leaders will most likely determine the final policy regarding benchmark interest rates. If their models are believable then they may choose a ‘rate increase’ tomorrow! This will not lead to any progress for the USA or the global economy. If they choose not to increase the benchmark rate, then this will lower trader confidence and lead to more declines in our ‘imaginary’ stock markets. All our finance is now within ‘cyberspace’ and this means that ‘all’ is mostly a product of our ‘imagination’.
Does this lady have any ‘clue’ as to what is needed or what is happening in the real World? Do her advisers have a ‘clue’? Let’s see what decisions are made (September 16-17) and then what is made public thereafter?
Cyber money can be deleted and/or wiped-clean (as all is within ‘cyberspace’) and a new RESET could occur. The experience with Hillary’s emails reveals this reality! This coming reset is likely sometime in 2016 as our markets continue to crash and collapse. Digital money and a Cashless world is the goal of our deceived policymakers! Reality is for slaves (you and I) and deception is for our elites (the few) who do our central planning. My sense is that our deceived Fed policymakers will choose a ‘rate increase’ as their false models support this decision! But I could be wrong! Tomorrow we will see! Enjoy! I am: https://kingdomecon.wordpress.com.