Fed Tightening “Could Have Profoundly Destructive Consequences for Economies”

by | Sep 16, 2015 | Commodities, Experts, Forecasting, Headline News | 60 comments

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    With fear-driven rhetoric emanating from spooked markets and Wall Street, there are clear signs that the long-rumored rate hike could rock the boat enough to cause worry about capsizing.

    The Federal Reserve is the 800-pound gorilla in the room. The Behemoth. The Colossus. The Leviathon. Its actions are those of a bloated whale that has no energy left for smooth, graceful motion but nonetheless stands to rock markets with titanic weight and come crashing down in force with its slightest repositioning.

    Such is the atmosphere in which Janet Yellen faces a decision about a rate hike, or instead a punt, delaying action and reverting back to a fourth quarter of QE. Typical of the institution that she heads, Yellen is holding her cards close and staring down her options before a likely bluff. It isn’t how good a poker player she is, but how much is at stake that lingers here.

    Experts now see a fading possibility that the Fed will raise interest rates at this time. Perhaps the fish are scared off. But maybe not.

    The economy teeters on edge. The London Telegraph warns that:

    The world has taken on too much dollar debt, risking a ‘cascade of disruptions’ for the global financial system when US interest rates rise

    Decision time approaches for the US Federal Reserve. It’s been a long time coming. If the Open Market Committee takes the plunge, it will be the first US rate hike in nearly 10 years.

    For much of this time, rates have remained close to zero. Admittedly, a rise of just 0.25 percentage points would…  be a start, a first baby step on the long march back to interest rate normalisation… In my view the Fed has already left it too long … Leave it too late, and there is a danger of having to play catch up, with much more damaging consequences for consumer spending and business confidence down the line.

    The impact of increasing the interest rate will act as a call on the long lines of cheap credit that have been soaked up by foreign debtors, who have, like so many Americans before them, taken on more than they can handle – way more. Dozens of nations are facing deep debt crises.

    Over-extended Americans are also under water, with unaffordable high priced homes, piles of personal, student loan and credit card debt, endangered and underfunded pensions and benefits, and plenty of states and cities standing at the brink of collapse. As the reserve currency is redefined at the global level, the U.S. dollar reserve status is becoming a burden and a weapon in a silent economic war, creating capsizing conditions for developing economies who had hoped to stay afloat:

    Yet it is not just the impact on their own economy that members of the Fed’s Open Market Committee have to worry about. The dollar’s dominant reserve currency status makes this a defining moment for the global economy as a whole.

    ultra-loose US monetary policy has helped to unleash unsustainable credit booms in many emerging market economies. In today’s global economy, money is fungible, so if the Fed applies lots of stimulus to the US economy, the liquidity leaks out and stimulates other economies, too, often inappropriately.

    […]

    Nobody can say they weren’t warned… as US interest rates rise, what is now essentially just a liquidity issue for China and other emerging market economies… could easily turn into a fully-fledged solvency crisis.

    Yellen has hardly blinked as observers and experts forecast a bleak scene. She glances at her closely held cards. The beast is readying itself to move. Take hold.

    Read more:

    Dozens of Nations Deep in Debt: “Bankruptcy Of The Planet Accelerates”

    Crisis Looms? Global Debt has Swelled By a Massive $57 TRILLION Since 2007: “The figures are as remarkable as they are terrifying”

    The Massive Debt Bomb is Going to Explode: “We Are Reaching a Limit”

    Swelling State Debt and “Pension Tidal Wave” May Engulf Economy

    Bankers Plan to Raid Deposits After Greeks “Rise Up Against Debt Bondage”

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      60 Comments

      1. They will kick the can down the road to make the inevitable even worse, a little later.

        • The Template for the Next Crisis: Bank Accounts Frozen, Capital Controls, and Bail-Ins

          “Behind the veneer of “all is well” being promoted by both world Governments and the Mainstream Media, the political elite have begun implementing legislation that will permit them to freeze accounts and use your savings to prop up insolvent banks.

          This is not conspiracy theory or some kind of doom and gloom. It’s basic fact.

          In the last 24 months, Canada, Cyprus, New Zealand, the US, the UK, and now Germany have all implemented legislation that would allow them to first FREEZE and then SEIZE bank assets during the next crisis.”

          http://www.zerohedge.com/news/2015-09-15/template-next-crisis-bank-accounts-frozen-capital-controls-and-bail-ins

      2. ht tps://www.youtube.com/watch?v=n9PCXVZto18

        • Fed Tightening “Could Have Profoundly Destructive Consequences for Economies”

          For years I’ve been told that it was all of the loose lending, reduced interest rates, blah, blah, blah that was going to collapse the system. Now it’s the tightening that will bring down the system. OMG, psycho!!!! Make up your mind.

          The only people pushing that tightening will collapse the system are the ones who benefit the most from zero interest rates…… TADA….. the bankers.

          • Wilson,

            I think you’re on to something here. One day it’s interest rates are too low, that will doom us, next day interest rates are too high and that will doom us. One day oil prices are too high and that will doom us, next day oil prices are too low and that will doom us. So much doom, and only one planet to reign it all down on. Yet somehow everybody manages to show up and keep posting, tomorrow, next week, next month, next year, so on and so forth, makes one wonder where does all the doom go?

            • Think of it like a credit card in the hands of a teenager.

              Give a teenager a 0% interest rate card with no minimum payments, you would agree they’re eventually doomed right?

              “Eventually” being when they predictably spend their ass off, and equally as predictably, when the card figures out it’s got them “locked in” now (aka they can’t possibly pay back the principal in under 4 years, and that’s being really optimistic), and therefore, jacks the rate to 25% and requests 4% monthly payments against the principal.

              Guess what, it’s “eventually” now.

              We were the teenager.

              • TheGuy, I always knew I was right to avoid credit cards.

            • Lets face it. As bad as these countries’ economies are with ZIRP, its no one’s fault but their own if the FED raises interest rates 25 bps and it impacts their economy negatively.

              They cannot legitimately blame the FED for their woes. They brought it upon themselves, and then had the audacity to bite the hand that feeds them: the currency of the American Taxpayer, whose generosity is second to none.

              Believe it or not the corruption, mismanagement, and Crony Capitalism in EM is worse than in our own by a factor of ten. The FED has a responsibility to the American Economy first; and our economy needs to get interest rates back to normal.

              They deserve whatever happens to them. 🙁

              • One of the few times, I “totally” agree with ole dk.

              • Let us not forget that we first borrowed the money before we gave it or loaned it to someone else. If interest rates rise, we too will suffer because it will also cost us more to pay back our debts. This is truly a damned if you do, damned if you don’t case. Because we have let the academia and politicians rule us, and not common sense, I think collapse is probably the only solution that will work. As much as I DO NOT want it to happen, I think it’s inevitable.

                • In an expanding global economy over time, debt levels will naturally expand too, and that’s ok, as long as the percentage of debt to income ratio remains stable, that determines whether we have too much debt, or not.

                  American debt to gdp is about 105% and DECLINING which is well within historical norms. Sorry, no debt collapse. 🙂

                  • Damn it Durango, now I have one less thing to worry about!

                    • RW: Sorry to break it to you but the other side of that coin is that a declining GDP will increase the ratio, even with debt levels declining in real terms.

                      And that’s what will happen in another recession. 🙂

            • Anon and Wilson, I agree. let the whole house of cards come down, I don’t care. I don’t even care about the credit part because not even my own bank will let me get anything, so who the hell cares? This financial system is so rotten and needs to fail. It never let me get a damned thing.

        • Why would a video on Islam be required viewing for constitutionalists?

      3. Raise the rates already. I am sick and tired of hearing about how they can’t because x, y and z will happen.

        Maybe it will. Maybe it won’t. Just like the shemitah and all the other predictions that never came to pass.

        If they raise the rates sure there may be a crash initially, but I think it will buoy back up just like when the market crashed 1000 points a few weeks ago.

        F-k em all.

      4. Why are we repeating the same article (content) over and over for a blood sucking tribe in control of the money and hands deep in bloodshed of the innocents all over the world? Blame Russians while placing the add for “Dating Russian Beautifies”, blame the mossies while their countries are being invaded by the tribal army. Blame everyone but the real enemy. Hypocrisy at its best.

      5. I had an interesting spam phone call today. The caller id said it was from Washington, DC. The man on the phone said that he was over 65 and had researched Medicare and Medicaid and the information provided by insurance companies. He said that they were keeping important information from us.

        Then he said press 1 to talk to a local representative or press 2 to join the “DNC list.” I wonder how many people have pressed to without realizing that they are agreeing to a load of phone calls and junk mail. And I bet that “local representative” will try to get you to vote Democrat.

        • I just realized that “DNC” may have stood for “Do Not Call.” There goes my whole little conspiracy.

          • A “DNC” is a scraping of the uterus of a woman. A medical procedure.

      6. Yellen will punt. That is either no rate hike, or +150 basis points. The markets will rally with the certainty, and all the pundits & clowns will tell all the sheeple how good things are, and only getting better. While of course, they will only get worse for the vast majority. This is akin to the titanic bilge pump system. There was more water coming in than the on-line bilge pumps could handle. But if they energized another pump, the required extra power would be enough to over-load the entire electrical system, taking down “all” the pumps. So what does the bridge do.? Make an announcement not to worry….”remember, she is unsinkable”

        • Yeah well, I ain’t playin’ DeCaprio to some half-witted chick that tosses the worlds biggest diamond in the ocean.

          Get off the piece of wood, moron. My turn.

          • No, but I sure would not have minded playing his role in the Wolf of Wallstreet, when I was about 35.

            The babes on that set, especially his second wife, would have required mass quantities of Valium to keep the pencil soft, until after the filming.

      7. Yes, they will need all the QE laxitive thats needed to lubricate the economy, the pay up the failing banks. Escorw accounts will not be able to insurance carriers if the banks Fail. Literally casing defaults with carriers that are cover all commercial properties all over the Continental US. With a swift kick into the balls of the Feds by Governor Abbbot, its not a supprise that the feds is looking to boost up production of the laxitive jelly, as they continue to print to keep themselves to stay in power. Now that the russians are now in Syria, the lucerifian Pope, Nato, UN, US cabal, will have to make up their minds and start ww3.

        Now that the Gold is not in Texas under Abbott and the Texas based German and Jewish Texas Bank owners, have all agreed, that adjustments and banking charters must be changed to allow the Fed banks to transfer all the lien holders accounts to the Texas based banks, to prepare for the currency Texas Note backed by GOLD swap.

        Things are not going well for the feds for the last week.

        Looks like the JH15 soliders found out that the real
        reason why they were here is the fight white men with bairds in Texas. This didn’t go over well, since most marines and soliders are country boys.

        The reason we have been getting attacked by trolls, is that some of the new trolls are not agency. These trolls are working in the financial services sector of retirements, IRA’S etc, Mutual funds, etc and are now being forced to allow concerned investors in that scam to cash out all of thier accounts. These idiotic security holders may find themselves giving up the condo and sports cars, unemployed and on the streets and shopping for water filtration to suck up bayou or street water from ditches locally in all the major cities. Its not a wonder that they on here screaming at me every chance they got. Because everytime they tell the clients and customers not to pay attention to these sites, all hell breaks loose. Hearing that the GOLD is here, and it is here, this tells the people who invest in fraudulant securites, that its time to cash out and get into metal assets. Paper and digits is not money, and this is a fact. Money is gold only when its backed by gold itselfe. If you dont have gold & Silver in your hands, you dont have money. Offcourse the admininstration solution to the problem in to bring into the US, 80,000 syrians, who are not but isis, soudi, jihadist to try to turn them into police officers and have them enter the force to, use them to arrest and detain white christain Americans.

        Aka,

        HCKS,

        Keep it up you trolls, its only going to get worst the more you keep atacking me.

        All roads lead to Rome and the Pope is point of fact,
        Ceasar.

        • Well, that certainly didn’t take long did it? I said within 48 hours you would be posting new bullshit and here you are. You know now that your pretending to not be able to spell correctly has suddenly vanished as your running out of options to keep your game going on. So I’ll ask you again, one simple question that’s simple to answer, ok? Your good friend usasecuritygaurd , whom you have told us all is privy to inside information and is completely on the level, absolutely no bullshit, has posted here that we are running out of time to move as far north as possible because of an impending polar shift that will completely fry the US with radiation,and naturally it’s going to happen ” shortly”.

          Now, on the other hand we have you, who is telling everybody that Texas is the place we MUST get to as soon as possible because it will be the only economic island in a sea of turbulence for anybody to survive in once the ” word’ gets out about it. Now, I’m asking you, here and now, for the entire shtf audience, WHICH one of you is correct? If you run away this time without answering, you’re either a complete sham or a kid in mommies basement, there’s no third option.

        • HCKS, a troll is a troll is a troll. I don’t care where they come from, I’ll take them on. Not afraid of the f#$%ers.

          • Ya’ll be a lissenin to ole cuz thar hcks! He dun takes ’em all on ever time they shows up! He dun always fills em up with led nuterents ever time they shows up, but somehow er t’uhter they keeps a showin up agin! But dontcha worry nun hcks, cause Ole cuz’ll be the last dumb ass on this here board to figger out ya’ll is full o’ shit!

            • Cuz, I guess you’ll never give up that crackpipe, huh? It would do you a world of good, but…..oh, wait. I’m sorry. I forgot your mind is already too far gone to realize that. [SARCASM]

        • I call BS on this convoluted logic. and I’m no troll or govt. clown.

          • HCKs you are out in left field and and they aren’t even playing a game. Get back on your meds and call us when you feel better.

            • You’re going to be waiting one Hell of a long time for that call Jim.

              • Best call I never got.

        • “Looks like the JH15 soliders found out that the real
          reason why they were here is the fight white men with bairds in Texas.”

          What did the JH15 soldiers think their mission/exercise was about?

          Did anyone of these JH15 soldiers disobey this direct order to perform an exercise on a non-military base?

          Do any of these JH15 soldiers know what the Constitution is and what it pertains?

          Since I have not found a story of a soldier or a handful of them disobeying to participate in Jade Helm. I have to assume that everybody in the Military who is involved in this “exercise” complied willfully.

          That in itself is very much disturbing.

          (A) none of the soldiers knows the Constitution or cares about it.

          (B) none of them knew this exercise was un-Constitutional & illegal to perform.

          (C) none of them knew that they could refuse to participate in such an “exercise”.

          There is enough evidence showing that Military personal do not care. They are “going along, to get along”. Granted, they are not going around shooting people and blowing things up, but who is to say they won’t some day?

          Since Jade Helm was suppose to end as of yesterday.
          Any word on Military convoys on the move?
          If not, then I would be very much concerned if I lived in those area’s if Troops and Military Hardware hasn’t been on the move.

          • We live in an area that took part and we’ve seen tons of vehicles with the crosses (medics) and tons of communications vehicles over last X weeks. We haven’t been out and about much in last week or so, but will see what’s still on the road over next several days.

            • PWYPreach – It’s good to know you witnessed tons of vehicles moving in the area. Now it will be nice to see them leave in the same fashion that they arrived in.

              Next few days I would have to expect convoys on the move. If not, then somebody needs to find out and investigate why not.

          • no signs of JH 15 here in western PR but there is a new storage yard outside the biggest city with rows of desert camo humveess and other vehicles, maybe dozens of them, perhaps hundreds. But they’re out of plain sight hidden by acres of jungle and forest. You get a glimpse of them driving by, that’s it.
            Could be just a national guard station…
            I’ve been tempted to turn in and feign being lost (with my camera) but think I’ll stay hidden.

      8. The Fed has the economy so screwed up now what is the difference.
        Sgt.

      9. HCKS… who is attacking you? I’ve been reading but I can’t figure who you claim is attacking you. Could you be more specific?

        • He reminds me of the Pete Townsend song.

          I woke up in a SoHo doorway a policeman knew my name,
          He said you can go home tonight if you can get up and walk away,
          I staggered back to the underground and the breeze blew back my hair, I remember throwin’ punches around and preachin’ from my chair.

          • Now that’s funny! I was thinking he was maybe a guest artist who contributed on ” The Crazy World of Arthur Brown”. Or perhaps he wrote ” They’re Coming To Take Me Away”.

      10. Invest in Chips and Beer.

      11. yesterday the dow hit over 228 today it is up over a 100 now tell me that some1 did not tell the wall street scum suckers before the meeting of the fed that the fed is not going to raise rates and that they will continue to get their crack candy. also look at silver and gold it is up as well we all know this crap is rigged so why worry about it. just live your life and when it all falls you will be ready

      12. There is a debate on TV tonight. I better watch it and find out who can best represent my interests. Ha, Ha, Ha. Oh Prophet, you funny bastard.

      13. Brave & Sarge. I have already disclosed real information on the Gold. This was a risk, and i go permission from my Source to disclose it. Like he told me. The alternative website owners and other sources have not found out about what i have disclosed. So this is going to be a test. I have also told people on this site and have mentioned that Jade Helm is still active, and they have called BS. I have told people on this site that the 12th planet is real, and its out there, and we are going to see events that will forever change everything in this country. Bundy Ranch did happen, and that event was real. Jade Helm is here to make sure that this time, the cabal prepares for the next Bundy Ranch on a mass scale, this time, they will fire on the people.
        Now people like Jim in the Va, who i taught was on my side, listening to these facts, now he is attacking accusing me of drug use. Sarge, Brave and all the ligitimate posters, who are on here who are legit.

        I have decided to take a break for now, and i wont be posting anymore. One of my best friends who knows me and all my secrets, and the people who are talking to me, since he sits in the same meeting with my scientist friend was supprised at the attacks that are coming at me. We talked about it, and i have made a decision that i will let things unfold. We know what will happen and that the people coming on here, who are prepared will survive and will be in the 3-5,000,000.. There is someting else going on, that i have not disclosed yet, and i talked to my friend and we agree that the best way for people to learn is the hard way. He saw what happened to me when i was in shtf, and saw how bad it was, he knows, since he had to bring me food, water, help of all kinds, etc, during the process. Keep prepping, keep prepping, we are in deep, deep, EXTREMELY SUPER SEVERE SH…T BEYOND ANYTHING YOU HAVE EVER HEARD OF OR COME ACROSS. I am not leaving because the trolls ran me off. I am leaving to let the bad people learn, becaue alot of them that think they are prepped and ready are at a mere 10%, we are over 90%. Everyone say what Hoges posted yesterday, and what he warned about. I have posted about the beta test that my scientist friend warned about. Then the free energy scientist came on a show and warned that a talk show host flipped out on him, trying to buy up all his devices and is on the run.

        Yet i am being laughted at, called names, accused of pills, drugs, etc. I disclosed the fact that the GOLD is here, and now they are coming on here calling me a liar, saying that the GOLD is not here, Okay. People are going to suffer badly when this happens. I had and shtf exeperince, and this website and others saved my ass, and now the very site that i love and support, its commentors are attacked me, calling me a fake. This is really bad. I tried to warn everyone, i tried, i really tried to warn everybody.

        Brave, Sarge, Eppe, Lolong, and others, keep prepping, and get ready. As soon as the truth about what i disclosed gets out, then i will post again if we still have a grid by then. These idoits think that they are taling to a webbot, i am not a bot.

        Aka

        HCKS,

        Farewell, good luck to the legimate posters.

        Government cabal survival formula.

        3-5,000,000?/48=50^-100,000./_=230,000,000,000 Global result.

        • Don’t let trolls bother you ignore them hcks. Your only reason I read comments

        • HCKS: No disrespect intended, but you write in almost a sort of “shorthand” and it is VERY hard most times to understand what you are talking about. It appears almost a rambling, which is probably why you are getting the “attacks” you speak of.

        • And you STILL haven’t answered Feast’s question! Head for the far north or head for Texas? It’s a simple phuckin question, now which is it?

        • Thanks for making my eyes bleed.

        • well hcks, I guess somehow we’ll have to manage to muddle through without the benefit of your important top secret doom porn n’stuff. Why don’t come back next April, you know, when you say Niburu will start showing it’s devastating effects right here on Earth? Then we will all know once and for all if your a nut or not. I’ve already decided thanks, but there are some poor, confused souls on this board who just don’t know any better, but time will show them what the truth is.

      14. I will fill you in on the bigger picture based on what I have seen in my work. I remember thinking when I looked up at the double decker bus in London and seeing a huge ad saying bank interest rates were 12%. They had been 5% just a month before. It was the same feeling I had on 9/11: “Shit, they are really doing it; all the stuff we talked about; they are really going through with it.”

        What was the plan for post-2007? To double bone f#ck two groups of people in perpetuity: one is Americans (job done) and the second group of people are the people of the turd world (job soon to be done). The problem with people in the poor countries was their lack of personal debt. They were just too damn solvent. We needed to pump them up with ‘hopium’ and get them into massive debt. And then to pull the plug on them with a higher dollar and interest rates (tomorrow).

        This is about getting ALL of humanity under control via debt. ALL of humanity. The people of the West are debt prisoners but most people in the world were not. But they soon will be. They will be the bitches of global banking and the Pentagon.

        As for what is happening geopolitically, it is about Israel. The plan is to clear the ME of Arabs and Muslims. Either kill them or export them. Clearing the land is the plan. Already, every secular Arab state has been brought down. Once most have been pushed up into Europe, Israeli and global companies will start buying up land and own it – for ever. There will be no going back to the ME. The oil and gas will be under Israeli control.

        • Mr. Frank:

          What’s your point.
          If a person agrees with your analysis, that person would be persecuted. Isn’t that how it works.

          Tell It Like It Is.

          See who takes the bait.

          Demonize and destroy them. Pick the most helpless, weakest. Make an example for others.
          Show them if we would attack this delicate little disabled woman what would we do to you.

          If you had any conscience you would feel shame for your cowardice. I doubt that you feel at all.

      15. Off topic. can anyone explain why the sun is so bright today?

      16. Hey HCKS
        My wife and I go over your posts by the way she’s 40 with a knockout body you know one of the good looking ones you avoid she really enjoys giggling and then we both sit and laugh she has a few theories about why someone like you avoids hit chicks like her
        Seriously dude if you just made more sence people would stop attacking your comments at least stand up and defend yourself man

      17. Don’t care. I don’t have much money in the bank. Don’t own any stocks or 401,s.Dont own any debt. Im already living like it was the 1950,s. I just simply don’t give a rats ass. Like my ancestors stated they never knew when the 1930,s depression started. They stated we already didn’t have very much. And we never lost any of that. You have to decide do you own your stuff? Or does your stuff own you?

      18. I’ve always wondered why HCKS choose that name as his moniker. I live in Katy Texas. Katy is just West of Houston, and Cypress is just NW of Houston and due North of Katy. While all 3 areas are essentially “Houston” (I say I’m from Houston if anyone asks) Cypress and Katy are HUGE, independent areas.

        I know it’s not important, but from a local guy who lives somewhere near HCKS, choosing that name makes absolutely no sense to me.
        -Dad

      19. maybe he uses that to throw off triangulation by the feds, making it harder to find him.
        kidding.

      20. It all makes perfect sense to me now. Just read an article that stated that corporate america now has some $12.5 trillion in debt, borrowed at little or no interest and the government doesn’t dare raise the interest rate on them. I guess I know who is calling the shots on raising the interest rate. At that rate, they will never raise the interest rate.

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