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illuminati seed's avatar

Please explain why the Federal Reserve can hint that rate cuts are coming, but at the same time twist the publics mind with how strong and resilient the economy is...which had forced them to keep raising rates 2023. The economy isn't strong and resilient, it's in a corner fighting to survive. There is no real true number to the current unemployment rate we have right now because everything is fabricated...but if i were to believe that unemployment was at record lows, it is only because of the rate of consumer inflation forcing people to go back to work, who can't afford to borrow at higher rates. They are forced to work, in this scenario. Besides this, the point is that cutting rates only proves the economy isn't resilient. It means the economy is way worse than what they are saying...and while I believe this to be true, cutting rates right here will send inflation skyrocketing even more, because yields are still inverted. It will create a "doom-loop" that forces more rate hikes.

The only way the FED can cut rates with inverted yield curves without serious implications is if QE were already in place before rates were cut. Any other way would create problems later down the road that would force them to raise rates even higher, forcing bond yields to finally revert above the FED Funds. There must be a severe Black Swan Event to implement QE in the first place, similar to the pandemic situation in 2020.

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Harvey Street's avatar

That wasn’t planned to increase oil prices was it!

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Dan Maiullo's avatar

What about counterparty risk? If you don't hold it, you don't own it. Any securities held by a broker don't belong to you. They are used as collateral for debt. If the broker goes down, the investor is left standing in line behind the creditors. People and pension funds will get wiped out when these entities collapse. At a point of "their" choosing.

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John's avatar

GGN, exposure to commodities with a monthly dividend at a 9%+ annual rate! Thanks Greg!

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Me's avatar

BC Powder is the purest form of pain reliever available. Migraine studies show this is as good or better than the new fangled drugs.

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Trenny's avatar

Iran wants themselves involved for sympathy. They are murderers and have plenty of money from obiden & the evil pope.

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BooBoo's avatar

And the USA are Angels and have plenty of money from obiden & the evil Central Banks.

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Straw Man's avatar

🤣what’s is funny about this is USA watch Nazi doing Jews same way for six years it took a losing Britain to get them in WW2 who’s fooling who

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nik's avatar

Its not his face its a MASK!

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