September 22, 2023

by Martin Armstrong


COMMENT: Marty, it’s refreshing to have Socrates that’s completely unbiased. It projected continued rising charges into subsequent yr and the Fed simply proved its level. It isn’t backing down.

Thanks. Socrates could be very enlightening.


ANSWER: I do know there have been numerous talks that certainly the Fed needed to decrease charges and begin QE another time. Most of these types of feedback don’t have any actual expertise in markets. They only mouth numerous scorching air. Maybe as an alternative of placing masks on cows, we should always try this on the shills. The Federal Reserve had no alternative however to boost rates of interest though it was simply by 1 / 4 level. Not to take action and the Fed would lose all credibility and the market would then not take them severely.

You MUST perceive that this disaster has unfolded as a result of too many banks had been wrapped up in WOKE tradition and employed individuals who had been UNQUALIFIED to run threat administration. Some had been extra enthusiastic about cross-dressing as a girl and profitable the Rainbow award in banking than truly defending the financial institution from the chance of rising rates of interest.

In an announcement launched on the conclusion of the assembly, Fed officers acknowledged that latest monetary market turmoil is weighing on inflation and the financial system, although they expressed confidence within the total system. “The US banking system is sound and resilient.” That they had no alternative however to make this assertion.

“Latest developments are prone to end in tighter credit score circumstances for households and companies and to weigh on financial exercise, hiring and inflation. The extent of those results is unsure.”

The Fed is saying that their rise in charges will in reality scale back inflation and financial exercise. The banks have this yield curve threat and that’s completely different from the 2007-2009 disaster the place the debt was primarily based on fraud. Right here, the debt is US Treasuries so they aren’t going bankrupt from that facet, however it’s a liquidity disaster.

If these individuals who scream loudly however know nothing actually about finance sustain the nonsense, they may solely add to the uncertainly. This inflation is accelerating because of the struggle.