Lukey
Senator
Being inevitable. Now Dr. Doom (Marc Faber) says the same:
http://www.cnbc.com/id/102731438
I respect both these guys' opinions because they don't play the politically correct (Keynesian) game that everything is wonderful in the economy and that these market levels are sustainable. But I'm not sure they are right about this. I think the Fed will raise rates this summer as they realize if they don't do it soon they will likely never be able to do it (which I guess is Schiff's position that they are already there). And they will likely rely on a manufactured (double seasonally adjusted) GDP growth rate, and the artificially deflated "unemployment rate) to show they have room to move off the zero bound. It's a dangerous game because the economy is flat lining and has been stuck at basically maybe 1% GDP (unadjusted) growth since Obama took office and implemented the most anti-capitalist agenda since FDR's. But the Fed has backed themselves into a corner and may try to get out of the zero bound with a wing and a prayer by raising rates and hoping for the best. I don't think they will get it and FDR, I mean Obama, will get his 1937, I mean 2015 "recession" (in quotes because in both FDR's and Obama's case the economy never really recovered before slipping back into declared recessionary conditions - that's what happens in a depression) as the rate increase drops a bomb on the only economic game in town - the stock and bond casino, I mean carry trade in financial markets where the banking elites and other 1%ers borrow money essentially for free and use it to lever up and make huge gains from the ever decreasing rate of increases in the markets.
http://www.cnbc.com/id/102731438
I respect both these guys' opinions because they don't play the politically correct (Keynesian) game that everything is wonderful in the economy and that these market levels are sustainable. But I'm not sure they are right about this. I think the Fed will raise rates this summer as they realize if they don't do it soon they will likely never be able to do it (which I guess is Schiff's position that they are already there). And they will likely rely on a manufactured (double seasonally adjusted) GDP growth rate, and the artificially deflated "unemployment rate) to show they have room to move off the zero bound. It's a dangerous game because the economy is flat lining and has been stuck at basically maybe 1% GDP (unadjusted) growth since Obama took office and implemented the most anti-capitalist agenda since FDR's. But the Fed has backed themselves into a corner and may try to get out of the zero bound with a wing and a prayer by raising rates and hoping for the best. I don't think they will get it and FDR, I mean Obama, will get his 1937, I mean 2015 "recession" (in quotes because in both FDR's and Obama's case the economy never really recovered before slipping back into declared recessionary conditions - that's what happens in a depression) as the rate increase drops a bomb on the only economic game in town - the stock and bond casino, I mean carry trade in financial markets where the banking elites and other 1%ers borrow money essentially for free and use it to lever up and make huge gains from the ever decreasing rate of increases in the markets.