Long Term Treasury Bonds Doomed?
- This chart does not include any fancy lines or indicators because when it comes to bonds, they simply do not matter. The main catalyst and arguably the only one that matters, is the Federal Reserve's monopoly on interest rates.
- An overwhelming majority of fed members have come to the (quiet) realization that lowering interest rates any more would create a perfect storm for hyper inflation and the utter downfall of American society as we know it. I am a firm believer that the US Dollar will no longer be the reserve currency of the world after this mess is cleaned up.
- The FOMC has clearly stated that they do not plan on raising interest rates until the year 2022. However, I believe that the fed knows that they have painted themselves in to a corner and raising rates is the only way out. This rate increase may very well come sooner than most expect.
- The final questions we must ask: Would the fed rather keep the USA in the lead when it comes to owning the reserve currency of the world? Or would they rather hike rates, keep their reserve currency status, and cause a massive negative ripple effect throughout the entire economy for an uncertain amount of time (in hopes that they could once again lower interest rates in the future).
- Both scenarios will be horrific, but I am starting to believe that the second question would be the most favorable outcome for all of us.
The comment section is open to opposing views, but I ask that you also leave an answer this question: What would you do if you were the Federal Reserve?
- An overwhelming majority of fed members have come to the (quiet) realization that lowering interest rates any more would create a perfect storm for hyper inflation and the utter downfall of American society as we know it. I am a firm believer that the US Dollar will no longer be the reserve currency of the world after this mess is cleaned up.
- The FOMC has clearly stated that they do not plan on raising interest rates until the year 2022. However, I believe that the fed knows that they have painted themselves in to a corner and raising rates is the only way out. This rate increase may very well come sooner than most expect.
- The final questions we must ask: Would the fed rather keep the USA in the lead when it comes to owning the reserve currency of the world? Or would they rather hike rates, keep their reserve currency status, and cause a massive negative ripple effect throughout the entire economy for an uncertain amount of time (in hopes that they could once again lower interest rates in the future).
- Both scenarios will be horrific, but I am starting to believe that the second question would be the most favorable outcome for all of us.
The comment section is open to opposing views, but I ask that you also leave an answer this question: What would you do if you were the Federal Reserve?
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