HYG – Corporate Debt/Fiat & The Great Manipulation
World-wide Monetary Policy & The Federal Reserve: The End
The Elite’s Tools for Influencing the Economy have FAILED
History is rife with examples of financial booms and busts (More Busts) but, through trial and error by unaccountable bankers (who are not voted for by the people), economic systems have evolved along the way. But, looking at the early part of the 21st century, governments not only regulated economies but also used various tools to manipulate the natural ups and downs of economic cycles.
The mechanics of the scheme are relatively simple. By lowering interest rates, it becomes cheaper to borrow money and less lucrative to save, encouraging individuals and corporations to spend. So, as interest rates are lowered, savings decline, more money is borrowed, and more money is spent. Moreover, as borrowing increases, the total supply of money in the economy increases. So the end result of lowering interest rates is fewer savings, more money supply, more spending, and higher overall economic activity – a good side effect (or Not). The MAIN PROBLEM with this approach is the printing of endless money destroys the value of the currency ultimately.
In the U.S., the Federal Reserve (Fed) exists to maintain a stable and growing economy through price stability and full employment – its two legislated mandates.
Quick question: Has the fed ever successfully met it’s mandate? NO. (Note: not one mention of the word “Interest Rates” in their mandate. So, where are they so obsessed with the “Neutral Rate”? Easy, it doesn’t exist.
Historically, the Fed has done this by manipulating interest rates, engaging in open market operations (OMO) and adjusting reserve requirements. The Fed has also developed new tools to fight economic crisis (Crisis which were caused by the very same bankers, which emerged during the subprime crisis of 2007. What are these tools and how do they help mitigate a recession? STOP, this is nonsense! Here comes common sense!
The Main Weapon: Manipulating Interest Rates
The first tool used by the Fed, as well as central banks around the world, is the manipulation of short-term interest rates. Put simply, this practice involves raising/lowering interest rates to slow?/spur? economic activity and control inflation.
Can I ask? What is so wrong with an economy that is spurring along?
What happens when they finally loose control of the interest rates the bankers set you might ask?!
An Economic Revolution to Blockchain Technology. A technology that once adopted will be almost impossible to manipulate and will actually work for REAL people.
It is time to call this “Central Banking System” for what it is, a Criminal Syndicate that only is benefiting an Elite Group of Individuals which provides them with access to capital. PERIOD. (Example, LIBOR)
Overall, monetary policy is constantly being MANIPULATED into a state of flux. It is important to understand why the Fed institutes certain policies and how those policies could potentially play out in the economy.
Caution is warranted here! SPY & HYG remain a STRONG SELL!
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-The Humble Watcher
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