“The Fed will defend the PetroDollar and the world’s reserve currency status no matter how much the stock market crashes, no matter how much the bond market crashes, no matter how much the housing market crashes and no matter how much the economy crashes.” ??? Oh, And Happy Halloween! (October 31, 2022)
. . .
K “That is saying something. Spooky.”
J “I’ll say. Scary.”
. . .
K “The Federal Funds Rate is being raised more than I ever thought possible.”
J “The Federal Funds Rate is being raised more than I ever thought possible.”
. . .
K “Increasing the interest rate will do very little to reduce inflation because real inflation is about double the rate reported by the government. No one is suggesting that the Fed can raise rates to fifteen percent under any scenario. If the stock market and bond market are sacrificed, perhaps 30 percent of the population will be impacted. If the housing market is sacrificed, perhaps 67 percent of the population who own homes and another 9 percent who are now priced out of home ownership will be impacted.”
J “If the economy is sacrificed, perhaps 100 percent of the population will be impacted. While they are raising interest rates, money is being poured into the economy. Imagine a pump drawing water out of a pool and another pump dumping water into the pool.”
. . .
J “The PetroDollar is akin to the life blood of the United States body economic. The stock market, the bond market, the housing market and the economy are akin to the organs. The periphery is being sacrificed to protect the core. That is how an organism responds to threat and stress.”
K “The Federal Reserve is trying to staunch the bleeding. Without the PetroDollar, the US is not.”
. . .
K “World War E / World War III is not helping. The US must discipline if not destroy its economic colonies to protect itself. The UK, Germany, France and other colonies do not realize that they are the target. The vassals are the victims. The Euro and the pound sterling must be broken. They are being and will be broken. And then throw in the currencies of emerging markets that are being creamed.”
J “The US has to destroy the world village in order to save itself.”
. . .
K “The PetroDollar is backed by Fe and Pb not by Au or Ag. The US military has perpetuated the war against the world since 1945.”
J “And the Fed is taking up the sword.”
. . .
J “We shall see.”
K “We shall see.”
. . .
[See “Why financial approaches won’t fix the world’s economic problems this time” at Our Finite World dated October 18, 2022 by Gail Tverberg.]
[See recent April e-commentary at The Great Checkmate And The Great Seesaw: Interesting Rates (April 11, 2022), Interning For Clio: Collecting, Protecting And Preserving The Record (April 4, 2022), Is Inflation Inflating!?!? (April 26, 2021) and Covid-19 PanICdemic/Plague: Basically, Back To Basics: Finding Food; Printing Rutabagas. Happy Earth Day! (April 20, 2020).]
Bumper stickers of the week:
Costco Kirkland precooked bacon is $17.99
You can print money, but you cannot print rutabagas
My electric car is powered by dirty coal
The US has to destroy the world village in order to save itself
“Sheep spend their whole lives living in fear of the wolf only to be eaten by the shepherd.” Proverb
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