We can count on the Federal Reserve continuing to implement their “controlled drop in asset prices as they push off raising rates plan.”
The Federal Reserve Rate Hike Plan EXPOSED
The Federal Reserve has no intension of raising rates this year and here is why.
1) A rate hike, no matter how small, would be a shock to the world markets.
2) The Federal Reserve does have a plan, and here it is:
The Federal Reserve will end 2015 without a rate hike, and each month the Fed. Does not raise rates-the market will bleed lower in a controlled fashion.*
*This has to be the Federal Reserve’s plan.
I am certain that the Fed. Realizes that any rate hike will shock the global economy and rock the world markets, so with that knowledge the Fed. Is going to attempt to “control the drop” by not raising rates this year. It is the lesser of two evils for the world markets.
When the Fed. Observes that the market has indeed become accustomed to this slow/controlled drop and finally accepts that a rate hike is coming, they will raise rates a token .25%. In this manner when the Fed. Finally does raise rates, the shock to the world markets will be minimal.
It is clear to the Federal Reserve that they have indeed inflated a stock market bubble with their unprecedented overt QE.
QE is still going on covertly, it has never stopped: click here: Time Bomb? Banks Pressured to Buy Government Debt.
The Federal Reserve does run the risk that their “controlled” drop in asset prices can backfire if confidence in the Federal Reserve to act is lost.
Today we heard from the IMF which is warning that: “there is reason to be concerned about the global economy.”
There is certainly the possibility that the Fed. Will now be stuck in some kind of permanent QE scheme, a point which I have talked about frequently: “once a central bank gets so desperate that they have to resort to a QE mechanism, it cannot stop.”
However I believe that the Fed. Is going to attempt to halt it’s backdoor QE and raise rates at some point next year, but for now we can count on the Federal Reserve continuing to implement their “controlled drop in asset prices as they push off raising rates plan.” SOURCE
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