• 265 days Could Crypto Overtake Traditional Investment?
  • 270 days Americans Still Quitting Jobs At Record Pace
  • 272 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 275 days Is The Dollar Too Strong?
  • 275 days Big Tech Disappoints Investors on Earnings Calls
  • 276 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 278 days China Is Quietly Trying To Distance Itself From Russia
  • 278 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 282 days Crypto Investors Won Big In 2021
  • 282 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 283 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 285 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 286 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 289 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 290 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 290 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 292 days Are NFTs About To Take Over Gaming?
  • 293 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 296 days What’s Causing Inflation In The United States?
  • 297 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Oops The Feds Did it Again- Are They Setting up The Masses for Another Stimulus Program

"I guess the definition of a lunatic is a man surrounded by them." ~ Ezra Pound

Is the Fed playing mind games with the masses or is it simply another version of Britney Spears hit song "Oops I did it again"? Only this time they did not. They keep mouthing off that they are ready to raise rates and then suddenly just before the moment to pull the trigger draws near; some unforeseeable event springs up, and they kick the can down the road again. Two questions comes to mind.

Why the intense focus on what the Fed might or might not do; has the press run out of real stories to focus on. Come on we are talking about a measly 0.25% hike. In the worst of scenarios, this should be treated as a hiccup and not a major tragedy.

Secondly, history indicates that the markets tend to trend higher for up to two years after the first rate hike. Thus, a rate hike should be viewed as a positive event as it would indicate all was well. But perhaps all is not well, and that is why the crowd is panicking at the mere thought of a hike.

We, however, believe that this boring Fed might raise rates story is a non-event and have said so many times in the past.

The Fed is hesitating so much in raising rates because they know that the economy is not really strong. However, what is more, important is they are trying to gauge if the public is buying the nonsense that the outlook is improving via all the manipulated data that is being put out? If they sense that the public is buying this nonsense, then they will initiate a tiny rate hike. To some degree, it appears that the public is buying this nonsense. Whatever move the Fed makes; their ultimate aim is to find a way to embark on another wave of QE. Look at the World's markets; while the US markets look okay, the emerging markets are taking a beating and its just a matter of time before the contagion spreads to the U.S. The only way to prevent this is to flood the markets with hot money. ~ Market Update Oct 2nd, 2015.

The Fed is still trying to gauge if the crowd has bought into their drug induced theme, which states that all work and no play makes Jack a smart chap. We used to use the word sadly, but is that really the appropriate word to use; if the crowd does the same thing over and over again. Perhaps instead of saying sadly, we should instead begin the sentence with; insanely the crowd appears to be buying into this theme. Is the economy really improving?. ~ Market Update Oct 17, 2015

The most recent jobs numbers masked a dark story. Unemployment held steady at 5.1%, but only 59.2% of Americans have a job. The difference is the unemployment rate only counts people who don't have a job and are actively looking for one. The labor force participation rate is perhaps a more accurate gauge of the economy. It includes people who've given up, don't want to, or can't work, and it fell to 62.4% last quarter Full story

If this story is taken at face value, the economy should be in tatters and people should be rioting. Instead, all appears calm; the masses suffer silently and lay the blame on forces they claim to have no power over. As long as they take this approach that is exactly how things will play out. It is, for this reason, the Fed is not raising rates; they know that they have just barely managed to create the illusion that things are stable. They are in no hurry to pop this bubble. While many call the Fed stupid and short-sighted; the truth is that at every twist and turn of the road, they have walked away unscathed. While the gold bugs wait for their day in glory (many have already passed away waiting for that glorious day to dawn), they do not understand that even if Gold moves to 10,000 which it will not, the Fed has, is and will still winthe game.

Even if Gold could miraculously surge to $100K it would mean nothing; if you control the printing press, you just push the pedal to the metal and print a lot more and problem solved.

Never get caught up in any battle, for a battle is one of many in a war. The idea should be to win the war and not the battle. Before engaging your opponent, look around, gauge the situation and plan a course of action. The masses are frozen, they bitch and moan about how bad things are, but when push comes to shove, they opt for being shoved, instead of pushing back. In the end, their role as history indicates is that of cannon fodder. Do not feel sorry for the masses and do not attempt to educate them. Should you decide to undertake this unworthy venture, your reward will be a fistful of pain.

The masses are infamous for punishing the wrong person for the wrong crime. There is no such thing as a good Samaritan in the land of investing. A good Samaritan is usually a dead Samaritan and heroes usually have very short life spans. Pay attention to history, you will never see the masters of deceptions or the shadowy elite players move out of the shadows and try to play the role of a hero or a good Samaritan. These roles are created for the masses; they are sold a bag of lies, and they gladly buy into this mumbo jumbo.

No matter what the nuts out there state; the Fed is not hell bent on raising rates, they are not scared or nervous about anything, and they backed into a corner. They have backed everyone else into a corner, and the ones that are scared are the ones makes these idiotic proclamations. The Fed might raise rates, but their goal is to find an excuse that the masses will buy hook line and sinker, to come out with another round of QE. The whole purpose of this experiment is to find out just how far the crowd can be pushed with the proper brainwashing. Right now they are taking notes so that the central bankers of the future can build on these lessons and push the envelope even further. The reason there is no repeat of 1929 is because they took notes and learned from their mistakes. These guys are nefarious geniuses. They give the impression of being impotent, but they are omnipotent. So how do you win? The answer is simple. Throw your silly emotions and bias out of the window and ride on their coattails. End of story.

"It is wrong to think that misfortunes come from the east or from the west; they originate within one's own mind. Therefore, it is foolish to guard against misfortunes from the external world and leave the inner mind uncontrolled." ~ Buddha

 


Tactical Investor where crowd psychology and technical merge seamlessly.

 

Back to homepage

Leave a comment

Leave a comment