Europe Losing Control of Inflation
Here we go; The FED did not frighten the markets with hawkishness, as was feared and as was priced-in.
Powell was asked about Paul Volcker. Literally, this shows how mad of a robotic casino some Wall Street firms have become; once the journalist asked the question, even without Powell addressing it, algorithms sold stocks, at the mere mention of Volcker’s name.
Paul Volcker was the FED Chairman that the President of the United States appointed to stop and curtail the inflationary and borderline hyperinflationary crisis of the 1970’s.
Powell complemented Volcker, but not for his policies. He said that the lesson Volcker taught us was to always go with your heart and not be afraid of making tough decisions, if that’s what the country needs, but Powell did not praise Volcker’s strategy of raising rates.
After all, if he did think along similar lines, then yesterday would not have been a mere 0.50% rate hike, but a 0.75% or a full one percentage point with to come.
Jerome Powell deeply understands that if the markets believe in the FED, then his mere guidance, his words, in the way he is taking time to detail the FED’s future plans, even BEFORE they actually implement them, create immediate action from Wall Street.
IF MARKETS LOVED POWELL, WHAT HAPPENED TODAY?
The Bank of England decided to ruin all of the confidence the FED sprayed on markets with nuclear rain.
Their central bank raised interest rates, said that they’ve lost control over it, that it will reach 10% this year, that their policies will very likely lead to a recession in England and throughout Europe and might trickle into China!
What a CATASTROPHIC statement.
On that news, markets began a free-fall and I wouldn’t be surprised if circuit-breakers halt trading, if calm and trust don’t prevail.
This is BREAKING NEWS!
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Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
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