The Federal Reserve is not raising interest rates, but now there are hints by Fed Head Janet Yellen that it might consider negative interest rates if the economy gets bad enough. The economy is already bad, and the Fed decision to keep a key rate near 0% says it all. I have been telling you for a couple of years that there is no real recovery on Main Street. The only real recovery is on Wall Street. Data point after data point shows the economy is not good. This is why the Fed is not raising interest rates. I wonder if the stories out this week in the mainstream media were nothing more than a huge psychological operation, or PSYOP. There were stories all over the place saying that a rate hike would “Not Likely Spook the Economy,” or an interest rate hike would be a “good thing.” Obviously, no rate hike is a much better thing, and now the Fed is hinting at negative interest rates if the economy gets bad enough. By the way, Gregory Mannarino of TradersChoice.net brought up the possibility of the Fed going to negative interest rates months ago. Mannarino also says the Fed decision NOT to raise rates shows that all is not well in the economy, and if the economy would be getting better, the Fed “would not need to continue emergency monetary policy of 0% rates.” He also says, “At some point, the dose becomes toxic and turns to poison and kills the patient.” He’s talking about the 80 months and counting of 0% interest rates, and remember, rates could be forced to go negative in the future.
On top of that bad news, people like Nobel Prize winning economist Professor Robert Shiller continue to warn that the stock market looks like it is in a bubble. There are also reports of the biggest double top in stock market history that was recently made, and when that happens, it is downhill for the markets. This includes the global debt market that dwarfs the stock market by orders of magnitude. I just interviewed former Reagan White House Budget Director David Stockman, and he says the“financial system is booby trapped with debt bombs.” This is not if the bond market will blow up, but only a matter of when the bond market will blow up. According to Mr. Stockman, it could all unwind any time before the 2016 election cycle is over. That is a Nobel winner in economics and a top Washington insider saying basically the same thing for the stock and bond markets.
CNN was the only real loser in the second GOP debate. The debate started out looking like CNN just wanted the candidates to trash Trump. It looked juvenile and petty, and even NJ Governor Chris Christie called BS on the BS when he directed the discussion back to how the GOP was going to help the struggling middle class. Trump won the debate by virtue of the fact CNN centered it on him and tried to get the other candidates to tear him down. Sure, there were candidates that had their moments, and some will move up and down in the polls, but Trump still emerges as the front-runner. Let’s make this perfectly clear, Donald trump could win it all. Yes, the election is a little more than a year away, but I do not think he is going to mess up that bad, and he certainly is not going to run out of money. This is why both the left and the right fear and hate him. He could win, and he might even do something for average Americans instead of pandering to the criminal special interests that want a fraudulent economy where no top banker goes to jail for obvious crime. I don’t care if it is Democrat or Republican. Many of these candidates are bought and paid for and will not go against their elite donors even it is destroying America. Nobody is going to buy Mr. Trump, and that is a good thing.
Join Greg Hunter as he talks about these stories and more in the Weekly News Wrap-Up.
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Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.