The Federal Reserve just raised interest rates again. Is The Fed Actually Trying To Cause A Stock Market Crash?

submitted by magnora7 from (zerohedge.com)

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[–]magnora7[S] 6 insightful - 1 fun6 insightful - 0 fun7 insightful - 1 fun -  (10 children)

And also consider this: https://www.zerohedge.com/news/2018-12-20/bill-dudley-fed-not-there-take-away-markets-pain-policy-not-too-tight

It's funny Obama got 0% for 8 years, but now that Trump is in office they're all about raising the rates 0.25% every single quarter. It really does seem like they're pressuring a crash. Trump is a convenient scapegoat, so I can see why they'd want to do it during his term.

Also causing it now would probably hurt his 2020 re-election chances, if someone wanted to keep him from being re-elected.

[–]infantile_ocelot 4 insightful - 1 fun4 insightful - 0 fun5 insightful - 1 fun -  (3 children)

I take it as a reaction to the US dollar doing well vs foreign currencies, thus its value increasing. The fed expects the USD to continue increasing in value in the future, so they are raising rates due to the fact that the USD, and American industry in general, is becoming more desired.

[–]magnora7[S] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (2 children)

So if they expect the value of the USD to increase, then shouldn't they be lowering rates? If their goal is to keep the USD even, and the value is going up, then shouldn't they increase supply? And increasing supply happens when you lower the interest rates.

So if anything, these actions will only compound the growing value of the USD. So they're planning on seeing deflation as you point out, but also creating more deflation at the same time by increasing rates and thus decreasing money availability and thus money supply!

[–]infantile_ocelot 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (1 child)

So if they expect the value of the USD to increase, then shouldn't they be lowering rates?

No. For the treasury, the USD is their "product." If people are becoming excited over your product and want it more than they did in the past, would you raise the cost of it, or lower it?

You would raise it, you'd make it more expensive to acquire. That's exactly what the fed is doing.

[–]magnora7[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

But the fed has stated their goal, for decades now, has been a target of 2% inflation per year. What you're describing is an infinite deflation scenario, which is not the goal of the fed.

And also increasing the price lowers demand. So by raising price you decrease the number of interested "buyers", so it's not always a net profit move to increase price.

[–][deleted] 4 insightful - 1 fun4 insightful - 0 fun5 insightful - 1 fun -  (4 children)

if it is designed to crash during Trump he is fine with it. He has goldman sachs advisors.

[–]magnora7[S] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (3 children)

I am unsure if he knows he is playing the heel or not, in the end he may just see himself as a victim of circumstance

[–]Solrik 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (2 children)

This might be the case for Bush as well and presidents in general.

[–]magnora7[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

I agree. The president is basically a PR head at this point, a charismatic actor. But I'm not sure the presidents themselves see it as being that way. It's kind of interesting.

[–]JasonCarswell 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Hey, at least Presidents get medals of valour or something preposterous.

I hope Trumps golden parachute is made of real gold so it falls fast and hard and heavy.

[–]JasonCarswell 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

But Trump has the Presidential Plunge Protection.

https://duckduckgo.com/?q=president+plunge+protection+team

The Democrats are big loosers, but they only lose to Republicans (not progressives). If they can win 2020 it may "redeem" them a bit in the minds of the mass hypnotized.

[–]Orangutan 4 insightful - 1 fun4 insightful - 0 fun5 insightful - 1 fun -  (0 children)

It's worldwide now too: https://www.bitchute.com/video/r5ZqEWUhD3AV/

[–]TheWebOfSlime 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (9 children)

Yes. How do we make money on it?

[–]magnora7[S] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (2 children)

Short the stock market, or invest in bitcoin, probably. Definitely don't buy stocks right now, probably best to be in cash instead of stocks. Maybe even gold wouldn't be a bad idea, because it typically acts as a counter-balance to the stock market. However it could take 6 months to several years to play out, so make sure not to get in a position where you're forced to sell at a low point to generate funds or anything like that.

[–]TheWebOfSlime 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

I should be looking pretty good, then, already.

[–]JasonCarswell 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Couldn't have said it better.

[–]remembermeordont 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (5 children)

If you look into crypto, look into the company Ripple. They are using the cryptocurrency XRP. You cant invest in Ripple but you can buy XRP. They have some really big names running the company that were once apart of the government and are using XRP for banks. After I did some research I bought XRP.

[–]TheWebOfSlime 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

A couple of entities are trying to make Ripple a currency that can be easily traded around the world.

[–]JasonCarswell 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

I don't trust it.

[–]JasonCarswell 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

No way. Someone just posted something about Google and Ripple.

Google is evil.

[–]remembermeordont 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

Maybe so but money is money.

[–]JasonCarswell 1 insightful - 2 fun1 insightful - 1 fun2 insightful - 2 fun -  (0 children)

So true. I don't trust Bitcoin or Steemit either but I collect those. By collect I mean I have a few. Not like some billionaire with a vast collection of fine art.

" To walk in money through the night crowd, protected by money, lulled by money, dulled by money, the crowd itself a money, the breath money, no least single object anywhere that is not money, money, money everywhere and still not enough, and then no money or a little money or less money or more money, but money, always money, and if you have money or you don't have money it is the money that counts and money makes money, but what makes money make money? " ~ Henry Miller, Tropic of Capricorn (1939)