Going into an EASING CYCLE, this represents the CRUX of Powell’s dilemma:
- RAISE RATES TOO MUCH: the BEAR eats him and the US economy crashes.
- LOWER RATES TOO MUCH: the TIGER eats him and the US economy crashes.
- BEGIN QUANTITATIVE EASING AGAIN: the tiger eats him and the US economy crashes.
- CONTINUED US GOVERNMENT KEYNESIAN BINGE: the tiger eats him and the US economy crashes.
- HUGE TRUMP TARIFFS: TIGER gets HOT for TEACHER, eats Powell, then Trump.
This is the HOTEL CALIFORNIA for that FED-BUCK FUCK.
(sorry Powell)
And perhaps that’s the crucial issue: what moves are left for Powell or the US treasury or US government, other than hoping the US GDP triples in the next few years … how will that happen?
- AI
- Crypto
- Quantum Computers
- Fusion Energy
- Fission Energy Renaissance
- Space Travel
- Biotech
- Cheap temperature tolerant synthetic super-conduction
- Massive discovery of OIL off the coast of Uranus …
- Radically lowering trade barriers and internal regulations on trade
- Allowing the free market of money, all things people want to consider money: and this gives the FED time to EASE out of that business
- Get rid of the IRS
- END all the wars, bring the troops home
- Other stuff?
You really need to believe in pixie dust bullshit at this point if you think EASING ends any other way but RAPID hyper-inflation … or nova-flation … blast out … explosion.
As I’ve said: your 401K might keep growing longer than there’s food at the grocery store.
Or maybe it will be WW3: but brother, we’re not there yet … it will take a BIG EVENT to galvanize the poors and get them riled up to kill some folks (poors) in another country.