Whatilearnedsince911.wordpress.com Website Review

We are living in a weird time period – the lowest interest rates in history with debts the highest in history. Total world debt is over $250,000,000,000,000 (250 trillion dollars) and just recently (2 years ago) short-term rates were zero! Anyone with a thinking mind might wonder if this situation might blow up into a huge crisis. With everything as* backwards in the land of bank credit we might expect the opposite of the logical – rising rates into a deflationary period. Perhaps the situation will reverse, catastrophic deflation in everything because of a sudden rise in interest rates. You have to wonder what the trigger will be, what out of the blue (black swan) event introduces an instability that topples the entire system? Rising rates at this point would be catastrophic with debt holders. Well – rates are going up and so was the stock market (until recently), and people are still piling on the debts like there is no tomorrow.   There is a huge tragedy in the making. With the creation of the Federal Reserve, reality was stood on it’s head, and the normal relationship between debt and interest rates was reversed. On a gold standard, if governments increase debt, they crowd out private borrowers, and interest rates rise causing recession. But with the Fed, national debt has gone exponential and interest rates gone to have zero.  Zero interest rates and exponential debts makes no sense. What a laugh, nothing to see here, move along citizen – we are living in some sorta central bank debt insanity. There is evidence the central bankers are getting desperate.  Lowering interest rates to zero reeks of desperation.  Quanitative Easing (QE) is a desperate act by desperados in the land of debt sl*ves.  They started raising rates about 2 years ago, and the latest Fed rate increase is causing shock waves across the Potomac.  Trump tweeted dismay of rising rates toward his own appointed Fed governor Jerome Powell.  Trump doesn’t understand that the Fed follows the market.