The Fed is now cornered courtesy of the coming inflationary recession.
Let’s start with the economy first.
The 2s-10s yield curve is just a 19.4 basis points away from inversion. The last FOUR times this yield curve inverted the U.S. experienced a recession soon after. I’ve identified that line on the chart below:
A recession is bad enough news because it means a bear market in stocks and most likely a crash. Here’s that same chart with the S&P 500 below it. Note what happened to stocks soon after the yield curve inversion hit (note that the 1990 market saw a 17% drop, but the chart doesn’t show it well).
On top of this, inflation is roaring in the financial system. Gasoline is up 80% in the last 12 months. Lumber is up 36%. Copper is up 15%. And wheat has exploded 90% higher!
Remember, the consumer accounts for 75% of GDP in the U.S. What do you think happens to consumer spending when inflation eats into incomes? There is a reason Presidential ratings are highly correlated to gasoline prices!
And all of this is happening when the Fed only just ended QE and still has rates at zero.
Here comes CIVIL WAR to get the Democrats OUT of Power !!!!
ONE WORD explains the current tragic state of our republic.
DEMOCRATS.
THE dumbest, short-sighted, lying, double-crossing, thieves that they all are now.
What do you think people are going to do when they have to choose between keeping their house warm, buying gas to get to work, or feeding their children??
They get to pick one of them.
Then, slumlords evict them, because even two adults making $17 an hour can’t keep up.
You’ll see more robberies, break-ins, and sooner or later, people showing up for groceries with a .357 instead of a checkbook.
Democrats.
Shutting down OUR oil and gas production so we have to beg muslims to save us.
Not ONE democrat politician will have to make ANY of these choices.
“We, the People” are just worms and slugs to them, while they preach to us about “diversity and inclusion”.
Notice this — they avoid ALL mention of “integrity”.
Hang them. On national prime time TV.
It’s the ONLY WAY to stop them from destroying this country, just as obama promised years ago — “we will fundamentally change this country!”
What did you think he was talking about? Driving us all into bankruptcy, submission, and third world status
EXACTLY WHAT THEY ARE DOING NOW.