This is interesting...
For the US, it’s now shooting fish in a barrel – but just for now. The three-pronged plan the Fed has started to execute is plain for everyone to see:
1) Stop QE. This hauls back in to the US dollars from around the planet, from a million parties that owe debt denominated in USD. Already happening at a frantic pace, though no-one involved would advertize it.
2) Raise the value of the greenback. This makes it that more expensive for all parties under 1) to pay off their debts. They have to offer ever more just to stand still. And when they can’t, assets will be confiscated. see http://www.zerohedge.com/news/2014-10-06/barclays-warns-king-dollar-could-crush-earnings
3) Raise interest rates. The final blow. It will make life much harder on the US government too, but they’ll have trillions of dollars flowing in to cope with that. It’ll put millions of Americans into the equivalent of medieval torture instruments, and out of their homes and cars and jobs, but that too will be initially softened by the dollars coming home to papa. Crucial take home: they’ve given up on the US real economy, likely a long time ago.
...but I see #3 as a massive minefield...how can they raise rates and kill off the pseudo good times and not suffer politically? Unless they see the latter as sewn up, I am not buying this strategy.
These are the steps that would need to be taken to solve the problem. I think there is ZERO chance of that happening. Is there a link that goes with this or is this your opinion of what is happening?
1) I don't think QE has ended, is ending or ever will end (before the collapse) I think its going strong, just using different methodology.. transactions via cronies, etc. Its off the official books is all. Its primary purpose is to prevent the Dollar price of assets from falling - and it does this by artifically bidding them up using printed money. That is going to continue for the foreseeable future because the Stock Market is 100% on life support now. Falling prices means falling government tax revenue and still more printing. Better to make it less obvious and continue doing it
2) Not that I think this is easily within their control, but a strong greenback means foreigners cannot purchase our goods and services. This is what forces the "race to the bottom" thing where everyone prints more, but just wants to suck the least. It also would encourage the adoption of other currencies for world trade as the greenback becomes harder to get for short term transactions. If they did this it would force MORE foreclouses etc as people have to pay of inflated loans with deflated dollars.
3) A Rise in interest rates would help savers in the long run and actually encourage investment in the United States again. Long term this is the right thing to do. Our govt however, is 17 trillion in debt, and while much of that has been "twisted" into longer term securities at low rates, new debt would really pile on as the Welfare system gets even more over burdened and no one can pay their mortgages or taxes ( because of the deflation..) So you either suspend welfare and deal with the riots, or you keep kicking the can. Our pols are either evil or stupid-- so Yeah, the stupid will kick the can. The Evil bring in Ebola so they can avoid the riots.
Seriously I don't see any of this happening till after the collapse... which will be different than what we have been seeing in Europe.. You won't see interest rates explode, because the bond auctions will always be successful - with money printed and handed to cronies to make it look legit. The Stock Market via clandestine QE will just keep growing. Tax revenue will keep hitting new records, because price inflation is going to make your profits look fantastic.. even though your margins are shrunk to zero and the Graham Cracker boxes you are selling are only half full.
No you will know the collapse has arrived because suddenly welfare and Social Security payments are "indexed to inflation" and adjusted every six months, then every month, then every week. You know, providing all of the non-contributing zeros and euthanize-able 75 year olds aren't already dead of ebola.
But I think this ebola outbreak, now, at the point where our Southern Border has collapsed and in the second half of Obama's second term are all you need to know about what is coming. The economic collapse has now been rendered moot for us. They are using a bio-weapon to exterminate us, and there is very, very little that can be done to stop it. The elite have had their immunizations, and whatever 1 out of five of the population survives (which leaves 1.5 billion) can be culled under martial law as required to preserve skill sets to reach the desired 500 Million. Its game over. NWO wins. Enjoy the time you have left.