Interviewed in this video is Doug Noland a hedge fund industry veteran and financial blogger, of the Credit Bubble Bulletin
The Fed Paradox: Necessary Rate Hikes = Inevitable Crisis
Economic research shows that in a recession, the Fed needs to cut rates at least 3% to get any stimulus in the economy…Not a big deal, right? They always cut rates more than 3%. In 2008 they cut rates from 5% to 0% immediately.
How can they cut rates by 3% if they’re only at 1.5% without going into negative territory? Well, they can’t. And at the Fed’s current projections, they still need 2 years until they get the Fed Funds Rate to 3%. That means the Fed is in a race between time and another recession. Which will come first in the next 2 years?
The answer: it doesn’t matter because both will happen. I call this the ‘Fed’s Paradox’. History shows that every time the Federal Reserve raises rates, it causes the economy to slow down or some kind of a crisis happens.
Trump should have leveled w/ the American people day one about the economy, but he did not. Did Dalio signal Trump is a one-term candidate? pic.twitter.com/mu16J9EgVC
— Alastair Williamson (@StockBoardAsset) February 22, 2018
Rising tide of debt to hit rich countries’ budgets, warns OECD
US Federal Reserve rings alarm about America’s soaring debt
Kaplan’s words come after this week’s report by Goldman Sachs indicated that US debt will turn unsustainable under the Republican leadership. … one of the largest ratings firms in China, Dagong Global Credit Rating, cut the US sovereign rating from A- to BBB+ on concerns that the country can fail servicing the debt. Peru ..
S. Korea’s Household Debt Hits Record $1.3 Trillion in 2017
Lawmakers unveil new plan to overhaul Kentucky’s pension systems
Lexington Herald Leader–17 hours ago