On September 18th, 2024, the Federal Reserve will officially announce that they are about to start cutting rates.
While in reality, the Federal Reserve is already DEEPLY involved in massive purchases of US debt. (See chart below of the MMRI, (Mannarino Market Risk Indicator). The MMRI is free for everyone and can be viewed here, copy paste: https://traderschoice.net/about-traders-choice/
Here in the chart below, note the upward trend (black lines), was broken (red arrow/circle), in early June. This denotes where the Fed. Began to aggressively buy/monetize debt.
Monetizing the debt is defined as when a central bank, in this case the Federal Reserve, uses newly created currency to buy bonds/Treasury bills. This process is also called Quantitative Easing.
The result of Quantitative Easing/QE directly affects bond yields, causing rates to drop. QE is also extremely currency purchasing power negative.
Using today as an example. As no “official” announcement has yet been made by the Fed. that they are already cutting rates, mortgage rates here in the US have now dropped to a nearly 2-year low.
Moreover, just this past week the yield curve here in the US just came out of its longest inversion cycle in history. This is known as YIELD CURVE CONTROL. Yield curve control is a “tool” used by central banks to manage interest rates. More specifically, to stabilize long-term interest rates, like mortgages for example as we are seeing today.
QUANTITATIVE EASING IS EMERGENCY MONETARY POLICY!
QE is only used during MAJOR ECONOMIC DOWNTURNS as to give a TEMPORARY boost to an economy already in freefall.
Because QE involves the VAST creation of “new money” which is then used to buy/monetize the debt and therefore keep interest rates artificially suppressed, QE is highly destructive to the purchasing power of the currency-therefore QE is highly inflationary.
Just this past week here in the US, and this is also a worldwide phenomenon, the repeated round after round of bad economic news continues. Most recently, new jobs hiring here in the US just hit AN HISTORIC LOW. And just two weeks ago, according to the BLS, 818,000 jobs just “vanished.”
With factory activity and US manufacturing remaining in contraction, the US trade deficit continues to hyperinflate. Meanwhile, they want us to believe that the US unemployment rate fell to 4.2%?!
During the Great Depression, at its peak, the US unemployment rate was 24.9%. If we were to use the same metrics to measure unemployment today, as they did during the peak of the Great Depression, the US unemployment rate would be FOUR TIMES HIGHER than the fake numbers that the mainstream media is putting out today.
The fact is this. Today we stand on the threshold of THE GREATEST DEPRESSION on a global scale. And to ASSURE that this Greatest Depression does happen, you can expect that both Presidential ‘selectees” here in the US will continue to sell you the same narrative when it comes to the financial system. These Presidential Selectees will continue to promise you lower rates, which of course means an even weaker dollar. Their calls/promises of lower rates will allow the Fed. to VASTLY inflate AND MONETIZE the debt even more! Further assuring that the Federal Reserve will attain even MORE power and control over all of us.