Financials Matter

"It's Not Just About Finance"

All Eyes On the FED

As expected, the Presstitutes are promoting why you should have all eyes on the Fed.

Because today Fed Chairman Jerome Powell will most likely lower interest rates.

The question is, how much…25 basis points or 50 basis points?

Translation:  one quarter of a percent or one-half percent.

 

This will appear to be a victory for Trump.

 

But nothing could be further from the truth.

 

Because Trump, who always wants lower rates, doesn’t realize that lowering rates only benefits speculators and not the savers.

And that’s mostly because Trump has always been a borrower – not a lender.

 

Another thing Trump (and most other investors) refuses to realize, is how interest rates decline in recessions and depressions BECAUSE people are not interested in borrowing when the future is uncertain.

On the flip side, rates rise during boom times naturally BECAUSE there is a demand for money.

 

And because they are an easy target everyone wants to blame the federal reserve and central banks for everything.

But NEVER once do they ever look at the history of central banks and how Congress has been manipulating the law changing the definition of what the Fed was even supposed to be.

 

And most people don’t realize it was Roosevelt who usurped all the independence of the Fed and created a Washington monopoly to push his socialist agenda into place.

 

 

Eyes on the Fed

 

 

Meanwhile, all this talk about Trump wanting to fire Chairman Powell is nonsense.

Because the law is structured specifically to protect the Fed’s independence, which is ABSOLUTELY ESSENTIAL to prevent politicians from manipulating interest rates for their political gain.

Unfortunately, politicians are relentless in their pursuit to manipulate the Fed making them seem like heroes fighting for the average man.

And, NO, ending the Fed will not solve our nation’s debt problems.

 

In the meantime, speculators are making huge bets on a 50bp cut.

But what happens if Powell only cuts 25bp?

 

Will the markets make a huge surge up?  Or down?

 

If history is any indicator (which it is) the markets are prone to knee-jerk reactions when the Fed doesn’t act in the way they perceive it should.

 

And regardless of the outcome, Powell knows he is on his way out in 2026 to make way for Trump to appoint a new chairman.

 

For the record we believe regardless of who Trump appoints (thinking he can control the Fed), interest rates will turn back up in 2026 based on one three letter word… WAR.

Ironically (or NOT) 2025 may be a historic low.

 

Remember, you heard it here first.

 

And prepare for a roller coaster ride over the next several months as the markets digest the rate cut.

Got Gold?

If not then it might just be time for you to dip your toes into the precious metal mining stocks before Gold breaks through $4,000.

 

Read about what Mining stocks we like (HERE).

Share this with a friend…especially if they believe we should end the Fed.  They’ll thank YOU later.

 

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

And you shall know the truth,

And the truth shall make you free

 

~ John 8:32 ~

 

 

And don’t forget:

 

 

 

 

 

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