Excerpt: Given that economic growth is debt-supported, rate increases have an almost immediate negative impact. While the Fed may not be discussing a “tightening monetary” policy, the bond market is doing it for them.
The Fed can’t hike rates or reduce QE voluntarily.
Eventually, market forces will do the job for them via surging inflationary pressures and a destabilized bond market.
It will be known as the “Great Financial Crisis 2.0.”
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.