Things are being engineered perfectly for a 50 basis point rate hike in the near future with another guarantee for a 25 point hike mid March. My guess is we see the same thing we had in the 70s where we had rampant interest rates despite the recession. It can be seen in how high the Fed Rate was over the 30y T back then.
The Fed is going to run its rate up to more so protect the dollar from plunging rather than any economic report issued. They stated that when the job numbers came out. They will force Americans to hold the US dollars that foreign countries and banks do not want to hold through incentives like 7+% interest. How convenient that interest rates will be that high when the Baby Boomers convert their 401Ks into cash by withdrawing it for a fixed income. How convent if will be that the money they pull out of the markets will be replaced 1 for 1 by privatized social security accounts.
When 1/3 of the world is going into retirement and will eventually die off were will the consumer demand come from. But that is far ahead in the future. Today China is doing backdoor deals with Russia to purchase oil and gas off the market. Well not off the market but they are in a sense "hedging" the price of oil and gas while OPEC runs up the price through scare tactics. All the while oil company insiders are dumping shares in the stock of their companies. Why not hold longer. After all if oil is going higher wouldn't they want to buy and hold more stock?
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