{"id":200223,"date":"2023-12-16T15:28:18","date_gmt":"2023-12-16T19:28:18","guid":{"rendered":"http:\/\/stateofthenation.co\/?p=200223"},"modified":"2023-12-16T15:29:04","modified_gmt":"2023-12-16T19:29:04","slug":"theres-something-very-wrong-at-the-fed-as-inflations-set-to-explode-again-after-interest-rates-are-pushed-lower","status":"publish","type":"post","link":"https:\/\/stateofthenation.co\/?p=200223","title":{"rendered":"<h3><b>There&#8217;s something very wrong at the FED&#8230;as inflation&#8217;s set to explode again after interest rates are pushed lower!<\/b><\/h3>"},"content":{"rendered":"<h1>THERE\u2019S SOMETHING HAPPENING HERE\u2026\u2026.<\/h1>\n<p><!--more--><\/p>\n<p>Submitted by <a href=\"https:\/\/www.theburningplatform.com\/2023\/12\/15\/theres-something-happening-here\/\">The Burning Platform<\/a><\/p>\n<hr \/>\n<p style=\"text-align: center;\"><em>There\u2019s something happening here<\/em><br \/>\n<em>But what it is ain\u2019t exactly clear<\/em><br \/>\n<strong>&#8212; Buffalo Springfield<\/strong><\/p>\n<hr \/>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/media.tenor.com\/GBgctORBgh0AAAAe\/somethings-not-right.png\" width=\"451\" height=\"338\" \/><\/p>\n<p>Something is not right, and the drastically divergent messages from Powell and his cronies at the Fed over the last month and a half con firm this suspicion. It does remind me of September 2019 when the repo market revealed the underlying mechanisms within the financial system were malfunctioning and were about to lead to another massive financial crisis. Powell restarted QE and \u201cluckily\u201d the covid scamdemic was rolled out, so Powell and and our corrupt political class could pump trillions into the system and keep it alive.<\/p>\n<p>Powell and his fellow tough guys at the Fed had increased rates to 5.3% and have talked tough about keeping rates up until inflation got back to their 2% target. With GDP supposedly accelerating at 5.2%, unemployment still near all-time lows, and corporate profits still booming, there should be no fear about rates being too high by Powell and his sycophants. But suddenly this week Powell and these economic \u201crocket scientists\u201d now are saying they will be cutting rates soon and more than anyone expected.<\/p>\n<hr \/>\n<blockquote class=\"twitter-tweet\" data-twitter-extracted-i170275361509346956=\"true\">\n<p dir=\"ltr\" lang=\"en\">The Fed Since November 1st:<\/p>\n<p>1. Nov. 1: Getting inflation to 2% \u201chas a long way to go\u201d<\/p>\n<p>2. Nov. 21: \u201cNo indication of rate cuts at last meeting\u201d<\/p>\n<p>3. Dec. 1: Talks about rate cuts are \u201cpremature\u201d<\/p>\n<p>4. Dec. 1: \u201cWe are prepared to tighten policy further\u201d if needed<\/p>\n<p>5. Dec. 13: Rates\u2026<\/p>\n<p>\u2014 The Kobeissi Letter (@KobeissiLetter)\u00a0<a href=\"https:\/\/twitter.com\/KobeissiLetter\/status\/1735740412789248302?ref_src=twsrc%5Etfw\">December 15, 2023<\/a><\/p><\/blockquote>\n<hr \/>\n<p>The stock market exploded to all-time highs and interest rates plummeted. This seems odd, when more than half the country is struggling to put food on the table. It\u2019s almost as if Powell and his pals know something really bad is about to happen and want to front run the event, or, like September 2019, they see something terribly wrong within the financial system and are trying to fix it before it blows up. We do know the Too Big To Trust Wall Street banks have close to $700 billion of unrealized losses on their books due to interest rates hitting 16 year highs. We also know these banks have been increasingly utilizing the Fed\u2019s emergency facility every day.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/graphics.reuters.com\/BRV-BRV\/znpnzwrnrpl\/chart.png\" width=\"516\" height=\"364\" \/><\/p>\n<p>All it would take is some sort of emergency, whether global crisis, natural disaster crisis, or war breaking out between global powers, to start a run on the banks. If that were to happen, those unrealized losses would become realized, and the entire financial system would begin to collapse. Is that why Powell and the Fed are now desperate to drive interest rates lower, in order to eliminate those unrealized losses before they become realized? Whatever the reason, they are trapped. Drastically lowering interest rates will just reignite inflation again. It looks like Powell has chosen inflation rather than deflation as we spiral into the abyss. Enjoy the show and buy more ammo.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/thumbs.dreamstime.com\/b\/cosmic-art-poster-captures-mesmerizing-beauty-deep-blue-abyss-vastness-space-swirling-nebulae-distant-stars-276448939.jpg\" width=\"514\" height=\"297\" \/><\/p>\n<hr \/>\n<p style=\"text-align: center;\"><em>I think it\u2019s time we stop<\/em><br \/>\n<em>Children, what\u2019s that sound?<\/em><br \/>\n<em>Everybody look what\u2019s going down<\/em><br \/>\n<strong>&#8212; Buffalo Springfield<\/strong><\/p>\n<hr \/>\n<p>___<br \/>\n<a href=\"https:\/\/www.theburningplatform.com\/2023\/12\/15\/theres-something-happening-here\/\">https:\/\/www.theburningplatform.com\/2023\/12\/15\/theres-something-happening-here\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>THERE\u2019S SOMETHING HAPPENING HERE\u2026\u2026.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-200223","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/200223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=200223"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/200223\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=200223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=200223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=200223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}