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[–] 1 pt

https://poal.co/s/Economics/341880

The gargantuan trade deficit is a byproduct of the insanity of central economic planning. Let’s follow the fake money and see where it leads…

The Federal Reserve creates credit from thin air and loans it to the U.S. Treasury in the form of Treasury bond purchases. At the same time, commercial banks extend credit via fractional reserve banking. The Federal Reserve encourages the over issuance of credit by artificially suppressing interest rates for extended time periods – often a decade or more.

This continuous flood of credit – the flip-side of debt – finds its way into stocks, real estate, and foreign made imported goods. Some of it even finds its way into the absurdity of 75-inch flat screen televisions with sound bars.

Surplus trading partners, like China and Japan, then recycle the dollars back into U.S. Treasuries, thus, perpetuating greater debt creation – and an ever expanding trade deficit. Many countries also engage in competitive currency devaluations – made possible by fake money – to garner a trade advantage.

The trade deficit, you see, is a function of fake money and expansive fiscal and monetary policies. Without fake money, the trade deficit never could have blown out to today’s extreme, $71.1 billion monthly imbalance.

....

How long can this printing press money induced, lopsided trade insanity last?

When the dollar collapse arrives, and trade recedes, the mega ports complex will quickly slip into disrepair and decay – perhaps, indefinitely.

....

THAT, is the real question, the rest is a BTFD side show

[–] 1 pt

It's going to be interesting.

I'm sure the Fed is under enormous pressure to not raise rates. The servicing of the US debt is already crazy, but add a couple more points to the rate? They are fucked.

So inflation will hit and the fed will be very limited how high they can raise rates to stop it, and even a moderate increase will likely cause a huge stock sell off.

[–] 0 pt

Yes

The moment there's an actual rate raise, not a maybe, not a charade; an actual raise

At that moment, the plug is pulled

>even a moderate increase will likely cause a huge stock sell off.

https://youtu.be/524pt_xss5o?t=217

[–] 0 pt

lol...

Yep. I hope people are positioning themselves for it, but I know most aren't. Hell look at all the idiots on RH over at WSB. Sure some are turning thousands into a million but much more and losing it all, and you know it is way more than those who are posting about it.