Central Banks and Interest Rates

The FED Controls nothing...

As long as the consumers have the ability to request more and more and more...The FED is forced to give them more and more...And when the consumers can not or refuse to request more and more and more...The FED will be forced to give them less and less...


Rates follow the economy...Rates rise when the consumpton of credit slows...and Drop when the consumption of credit accelerates.

Credit/debt...is a product...

The FED follows the bond markets.

Rates inverted before the 1999-2003 collapse...

The Japanese rates follow the economy as well...

No central bank sets rates...If central banks had the ability to set rates...They would have set them decades/centuries ago and been done with it.

The economy (basically all of you on planet Earth currently) set the rates...All those that claim that they are setting or have the power to set rates are lying and you all are believers of the lie.

The top sees the information in real time...They see when the bottom is slowing down or speeding up consumption before the bottom knows what is going on...

When the bottom begins slowing down...The top says that inflation is a problem and that they are raising rates...and when the slowdown begins reaching maximum potential...The top says that deflation is a problem and that they are lowering rates...

The top does not work...The bottom does all the work...and the top takes credit for it...Unless of course the result of taking credit is unrewarding...Then the top blames the bottom...


The yield curve is inverted...for the past 50 years of data that has preceeded all recessions...

Top buys and sells...Top has been slowly positioning themselves into bonds out of equities for months...Must be reaching the end of the process...

When bonds get bid down in price yields rise...When bonds get bid up in price yields drop...

The top is and has been getting into position for the bond bull/equities bear that is going to follow the bond Bear/equities bull...You buy bonds when the yield is highest and sell bonds when the yield is lowest...To maximize profit...The top says...You all better buy and hold...When they who have already bought and been holding need to sell and drop...

And when all the buyer and holders begin selling and dropping...The top buys and holds...

TO MAXIMIZE PROFIT...or Yield


Japanese economy is Export to the USA based...They are wholesale while the USA is the retail distribution outlet.

The official discount rate of the Bank of Japan is 0.1%...If rates in the USA were forced to 0%...that would mean a -0.1% profit in the carry trade...The Japanese central bank discount rate woul have to drop lower than 0% to obtain a carry trade profit...one slight problem...A yield of zero and below zero are profitless.

Finance rates of 0% is a sign of doomsday...since it's a last ditch effort to sustain businesses in the hopes that good times return...They are not going to...rates have been dropping for over 20 years...past zero and you have negative yields...

How much profit do you yield right now?....How long could you survive with zero or negative yields?

You are all staring at the end of civilization as you know it but are oblivious...

You will all wait around for a lifeboat wondering when you are going to get access to one...You all will not realize it's game over until you are in the water thrashing around crying for salvation...

Really...

Our ancestors chose to march to doom glee...you all did not...all you all did was choose to pick up where they left off is all...This has been going on for 1000's and 1000's of years now...