Market Watch: With three weeks left until the end of 2018, both the Dow Jones Industrial Average and the S&P 500 are mired deep in the red. And it will be essentially up to the Federal Reserve to determine whether the stock market will extend its winning streak for a third year or take a breather.
Stocks have been on a wild ride recently, sandwiched between the harsh realities of a prolonged trade war with China and hopes that the Fed will back off from its tightening bias.
Opinion: The Fed for help?
It was on October 3, 2018 that Federal Reserve Chairman Jerome Powell said “we’re a long way from neutral on interest rates”. On the day those 9 words were spoken, the Dow Jones Industrial Index of 30 stocks stood at 26,774, notwithstanding trade tensions with China.
Yesterday the same Dow Jones Index closed at 24,423 or a drop of 2,350 points or 9%. The Fed then made matters worse and threatened to raise interest rates 3 to 4 times in 2019.
The Fed is unconstitutional. It usurps Congressional authority and has, over time, been anointed with more power than the Congress and the president of the United States. The Fed’s balance sheet has never been audited by Congress, and answers to no government department when deciding monetary policy.
The 2008-9 money printing scheme (QE) that the Fed dreamed up put $4 trillion counterfeit dollars into circulation in the US, making the value of the dollar virtually worthless. The dollar is held up only because the rest of the world’s currencies are in so much worse shape.
I don’t know when, but one day the Federal Reserve and its counterpart the European Central Bank (ECB) who employed the same money scheme, just may decide to merge their respective currencies to support a new rising European leader. There will be nothing any government will be able to do to stop it.
Who controls the money controls the world.