Yields, Dollar Slide As Trump Calls For QE4

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Zero Hedge: Before any Fed officials get the idea that Friday’s stronger-than-expected headline jobs number (which, as we pointed out, actually masked signs of pervasive weakness in employment in wage growth) might justify raising interest rates again in the not-too-distant future, President Trump slammed the central bank during comments to a group of reporters in Washington.

Instead of sticking with its “pause”, Trump said the central bank should instead “drop” interest rates, something that markets have already priced in, adding that the central bank has “really slowed” the American economy.

Setting aside the cognitive dissonance between these comments and Trump’s repeated claims that the US economy is doing “really, really well” and that companies are preparing to announce that they’re “coming back” to the US. more …

Opinion: The Fed’s gyrations since October 3, 2018 have been erratic and confusing.

  • October 3, Fed says economy is strong and interest rates are no where near normal. Will raise rates at least three more times – global stocks plunge
  • November 28 Fed blinks and and sees global showdown – global stocks continue to plunge
  • December 24, stocks drop reaches 20% in US
  • December 27, Stocks rebound on Fed talk of keeping interest rates steady.

Now White House economic advisor, Larry Kudlow, is calling for a 1/2 point drop in interest rates while the president calls for QE 4. There is either something scary coming or the government is so intent on growing wealth that creating a monstrous bubble of counterfeit dollars and debt is worth the risk.

The danger here is that when a government prints new money it devalues existing dollars, causing its citizens to use more and more money to buy the same goods and services. It is hyperinflation and it can happen suddenly bringing the prophecy of the Black Horse into view:

“So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius (1 day’s wages), and three quarts of barley for a denarius (1 day’s food); and do not harm the oil and the wine” (the wealthy scarcely feel the pinch). Revelation 6:5-6.

 

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