Read my just published article in the March-April World Financial Review, on the coming consequences of the Federal Reserve Bank’s current policy of 3 more rate hikes in 2018 and more in 2019. Why it will take only 3-4 more hikes to precipitate another credit-liquidity crisis, financial instability, and recession in 2019 if the Fed follows through. Fed rate hikes to 5.25% in 2007-08 precipitated (not caused) the last crisis and recession. But it will take rate levels of only 2.5% in the Fed funds rate or 3.5% in the 10 Year Treasury bond rate this time–given the more serious indebtedness of corporations (i.e. ‘fragility’) today, along with household debt leverage now higher than 2007 as well and government debt at $21trillion and set to rise at $1 trillion more every year. The US economy is even more leveraged today than in 2007 (total US debt $50 trillion in 2007; $70 trillion in 2018).
TO READ THE FULL ARTICLE, go to The World Financial Review website at:
http://www.worldfinancialreview.com/?p=28975
Or go to my website at:
The Fed’s rate hikes are insane, ignorant, and stupid, and is a conspiracy to shift income from middle-class to wealthy.
Next time I will say what I really believe.
mz
mikiesmoky@aol.com