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CHART: The Fed’s Big Dilemma

January 6, 2015

    “Daily Investment Trends for the Savvy Investor”



    Federal Reserve Set to Raise Interest Rates “Sometime” in 2015

    Since 1971, U.S. interest rates (Fed Funds Rate) have averaged 6%. Since 2008, however, the Federal Reserve has held interest rate targets down to near-zero. The Fed justified this extended period of extremely low interest rates as a means of sparking economic growth. However, instead of unleashing genuine growth, the policy has served to discourage saving while enriching the same corrupt money lenders that created the mess in the first place. Ultra-low rates have also served to distort investment expectations and return on capital.

    The Fed has long grappled with how and when to begin raising rates. Most Fed watchers expect the FOMC to begin a methodical increase in interest rate targets sometime in 2015. How will global markets handle these new rate hikes? Many analysts believe that a rate hike will not slow the current U.S. stock rally. We disagree, and expect major turbulence when (and if) the Fed raises rates later this year.

    Investor Wire: Profiting From the Coming Paper Money Collapse

    – Here comes the Saudi dynasty succession crisis

    – China’s economy is getting some much-needed economic relief from falling oil prices…

    – The new leftist political movements spreading across Europe choose Keynes over Marx…

    – Cash-strapped Venezuela reaches out to China, OPEC for economic assistance…

    – Russia announces plans to build a new high speed railway, with trains that would speed from Moscow to Beijing in just 48 hours.

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