The FED…QE to Eternity coming Anyone astute enough to analyse the various economic statistics of the US and the West know that we are already into a recession.
US GDP contracted in Q1 and the data so far in Q2 is showing further deterioratin .
EU is already in a recession.
Any fool knows that high inflation robs the consumer of disposable cash and consumerism constitutes 70% of GDP growth.
Of course , the black swan is the massive US debt now exceeding $30 trillion.
Higher interest costs mean the Govt has either to borrow more or cut expenditures.
No way are the commies going to cut expenditures.
So, what is the game plan here.
The FED just raised interest by 75 BO with perhaps another increase several months hence.
By then , the recession will be too substantive to cover up.
So, having raised interest rates by 100 BP or so , they now have a few bullets to reduce interest rates to zero or less later in H2.
Having been burned twice by raising interest rates, expect to see resumption of QE to eternity.
$200 oil by exit 2022..