7/31/2018 – A positive day with the Dow Jones up 108 points (+0.43%) and the Nasdaq up 41 points (+0.55%)
Thus far, the market action has been consistent with what we have discussed in our weekly update.If you would like to find out what happens next, in both price and time, based on our timing and mathematical work, please Click Here
As we have covered before Trump Becomes An Inflation Expert Overnight – Launches Unprecedented Attack On The FED
Ron Paul has excellent point of view on the subject matter as well and I highly encourage you to read it in full.
Trump’s Tweets End the Myth of Fed Independence
President Trump’s recent Tweets expressing displeasure with the Federal Reserve’s (minor) interest rate increases led to accusations that President Trump is undermining the Federal Reserve’s independence. But, the critics ignore the fact that Federal Reserve “independence” is one of the great myths of American politics.
When it comes to intimidating the Federal Reserve, President Trump pales in comparison to President Lyndon Johnson. After the Federal Reserve increased interest rates in 1965, President Johnson summoned then-Fed Chairman William McChesney Martin to Johnson’s Texas ranch where Johnson shoved him against the wall. Physically assaulting the Fed chairman is probably a greater threat to Federal Reserve independence than questioning the Fed’s policies on Twitter.
While Johnson is an extreme example, history is full of cases where presidents pressured the Federal Reserve to adopt policies compatible with the presidents’ agendas — and helpful to their reelection campaigns. Presidents have been pressuring the Fed since its creation. President Warren Harding called on the Fed to lower rates. Richard Nixon was caught on tape joking with then-Fed chair Arthur Burns about Fed independence. And Lloyd Bentsen, President Bill Clinton’s first Treasury secretary, bragged about a “gentleman’s agreement” with then-Fed Chairman Alan Greenspan.
As always, Mr. Paul is dead on the money here.
Yet, here is what almost all observers are missing about today’s environment.
First, the FED is raising interest rates to re-load for the next recession and market bloodbath. They know what they have done, what’s coming and what they need to do now in order to soften the blow.
And should they fail to re-load, the next recession or “Everything Bubble” implosion will end the USA as we know it.
Second, as we have discussed before FED Powell Confirms – Yield Curve Inversion Imminent, it no longer matters if the actual yield curves inverts or not. The damage has already been done by flattening and it is only a matter of time before the mother of all recessions hits Mr. Trump’s perfect economy.
Our timing and mathematical work tends to confirm all of the above. If you would like to find out exactly when the stock market will crater, in both price and time, please Click Here
