THE FED PUTS THE ECONOMY IN REVERSE!

THE FEDERAL RESERVE HAS RAISED THE COST OF MONEY BY .25 WITH A GOAL OF 2% OVER 2 YEARS. THIS IS LIKE PUTTING A CAR IN REVERSE AND HOPING IT WILL GO INTO DRIVE. THE TRANSMISSION CABLE IS BROKEN AND CANNOT BE REPLACED BY A DEFECT PART.

  THIS STRANGE ECONOMIC  PARADOX THAT FEDERAL RESERVE INFLATIONARY GOAL OF  2% IN A DEFLATIONARY ECONOMY. THIS  IS THE START OF A NEGATIVE CYCLE.  THE  FEDERAL RESERVE FINANCIAL CHAIN REACTION IS DESIGNED TO JUMP START A SLOW MOVING TURTLE INFLATION.

WE ARE NOT IN AN INFLATIONARY ECONOMY. WE ARE ABOUT 5 YEARS FROM AN INFLATIONARY ECONOMY. THIS MOVE IS COUNTER-PRODUCTIVE BECAUSE IT DECREASES THE DEMAND FOR MONEY. THE BANKS HAVE NO MAJOR COMMERICAL DEMAND FOR MONEY DUE TO THE FACT THAT THEIR IS NO PRICING POWER AND MORE EMPLOYMENT CUTS ARE THE NEW NORMAL.

THE NEGATIVE CHAIN REACTION WILL HIT THE STOCK MARKET, COMMODITY MARKETS, CURRENCY MARKETS AND INCREASE LOAN DEFAULTS. THE U.S.A. INFRASTRUCTURE IS STILL BEING HELD HOSTAGE BY CONGRESS AND MIDDLE EASTERN MILITARY POLICY HAS COST THE USA ABOUT $ 3 TRILLION DOLLARS. WE ARE NOT IN A NEW ERA:

 WE ARE STILL DELEVERAGING ASSETS! THERE  IS A MIXTURE OF GOOD AND BAD DEFLATION. CHINA IS READY TO EXPLODE DOWNWARD. CHINA CAN ONLY MOVE TO CURRENCY PROTECTIONISM AND INTERNATIONAL TRADE PROTECTIONISM TO PROTECT ITS CONSUMER MARKETS. THIS IS A PROTECTIONIST FINANCIAL CONTAGION.

WE HAVE OVER 1 MILLIONS HOMES IN SURPLUS AND THERE IS NO CONSTRUCTION LABOR AVAILABLE. THE NEW ECONOMIC IMMIGRATION MODEL WILL RESULT IN A COLLAPSE OF UNSKILLED AND SEMI-SKILLED EMPLOYMENT POOLS. THERE IS A MASSIVE SHORTAGE OF UNSKILLED LABOR AND THE MINIMUM WAGE NOW HAS MADE THESE MARKETS HARD TO STAFF. THE AMERICAN UNDERCLASS IS NOW ON WAGE EQUIVALENT ENTITLEMENT BENEFITS.

THE AMERICAN PEOPLE NEED A TAX CUT AND $2,000.00 REBATE FROM THE NEW TAX CODE. THE PROBLEM INHERENT WITH A DEFLATIONARY ECONOMY IS THAT AMERICANS ARE WORRIED ABOUT SAVINGS AND NOT INVESTING.  THE FEDERAL RESERVE DOES NOT KNOW HOW TO PUT MONEY BACK INTO THE HANDS OF THE PEOPLE. THEY CAN ONLY CREATE PRICE STABILIZATION AND SOME TYPE OF DEMAND FOR MONEY. THERE IS NO COMMERICAL DEMAND FOR LARGE LOANS AND CONSUMERS ARE STILL WITHOUT SAVINGS OR HOME EQUITY. THE CONGRESS CANNOT MOVE THE MARKETS BECAUSE THEY HAVE CREATED FINANCIAL GRIDLOCK.