It’s hard to defend the actions of the Federal Reserve right now. The people who propped up the economy under President Obama seem determined to destroy the economy under President Trump. But we know that the Federal Reserve is apolitical. Sure we do. However, there may be some unintended consequences of the current Federal Reserve actions.<\/p>\n
The Gateway Pundit<\/a> posted an article today which explains some of those consequences.<\/p>\n The article reports:<\/p>\n The Chinese were relentless in their efforts to obtain Western technology and grow their economy.\u00a0 They set up trade barriers and manipulated their currency in ways that helped China. The US was at a disadvantage in trade resulting in massive deficits into the billions.<\/strong><\/p>\n Along comes the Trump Administration, the first administration to address China\u2019s unfair trade advantage.\u00a0 President Trump is a shrewd negotiator and he obviously believes now is the time to encourage China to make changes to their trade barriers with the US.\u00a0 China may have no choice but to go with what the US offers to keep its economy afloat.<\/strong><\/p>\n The more pressing issues for China surround real estate, in a manner similar to the US in 2008.\u00a0<\/em> As China grew, it invested in its infrastructure and in addition it invested in large housing projects throughout the country.\u00a0 These efforts helped bolster China\u2019s already fast growing economy.<\/strong><\/p>\n The problem is that China over invested in these random properties all over China and these properties today remain empty. <\/em><\/strong><\/p>\n …Now to add to China\u2019s misery, the Fed is doing all it can to kill the US economy.\u00a0 China is dependent on the US economy to stay afloat.<\/strong><\/p>\n …The US debt now stands at $21.8 trillion. A 2.25% interest increase on this amount of debt is an annual increase in debt interest payments of $500 billion!!!<\/strong><\/p>\n The Fed is doing all it can to destroy President Trump\u2019s economy. What the Fed doesn\u2019t realize is that a flat US economy means disaster to the Chinese.<\/em><\/strong><\/p>\n China\u2019s financial crash may make the 2008 crash in the US look small.\u00a0 The implications will no doubt impact the entire world.\u00a0 Jerome Powell at the Fed has no idea what he is doing!<\/strong><\/p>\n Hang on to your hat, if the Federal Reserve continues on its current path, this may be a very bumpy ride.<\/p>\n It’s hard to defend the actions of the Federal Reserve right now. The people who propped up the economy under President Obama seem determined to destroy the economy under President Trump. But we know that the Federal Reserve is apolitical. … Continue reading