The system is teetering on edge, and nearly everyone in the financial sector is waiting for one decision – will the Fed finally raise rates?
Ron Paul has made a bold prediction that the Federal Reserve likely will NOT raise interest rates, something which would have enormous consequences in the market, because it is hesitant to do so with so many negative risk factors the market already faces.
Fed Chair Janet Yellen – and most in the financial sector – know how much is impinging upon the possible decision to raise rates after years and years of quantitative easing have pushed the limits of stimulating the economy. According to CNBC:
By Paul’s reasoning, the Fed is too scared to raise interest rates in the middle of an already weak recovery and risk sending the U.S. economy back into recession, or worse… The Fed chief “does not want to be responsible for the depression that I think we’ve been in the midst of all along,” Paul added. “Everything is vulnerable, so we’re living in very dangerous times,” Paul added.
The banks have basically become junkies to constant cheap money, and QE3 has gone so far over the edge and upside down that pensions, insurance policies and savers can no longer earn future value through basic investment.
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