All eyes are on the Fed today. But should they be? I mean come on, we all know what the setup is here. At least if you have been subscribed to Trading With Cody you do. Let me try to rephrase this global monetary set up in as few of words as possible.
Number 1, and most important, we are in a global currency war that is essentially a race to devalue every major currency in the developed world. After decades of this global currency war, we have gotten to the logical end game in that many governments now borrow money at negative interest rates and even some corporations too. The banks cry about zero percent and negative interest rates like Br’er Rabbit in the briar patch. Always remember that the banks own, literally own, the Federal Reserve. We also know that the Republican Democrat regime is owned by giant corporations in those same banks. The Fed doesn’t want to create a spike in the dollar which is likely what would happen if they were to actually raise interest rates here in the U.S. So, I figure we will have more of the same today that we have had for months, nay years now—no way the Fed raises rates, but they will propagandize and threaten to raise rates with rhetoric.
What about the markets and how they are set up into this meeting today? Assuming that the markets are discounting what everybody I know says, the market is already discounting no rate hike. I would think that it would be more likely to see the market sell off after today’s Fed announcement even if the actual result is no raise in rates. And if the Fed were to raise rates, I think at least intraday and probably for the near term over the next few weeks, stocks would probably sell off and I would probably be looking to buy.
I was working last night til 8:30 p.m. at which time I took over for Amaris until 4:00 a.m. and I left for a University of New Mexico Alumni Board finance committee meeting at 8:00 a.m. Amaris and her older sister Lyncoln are doing great and I am pretty sure they are both in a “daddy is the best” phase right now. Anyway, it will be interesting to hear what the finance committee and our advisors are worried/excited about. I haven’t gotten to attend a finance committee meeting since Amaris was born which underscores how well she is doing today.
Let’s move this live Q&A chat to tomorrow afternoon at noon ET.