A note recently published by two Federal Reserve economists reveals a looming catastrophe.
The Fed’s interest rate hikes have already precipitated a financial crisis . The central bank managed to paper over that problem and get it out of the headlines with a bailout program . But it didn’t solve the problems. Banks continue to tap into the bailout loans as they struggle in this high-interest-rate environment. And there are even bigger problems on the horizon.
As Peter Schiff put it, the Fed has screwed up everything that is a function of interest rates . With more than a decade of easy money, the central bank created an economy that depends on artificially low interest rates and periodic quantitative easing . It simply can’t function in a high-interest-rate environment. I have been saying that it’s only a matter of time before something else breaks. It appears that economists at the Federal […]
Excerpt Sourced From: ourgoldguy.com