Opinions are like assholes these days, everybody’s got one… Correction, nowadays everyone has more than one. Opinions on the near-term direction of our financial markets and the overall sustainability of the U.S. Economy are literally all-over-the-place! I can’t think of a time when I’ve watched this many pundits express this wide a range of views. And most of them I don’t believe. I’ve heard predictions [on this economy] from doomsday is right around the corner to get your money back out because a roaring bull market is about to unfold. So which is it guys? Well, I have my own opinions, should I dare share them? Before you throw things at your computer screen [you’ll regret] trying to shut me down please let me explain… and the least you could do is hear [me out] for one more worthless opinion? 🙂

This whole thing bothers me, hence my re-visiting of the subject matter. How can so many market pundits be confused these days? Why can’t market strategists call U.S. markets anymore? I’ll tell you why – look no further for the answer than our Federal Reserve Board (the Fed). The problem lies in what our Federal Reserve is currently doing and has been doing ever since the Biden Crime Family entered the White House. The Fed has confused the financial markets and the pundits who usually make great calls on U.S. financial markets because it’s their job… but now they can’t do their job [effectively] while the Fed is actively playing both sides of the fence – tightening rates while maintaining a gargantuan over-stimulus of our money supply. Case in point, the Fed was still purchasing Treasury securities and expanding their balance sheet well into their aggressive rate tightening campaign. For those of us who were lucky enough to pass a college course titled “Monetary Policy”, we know that these two policies counter each other, effectively cancelling out the overall effect of one another. Very strange indeed but I’ve never ever seen these two programs work in tandem with each other, or even pursued simultaneously in the past. So why would our Fed be doing this? There’s only one answer that makes any sense – the Federal Reserve Board is playing politics, pure and simple. They have effectively dampened down their own tightening cycle which was designed to crush inflation. What they are attempting here is effectively impossible to engineer [with any controls in place]. Any soft landings that occurred in U.S. history, although very rare, were random events at best. You can’t engineer a soft landing, I mean if/when it happens that’s great but there’s no such thing as a recipe for a soft landing in order to avoid an all-out recession. I guess these Fed officials are so afraid of losing their own jobs [for such a lousy performance] they would rather risk the country falling into a recession than accomplish much of anything on the inflation front? It’s become exceedingly clear that our Fed is embroiled in a game of pure politics, a recipe favoring those in office, this gang of far-Left radicals known as today’s Democrats.

So is this going to be a “soft landing” or a “hard landing”, a.k.a. a recession? The canned answer, the consensus continues to be, “it’s too early to tell”. It’s actually not to early to tell what is happening here. I’m going to tell you exactly what is happening here – the Fed is playing both sides of the fence which is confusing the hell out of everyone who must live and die under this regime, those producing goods and services for consumption as well as those that consume goods and services. The Fed has left no one out of this confusing mess!

Should the air ever escape the money supply balloon that the Fed has nursed, coveted, and protected for so long I feel we all may be fuked! Since IMO the time has come and gone when our Leftist-driven Fed could have allowed the economy to enter into a [mild] recession and stamp out this runaway inflation. That window [from late last year thru early this year] has closed, so opportunity lost. Now we’re in the late innings of the game they’re playing and they better have a plan because honestly I only see one solution to this potential problem once they are forced to let the air out of the money supply balloon [they themselves created]. Why is that? Because inflation will never go away by following their current course of action, never. It could even re-accelerate, and that’s the issue. Just like a wound that never healed, inflationary pressures are never going to heal without this Fed first facing some realities…

I have stayed with and never changed my original prediction from my writings on this subject, you can check those out on brantology.com. That is to say, the original terminal target rate on this tightening cycle [according to pundits] I believe was 4, maybe as high as 4.5%? Guess what I said when the Fed embarked on this tightening cycle? I stated to the contrary their terminal rate will not be 4% or 5% or even 6%. The terminal rate will climb to 7%! That’s right, how would you like to make 7-8% annual interest on your fixed income portfolios? Many of us would, I’m certain of it. Since then, the Fed’s rate hikes have already blown right through a 5.5% fed funds handle [target], it may even be slightly higher than this by now, I can’t be certain. Still, given the never ending path of pro-inflation policies coming out of this incompetent WH administration my 7% prediction is not looking too outlandish these days, now is it?
Signed: LMAO @ Democrats Daily!