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Dumb or Dumber – The Fed or The Investor

In 1994, the Farrelly Brothers came out with one of their classic movies Dumb or Dumber. Who knew that they were actually talking about the future – the FED and the average investor? The title certainly fits the current economic conditions and the people in charge.

Market fundamentals have gone by the way of the horse and buggy,  economic growth, capital spending and jobs are no longer important to the economy, the entire system is based on whether or not a FED Governor farts, burps, smiles or puts their hands in your pockets. All markets are no longer dependent on growth and profit they are solely dependent what the clueless and incompetent from the Federal Reserve will do.

The greatest Ponzi scheme of all time is being run by the bubble builders at the Federal Reserve. It’s amazing watching the scheme of the FED, they send out a test balloon talking about rate hikes and look for a stock market reaction. Ben Bernanke was prepared to hike in May of 2013, the markets balked in what is now known as the taper tantrum. Ben Bernanke backed down and all was well the markets rallied.

The manipulative FED has sent out Bullard, Lockhart and a few others to state the Hawkish case. Throughout the speeches the markets remained range bound, in fact the markets stayed within a 2% range for 40 days. Apparently the FED felt they were in the clear and hiking rates was a real possibility until Friday September 9th when the markets realized that the FED was serious and the meltdown was on.

On Monday, Lael Brainard came out and said “Still-muted inflation and uncertain developments ahead "counsels prudence in the removal of policy accommodation,"  and  "I believe this approach has served us well in recent months, helping to support continued gains in employment and progress on inflation." What a Croc of crap. The FED is single handidly taking down the financial system it was meant to save.

The destruction of the financial system orchestrated by the Federal Reserve will lead to catastrophic events, bubbles pop and the FED is clueless with no credibility. The FED keeps changing their targets and refuse to do what’s best for everyone which is to raise rates and open up the liquidity for the everyday small business. Without the middle class and the entrepreneur the economy is doomed to fail.

Investors chase the FED around and hang on every word not realizing they are being led to slaughter once again by the bubble built by the FED Ponzi scheme. The Farrelly brothers are geniuses who predicted the future with Dumb and Dumber.

Todd Horwitz
Chief Market Strategist


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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