Reality Check Fed Can’t Raise Interest Rates Until Its Hand Is Forced

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IT’S BEEN SEVEN YEARS and the Federal Reserve has still not raised interest rates.  Yet all this time, the mainstream financial media and pundits keep buying the same rhetoric that they will probably do it each time the discussion comes up.  If there was an obvious reason why the mainstream financial world can’t seem to figure out why it’s not happening…this is probably it.

They simply do not have a fundamental grasp required to understand what is really happening in the world of currency creation, debt creation, big government, and spending.

Heck we’re not even sure we completely understand it.




This article is long overdue.

The Federal Reserve cannot and will not raise interest rates.  They simply can’t.  The best they can do is  temporarily raise the interest rate by a tiny token amount to save face. But that’s all they’ll probably do.  And it won’t stay that way for very long before the Fed brings those interest rates back down again.

Strategic Stalling seems to be the name of the Fed game.  But that’s all it is…a nervous game to keep people guessing so they don’t panic all at the same time.

Money Uncensored  has stated this obvious fact to public audiences and radio audiences for several years.

There was a time when the Fed could have raised interest rates significantly after the 2008 crisis…with the least amount of consequences. But that time is long gone.

Take a look at this chart of the overall U.S. Currency Supply.  It’s a replica of information provided by John Williams of Shadowstats.com

M3 Money contraction and inflation

The red area shows the amount of base money created by the Federal Reserve since 1960 in trillions of dollars.  The blue are shows the amount of currency our bank deposits and bank borrowing / lending (M3) has created since 1960 in trillions of dollars.

It clearly shows that since 2008,  our bank deposits and bank borrowing / lending has  significantly dropped.  It also clearly shows that the Federal Reserve has printed more base money in the last seven years to artificially prop up the currency supply than the previous 200 years combined.  Let that sink in.

We are all living under a massive debt bubble spurred on by over a decade of questionable Fed policies and of course the sub-prime lending fiasco which came to an unprepared global capitulation in 2008.

To raise interest rates is to invite that debt bubble the opportunity to burst and for more unprepared people to suffer tremendously.

And now China is getting into the base currency devaluation game as their economic reality sets in.

Marc Faber spoke with Bloomberg TV on why he thinks the Federal Reserve will take no significant steps towards raising interest rates. Marc predicts the Fed will not commit to any steady schedule of rate hike increases and that a fourth round of quantitative easing is coming soon.  Money Uncensored also believes the same thing based on the data.

They cut interest rates to zero in December 2008, so in three months time we will have the anniversary of almost seven years of almost zero interest rates. What I’m saying is that this has created a lot of distortions in the system, and I believe we’re going to pay for it…”

He is not the only one predicting this.  Peter Schiff is predicting this.  Gerald Celente is predicting this. Michael Maloney is predicting this.  John Williams is predicting this.  A whole slew of awakened financial researchers understand this issue.

The debt bubble will pop one day.  It’s going to be ugly.   Be prepared.  Protect your wealth.

Here’s the interview by Marc Faber.

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About Author

Leslie Michael Jr. was born and raised on the Westcoast of British Columbia, Canada. He is a lecturer of Money Uncensored, a series of presentations designed for North Americans and people from around the globe to better understand the financial direction this world is headed and what they can do to protect themselves financially.