Elaine Meinel Supkis
After the press got Wall Street excited about no more interest rate hikes, the Fed raises interest rates yet again. This is because, as usual, wars and oil together create tremendous inflation and it has barely begun. This is why the price of gold is shooting up in value.
By Nell Henderson
Washington Post Staff Writer
Wednesday, May 10, 2006; 4:06 PMFederal Reserve officials raised a key interest rate again today and signaled that they have not decided whether they will move it still higher in coming months to make sure rapid economic growth does not push inflation higher.
Stock prices fell right after the Fed announced its decision and released a statement, disappointing investors who had hoped for a clear sign the Fed would likely pause in June and leave the rate unchanged after nearly two years of steady hikes.
Traders work on the floor of the New York Stock Exchange, Tuesday May 9, 2006. Stocks were little changed in early trading as Wall Street awaited news on interest rates, although a profit warning from Dell Inc. weighed on the Nasdaq composite index. (AP Photo/Bebeto Matthews) (Bebeto Matthews - AP)
But stock prices quickly rallied, then dropped again, then rose again as investors reacted with confusion to the Fed's message that it was keeping its options open.
Investors confused? Hahaha. Like horses when a barn burns down, they can smell the smoke and see the flames but safety is inside the barn. This is why one has to blind the horses by throwing towels over their eyes in order to lead them away. Often, they escape and run back to the barn.
At the same time, the FOMC suggested that it does not know how many, if any, more hikes are in store, and that it may pause at its next meeting in June. The committee "emphasizes that the extent and timing of any such firming will depend importantly on the evolution of the economic outlook" in response to new data.
Every meeting now, they proclaim they are most likely done with raising rates so the party goes on. Of course, rates must rise! I certainly resent putting money away only to see inflation eat every penny! This is ridiculous. Only the Japanese banks can do this. And they do this for malicious reasons: to kill American competition. But our media and rulers never ever talk about that.
Just two days ago, I read a stupid pundit proclaim that everyone knows now, for certain, that recessions and high inflation are accidentally coincidental with high energy hikes. This was statistically proven by himself and his fellow idiots by the fact that the dollar loses value BEFORE energy goes up in price. Of course, this is due to the fact that all energy price hikes followed on the heels of wars.
And wars are the ultimate destroyer of everything including currencies.
Many countries are now raising interest rates. Of course, Europe isn't being hit by high energy costs only because they made energy dear in the first place. But Putin is now taking orders in euros so when he raises rates, it is doubly so for us. Namely, he is the key to the world energy/dollar markets and this month our oil besotted rulers decided to openly attack Putin.
He will retaliate. No ifs, ands or buts. And unlike us, he won't do it with bombs but with the ultimate weapon: currency differentials. Hoo ha. HE has a POSITIVE FOREX! That is significant. We are the paupers begging for all the world's investments to be for us and demanding all world trade happen with our messed up currency.
This is ending. We may end up like the mighty peso. Serves us right.
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