Over the last few articles I wrote, many Q Treepers discussed the fact that the Federal Reserve tried to destroy our economy in 2018. Four consecutive quarters of 0.25 interest rate increases. Quantitative tightening of $50 billion dollars each month throughout the year.
From the article linked above:
The Fed, of course, has been raising interest rates, including four increases last year, which unnerved many investors. These days, though, the focus has shifted to what the central bank will do with another tool it previously used to stoke economic growth.
As part of its campaign to rescue the economy after the 2008 financial crisis, the Fed bought enormous quantities of bonds issued or guaranteed by the federal government. Now the question is how quickly, and by how much, it will shrink that pile.
Once an area of interest for only the most intrepid of Fed watchers, the bond portfolio has started to overshadow more fundamental economic concerns, like China’s slowing economy and the government shutdown. Since last year, the Fed has been reducing its bond stockpile by up to $50 billion a month.
Investors increasingly point to the trend to explain the ugly performances of virtually every kind of investment in 2018. Even President Trump weighed in, tweeting in December that the Fed should “Stop with the 50 B’s.”
They caused a major drop in our Equity Markets during the months of October through December. They were successful in lowering our 4th Quarter real GDP rate from 2.6% to 2.2%. They were successful in keeping our Annual real GDP rate under 3.0% (it came in at 2.9%).
They weren’t successful from Q4 2017 to Q4 2018, real GDP still gained 3.0%, up from 2.5% in 2017.
Or in us setting a record for the first time.
They weren’t going to stop until they took a look around the world and realized that the Global Economy was being destroyed because of their decisions.
Keep in mind that China manipulates their real GDP rate.
Our President and his Killers have them exactly where they want them. There won’t be any rate increases in 2019. Quantitative Tightening has been put on hold. As a matter of fact, our Killers are calling on the Fed to cut rates.
White House economic advisor Larry Kudlow made some news the other day when he said he would like to see the Fed cut interest rates by half a point (.50%).
It sucks when your entire existence is predicated on the Global Economy. They weren’t prepared for a President that doesn’t give a rats ass about the Global Economy. America First is his only priority. Now he is going to use the MORONS to add fuel to our Economic Train.
Lets take a look at the Stock Market from this past week.
- DJIA – up 1.67% this week & up 11.15% YTD
- Nasdaq – up 1.13% this week & up 16.49% YTD
- S&P 500 Index – up 1.20% this week & up 13.07% YTD
- Russell 2000 – up 2.25% this week & up 14.18% YTD
Winning never felt so good!