• TennHedge

The Fed Can Never Raise Rates Again

Tonight, I want to get a point across that you are not going to hear from any mainstream financial news outlet: the U.S. Federal Reserve will never be able to "normalize" interest rates in your lifetime.

The Federal Funds Rate has been near 0% for over a decade now, and you will see in the chart below that every time the Fed attempts to "normalize rates," they quickly reverse course because it causes a market crash/economic panic. There is now too much debt in the world for rates to ever normalize, for if rates were to rise, causing debt to be more expensive to service, the ensuing situation could then cause a global depression.

Here is a historical chart for interest rates:

Guess where this chart is headed? That's right, negative rates are on the way. The Fed can say whatever they want, they know negative rates are headed to the United States.

Modern monetary policy is stuck an endless cycle of debt and money printing/currency debasement. The only outcome will be a domino effect of defaulting sovereign banks and failed currencies until governments finally realize the fiat experiment isn't working. Eventually, we are going to have to move back to some kind of sound monetary standard, and we may have to reach that conclusion the hard way - through more global economic stagnation.

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You should always consider seeking financial advice from a licensed advisor before making decisions with your money, and you should not consider anything I write as financial advice but merely my opinion. Getting your financial house in order is a prerequisite for Bitcoin saving, in my opinion.

Disclosure: nothing in this article should be considered financial advice and I am not a financial advisor. Do your own research as everything in finance carries risk.