QUESTION: Marty, do you think the Federal Reserve is listening to you when you say that raising rates will not bring down energy prices? Socrates did not show any Directional Change here in October.
Bill
ANSWER: Perhaps. All central banks are caught between a rock and a very hard place. They are expected to raise rates to fight inflation, to sterilize the reckless spending from the politicians who think they can spend whatever they want, and it’s the central bank’s job to neutralize the inflationary effects. Look, this is a serious crisis. I cannot comment on what the Fed is using. I am sure they are aware of our forecasts and they know they really have no tool to actually control the economy
The real reason they cannot publicly acknowledge what I have to say on this subject is because this is a CONFIDENCE game. People need to “feel” someone is in charge like God in haven, but in the economy. If they stood up and said, we can’t control the economy, then government would lose power. They have to keep up the image that they are in control so vote for them and they will always make the world better. Larry Summers admitted they cannot forecast a recession, so how do you prevent something you cannot forecast?
We will deal with this in more detail at the WEC and a special report will be provided since this is a serious question
