the Fed and its banking cartel are caught in a box canyon
they need to raise interest rates so foreigners continue to invest in US debt (oops, I mean securities) but raising rates drives a silver stake through the heart of the real estate market, American consumer and American economy
lowering rates to support the real estate market increases the speed at which foreigners say ‘sayonara, baby!’ to the US dollar, US treasuries and any investment priced in US dollars
the best strategy for the cartel to employ in this situation is to use talk (also known as bullshit), subterfuge, delay tactics and distractions but NOT to actually change rates in either direction – the recent cut of 50 basis points indicates how weak the Fed’s position is at this point
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Paul Volker raised interest rates to 18 or 20% in the late 1980s – that is what is needed now but isn’t likely to happen
