I know what he is smoking

Depression is coming.

(Reuters) – The Federal Reserve will keep interest rates near zero until it is confident the U.S. economic recovery has taken hold, a top Fed policymaker said in an interview on Tuesday, reinforcing the central bank’s view that there would be a “considerable time” between the end of bond-buying and a move to tighten policy.

“We will hold the base rate at a low range until we’re certain the recovery is well under way,” Richard Fisher, president of the Federal Reserve Bank of Dallas, told Reuters.


Obviously someone does not take note of history, nor current data coming out of the US. I often wonder whether anybody in any Central Bank has taken the time to read Adam Smith. That invisible hand is at work, free capital is moving thanks to lower commodity prices and the deflationary effect of the QE in Europe.

Strengthening of the USD will have a marked affect on future exports and earnings.

On data published it would not surprise me if the US is already in a recession.

I will suggest that against a back drop of a recessionary climate in the US and a stronger USD that the Fed Reserve WILL INCREASE interest rates.

That invisible hand is at work.

Note, in fact I will be prepared to put my money where my mouth is!


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