Just as I've been predicting for months. The U.S. economy is in an artificially engineered and maintained depression, the Fed's easy money gravy train artificially inflates the stock market to conceal that fact, and raising interest rates for the first time in seven years would rip away that monetary camouflage, collapse the Dow, and bring that Obama Depression right out into the open. And The One isn't ready to do that yet, so Janet "Old" Yellen has kept interest rates subterranean:
Federal Reserve officials left interest rates unchanged, opting to delay an increase amid stubbornly low inflation, an uncertain outlook for global growth and recent financial-market turmoil.
“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,” the Federal Open Market Committee said in a statement Thursday in Washington.
The psychology of this is simple, or at least you'd think it would be: Keep rates at zero, and the Dow keeps soaring ever upward for no good reason; raise rates, and "the walls come a-tumblin' down".
That, however, is not the reaction Old Yellen's announcement produced:
U.S. stocks ended lower, after swinging between gains and losses, as the Federal Reserve’s decision to keep interest rates near zero percent raised questions about the strength of the global economy.
The Fed kept its policy interest rate unchanged, showing reluctance to end an era of record monetary stimulus in a time of market turmoil, rising international risks and slow inflation at home. Stocks erased an advance after Chair Janet Yellen indicated that risks in the global economy overshadowed signs of strength in America while inflation remained stubbornly low.
“It’s a bit of a tussle,” said Carin Pai, director of equity strategy at Fiduciary Trust Company International in New York. Her firm manages $17.4 billion. “If they don’t raise rates and continue to hold off on raising rates, what does that say about the economy? That it’s not strong enough to withstand an interest rate increase. That’s what the market is grappling with right now.”
For the proverbial "man behind the curtain," the worst question for people to start asking is, "Why?" That appears to be what is finally happening after seven years of this monetary crack addiction. People are starting to ask, "Why?" Why has the Fed kept rates at zero for seven years? What does this mean about the REAL state of the U.S. (and global) economy? Could it not be as rosy as President Successful has been assuring us for all these years?
"Why?" means that people may finally be seeing through the camouflage. That means that keeping interest rates at zero is now communicating that, in reality, America is mired in an economic depression that never ended over six years ago. And if that's the case....
Well, it means that the collapse is coming, soon, and Barack Obama won't have to get his fingerprints directly on it by proactively triggering it.
Hey, there was supposed to be a huge calamity this month. There are still two weeks left to go.