Speaking of preservation, the economies of the world are experiencing hyper-inflation to the point whereby the cost of living is severely being impacted. Shortages of products have resulted mainly due to the fact that materials for the means of production have been difficult to attain or the cost of production has made it virtually impossible to sell.

The Central Bankers are the gatekeepers of the economy and the motions they put in place dictating to the rest of us the eventual decisions we make. Excess printing of money combined with massive Government spending has been the primary reason economies are in the predicament we are in today. With little or no accountability nor transparency, people have handed the responsibility for our well-being to individuals that basically have zero qualifications to manage. Any person can run to become an elected official but in the end, they control expenditures of billions with their hands tied by the very powerful people in positions of authority.  Money is Power!

Nonetheless,  there was a lot of anticipation with respect to the Fed Minutes. This is a regurgitation of the meeting and discussion that these people had with respect to the decisions forthcoming. Traditionally, the hyper-inflation we are experiencing today will be fought with an aggressive approach toward increasing interest rates. An analogy that best describes this,  is that of slamming on the breaks of a car to avoid causing more damage. Yet there are always pros and cons to all actions. In the case of the Federal Reserve, their continued aggressive approach will call for a rise of another 0.75% increase in interest rates. Anything less could see the markets become bullish, and if greater, the party will be over!

Consequently, the recent economic numbers might suggest a smaller increase is in the cards after Retail Sales and Housing Starts were worse than anticipated. The impact of higher rates will have reverberations in people’s daily lives while a person’s quality of life could be altered significantly. The Fed’s most pressing concern is to keep the equity markets buoyant while the casino for the money makers continues unabated while the sheep (the common person) remains hopeful. 

Nonetheless, this morning the Central Bank of Turkey in a country experiencing inflation at 80%, correct, not a typo, the Central Bank took a different approach and actually lowered interest rates by 1%  to (13% from 14%). This in turn has caused the Lira to implode.  The country’s USD Reserves are almost depleted by having to prop up the currency on the global stage. No more gold in the coffers? Could this be the result and start of currencies imploding as a means of ushering in a new monetary system?  Never say never be aware.