I was passing by a TV this morning and saw a segment on one of the mainstream media stations that was parroting the propaganda that we need lower interest rates- particularly mortgage rates.

One thing we learned long ago is that if you tell a lie long enough many people will believe it to be true. This is a fitting example of that.

If we look at the major reason that most of our upcoming generation cannot afford “the American dream” of home ownership can be directly tied to LOWER INTEREST RATES.

When rates are artificially lowered it is not like the Fed or other central banks wave a magic wand and we get lower rates. They have to conjure cash up out of nowhere and BUY THE bonds to get the rates to come down. This action causes INFLATION and the price of EVERYTHING to rise.

In addition, those actions allow corporations and private equity funds to borrow cheap money. Many companies like Blackstone and Blackrock have bought up entire communities and have made prices FAR higher than traditional supply and demand would dictate. This has helped price a large part of an entire generation out of home ownership and now, even renting is becoming a burden as the demand for rentals increases.

Lowering intertest rates now would, in the “experts” opinion, allow home affordability to be better. In reality, lower interest rates would just allow the anomaly to continue and for prices to continue to rise. How does that help a first-time home buyer? The lower interest rates- because of the “printing and buying bonds” would cause all other prices to rise like food, fuel, insurance, taxes, upkeep, and maintenance making future home affordability even worse.

As the Fed meets next week- if they lower rates look for the “experts” to praise the move- even if in their opinion it is a little late.

If indeed they do lower rates, I would expect inflation to spike up, stock “markets” to rise and gold and silver to post major gains. Of course, the reason for these outcomes would be for one reason- the US dollar would be weakened further.

It is my opinion that we need HIGHER interest rates. The result?

Stock and bond “markets” would be faced with a bit of reality and would likely fall hard. Hard assets would likely pull back for a while also. The good news is that inflation may slow down or stop for a while and necessities would be more affordable for everyone.

I don’t expect to see higher rates unless the “market” forces it because it is apparent that those “in charge” are not worried about the regular folks being able to afford food and other things but about their own pockets and how to line them even more.

I am sure that the insider dealing has been going on unchecked for decades but the fact that there is no shame and that they put it right in front of our faces shows me just how narcissistic many of these people are.

Be Prepared!

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