The Fed’s nasty double-edged sword

Somebody's gonna suffer… it's not a nice choice

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How I’ve Found Some of My Best Long-Term Trades I use one strategy, one line on my chart to find long-term trade setups. And in this short video, I share the story behind how I used these trades to rescue my family from a serious scrape… Check out all the details here Sometimes I read something out there that seems like it was taken straight from my brain. I honestly think the guy over at Zero Hedge attended one of my webinars about the crash! Haha At least, it seems like this article is in lockstep with my own expectations. The Fed has some unenviable decisions to make. Basically, they have to choose between two unpleasant outcomes. On the one hand, anyone who is paying attention can see that the dollar is headed towards a cliff. With inflation spiraling out of control, hyperinflation could be around the corner. And that could create a currency crisis that damages or destroys the U.S. Dollar. Nobody wants that. But, to prevent that, the Fed has to step onto another undesirable path. They’ll have to actively choose to turn off the money spigot, and close people’s access to free cash by raising interest rates. As Zero Hedge puts it: “If the central bank actually does what’s necessary to tame inflation, it will almost certainly crash the economy, which is built on easy money, low interest rates, money printing, and debt.” Unemployment will climb, GDP and wages will probably stagnate, and the market may very well crash. That’s not pleasant, either. But at the end of the day, I think it’s pretty obvious which choice the Fed has to make. An economic crash might be unpleasant, but we see them often, and the economy always recovers eventually. On the other hand, a hyperinflated dollar would be disastrous, and there’s no guarantee we’d ever recover from that. In theory, the USD could lose its status as the world’s reserve currency, which would permanently reshape America’s spot in the global order. Of course, that’s a worst-case scenario. But it’s precisely that kind of worst-case scenario that the Fed will be avoiding by turning off the faucet and slowing the money stream. It might not be popular, but it’s necessary. Hope you’re ready for it, Manage Your Email Preferences Unsubscribe This email was sent by: InvestPub 495 Town Plaza Avenue Ponte Vedra Beach, FL, 32081, US Update Profile We respect your right to privacy. View our policy. Jeffry Turnmire and InvestPub do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.