CELENTE: Here's Why the Fed Will Be Pressured to Lower Interest Rates
With the European Central Bank, the Bank of Canada, and others lowering interest rates to prop up their economies, the Federal Reserve will follow suit
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The Street is patiently waiting for tomorrow’s decision after the Federal Reserve’s two-day meeting and hopes for a statement that will help it better guess the central bank’s next move on interest rates.
Again, as we have forecast, with the European Central Bank, the Bank of Canada, and others lowering interest rates to prop up their economies, the Federal Reserve will follow suit.
As nations lower interest rates, their currencies decline against the U.S. dollar, which is being propped up by high interest rates. Therefore, since the U.S. is a member of the Bankster Bandit Gang, it, too, will lower rates so its partners do not suffer from weak currencies, which, in turn, increases their inflation.
Also, in the run-up to the U.S. presidential election, the Federal Reserve will do what it can to keep those in power, in power. For example, the former head of the Federal Reserve, Janet Yellen, is now the U.S. Treasury Secretary. For all those who are not deaf, dumb, and blind, her position of power clearly illustrates that the Federal Reserve is in charge of American money…and those with the most money have the most power.
Thus, the central bank will lower interest rates to boost the economy. As the old Clinton Team saying from 1992 goes: “It’s the economy, stupid.”
And as the polls show, Joe Biden is not revered by the American public.
In fact, on Monday, a poll released by FiveThirtyEight showed that Biden’s approval rating of 37.4 percent represents the low point since he took over the White House. Business Insider noted that “Gallup’s poll found Biden’s approval rating for the 13th quarter of his term, which ended on April 18, is lower than any other president’s since its polling began with Dwight D. Eisenhower.”
Its polls found that despite his being convicted of a felony, Donald Trump has a 41.6 percent favorability rating.
Going back to the Federal Reserve doing all it can to keep those in power, in power… should Trump win the 2024 race to the White House, the Fed-Heads fear that Yellen will be replaced with a new Treasury Secretary, and they will have a less powerful hold on the economic control and the dollar.
Death of The Dollar
While we have not yet verified the accuracy of this statement, it was reported by IslamiCity that “The arrangement between the U.S. and Saudi Arabia helped preserve the U.S. dollar’s dominance over global trade,” and “this past Sunday, the Saudi Arabian prince announced that he would not renew the contract, signaling a major change in the global financial landscape.”
Indeed, as we have also reported, with more nations joining BRICS—teams of nations uniting against U.S. economic hegemony—they will do what they can to trade in their own currencies as well as setting the foundation for a gold standard.
And again, as we have forecast, the lower the Federal Reserve lowers interest rates, the deeper the dollar will fall. And the deeper the dollar falls, the higher gold prices will rise.
Moody’s in a Bad Mood
Today, Bloomberg reported that Moody’s slashed Allied Properties to the highest junk rating of Ba1 as its office buildings go bust and the company’s debt levels rise… a clear signal that it will default on its obligations.
Thanks to the work-at-home trend that began with the COVID War, it was reported that Allied cut the value of its properties by $500 million in the last quarter of 2023.
Think about it. Last year, when three U.S. banks—Silicon Valley, Signature, First Republic—failed, equities tumbled and gold prices spiked. Now, according to the FDIC, the number of “problem banks” increased from 52 to 63 in the first quarter. And as we reported but barely noted by the Presstitutes, at the end of April, Republic First Bank was shut down by state regulators in Pennsylvania.
As noted by Zero Hedge, the FDIC, said delinquency rates for non-owner-occupied CRE loans is now at its highest level since the fourth quarter of 2013. They note that,
“The increase in noncurrent loan balances continued among non-owner occupied CRE loans, driven by office loans at the largest banks, those with assets greater than $250 billion. The next tier of banks, those with total assets between $10 billion and $250 billion in assets, is also showing some stress in non-owner occupied CRE loans. Weak demand for office space is softening property values, and higher interest rates are affecting the credit quality and refinancing ability of office and other types of CRE loans.”
As we have reported, some $4 trillion of commercial real estate debt is coming due over the next two-and-a-half years.
Citigroup says that regional and local banks hold 70 percent of all commercial real estate loans while Goldman Sachs says that more than 80 percent of commercial real estate loans are held by banks with less than $250 billion in assets.
TREND FORECAST: Again, this is just the start of the worst that is yet to come. It should be noted that Bloomberg not only totally ignored that what Allied is going through is the new office building bust normal, there was not a mention of how the banks will go bust as defaults on commercial office buildings rise.
Moody’s senior credit-head said that, “Although the REIT’s properties have largely outperformed the broader markets over the last few years, the difficult leasing environment has weakened its portfolio occupancy and reduced rent growth.”
“The difficult leasing environment has weakened its portfolio occupancy and reduced rent growth.”
How about the difficult leasing environment across much of the planet?
And, there was not one word in this article about how the consequences of defaults on commercial office buildings will bring down many banks and crash equity markets, the global economy and push precious metals and bitcoin prices higher.
For reasons I stated here in the comment section, the FED did not cut US interest rates. The Fed is damned it does and damned if it doesn't. And once again for all those economic guru's and pundits who think they have a handle on this situation, I refer you to Lyndon LaRouche's writings on the subject of economic science which can be found at larouchepub.com
There is only one thing wrong with reports from Wall Street insiders who believe bank rates will be lowered by central banks in a period of anticipated hyperinflation, they’re no damn good! The trans-Atlantic monetary and related financial systems are precariously on the edge of the greatest collapse in modern history. The financial swindle that has lasted almost 6 decades is about to end. And its death will come in a seismic disintegration of the 2 quadrillions derivatives bubble that is ready to implode at any moment. On what day it will occur, nobody knows. But it will happen. And it will unravel not unlike the 1923 hyperinflationary collapse of the Reichsmark of the Weimar Republic of that time. It’s coming and it’s coming on fast. But there are just two things that can prevent it. Nuclear war or reinstating the Glass-Steagall Act of 1933. LaRouche’s Four Laws are significant in potentially cataclysmic period the West has entered. The only out is the orderly implementation of the Four Laws of Lyndon H LaRouche. Nothing, I repeat, nothing else will work! In order to get this nation and the other nations of the trans-Atlantic region out from under the death throes of the British dominated IMF, Central Banking system, LaRouches emergency measures must be acted on NOW!! Before the rules-based order’s protection racket in NATO ignites WWIII.