TDC Note – From where we sit we morphed into an economic depression a long time ago. With real unemployment between 22% and 28%, or higher, these numbers alone rival the depression in the 1930’s. This is to say nothing of what is actually happening with our economy, wages and never ending “market intervention”.
Currently economists and market watchers roughly fall into two camps: Those who believe that the Federal Reserve must begin raising interest rates now so that it will have enough rate cutting firepower to fight the next recession, and those who believe that raising rates now will simply precipitate an immediate recession and force the Fed into battle without the tools it has traditionally used to stimulate growth. Both camps are delusional, but for different reasons.