Recessionary Warning for US

The Fed is still printing money, it just isn't QE right now. Zero percent interest encourages money printing because all new loans conjure that money from thin air. The fundamental structure of fractional reserve banking dictates that money printing can never go away unless loans cease to be made.

Raising interest rates will do a couple things. It will turn away buyers by cutting into their arbitrage, and it will make the already unpayable national debt more expensive to pay back. Also per my other post, look up Gibson's paradox. Gold may enjoy the rate hike. I'm not saying they won't raise rates, but doing so isn't wise if the goal is to keep the financial system afloat as long as possible.

The only reason that stocks in the US have been quelled after all the craziness in China is because the Fed said they would postpone a rate hike until no sooner than Q1 2016. So they've taken a step back because they had to, and anybody who thinks they won't cave to market pressure hasn't been paying attention.

You seem to have a strong prejudice for "stackers". If you ever take one piece of advice from me, treat people as individuals, not stereotypes.

 

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That is not exactly true, while I agree that new loans DO create money, it is much different that QE, because as that money is paid back, it is destroyed, keeping things "more or less" at a status quo. It is NOT expanding the money supply. QE was expanding the money supply, and that money can only be destroyed if it is removed from the system.