Before looking at "this week", I have seen it said by many, "the Fed must raise rates to have any credibility left". This is true to an extent but there is one core reason and one of their own making. You see, the fake data and outright lies have been coming out of Washington in such regularity and magnitude the Fed has been painted into a corner. They either raise rates "because things are so good" or they don't ...as a sign things aren't so good. It has been for this reason I have had an eye out looking for some manufactured (false flag) event that takes the Fed off the hook. Time is getting short prior to Wednesday's meeting and announcement ...but there still is time.
It is quite interesting how China has devalued their yuan this past week prior to the Fed meeting. They also announced they will monitor the Yuan's value versus global currencies rather than just versus the dollar, in essence "de pegging" against the dollar. The weak yuan has been blamed for much of the past weeks volatility and weaknesses in financial markets. A rate hike by the Fed will only double down on the weakness. Also of interest in China are the numerous "disappearances". For weeks there have been important individuals in the financial industry who have just disappeared. The latest fear was China's equivalent of Warren Buffett had been disappeared. It turns out he is being held and assisting "investigations". In the words of Warren Buffett himself, we only find out who was swimming naked when the tide goes out!
© Alexsey Druginyn/AFP/Getty ImagesVladimir Putin, Russia's Prime Minister in 2013, holds a gold bar while visiting the Central Depository of the Bank of Russia.
In Syria, it has now become a literal rainbow of colors in their sky with the latest planes being British. There is risk of a mishap with so many different nations in the sky at one time. Russia and NATO member Turkey also continue Russian Missile Destroyer "Fires Warning Shots" To Avoid Collision With Turkish Vessel to posture while Mr. Putin ordered their forces to "destroy any targets that threaten Russian military in Syria."
Needless to say, the stakes are being raised and often.
We also have seen much higher stress in the credit markets as liquidity is evaporating. Junk bonds have been decimated as Zero Hedge reports The Coincidences Are Just Too Eerie: This Is The Last Time CCC Yields Were Here And Rising was the Friday before Lehman blew up in 2008. Traders are now in fear of ANY liquidations as there is simply no depth on the bid side of the credit market. A perfect sign in fact was a second hedge fund announcing a halt to redemptions. Telling someone "they can't get out" will only prod others who still can ...to get out while they can! As a side note, Glencore CDS now puts the odds of a default over 5 years at better than a coin flip! Lastly, we are now half way through December and COMEX is still shy about two and a half tons of gold standing for delivery.
I apologize for the "dryness" and the amount of links in the above as I really do not like to write this way. It was necessary to point out many of the "possibilities" leading up to the Fed's meeting on Wednesday. I was corrected by a reader for the use of "black swan" in a previous article because this term should be used for "unseen" or surprise events. No matter where you look there are reasons to be very "bearish on the world". Whether it be equities, credit, derivatives, or nearly anywhere geographically, the risk versus reward is highly skewed toward digging a hole and covering yourself with a rock! ...And these are the known risks!
I am not sure what the Fed will do on Wednesday. I am however sure if they do raise rates the volatility will increase and financial markets will probably not like it one bit. One must wonder what they will do should the equity markets drop a quick five or ten percent? Do they immediately reverse and lower rates? How credible is that? Liquidity is such that no matter what the Fed does, the highly levered nature of our financial system is teetering on "reverse" where it will eat itself up. This while a vast multiple of known detonators stand ready to unleash the financial dogs of hell.
We have created the most leveraged financial system in all of history. Liquidity is drying up and the question of "if" has been replaced with "when". The odds of markets "closing" have risen dramatically. Stress, both geopolitically and financially can no longer be hidden in plain sight. Should the Fed raise rates, I believe markets far and wide will convulse into an unscheduled "holiday". Yet we listen to the cheers for a rate hike? Even George Orwell would be shocked!
Comment: As the geopolitical actions and reactions between the United States, the Western establishment and Russia intensify, you can expect any decision by the Federal Reserve to change the interest rate has a component meant to enable the goal of the Empire of Chaos to dominate and enslave the world. The individuals in charge or the Federal Reserve and those behind the key decisions made by the Fed are not stupid and incompetent as some portray them to be. Yet they are corrupted to the core and and hide behind the justification of protecting the national security of the United States for all of their manipulations of markets and lies told to the American people about the strength of the economy.
The Fed seems poised to raise rates, yet raising rates now would seem to be a disaster in the making with the world economy, which includes the United States, plunging and turmoil hitting credit markets. It seems such a decision to raise rates, if it is enacted, would be in effect the pulling of the plug and throw the United States and world economies into further distress. This can be seen as part of a plan coordinated with the rest of the defense military industrial complex of the United States and the global banksters, specifically the Bank of International Settlements and those behind such organizations, they are executing in order to fulfill their agenda of a new world order and one world government dominated by psychopaths.
Is Russia and their alliance with China enough to stop such plans? Time will tell.