Ominous Warning Exposing What Is About To Accelerate The Invisible Collapse
KingWorldNews.com
December 17, 2015
With the Dow falling over 250 points and crude oil continuing to struggle, today two of the greats in the business sent King World News powerful pieces exposing what is about to accelerate the invisible collapse.
First, a powerful warning from Art Cashin and friends – Unintended Consequences? – My old friend, Ron Insana, voiced some concerns about the potential for surprise in some of the mechanics that accompanied “liftoff”. Here’s some of what he wrote in a piece at CNBC.com:
First, not mentioned in the statement is the fact that, in addition to raising its target for the federal-funds rate, the central bank is raising the discount rate a quarter point to 1 percent. That is to be expected. However, the Fed is also raising the rate it pays
member banks to hold required reserves at the Fed, doubling that payment
to a half-point. This gives banks a much bigger incentive to earn a
half-point on their cash, risk free!
That is a major disincentive for banks to make further loans. And it comes at a time when the velocity of money, or the speed with which the
money supply turns over, is close to zero.
The Rest…HERE
