At the end of 2015, the Federal Reserve finally moved to increase interest rates for the first time in seven years. The hike in rates came after three rounds of quantitative easing (QE) which some financial experts say did little to fix the problem. For now, the QE has stopped and they are instead looking to start raising rates from zero. The move to increase rates came as a surprise to those who say that the economy is not strong enough to handle the hike.
“The problem is the Fed's policy didn't solve any of the underlying problems that the economy had. It simply prevented those problems from being solved, and we kicked the can down the road, and now we're catching up to the can. And now we're going to find out that the problems that led to the 2008 economic crisis, are now bigger than they were prior to that crisis. So now we've got a larger crisis that is about to unfold as a direct consequence of what the Fed did in delaying the pain,” said Peter Schiff.
The Fed has been trying to perpetuate the idea that everything is fine, but there are many who would claim that it's anything but. According to financial experts like Mike Maloney, there are multiple bubbles within the market and we could possibly see a major financial crisis before the end of this decade. Along with the first recent interest rate increase, it is expected that the Fed could raise rates again several more times throughout 2016. However, for those who don't believe that the market is inherently sound enough to weather the change of pace, some have predicted that the Fed could launch QE4. Trends forecaster Gerald Celente, precious metals expert and financial analyst Peter Schiff, and others, have predicted that the Fed will start QE4 as soon as the market begins to see trouble.
In the first week of 2016, the markets have already begun to prompt worry. Global shares have rapidly decreased and the market had to be closed in China early in order to prevent further decline. The IMF has also recently warned that the world could be facing global slowdown and more economic troubles this year.
As central banks around the world have empowered many governments to drive themselves into debt, we see that the U.S. isn't the only one facing economic woes. From Puerto Rico and Japan, to Greece and Venezuela, there are a myriad of nations around the world that are facing tremendous economic stress. Recently, citizens in Switzerland called for an end to their own fractional reserve system. As more people continue to wake to the realities and the dangers posed by the corrupt fiat fractional reserve banking system, the more people will be looking toward possible alternatives and solutions. One can hope that the trend will be to turn away from centralization and instead to opt for sound monetary policy and the promotion of currency competition.
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