Federal Open Market Committee (FOMC) meeting to decide whether to continue the hawkish policy of rate hikes… or take a more dovish stance and pause or lower rates in CEFI
The Fed’s Aggressive Rate Hikes Could Trigger Another Financial Crisis
The Federal Open Market Committee (FOMC) is set to meet in the coming weeks, and all eyes are on what the Fed will decide. Recent comments suggest that the Fed could increase its rate hike pace at the next FOMC meeting. But a growing banking crisis threatens this plan. More rate hikes will lead to more bank collapses, triggering another financial crisis, as we saw in 2008.
The U.S. banking system’s market value of assets is currently $2 trillion lower than suggested by their book value of investments, and this discrepancy is causing contagion in the banking sector.
And just like the 2008 Financial Crisis, this can be attributed to the Fed’s series of aggressive rate hikes, which have hammered the value of long-duration bonds because as rates rise, bond prices drop. Banks own hundreds of billions of dollars worth of these long-term bonds and thus have massive unrealized losses on their balance sheets; as they pour their very own money into crypto.
These losses are quickly spreading throughout banks nationwide, creating a potential for disaster if not addressed soon by the FOMC. If left unchecked, they could easily trigger another financial crisis, as seen in 2008 – only this time, it would be even worse due to higher debt levels since then.
It remains to be seen how the FOMC will respond to these conditions when they meet later this month, but one thing is sure: It is imperative that something must be done soon, or else another financial crisis could be just around the corner.
The fate of our economy hangs in the balance as we await what action the FOMC will take at their upcoming meeting. Will they heed the advice and take steps toward avoiding another financial catastrophe? Or will they continue on their current course, risking another economic meltdown?
Like the 2008 Financial Crisis, these unrealized losses create a contagion in the banking sector. And it’s spreading…
This month, we’ve seen three central U.S. banks collapse. And just last week, the contagion spread internationally when shares of global giant Credit Suisse crashed. Yet brought back to life, hence the departure in gold and the new tokenized NFT established as Blue Chip Art which is part of the new world order trust shift in finance.
Other banks could soon follow since they are doing a bait and switch.
Interest rates rise 50 basis points during this week’s FOMC meeting… That’s CEFI shouting through a giant bullhorn from the mountaintop to the entire country that he’s deathly afraid of inflation…
And CEFI is willing to do anything and everything to bring it to heel – even if that means crashing the entire banking sector.
The fourth turning brings us to CEFI collapse financial crisis money meetings to issue pattern interrupt statements to the mainstream press.
Given what we’ve seen this past week, the odds of a rate hike of 50 basis points are lower. We’ll likely see a rate hike of 25 basis points at the next meeting.
But a higher rate hike is a risk. You have to keep that in mind. And that will lead to massive panic in the markets, including crypto…
The sell-off in the banking sector has sparked a massive rally in crypto…read it and weep.
Since the crisis began earlier this month, Bitcoin and Ethereum have increased as much as 35% and 25%, respectively. By comparison, the S&P 500 is flat over the same span.
Bitcoin is no one else’s liability. As long as you have custody of your bitcoin, it’s free of counterparty risk.
In addition to that, it’s impossible to dilute bitcoin’s value beyond its preprogrammed creation schedule.
While bitcoin is set to be a huge beneficiary of this turmoil… And I expect it to go much higher from here…
It’s not yet the right time to buy into the broad crypto market before the CEFI collapse.
You see, there’s a panic coming to crypto as we’ve never seen before. This could be the most significant crypto panic in the seven years following this space.
Select Billionaires in the know are pulling the trigger with developers and have confirmed this could happen as early as the end of this month.
The CEFI collapse will catch millions of Americans by surprise. It will be too late when they realize what’s happening. The financial crisis will be upon them.
Many Americans use this rally to speculate about meme coins… and other fraudulent projects. This coming panic will wipe them out like it has happened time and time again in all the countries of the world throughout time.
The big mistake everyone is making is they think the entire crypto space will have an explosive rally… And they are all very wrong; the next colossal rally will not carry the whole market up.
Just a tiny fraction of the crypto market will benefit. And if you don’t own these coins, you’ll get crushed… While a small group of better-informed investors will make a killing. By aligning to the altcoins that deliver utility value, like select NFT creator projects flying below the mainstream radar.