Business

Submitted by Richard Ebeling via EpicTimes.com,

We are living in a time that can only be considered monetary chaos. The U.S. Federal Reserve has manipulated key interest rates down to practically zero for the last six years, and expanded the money supply in the banking system by $4 trillion dollars over that time. And with the true mentality of the monetary central planner, the Fed Board of Governors are now planning to manipulate key interest rates in an upward direction that they deem desirable.

We have been watching the market's "sudden panic" about the implosion in the junk bond space with bemused detachment because, for the better part of the past year, we have been warning that this is about to take place. Here is a modest sample of articles from the past year commenting on the dangers from junk:

Oil has dropped to its lowest price since 2009. With the Fed meeting this week to decide on a rate hike and the geopolitical uncertainty in the Middle East, what might we expect in the near term?

Today...

The Yellen effect pic.twitter.com/ogQgxINN2r

— Morris Cabrioli (@insidegame) December 14, 2015

 Today's focus was on credit markets - rightly - as the contagion spread to IG markets... 

But it started when China devalued the Yuan yet again...for the 6th day in a row - and in growing size - PBOC fixed the Yuan weaker to its weakest since July 2011

"Yeah but it's junk credit... who cares! I am invested in solid megacaps and even solider FANGs - what can go wrong?"