As we're all well aware by now, once Trump was elected on November 8th the Fed suddenly decided it was no longer necessary to prop up asset prices in the United States with artificially low interest rates. As such, they've embarked on their first rate-hiking spree since the last one ended just over a decade ago.
Authored by Raul Ilargi Meijer via The Automatic Earth blog,
If there’s one myth - and there are many - that we should invalidate in the cross-over world of politics and economics, it‘s that central banks have saved us from a financial crisis. It’s a carefully construed myth, but it’s as false as can be. Our central banks have caused our financial crises, not saved us from them.
Via The American Herald Tribune,
Bolivia's President Evo Morales has been highlighting his government's independence from international money lending organizations and their detrimental impact the nation, the Telesur TV reported.
"A day like today in 1944 ended Bretton Woods Economic Conference (USA), in which the IMF and WB were established," Morales tweeted.
"These organizations dictated the economic fate of Bolivia and the world. Today we can say that we have total independence of them."
In groundbreaking news for the blockchain community, moments ago the SEC issued a press release, referencing an investor bulletin on Initial Coin Offerings, which concluded that DAO Tokens, a Digital Asset, are securities for regulatory purposes, and cautioned that US Securities law "may" apply to offers, sales and trading of interested in virtual organization, targeting the increasingly more popular Initial Coin Offerings.
With no expectations of a rate-hike this week, and traders rapidly giving up on The Fed's dream of a steadily higher rate trajectory, a funny thing happened in the markets...
In the eyes of The Fed, their monetary policy has not been this 'tight' since October 2008.
However, in the eyes of the market, financial conditions just hit their easiest level in history (easier than the September 2005 previous record easiness level).