Global Deflation is about to get Ugly
With China and the EU adding fire to the deflation scenario we might really find out what the answer is to the big question.
What is the FED’s Mandate?
Is it really Price Stability and Full Employment?
We know that what Bernanke started and what all the other copycat Central Bankers are following did not work.
We know over the past five years Paper Asset Appreciation was added as a mandate without congressional approval.
Now will they add Corporate Profit Protection as a mandate without congressional approval.
The data dependent figures in the US since the last meeting would seem to point to a US rate rise next week in spite of EU and China actions. It is time the FED becomes the adult in the room and shows that fixing funny money problems with more funny money is not the answer.
In any case the dollar is about to move to the upside and US corporations with global sales will suffer.
So let’s see what they do. There is a reason that Trump and Sanders are receiving solid support, the average American is tired of Washington BS and Central Bankers in general.