It is amazing how the whole world is awaiting the Fed decision. Economic decisions of great importance will be made in the economy of the world that will affect countries and millions of people. It is tragic that a group of individuals of average intelligence, who are unelected ,hold the fate of the world in their hands. Other “lesser” individuals study their every move. Economically speaking, the Fed is considered to be the “Fountain of Wisdom”; in actual fact it is a “Fountain of Nonsense”.
The “Great Recession” lasted from 2007 to 2009. The economic system was on the verge of collapse. Wall Street money centered banks were failing. A bazooka was used to save it. The Federal Reserve introduced a near zero interest policy and quantitative easing. Banks had to be saved and after all,that is the primary function of the Central Bank. That price stability and employment are primary functions of the Fed is nothing but a façade. The essence of finance capitalism is banking, hence, the Federal Reserve is its guardian. It will do anything to save it, including financing wars and overthrowing governments. It must protect and protect the “Reserve Status of the dollar”.
No recovery occurred in 2009. Growth in the US is impossible because the energy entering the US economic system is decreasing, but the energy needed to maintain its internal and external obligation is increasing. This sitation is sustainable only because the dollar is the “Official Currency of the World”. The dollar position must be maintained at all costs, and that is the real function of the Federal Reserve.
There is no recovery in 2015. Third World countries are or are entering hyperinflationary depression. Their currencies are collapsing vis a vis the dollar and gold. The prices of various commodities are in free fall. Their debt burden in dollars has become unbearable because the ever increasing export commodities are earning them less and less dollars. As a result, the export of manufactured goods is also in free fall. The world’s economy is in severe contraction, possibly entering a severe depression. The world’s stock markets are also in free fall. Interest rates cannot go up naturally or be raised by the central bank. The velocity of money is also in free fall. The only time interest rates will rise will be to protect the dollar. This will happen when the world starts to abandon the dollar in earnest. There has been no recovery and there will never be one until this economic system is radically altered or replaced by something totally new. Only time will tell.