by Bill Bonner, Acting-Man.com:
Dow up again yesterday! According to Wall Street analysts, investors were front running a non-event. The Fed is in a credit “tightening cycle”, but without the tightening. On Wednesday, it announced it was leaving short-term rates unchanged at 0.5%.
Since not tightening is what investors are counting on, stocks rise… at least a little… in anticipation. But investors should watch out… We may be in a tightening cycle that goes way beyond the Fed’s control.
“Germany is a disaster right now,” says Donald J. Trump A lot of Europeans would agree with him. Chancellor Angela Merkel’s open-door refugee policy is leading to widespread discontent. Her political position is “becoming weaker,” says the Financial Times. Why?
Because she represents the spirit of a different age. Once the most popular leader in Europe, if not the world, Ms. Merkel is now the Lady for Whom Time Stopped. She is an anachronism from a more optimistic era, when people believed in free trade, democratic government, and ever-rising prosperity.
Angela Merkel: out of touch, out of style…
Photo credit: Markus Schreiber / AP
Now, the zeitgeist has changed. Ms. Merkel is out of style and out of step. In Britain, France, the Netherlands, Slovakia, Hungary, and the U.S., the candidates getting the most enthusiastic support are those who urge closing borders, restricting trade, and looking to protect themselves from all that is threatening, different, or new.
Forget free trade! Forget freedom of travel! Stop immigration… especially of the Muslims and Mexicans! Build a wall! Torture your enemies! Stop trying to expand the empire!
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