Thread by @ektrit

INTEREST RATES

Federal Reserve is pushing rates to 10%, whether they know or not, likely they don't know it yet.

And if crude oil doesn't drop to Ten Dollars per barrel, they are pushing it to 15%.

They don't know it yet, but I do know it.

1/

The reason is simple.
The world NO LONGER wants to ship real goods and services and to get negative money in return, 0% rates minus inflation.

Nobody is that stupid for too long.

2/

I knew that the Fed would raise rates to 4%, before even the Fed knew it.

My gut feel calculation was that 4% rates and DXY at 110 would cause oil drop to $30-40.

It didn't happen because shadow banking lobbied hard to get some more debt from insolvent mega banks.

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So, even if hypothetically the Fed cuts and restarts QE, oil will skyrocket, global suppliers will keep refusing to supply adequate goods and services for.......negative money, many will even refuse to supply anything at all outright.

So, the Fed will learn the hard way.

4/

But, when they learn, they will be obligated to increase rates to 15%.

And if they forget what they learned months later, and cut again and restart QE, then after they learn, they would increase rates to 20%.

5/

The main error being made here is that 100% focus is kept on Shadow Banking and Demand, and 0% focus on GLOBAL SUPPLIERS of goods and services.

Whereas #krisonomics keeps 100% on Global Suppliers of goods and services first.

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Gradually global suppliers understand that they are shipping real stuff to the West and ..........losing money as a consequence with 0% rates minus inflation.

NOBODY IS THAT STUPID FOREVER. PEOPLE LEARN.

7/

#krisonomics keeps laser focus on Global Suppliers first and foremost.

Consumers cannot consume anything if something is not produced.

And producers MUST make a profit.

NOBODY IS THAT STUPID FOREVER.

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We are in a global situation where GLOBAL SUPPLIERS ARE LOSING MONEY from 0% rates minus inflation.

Who thinks that Global Suppliers are all stupid and only American and Wester consumers are so smart?

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Apparently 99.9% of all expertise actually thinks that.

ALMOST NOBODY PAYS ATTENTION TO GLOBAL SUPPLIERS OF GOODS SERVICES, ALMOST NOBODY.

Of course, except for #krisonomics

10/

So, global suppliers will tell the Fed, aha, no more real stuff, give me more INTEREST on my money.

And the Fed will learn and provide the interest.

Then the Fed will bow to shadow banking.

Then Global Suppliers, aha, I don't trust you now.

MORE INTEREST for supplies.

11/

It works EXACTLY as I am explaining it here, exactly like this.

It's just it is not planned out in advance, it's gradual natural understanding of being taken for stupid by Global Suppliers.

And they .......refuse to supply.

Which is the case exactly now.

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So, the Fed will ultimately satisfy global suppliers with any interest level for them to feel adequately satisfied.

I thought 4% would be adequate. The Fed did not know that yet that they were raising rates to 4%, but I knew, you have read my hundreds tweets on that .

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8-10% is now inevitable and the Fed doesn't know it yet, but they soon will, unless Shadow Banking finds God and lets itself collapse to oil $10 per barrel.

#krisonomics
#SupplyChainWar
#EnergyStarvation

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