Powell Takes Lead in Round of Rate Hikes Worldwide

 via Bloomberg

Federal Reserve Chair Jerome Powell has as good as promised that U.S. officials will deliver a 50 basis-point interest-rate increase, the biggest such adjustment in more than two decades, but he’s been less clear about how much further they’ll need to go.

In a week that’s likely to be marked by a global round of rate hikes, Fed officials are expected to raise their benchmark on Wednesday, and may also announce they’ll start letting the central bank’s bloated balance sheet start to shrink at a pace that will quickly step up to $95 billion a month.

Global rate hikes?

Unintended knock-on effects.

Remember the Arab Spring?  No one talks about rising food prices being a major contributing factor to that fiasco.

What will we see?  Pretty much everything I warned about.  Even worse?  We're seeing coordinated action by people that have demonstrated substandard performance in the past.

So instead of this pain being localized to just the EU and US, its apparently gonna be worldwide.

Just swell.

My big fear?  Not high gas prices...they're gonna go up even more we just have to deal.  Not high food prices...they're gonna go up even more.  Not increased immigration...that's a given.

My fear revolves around the serious issue of food shortages.

Govts will topple unless somehow these goons can moderate things so that we have a relatively soft landing (and relative is ...relative!).

Economics is politics and politics is war.