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Few Americans grasp the Federal Reserve role: it creates liquidity that fuels markets but erodes purchasing power. Debt and deficits are unsustainable, making higher rates dangerous....
Historically speaking, normal Fed tightening cycles consist of raising the Fed Funds Rate (FFR) by 350-425bps.
Central banks have been tightening monetary policies and increasing interest rates amid the massive financialization of the global economy.
With a cyclic inflation-deflation behavior seen at the stock market, investors are expecting further increases in global debt tantamount to $237 trillion.
Despite a rise, an expert believes that the slight increase in recent stocks will only contribute to the economic fluctuations leading to a bond collapse.
China, Italy and Germany are the top three countries with the biggest debts, but Italy has the most number of bad loans in Europe.