Thus, raising interest rates by 0.75% isn't going to halt inflation. Prices of food, fuel and consumer goods are going to continue to rise dramatically in the months ahead.
The rate raise, however, will cause sharp drops in the housing market, since housing is strongly dependent on mortgage loans which are highly sensitive to interest rates. Because home loans are often 30-year loans, even a small increase in loan rates can result in dramatic increases in monthly payments, pricing many people out of the homes they could afford just six months ago. The net effect will be falling home sales and decreasing values of real estate, combined with large increases in mortgage defaults.
According to DSnews.com's reporting on the Black Knight Mortgage Monitor Report, us foreclosure "starts" (i.e. new foreclosures) have risen 440% from last year (June 2022 vs June 2021). July numbers aren't yet reported, but it is near certain they will also show large increases in foreclosures.
Retail auto sales are down slightly, although much of that may be attributable to lack of supply rather than reduced demand. However, as interest rates rise, people are increasingly priced out of the automobiles they wish to purchase. As the UK Daily Mail reports, a shocking number of Americans are now paying $1,000 a month on a car loan payment:
- The percentage of people taking out new car loans and paying $1,000 in monthly payments has almost doubled from 7% to 12.7% over the last 12 months
- Average monthly payments on new car loans are at a record high of $686
- Used car market sees average monthly payments at $554, up 12% year-on-year
- Pandemic supply-chain problems are partly to blame with the shortage of new cars leading to price hikes on the forecourt
- Monthly interest payments also shot up after the Federal Reserve raised rates
Gold and silver will likely drop a bit more as people unload assets to meet margin calls in the stock market, but in the long run, precious metals look poised to skyrocket as the dollar's real world value plunges and inflation spirals out of control.
It seems likely that this will be the last rate raise of 2022, or potentially the second to last. The Fed is already indicating they plan to start lowering rates in 2023, and many financial analysts believe the Fed will almost certainly accelerate that action to late 2022 as the economic carnage in the real estate industry becomes too messy to ignore.
Ultimately, the Fed will capitulate and abandon any real goal of tackling inflation. They will keep printing money and lowering interest rates while inflation spirals out of control, leading to an end game scenario where food and fuel prices lead to nationwide riots while the dollar collapses in real world value.
On top of this, China, Russia, India and other BRICS nations are rolling out a new global reserve currency that will make the petro dollar obsolete, immediately making global dollar dominance a thing of the past. This will cause dollars to come flooding back to America as other nations dump the hyperinflated dollar and embrace the commodities-backed, gold-backed, energy-backed BRICS reserve currency. Before long, America will be a collapsed Third World nation with mass homelessness, starvation, destitution and lawlessness, with a collapsing fiat currency, a corrupt illegitimate government regime and a captured corporate media that now sees its only job as covering up the crimes of the regime in power... the same regime that holds political prisoners in jail without due process, runs depopulation vaccine propaganda campaigns and purges the military of Christians and patriots so they can unleash the military against We the People in a domestic genocidal war. (That's what is coming if we don't change course...)
This is when you will thank God for the preparedness activities that you pursued in advance.
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Mike Adams (aka the "Health Ranger") is the founding editor of NaturalNews.com, a best selling author (#1 best selling science book on Amazon.com called "Food Forensics"), an environmental scientist, a patent holder for a cesium radioactive isotope elimination invention, a multiple award winner for outstanding journalism, a science news publisher and influential commentator on topics ranging from science and medicine to culture and politics.
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