Financial expert and former top Federal Reserve insider Danielle DiMartino Booth says the latest Fed rate hike is nothing less than an attempt to make life worse for President Trump. DiMartino Booth explains, “They are trying to do the opposite of what they did a year ago because the people who occupy the White House have changed. That’s the only feasible answer I can come up with to explain the Fed tightening into a weakening economy. Their own metrics don’t lie. Nonfarm payroll growth has slowed appreciably over the last 12 months, and their favorite inflation metric is back below 2%. These are the rules they have made up, not me. They (the Fed) are making policies against their own rules, and there has to be a reason for it.”
DiMartino Booth wrote a popular book called “Fed Up” that reveals the Fed’s manipulation of the financial markets and says flat out, “The Federal Reserve is bad for America.” DiMartino Booth says massive manipulation is the only way you can explain rising federal debt and stagnant or falling interest rates on the 10-year Treasury bond. DiMartino Booth contends, “The only way you can fabricate the surreal balance between growing debt and falling interest rates is to manipulate that. . . . These are central bankers gone wild. . . . In 2008 and 2009, the credit markets were closer to $200 trillion in size. Today the credit markets are closer to $300 trillion in size, and we still can’t say what and where the next systemic risk lies.”
On gold, DiMartino says, “I think gold is in the very late stage of a correction phase. Once we get a sniff of true market reaction to any of these geopolitical events, I think you could see gold take off like a boomerang or a hockey stick. . . . If there is any slowing in the global economy, then the safe haven will not necessarily be U.S. Treasuries. The ultimate safe haven is gold.”
DiMartino Booth says it’s unlikely the Fed can fix the economy the next time it gets into trouble. DiMartino Booth says, “If you tack on slowing auto sales . . . we’re talking about a third of manufacturing jobs in this country . . . manufacturing is still big enough at the margin to lead the economy down. . . . When you aggregate the bloodletting in brick and mortar retail, what’s coming up in restaurants, what auto dealerships are looking to do with the land under their dealerships . . . you add all this up together and there is a perfect storm in this country for commercial real estate, that is highly overvalued, and throw in a black swan or two geopolitically and you could have a confluence of factors that the Fed could not fight.”
Join Greg Hunter as he goes One-on-One with Danielle Di Martino Booth, author of the popular book “Fed Up.”
(Programing Note: There was a technical issue that could not be fixed in the recording where the video was not near as smooth as the audio.)
After the Interview:
DiMartino Booth is a prolific writer, and you can follow her latest work free of charge in the “Archive” section of her website DanielleDiMartinoBooth.com. A couple of her favorite articles are “Has the Fed Bankrupted the Nation?” and “The Federal Reserve and the Destruction of the American Dream.” To buy a copy of “Fed Up” go to the home page of DanielleDiMartinoBooth.com and scroll down a bit.