Jim Willie: “Talking About Raising Rates is Absolutely Hilarious”

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According to financial analyst Jim Willie, founder of the Hat Trick Newsletter, there is no way the Fed will be raising interest rates at their upcoming meeting on September 20-21. He claims they cannot do it because it will wreck our financial system. So the only reason they would do it would be to “scuttle the system.”

He shared his comments in a September 1 2016 interview with Turd Ferguson’s Metals Report Program. Click to listen to the 1:12-minute interview. Excerpts from his comments are transcribed below.

“Fed Chairman Janet Yellen is talking about raising rates and it is absolutely hilarious, it’s ludicrous, it’s stupid. They cannot raise rates. I have made this point many, many times. If they raise rates they wreck the bond carry trade, which is where the Wall Street banks are borrowing free money and investing in the treasury bonds. That is one of the biggest reasons why the treasury bond is going down in yield. The rally is from Wall Street banks that refuse to make commercial loans to major clients and instead would prefer the no-risk strategy with the Fed winking to them at all times, ‘Don’t worry, we’re not going to raise rates.’

So they borrow at zero and they invest at 2%. They load on the futures contract leverage of 25 or 30 to 1 and poof, they have a 50% annual return. Why would they want to stop that? So they’re not going to stop that. The Fed is not going to wreck that by raising the interest rate, which would not just reduce the profit. It would send the entire trade into reverse.

The other reason why they are not going to raise rates is that the interest rate swap derivative is producing I would say somewhere around 80% of all treasury bond demand. It is 80% artificial.

They can’t wreck that. So if the Fed raises rates, it is to scuttle the system and blame it on foreigners who would sell the bond. The foreigners are selling the bond and the QE architects are lapping it all up. The Fed wants to blame any problem on foreigners because they never blame themselves. They want to blame China, the major creditor of treasury bonds. They still own over $1 trillion. The Japanese own about $1 trillion. Okay, that’s two trillion.

I am hearing the (U.S. government) debt is over $20 trillion right now. For over two years we have had no debt limit applied to the U.S. government debt, and no budgets either. Why is that? And I think the answer is very simple. They already defaulted because they are already in receivership (bankruptcy) because now the only people who don’t know what’s going on is the American public.

They (the Fed controlled U.S. government) are allowing the debt to rise because there is something in the balance right now called the reset.

So if they do it (raise interest rates), it will be a scuttle.

I don’t believe anything about a rate hike. The rate hike that we had last December was nothing more than an adjustment for reverse repos that enabled the Wall Street banks to give up their cash to the Fed, take in treasury bonds, and build a higher Tower of Babel with a smaller footprint as a base. In other words, bigger leverage, more debt, a bigger ratio in leverage and more debt.

What do interest rate swaps and other derivatives dislike? Movement! Wind! Think of the Sears Tower during wind from any direction. We have treasury bonds down on the yield from 1.7% to 1.5% and the derivatives don’t like it. They are having a harder time.”

Jim Willie is not alone in his views. Only 29% of traders expect a September rate hike, which is a little higher than previous surveys, but still way less than half (Source: Zero Hedge).

The experts have been wrong before and they could surely be wrong again this time, but if Jim Willie’s analysis is correct, it would mean game over for the U.S. financial system. I believe that day is coming, but I would be surprised if it happens this fast. Even without any rate hike, I am expecting to see lots of volatility in financial markets in September and beyond.

James Bailey

Author: James Bailey

James Bailey is an author, business owner, husband and father of two children. His vision is to broadcast the good news of Jesus Christ through blog sites and other media outlets.

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Marilee Alm
Member
September 12, 2016 3:29 PM

I am reading The Ulimate Guide to Understanding the Dreams you Dream, by Ira Milligan. On page 102 he talks about the original Bear market: “(Aaron) made them a golden calf because cattle signified prosperity. Catle was their livlihood. When herds increased they had a “bull market”. When bears ate their cattle they had a “bear market”.

Ira is humerous throughout the book. Has anyone read this?

michelle Gibson
michelle Gibson
Member
September 13, 2016 6:42 AM

I have his first two books on dreams

Miranda
Member
September 13, 2016 9:14 AM

Can you imagine the enemy laughing because he actually has some people believing that man came from monkeys instead of the Omniscient, Omnipresent, Omnipotent LORD God Almighty!?????? How sad!!

Carol
Carol
Member
September 12, 2016 9:12 AM

20+ Trillion in US debt, no budget, Willie says because the nation is already in default, bankruptcy! I believe it, I’ve sensed it for awhile now. These “monkey’s” in the Fed Reserve ARE waiting for a reset! Reset, a game changer, all confirming what so many contributors on Z3 are telling us that the Lord is saying! May God go before each of His own! Shalom

Bob Adolph
Member
September 12, 2016 1:42 PM

Carol, do you remember a few months ago when Willie said the Chinese have taken control, will be backing the yuan with gold and will offer to lend the U.S. a certain amount of gold in order that we might start a domestic dollar backed by gold? These anti-Christ banksters like Greenspan and communists like Obama and Hillary are traitors who have deliberately taken down what’s left of Christendom. Conservative students of history know that WW I & II were just as deliberate. Germany and GB went broke. In 1917 Wilson sent Trotsky back to Russia from Brooklyn and the Germans sent Lenin in a sealed car back to Russia to pull off the the anti-Christ Russian Revolution. Our anti-Christ MSM has spun us to the doorstep of the Book of Revelation. These people aren’t playing a political game. They are serving Satan who is trying to thwart the return of Christ. When the anti-Christs got control of Russia the first thing they did was close all the churches and murder all the priests, same with the French Revolution. Why don’t our seminaries teach the truth? They have been infiltrated too. I met a lady from my old A.G. church in Walmart a few hours ago and asked her why I had never seen her husband in church. She said, Oh, he goes to the Masons (like it was another denomination). I went woooe! She said, What?

Scott
Scott
Member
September 13, 2016 9:41 PM

Bob,
I couldn’t stop laughing at your last two sentences…that is America in a nut shell…clueless to God, religion, causes, phony race issues & etc. Also explains how anybody could support Hillary…Satan has blinded the masses.

Bob Adolph
Member
September 16, 2016 12:15 PM

Scott, jail house humor? The corruption in high places isn’t anything new. Robert Welch tried to expose the communist conspiracy back in the fifties when he formed the John Birch Society. Joseph McCarthy before that tried hard to expose the communists in the WH but Eisenhower pulled the rug out from under him. The Bible says the whole world is corrupt and deceived, man has a fallen nature and Satan is the prince of this world. Lindbergh’s father warned of the Federal Reserve as a congressman in 1913. Henry Ford tried to expose the communist conspiracy but whoever controls the MSM controls the country…until Trump! God has to be lifting the curtain and allowing this Trump phenomenon to happen. I never thought I’d see the day when the MSM would cooperate with the Truth! Jesus is the Truth and He is doing it, not the Anti-Christs at Fox and CNN.

Scott
Scott
Member
September 19, 2016 8:15 AM

I’m not sure the MSM is cooperating…still tries to coverup for the Clinton’s! God Bless!

Bob Adolph
Member
September 19, 2016 11:23 AM

Scott, don’t you find it interesting how Fox, CNN and others are giving Trump hours of free air time even though he is the first candidate in American history to bash the MSM?! This is God telling Joe 6-pack, “Here’s good and evil, choose one. Are you with Satan or me?” It is also a smelling salt to wake up the Laodiceans. I go with the Terry Bennett time line and don’t have any hope of a political solution to a spiritual tragedy.

Carol
Carol
Member
September 17, 2016 10:41 PM

Bob,
Yes, I do recall hearing Willie say that! China is all over my area. Just bought 2 of our largest manufacturing plants. I figure they are on the bank boards as well! China is all but telling us, who are paying any attention, what they are doing next! The game book of the Communist never changes, it’s Satans playbook. Kill, still and destroy! The Trojan horse in within the gates and the door is wide open, all while American “pew sitters” are watching college football and sucking down their beer and brats!

Bob Adolph
Member
September 17, 2016 11:40 PM

Carol, I’m still in shock that America is now a vassal of China. Americans will be last to know because the anti-Christs got control of our media a long time ago. I’m ready for the rapture but I have also prepared in case it draws out.

Sue
Sue
Member
September 12, 2016 8:09 PM

No rate raise except maybe .25 again. I thought they might crash the system until after the election, but now I’m thinking it could be in October in order to not have an election.

SeanC
Member
September 12, 2016 12:55 PM

On a less serious note, how is it that someone has the name Turd?

Matt
Matt
Member
September 12, 2016 1:18 PM

Haha! It’s an old Saturday Night Live skit. It’s Norm McDonald pretending to be Burt Reynolds pretending to be someone named Turd Ferguson.

Dean
Dean
Member
September 12, 2016 5:42 PM

“If silver ever goes [above] $22, I’ll eat my hat!”

Martin
Martin
Member
September 12, 2016 1:47 PM

You guys are too much! I love Jim Willie’s interviews that is one smart cookie!

Cali
Cali
Member
September 12, 2016 6:26 PM

No but what is going on with Hillary??
She does not look ok at all.
What is their plan?? Insanity
Soon they will need a body double to keep this going? Wow..

Sue
Sue
Member
September 12, 2016 8:11 PM

A name first created in a classic sketch on Saturday Night Live. The sketch was a parody of Celebrity Jeopardy that had Will Ferrell as Alex Trebek, Jimmy Fallon as Third Rock From The Sun’s French Stewart, Norm McDonald as Burt Reynolds, and Darryl Hammond as Sean Connery. In fact, the first definition for Sean Connery is a reference to this very sketch. Anyway, the name was created by Burt Reynolds in the sketch.
Alex Trebek: “Apparently Burt Reynolds has changed his name to Turd Ferguson.”
Burt Reynolds: “Yeah, Turd Ferguson, it’s a funny name.”

Lee
Lee
Member
September 12, 2016 1:21 PM

It’s a reference to a Saturday Night Live character played by Burt Reynolds. At the time of that blog’s start, Craig Hemke picked this name and was “just an anomalous blogger with a Mac Book”.

From Wikipedia http://en.wikipedia.org/wiki/Celebrity_Jeopardy!_(Saturday_Night_Live)

Initially, Burt Reynolds had been the celebrity who appeared on each episode. When Reynolds appears for the last time on the sketch, he misreads the categories in the same manner as Connery. (Condiments as “The Condom Thing” and A Petit Dejuner as “Ape Tit”), and insists that he be addressed as “Turd Ferguson” because, as he states, “it’s a funny name”. Reynolds appears briefly along with his podium (which still reads “Turd Ferguson”) in the fourteenth sketch near the end of the Double Jeopardy round and then mysteriously vanishes during Final Jeopardy. Reynolds also makes an appearance during the 40th anniversary sketch, having apparently “driven” his podium onto the set.

Ed h
Ed h
Member
September 12, 2016 8:23 AM

James,
Great article. Exciting and scary times we are in. Just read the article on ZH about Friday’s drop caused by Quants and how the markets could be seeing up to 50-100 Billion in derivative selling pressure due to just a 1-2% drop in the markets. Which would cause even a larger drop from momentum.

The picture you used for this article is great. Great depiction of what the FED members are probably doing behind closed doors and what they think of the American public.

God bless you and this ministry , you are helping many draw closer to God and learn about investing as well.

Miranda
Member
September 13, 2016 9:11 AM

This is completely off topic but relevant to the photo. I can’t believe people actually think we are monkeys descendants! If someone told them man came from them they probably would laugh, even with their understanding! It’s hilariously ridiculous but not funny at all because of the consequence of believing such absurdity!!! Praise the LORD for TRUTH!

Sue
Sue
Member
December 17, 2016 12:15 PM

Well, the Fed did raise rates .5, so its a scuttle. Going down on the elevator here in January.

Good luck, everyone (buy as much food as you can over the holidays!!!)

Raymond
Raymond
Member
September 12, 2016 11:51 PM

Yellen and the FED won’t raise rates in September or October because it probably would cause the stock market to drop. Yellen was appointed by Obama and she is not going to do anything that would hinder Hillary from getting elected and the Democrats from retaining power at 1600 PA Avenue.
I am sure that conversation probably came up before she was appointed. It might rise in February after the new president assumes office though. Especially if the new Commander In Chief is Trump. She’ll do it to sabotage the ‘honeymoon’ at his new job.

jack0296
jack0296
Member
September 12, 2016 2:39 PM

Fed might surprise the whole world this time.

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