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The Fed's Trapped - And You Need to Know Why
The Fed's Trapped - And You Need to Know Why
Dear Reader,
September 15th is upon us.
No triple whammy.
The money markets didn't crash. Corporate taxes got paid. End-of-quarter settlements cleared. The rotation everyone feared? It was a whisper, not a scream.
But here's what did happen.
The Fed cuts rates Wednesday into sticky 3.8% services inflation - abandoning their 2% target while pretending they haven't
Gold hits $3,651 (up 39% this year) because smart money knows fiat currency is dying while Powell plays politics
AI and technology will replace expensive human labor as companies fight wage inflation - get positioned now or get left behind
The world's most powerful chipmaker could finally reveal what it's been building in secret. Reagan's former advisor has identified 3 companies positioned to explode when this news breaks.
Gold exploded to $3,651 per ounce. Up 39% this year. That's not normal market behavior. That's panic buying disguised as smart investing.
The strongest run since 1979. Think about that. The last time gold moved like this, we had double-digit inflation and Jimmy Carter was telling Americans to turn down their thermostats.
Bond yields keep falling. The S&P December futures pushed past 6,650 - a new 52-week high. Everything looks perfect on the surface.
It's not.
The Wave of Capital - And Why It Matters
I've been saying this since April. The global capital wave remains strong. Central banks worldwide shifted their policies. What they called "tightening" was actually supportive.
That's rich people speak for "we're flooding the system with money."
The question isn't whether the U.S. banking sector will see tightness. It's whether traditional banks matter anymore. They don't. Shadow banks run the show now. Hedge funds. Private equity. The guys who don't need the Fed's permission to create money.
They just do it.
Services Inflation - The Real Enemy
Services inflation hit 3.8%. That's the number that should scare you.
I bought a house recently. The lawn guy immediately raised his prices. New customer, new rates. That's human nature. And that's your future.
Everything requiring human labor costs more. The Fed knows this. They're cutting rates anyway.
The Fed's next move happens September 16-17. Everyone expects 0.25%. The probability sits at 88%.
Here's the problem: They're cutting into inflation above their target. While the labor market struggles.
Powell has an impossible job. Sound dovish enough for Wall Street. Hawkish enough to keep inflation expectations anchored.
One wrong word? Markets swing 3% in minutes.
The Truth About the 2% Target
The Fed abandoned their 2% inflation target.
They won't admit it. But watch their actions. They're cutting rates with inflation at 2.9% in August, up from 2.7% in July.
We'll find out about this officially in 2035. Just like it took 17-18 years for Americans to realize the Fed started "inflation targeting" in the 1990s.
They love their little secrets.
Trump's "Big Cut" Request
President Trump wants a "Big Cut" from the Fed this week. He thinks it'll help employment.
Maybe. But here's the real question: How much will inflation impact the job market going forward?
Companies are already figuring this out. Do more with less. Replace expensive humans with cheap technology.
AI isn't coming. It's here.
The Technology Revolution Nobody Talks About
This is where it gets interesting.
Companies face a choice: Pay higher wages or adopt better technology. Guess which one wins?
AI reduces wage inflation while reducing headcount. It's happening faster than anyone predicted.
The smart money isn't just buying gold as an inflation hedge. They're buying it because they know what's coming.
Human labor becomes more expensive. Technology becomes cheaper. The gap widens every day.
What Next?
Three things are happening simultaneously:
The Fed's trapped between inflation and employment.
Gold's telling us the dollar has problems.
Technology's about to replace millions of jobs.
You can either position yourself on the right side of these trends or become a victim of them.
The choice is yours.
But the clock is ticking.
Robert Kiyosaki
Editor, Kiyosaki Uncensored
P.S. The message below is from George’s team at Banyan Hill. It contains the details of his urgent briefing. Read every word. The easy money could be gone in a matter of days.
Starting just days from now…
The world's most powerful chipmaker could finally reveal what it's been building in secret.
At the same time, it could confirm a rare “super-convergence” event that this same man has been tracking for months.
All centered around mysterious 4-nanometer devices now rolling off production lines in what used to be Arizona scrubland.
Reagan's former advisor has identified 3 companies positioned to explode when this news breaks.
But once this bombshell announcement hits... just days from now... the easy money could be gone.
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