Fed is looking to raise interest rates because pension funds are in trouble. They need higher rates to survive.

The Fed Hike in Rates & The US Equities

Posted on July 30, 2015 by Martin Armstrong

Sometimes it really does not matter what the underlying truth might be – markets move based upon anticipation and typically reverse with the news. The Fed is looking more and more like it will begin to raise interest rates for it can see that the pension funds are in trouble. They need higher rates to survive.

The US share market should drop with that anticipation creating the false move. So a decline into the ECM would be very healthy for the longer-term. A drop in equities would send the last bit of capital rushing into the US short-term debt taking those rates negative to the extreme. That would tend to cement the major high in government. Thereafter, the reality of a failed political system should begin to gradually make its way to the general understanding by early 2016.