COMMENT: Marty, well it looks like you have done it. The central banks are going to start raising interest rates right in line with your model. It is interesting how your computer puts the entire world before you to see. Keep up the good work. They obviously are starting to follow you.
REPLY: I do not think that the central banks are simply beginning to follow us. Yes, they all probably read us, no doubt. But make no mistake about it, they are going to raise rates, not because of our model, but because they have no choice. Low interest rates have wiped out pension funds and destroyed the living standards of the elderly. These people are clueless and should never have followed Larry Summers down this path of absolute hell. The comments of Glenn Stevens, the meeting between Yellen and Obama, and the criticism starting to surface against Draghi at the ECB are the realization that interest rates must be “normalized” (raised). However, they have created a nightmare for governments are addicted to low interest rates and their budget will explode; we will see a sharp rise in taxes from 2017 onward.
We will be putting out a very important special report. Behind the curtain, state pensions are lobbying Congress to make it MANDATORY for everyone (not just government employees) to contribute to state pension systems. They want to takeover your 401K, manage everything, and rob your savings to pay for unfunded liabilities to state workers. This is how they are looking to bail themselves out — it will be the dark side post-2017. All of this is going on right now but it is still hush-hush.
Full article: Central Banks Are Trapped – Are Higher Interest Rates the Only Answer? (Armstrong Economics)