I'm busy finishing up this week's issue of MMT Trader, however, I just had to stop to write this because it is so glaringly obvious yet nobody gets it.
All the idiot "geniuses" who were saying that central banks had no other option, but to engage in "Helicopter Money" (central banks dropping money into the economy) don't even recognize that ratre hikes ARE helicopter money!!
When the Fed raises rates it literally requires itself to give money to people. That's money out of thin air.
Maybe it's not shared equally, but neither are the tax cuts that people scream for all the time either. And when those happen they are generally deemed "good."
Yet people are selling stocks like crazy.
If the Fed were to announce that it is about to start sending money out to people--no matter how much the amount--you would see crazy buying of stocks and gold and selling of the dollar, yet that's exactly what the Fed is announcing and people are doing the exact opposite.
This will be the biggest fakeout in history.
Buy gold. Buy stocks. Sell the dollar. Sell Treasuries.