In my recently published article titled “Can US Fed really bomb China, Crude Oil, Global currencies?” Today, history was made in America when US Fed finally bombed the world economy, by raising fed fund rate- quarter point to .25-.50 percent for the first time since 2006. Yes the interest rate hike was little but it might suffocate many emerging markets’ economies, because most of these countries might be looking towards issuing bonds to repay outstanding debts.
Here are some of the unintended consequences of US Fed’s hiking interest rate action to the global economy;
- Crude oil heads to $25 per barrel by 2016
- Gold $875 per Troy ounce.
- N500 (Nigerian currency Naira) to $1.
- Euro going to parity with Dollar.
- Other Emerging markets to have difficulties in raising funds to repay outstanding debts.
- Credit cards, Mortgages, Students’ Auto loans will start to rise.
- African countries would have difficulties raising money from international communities because of the continued sliding crude oil and other commodity prices.
- King Dollar to get even stronger.
Please conserve your resources because 2016 will go down in history as a terrible memorable year of global economic hardship. I expect the global economy to be in recession by 4th quarter of 2016. Your free email subscription will get you the full details of US Fed bomb of …..
Christopher Okoli (Nigerian-American Investment Advisor)