The Feds are Raising Rates!

$1.4 trillion Chinese stocks have stopped trading. Greece is finally imploding. The US trade deficit is growing in the fall exports. Copper just fall back to 2009 levels and capital flows engines safe haven again heated, with Swiss 10-year bond, once more trading with negative returns. But somehow most economists and money managers still believe that not only fed hike rates at its next meeting, but they should. The IMF is not usually the voice of reason in the major financial issues, but in this case - perhaps because it has its hands full with Europe - his caution seems appropriate: "The weaker global growth" indeed. The following two charts show the growth of GDP for Japan and Germany. Note that the two are positive (barely), but are also lower than the previous year. So the impulse that was already slowing before Greece exploded and burst stock market bubble in China.