2008-Now Summarized:
"Common characteristics of a liquidity trap are interest rates that are close to zero and fluctuations in the money supply that fail to translate into fluctuations in price levels"
ZH: Oct. 5, 2015
"The Window Has Closed On A Fed Rate Hike"
The window didn't close, it never opened, because corporate outsourcing bolted it shut. The Fed was printing money for six years straight just to keep the stock market inflated. The concept of raising interest rates wasn't even on the table:
The Fed squandered six years propping up the stock market.
Jedi Mind Trick Visualized
Fed balance sheet (red) with interest rates and the Dow:
Black Swan diving into pavement visualized
The Fed's margin of error is 0%:
Liquidity trap (interest rates with inflation)
aka. zero percent interest rates AND $4 trillion new money, failing to raise prices...
Capacity utilization
Interest rates need to peak BEFORE capacity utilization peaks, not start rising after utilization peaks...
Dotted line shows were capacity utilization was in the last cycle when interest rates started rising. In this cycle, the Fed was too busy buying stocks, I mean bonds, to raise interest rates...
Relative to 2007, the Fed is only about two years behind the curve, as indicated by stock market momentum (lower pane):
