Financial Terrorist - US Fed Rate Hike.

It's no longer a matter of debate anymore on the "will she - will she not". Janet Yellen, as has been stated by media around the world, will hike the US Fed rate and end the suspense that has gripped the financial world from the start of this year. While I keep hearing that the event has been "factored" by investment pundits in every country on mother earth, I am surprised at the visible and violent reactions caused in world commodity and financial markets at the very and every mention of a Fed rate hike. Such is its impact and terror.

She has been armed with enough  for justification of the same. It feels almost like a decision which has been reached to appease the current administration, rather than one that deserves merit. Almost like the rate cuts pleaded by our own Government with the Governor of the Reserve Bank.

The expectation is that the hike will be a modest one for now, akin to a straw at a time on the camel's breaking back, knowing well the damage even the slightest change can inflict. I wonder if it is politically motivated? President Obama does seem to have a vested interest. His signed in his first term during the chaos of the sub-prime crisis and would love to sign off the end of his second term as one of economic success, for the US at least. The Democrats would love to fight the next Presidential battle by calling Obama's policies deliverers of strong economic fundamentals, strong dollar, cheap oil, and bringing down the world on its knees - economically - including China and Russia - the two biggest threat perceptions for the US. China and Russia for all its might have had to assume humbler postures, the former already considering the possibility of un-pegging the Yuan from the Dollar to save its own currency and economy. From a global point of view, the US wanting to portray its own pink of health has thrown the rest of the world in a deep red. It won't spare its close and distant allies either with many European and Latin American economies also suffering.

It is to be seen what the US has in mind for saving the world in terms of investing in developing and emerging economies. I don't think any nation in its right mind thinks of US arms as an investment.

While the world is debating on how to control Donald Trump, refugees, terror and the climate, how is it going to deal with the financial terror that will unleash itself slowly but surely by way of further rate hikes in the year to come? It does not look like 2016 would be greeted as a happy new year by anyone other than those earning in dollars.

Ultimately, what goes around comes around and eventually the pain will return to where it started. I hope the situation will not be as grim. For all you know a modest hike may just be a small rap on the knuckles that the US wants to deliver to all and sundry to let the world know that it is still in charge - economically at least.

The term “terrorism” defined by The Dept of Homeland Security means any activity that—

(A) involves an act that—

(i) is dangerous to human life or potentially destructive of critical infrastructure or key resources; and

(ii) is a violation of the criminal laws of the United States or of any State or other subdivision of the United States; and

(B) appears to be intended—

(i) to intimidate or coerce a civilian population;

(ii) to influence the policy of a government by intimidation or coercion; or

(iii) to affect the conduct of a government by mass destruction, assassination, or kidnapping