Who Decides on Money, The President or the FED? – We Hold These Truths

August 16, 2019 by · Leave a Comment 

“This week, the Federal Reserve likely will vote to cut interest rates — when it should be raising them. If the economy is so dependent on low interest rates that a near-record-low rate of 2.4 percent isn’t low enough, there is something wrong with the economy, and piling on more cheap debt will make the crash that much harder,” and “Since the financial crisis of more than a decade ago, America and the world have gotten dangerously addicted to debt. The Fed has fed the addiction.”

She concludes: “The Fed (roughly speaking) sets the interest rate at which banks can borrow. The lower the rate, the lower the rate at which banks will lend to homeowners, credit-card borrowers, car buyers, and the like…In 2008, as the financial system was failing, the Fed pushed its key interest rate down to zero and kept it there for seven years. The point was to get people spending again. Since they had little discretionary income, they couldn’t spend more unless they could borrow more.”

“The more significant problem created is that cheap debt got the economy into trouble in the first place. By 2008, after a decade during which interest rates were also low, people had already borrowed so much that they couldn’t borrow any more. Household debt had nearly doubled between 2000 and 2007, to $14.2 trillion from $7.2 trillion. Choking on mortgage debt, in particular, Americans cut off their spending.”

Source: Who Decides on Money, The President or the FED?We Hold These Truths

The bankers’ ‘power revolution’: How the government got shackled by debt | Intrepid Report.com – Ellen Brown

June 3, 2019 by · Leave a Comment 

This article is excerpted from my new book Banking on the People: Democratizing Money in the Digital Age, available in paperback.—EB

The U.S. federal debt has more than doubled since the 2008 financial crisis, shooting up from $9.4 trillion in mid-2008 to over $22 trillion in April 2019. The debt is never paid off. The government just keeps paying the interest on it, and interest rates are rising.

In 2018, the Fed announced plans to raise rates by 2020 to “normal” levels—a fed funds target of 3.375 percent—and to sell about $1.5 trillion in federal securities at the rate of $50 billion monthly, further growing the mountain of federal debt on the market. When the Fed holds government securities, it returns the interest to the government after deducting its costs; but the private buyers of these securities will be pocketing the interest, adding to the taxpayers’ bill.

Source: The bankers’ ‘power revolution’: How the government got shackled by debt | Intrepid Report.com

America Needs A Debt Jubilee – Paul Craig Roberts

May 6, 2019 by · Leave a Comment 

In America today the population is drowning in unpayable debts—student loan debt, credit card debt, home mortgage debt, state and local government debt, and business debt—but policymakers have reserved forgiveness only for the debt associated with the bad and irresponsible investments of the big banks and financial institutions. The Federal Reserve printed $4 trillion to buy up the banks’ bad debt while permitting ten million homeowners to be foreclosed. Student loan debt prevents university graduates from forming independent households. Mortgage and credit card debt prevents households from having discretionary income with which to drive retail sales. But modern day economics has no prescription for preventing our society from failing from debt overload.

America long ago lost its independent farmers to debt overload. All it took was a drought, or a dustbowl, or the Fed driving up interest rates on loans, and farmers were foreclosed and the farm properties passed to corporate farming. Today the same thing is happening to dairy producers. Canada’s response to Trump’s tariffs is to place tariffs on US dairy products. The earnings drop leaves American dairy farmers overburdened with debt service. This business, too, seems destined to be concentrated in a few hands. Economic independence is being driven out of American society.

Source: America Needs A Debt Jubilee – PaulCraigRoberts.org

Trump Is Considering Firing Fed Chair Powell | Zero Hedge

December 22, 2018 by · Leave a Comment 

If amid the barrage of negative news hitting the market this quarter there has been one outstanding item which would have sent it sharply (even) lower, that would be a flashing red headline – or a tweet from the president – announcing that Trump has fired Fed Chair Jerome Powell.

And while to many such an act would seem unthinkable, even from someone as unorthodox and unpredictable as Trump, it now appears that’s precisely the outcome the market will have to worry about next as Bloomberg reports that the president has discussed firing Federal Reserve Chairman Jerome Powell “as his frustration with the central bank chief intensified following this week’s interest-rate increase and months of stock-market losses”, citing four people familiar with the matter.

Source: Trump Is Considering Firing Fed Chair Powell | Zero Hedge

Will Interest Rates Ever Rise?

May 20, 2015 by · Leave a Comment 

Wrapped in a worldwide currency depression, the intentional zero interest rate strategy has fostered great damage to the practice of saving. Nevertheless, not everyone believes or blames central banksters for enacting a deliberate policy. Reporting on one such denier is UK columnist Jeremy Warner. He writes in the Telegraph article, When will interest rates rise? The way things are going, maybe never.

Read the entire article on the “Corporatocracy” archives


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