. . .
K “Commissar Powell of the Central Planning Committee is directly setting monetary policy and by default substantially shaping fiscal policy. I never thought I would say that a free market sounds downright liberating.”
J “Our July discussion about the cooked unemployment and inflation figures is on the money. They are proceeding from knowingly inaccurate and misleading information and cannot reach the right answer.”
K “An accurate calculation and evaluation of the facts and figures and understanding of our circumstances would compel a continuation of the current interest rate. The real economy is either in recession or ready to slide into recession.”
. . .
J “The Fed is concerned about the compounding interest on the national debt that must be financed day in and day out and the maturing debt on commercial real estate that must be refinanced in the next few quarters. The Fed is setting policy to protect the well-connected sectors. As it always does.”
K “The Fed is owned by the banks and the owners of the Fed do not want their borrowers defaulting when there is mucho money to be made refinancing the loans.”
. . .
K “The Fed in practice responds to almost every usually self-inflicted crises by transferring trillions to the billionaires.”
J “And they exacerbate income inequality almost as a matter of policy and with gross impunity.”
. . .
J “By keeping interest rates so low in the past, the Fed has knowingly punished and harmed honest and hardworking individuals who seek less risk and desire a historically reasonable rate of return on their money.”
K “By reducing interest rates, inflation will rise even more and partially inflate away the debt.”
. . .
K “The Fed should announce that interest rates shall remain unchanged for three years. That is a historically sound rate. Let the consequences follow. If there is economic pain, now is the time to address and accommodate the pain.”
J “Humans do not relinquish power. They have too much fun tinkering with the rates and playing with the public.”
K “Agree. Even this strategic and long term approach would be undermined because the Fed and the Treasury are still able to engage in all manner of machinations to expand and contract liquidity.”
J “At least make them do so without messing directly with interest rates. It is time to confront the can.”
. . .
[See the e-commentary at the Categories “Federal Reserve” and “Interest Rates” and other related e-commentary.]
Bumper stickers of the week:
It is time to confront the can
Cease fiddling
e-commentary 