Why is the federal Reserve bank holding the USA hostage by not raising the Interest rates?
Gold went to all time high today at 1,800 and is expected to climb even higher by years end. With the US economy on free fall Why hasnt the federal Reserve raise interest rate to boost up the economy and end this depression?
I have got one word for you buddy: power. That, and they are a bunch of Keynesians. The only reasons Keynesianism (a disproved economic theory, e.g., stagflation) is still accepted is (1) politicians like to use it to justify their shopping addictions; (2) liberals like to use it as an excuse for entitlements, the welfare state, and yadda, yadda; and (3) the central bankers love to keep feeding that addiction.
The Treasury Department is hoping to sell as many treasury bonds as possible without having to pay back much interest on them in the coming years. When someone cashes in their bonds that they buy today years from now, they will make no interest on them. The selling of bonds helps with the federal income crisis, while the low interest helps to not accrue more long-term debt. The only problem is; who wants to buy a bond when they will not make any money off if it? (You will notice that answers to this question from conservatives are typical of their kind: full of emotion and opinion while presenting no facts)
The Fed would have us believe they run the controls. But at least in terms of interest rates, they do not. Interest rates are set in the open market where government bonds are sold at auction. The Fed Board does vote on a Fed rate, but this is just a formality since this rate generally follows the movement of auction rates for 6 month Treasury Bonds. Of course, the Fed can always influence the Bond sales by having anonymous parties in the back of the auction buying up Bonds that might otherwise go unsold. That's basically, how the Fed 'prints' money and helps the government stay liquid. Also, be careful about gold -- when gold is 'expected' to do something, it usually does the opposite.
by tonybeck 7 years ago
Why is the Federal Reserve allowed pretend to be part of our government? It's a private bank!The world bankers have used the Federal Reserve to facilitate the downfall of the U.S. I like the analogy that says the Fed is about as federal as FedEx. It sucks, but our presidents and...
by Jeff Zod 2 days ago
The Federal Reserve is a private institution.They have rigged the financial system in favor of the government and the banks The Fed has made the American Dollar useless..Do we really work for free? or Do we work for the banks? Are we under financial bondage?
by Wesman Todd Shaw 6 years ago
It's all so simple, really, and a wicked man stated long, long ago that it never mattered who a king was - so long as he controlled the currency - he was lord and master.http://auditthefedphonebomb.com/bailout … rillion-2/
by Jack Lee 4 weeks ago
It is long overdue... now is time to play catch up and raise interest rates.We cannot continue with less than 2% interest rate...
by Castlepaloma 2 years ago
Centro banks are on top of the pyramids worldwide Corperationism. Rothschild's may own half of the World's wealth. Greed is the greatest cause of untouchable intractable genocide and theif in all of human history. Take down the banks and also the Federal Government that will would shrink down their...
by Gary Anderson 9 years ago
This guy is or was high up in the Fed. The fed is a PRIVATE bank, despite the lie on their website. The fed is owned by private stock and the US government owns none of that private stock. http://www.frbatlanta.org/publica/eco-r … hriszt.pdf
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