Excerpt: U.S. Treasury debt prices soared on Tuesday, pushing benchmark note yields down to fresh five-decade lows, after the Federal Reserve cut its benchmark interest rates to near zero and vowed to extend its quantitative easing measures.
In an unprecedented move, the Fed cut its target for overnight interest rates to a target of zero to 0.25 percent, the lowest on record. ... (blah, blah, blah ...)
Yesterday's action by the Federal Reserve lowering the Fed Funds Rate to a range of zero to 0.25% sickened me. In addition to lowering rates, which they pledged to keep low for a lonnnnng time, they announced plans to start buying stuff with freshly printed money.
The impact was immediate: stock market traders were finally persuaded that stock certificates are more valuable than the U.S. dollar, currency traders decided to invest in anything that is Not Dollars, and gold bugs went berserk with grandiose visions of untold riches in store for them in the near future.
I was just sickened by the whole thing though, because it makes a mockery of paychecks. Why slave for minimum wage and then pay federal, state, FICA, sales and gas taxes when the unit of measure -- the dollar -- is despised by the US government, who is actively attacking its own currency? If the government can squander trillions of dollars making good on the gambling losses of Wall Street then why should John Q. Public bother showing up for work at all?
With interest rates at zero and the Fed planning to print money to buy things for its own account, the government is, essentially, confiscating money from the poor, the widows and the orphans to give to the wealthy. Every dollar in existence is devalued by more every day that goes by. The entire concept of "U.S. Dollar" is becoming increasingly untenable!
With interest rates at zero and the Fed planning to print money to buy things for its own account, the government is, essentially, confiscating money from the poor, the widows and the orphans to give to the wealthy.
Every dollar in existence is devalued by more every day that goes by.
The entire concept of "U.S. Dollar" is becoming increasingly untenable!
But John Q. Public isn't allowed to borrow money from the government at zero percent. Nooo... That privilege is reserved for the Masters of the Universe on Wall Street and their banker buddies. John Q. Public pays 29% interest on his credit card balances even if he has not missed or been late on a single payment!
This is a crime of the highest order. It would be the perfect crime except for the small fact that quite a few people recognize that a crime is underway.
FYI, the crime spree won't be stopped by Obama, as his cabinet and advisers are the Thelma and Louises who steered the car over the cliff. The theft will stop when the money is gone or the people rise up in revolt (that is a logically inclusive "or"). This will end in tears either way...
P.S. The logical thing to do is to try to identify the next Bubble and try to get in early. It is obvious that our government is addicted to bubble blowing. Anyone who can't surf bubbles over the long run is doomed...
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