This story has some important evil fnords.
The Federal Reserve pledged Wednesday to keep a key interest rate at a record low for an "extended period," in a sign that the economy is growing but remains deeply dependent on government help.The Federal Reserve kept the Fed Funds Rate at 0%-0.25%. In their statement, they said that they plan to keep nominal interest rates at zero for awhile. Many people were expecting the Fed Funds Rate to stay at zero, but for the Federal Reserve insiders to say that they might raise interest rates soon.
Some people say this is the reason the FRN-denominated price of gold rapidly rose recently. "The price of gold is increasing!" is logically equivalent to "The value of the dollar is decreasing!" By keeping the Fed Funds Rate at zero, the banksters are keeping inflation high.
The Fed Funds Rate is 0%-0.25%, while true inflation is 20%-30% or more. This means that real interest rates are negative 20% or even lower! This is a massive State subsidy to the banksters. They borrow at the Fed Funds Rate and make loans or buy tangible assets.
If I say "Inflation is a problem!" it doesn't affect market prices. When Ben Bernanke expresses his opinion regarding inflation, it immediately affects the market.
State comedians say "Ben Bernanke's opinions affect the market because he's a wise person who knows a lot about the economy." That is an evil fnord. Ben Bernanke's opinions affect the market, because his decisions are backed by the full evil power of the State.
It's very easy to seem like a wise economic leader, when there's a massive terrorist organization implementing your orders.
The evil fnord is "Ben Bernanke is a wise leader." The reality is that a central bank credit monopoly is immoral. The Federal Reserve is a massive price-fixing cartel. The banksters claim they are looking out for the interests of everyone, when they are looting and pillaging.
Another evil fnord is "Someone wise like Ben Bernanke is needed to 'manage the economy'." A free market banking system would allocate capital much more efficiently than a central bank credit monopoly. A central bank credit monopoly "allocates capital" straight into the pockets of the banksters.
When State comedians get excited by Ben Bernanke's every word, that is an evil fnord. Ben Bernanke isn't a brilliant leader. His orders are enforced via the full violent power of the State.
The only reason the Federal Reserve matters is that State violence forces people to use slave points as money. Otherwise, people would boycott the Federal Reserve and use other forms of money instead.
3 comments:
Bernanke has never ever led any business. He has ZERO experience, and ZERO skills. All his life he was eating from a government feeder. He is a professor, not an economist even, and much less a "leader". A typical "gamma" male.
Yup, they can borrow at 0% and lend (make you borrow) at 29.9%. If someone defaults, they can just borrow some more at 0% to pay off the original 0% loan. But if your employer "defaults", tough luck for you.
Anonymous,
You forgot to mention, that if someone defaults, then the bankers carry no loss. All loss is carried by we the people. From this point of view, it is very clear that there is no justification for a punishment by a higher interest rate, since there is never a loss. Only we the people, can justifiably keep the higher interest, because we do fund all the losses.
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