As 2010 brings new air to life, the Federal Reserve Bank decides to keep it like the old. Carrying record-low interest rates (for inter-bank lending), the Fed's hypocrisy reaches similar ridiculous heights. At 0.25%, the interest rate has remained rock bottom since December 2008 in an effort to stem the abruptly relaxed tide of inflation originally set to be unleashed in coincidence with the global economic meltdown of 2008-09.
The pattern mirrors a similarly eruptive time during the early '00's when interest rates held low at 3-4%, then down from the 'normal' 7-8% during the late '80s and early '90s. But what deflated interest rates really mean is that the dollar-presses will be ratched up in an effort to print out a record cache of federal reserve notes which will greater devalue the American dollar, domestically and abroad.
There is no new sign the Fed will raise interest rates, an act which would undoubtedly bring sharp inflation an harsh despair to many. But while raising interest rates would adversely affect man, putting off this ultimately necessary measure will only delay and increase the enormous burden of the fettered crisis.
Not only is it irresponsible to not account for the fabulously speculative heights of unhealthy lending, it is criminal in practice as it saddles future generations with heaps of insurmountable debt for which they never personally incurred.
The Fed's failure to address this crucial decision only unmasks their mimed benevolence and tears apart their facade of stability. It is increasingly clear the ineptitude of Federal Reserve Bank Chairman Ben Bernanke and Secretary of Treasury Timothy Geithner are prolonging the economic crisis and corruptly rewarding the very entities whose criminal irresponsibility robbed the wealth of a blind nation.
It is upon the Fed for the burden of proof to fall. If interest rates are not raised the necessary 8-9% or even greater in the next year, and it is not done before foreign nations take action to dump the American dollar as the primary oil trading unit, America will face an economic collapse so grand it will make the enduring Recession look like a small down blip in the abysmal line charting economic stagnation.
The writing is on the wall. If we are to allow business to survive, it is fast time for the Fed to change how it does business.
Crimea, the Prize as Always
7 months ago