Fed to Raise Interest Rates on Obama's Weak, Struggling and Jobless Economy

Townhall.com ^ | March 21, 2014 | Donald Lambro

[SaxxonWoods]

The 21% rate was reached right after Carter when Volker decided to kill inflation, IIRC. Carter’s policies were the main culprit.

[BfloGuy]

Good luck slowly deflating the balloon.

Yours is the only comment on six or seven threads that gets it. If only I could find a small enough pin, a tiny one, really, then -- maybe -- the balloon would just grow smaller with a sigh instead of a POP!

[urbanpovertylawcenter]

bought first house in 1987 still interest rates at 10.5% after Reagan, Carter's wreck lasted a generation. The Obama wreck may last three generations or worse forever.

[mikefive]

So this is going to start in 2015; I’m guessing late 2015, so in the run up to the 2016 election, it’ll all be blamed on the do nothing republicans in the house and maybe senate. Call me cynical, or maybe I should go buy more tinfoil for my hat. /s

[meatloaf]

You’d think the fed would have learned by now. Even Greenspan admitted that fallacy.

[hattend]

Someone asked Yellen at her press conference why the recovery has taken so long, but she dodged the question with the well-worn White House excuse that the recession was much deeper than expected.

That would be Bush's recession, right?

[usconservative]

I don’t see how this lasts long as the rise in rates will make the current deficit numbers far worse.

It will also cause interest payments on the national debt to skyrocket, causing the Federal Government to either raise taxes, cut spending in discretionary and non-discretionary spending, or BOTH.

Once the Fed raises taxes and cuts discretionary spending (money to the States) the States will then be forced to raise taxes, cut spending, or Both.

County and Municipal government swill then be forced into the same decision cycle.

Bottom line will be rising taxes at every level of Government, causing another deep recession and likely higher unemployment than we saw in the wake of the 2008 financial crisis.

Eventually the bills have to be paid, they're coming due faster than most people realize.

[usconservative]

We are still 8-10 years away from what we used to call a normal economy. And that’s if everthing goes well.

I sure hope you're wrong and its actually much shorter (ie: Once Obama is out of office and the anti-business/anti-wealth rhetoric from the White Hut finally stops) but everything I'm seeing and reading would indicate 8-10 years is quite "optimistic."