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Posted on 07/31/2025 6:02:19 AM PDT by MtnClimber
FED Chairman Jerome Powell announced today the FED Board of Governors is keeping the interest rate at 4.25 to 4.5 percent. The Central Bank of the United States is trying to create an unsustainable debt spiral.
The goal of the FED (Central Bank) is to create a debt spiral that leads to a crisis. This is the way the Central Bank controls the activity of the smaller banks. This is the way the Central Bank keeps control over the people in America. WATCH: [Powell video at link]
President Trump is pumping money into the USA economy through economic growth, tariff revenue, federal govt downsizing, expanded private sector employment and wage growth.
The Central Bankers are trying to drain money from the USA economy through monetary policy and control over the behavior of the smaller regional banks and credit unions.
♦ FED. The Central Bank controls interest rates.
♦ FED. The Central Bank (FED) does not control inflation.
♦ BIG BANKS. The credit creation by institutional banks, the creation of money, does create inflation.
♦ BIG BANKS. Money created by institutional banks does not come from the FED.
♦ BIG BANKS. Money created by institutional banks, via credit creation for asset purchases, creates inflation.
♦ BIG BANKS. Money created by institutional banks via credit creation for consumer spending (loans and credit cards), creates inflation.
♦ TRUMP. Money created by regional banks via credit creation for Main Street development, expands GDP, creates revenue and does not create inflation. Additionally, money created by tariff incomes and money delivered by foreign entities to the U.S. treasury for tariff offset purchases, do not create inflation.
THE BATTLE
The FED, representing the USA Central Bank and the interests of the BIG BANKS, are trying to create a massive debt spiral by keeping the interest rates high and making service on the debt unsustainable.
President Trump, representing Main Street USA, is fighting against the interests of the BIG BANKS, and trying to create revenue to avoid the debt spiral the FED is trying to create.
That’s the non-pretending reality of the situation.
Why does the FED (Central Bank) want to create a debt spiral? Because they want control over the economic activity, which includes the destruction of the smaller regional banks and credit unions who are funding the Main Street economy.
The Central Bank want’s full control.
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How long until Powell is gone?
May ‘26
As fed chair May’26, as a non-chair board of governors member Jan ‘28.
Forget the Fed Donald and laser focus on illegals.
Everyone wants to get rid of Powell, but ten of the 12 governors are non-Trumpers, mening anti-Trumpers, and they would like nothing better than to do to Trump what the Fed did to tank Reagan’s economy in 1982 and stick him with an opposition Congress with the face of Hakeem and the soul of Al Green (”you know who I am? I’m AL GREEN! I made my bones while you were slumming it on weekly TV!”). We have to get rid of them, or better yet, get rid of the Fed period.
Who was it that appointed Powell again?
Inflation is still too high.
Paulina Luna referred Powell for lying to Congress on the matter to DOJ but I don’t know where that is going. I hope Trump is pushing hard on investigations because that’s the best way of forcing him out. The GOP just isn’t that good at doing this stuff as the Dems are.
This should be a big deal. Powell is costing US treasury hundreds of billions in interest payments and preventing people from getting affordable housing loans. I don’t see why they can’t find any dirt in this weasel to force him into resigning. Keep hauling him in front of Congress over and over and get DOJ on the case. It’s much more important to get him out than resolving the Epstein files matter. He’s acting like Putin (and almost as dangerous) and it’s clear he doesn’t care what Trump says.
Where is my tinfoil hat when I need it?
The goal of the FED (Central Bank) is to create a debt spiral that leads to a crisis.
————
We are already in a debt spiral. $38 trillion is mathematically impossible to pay off. The only way out is to keep printing paper, inflation and Gold will be on the rise.
Our currency debasement will continue, the USD has already dropped 11.5 percent this year, which means purchases from overseas are now costing 11.5 percent more ( and that is not figuring in Tariffs).
Trump’s moves are meant well I am sure- but there will be a price to pay…” unintended consequences “ will be disturbing to many.
Large companies could offer employee mortgages at the rate the company most recently borrowed at.
Relatives might lend part (say 20%) of the mortgage amount at no interest.
Real estate agents might lend part of their commission at no interest for six years.
States might lend recording tax amounts at no interest.
Sellers might chip in six-year rate buydowns.
Employers might chip in rate buydowns for as many years as employed.
Today’s PCE measurements of inflation was worse than expected. Month to month increase was 0.3% and the core year to year was 2.8% which is rising.
How could one expect an interest rate cut when inflation is increasing, and bear in mind it is likely that the Fed had access to this PCE data yesterday before it became public this morning, so it probably was incorporated into their decision to not cost rates.
For those who have not followed the game, PCE is a broader measure of inflation than the CPI, which is generally constrained to Urban prices.
Note also that the May PCE was revised upwards 0.1%.
The federal government borrows money at public auction.
The Fed has no say over what is bid unless it chooses to bid and undercut the market.
Oh, and when the PCE reports as it did, is best to ignore everything after the word “as”.
The media will report it “as Trump’s tariffs affect prices”.
Just ignore that. The prices are rising and inflation is ramping for reasons that they have nothing to do with tariffs, and indeed for reasons that potentially no one knows anything about.
“The federal government borrows money at public auction.
The Fed has no say over what is bid unless it chooses to bid and undercut the market.”
**************
The Fed does not directly buy or sell Treasury securities at public auctions conducted by the U.S. Treasury.
From the Fed itself: “The Fed does not participate in competitive bidding at Treasury auctions.”
Team Trump can’t see the forest for the trees on this one. Keeping interest rates up is a tacit admission that we are in a strong economy, and the Fed anticipates it will remain strong, and even grow stronger.
The purpose of interest-rate setting (manipulation) is to encourage or dissuade investment. If it costs you more to borrow, you’ll be less likely to do so, thereby dampening the economy. If it costs you less, then you’re more likely to borrow, and the economy will be stimulated to grow by the increased activity.
The Trump administration’s message should be to thank the Fed for confirming that their economic plan is a good one, and it is working spectacularly - to the benefit of all Americans.
“The Fed says what’s driving the cost overruns are unexpected developments like excess lead and asbestos, as well as inflation which has raised the cost of building projects nationwide.”
“It involves a complete overhaul, modernization, and preservation of two historic buildings that have not been comprehensively renovated since their construction in the 1930s and includes:
• Remediation and updates to make the buildings safe, healthy, and effective places to work by removing asbestos and lead contamination.
• Complete replacement of antiquated systems such as electrical, plumbing, heating, ventilation, and air conditioning, and fire detection and suppression systems.
• Major structural work to bring the buildings up to modern code, including current accessibility, security, and safety standards.
The work will also restore and enhance space for the public along the National Mall.
Factors Driving the Cost Increases
Various factors have resulted in increased costs. Key factors include:
• Due to consultation with multiple federal and state agencies, changes to the original building designs.
• The differences between original estimates and actual costs of materials, equipment, and labor over the course of the construction.
• Unforeseen conditions, for example, more asbestos than anticipated, toxic contamination in soil, and a sinkhole.”
https://www.federalreserve.gov/faqs/files/faq-tour-one-pager.pdf
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