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To: Hojczyk
No way the Fed is going to allow interest rates to rise!

Barnake worships at the feet of Keynes.

49 posted on 09/18/2013 1:58:50 PM PDT by fortheDeclaration (Pr 14:34 Righteousness exalteth a nation:but sin is a reproach to any people)
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To: fortheDeclaration
No way the Fed is going to allow interest rates to rise! ... Barnake worships at the feet of Keynes.

Whether Bernake is a fan of Keynes or not is immaterial - the Fed can NOT allow rates to rise until it finds a way to pay down, at least some of, the debt it has accrued OR the economy makes a MAJOR turn. If the rates rise, so does the rate that the Government must pay to service the debt.

We are adding roughly 1 Trillion / year to the debt, half again of what we actually take in - and we can't stop the borrowing without crippling the economy! By continuing to "prime the pump" the Fed hopes to keep the economy a float until it turns around - but it hasn't yet and likely won't for a long time.

Essentially he is trapped. But instead of admitting it, and finally allowing the system to cleanse itself, he keeps telling us bedtime stories with pretty unicorns. All this to hide the the fact that Freddy is awaiting us when we really do fall asleep ...

78 posted on 09/18/2013 10:41:06 PM PDT by An.American.Expatriate (Here's my strategy on the War against Terrorism: We win, they lose. - with apologies to R.R.)
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