Fed Cripples Working Americans with Rate Hikes
For the 15th consecutive time in 21 months, the Fed has raised interest rates under the insane pretense that it's somehow "controlling" inflation.
Of course, anyone with half a brain knows that's a pack of lies. Food and energy prices and the cost of borrowing money are the most important economic indicators for working Americans--over 85% of the population. And, we all know that the Fed ignores the former and exacerbates the latter when it raises interest rates.
So, here we are struggling to get by, each of us chained to a huge ball of debt that keeps getting heavier, thanks to the Fed's continuous rate hikes.
If we were chattel slaves (not just the debt slaves we are) and every quarter our masters added a heavier ball to our chain, but expected us to get the same amount of work done, eventually we would revolt.
Our condition is no different. The Fed doesn't lend us more money in exchange for the higher interest they exact. We derive no benefit from rate hikes. Nobody asks us. Instead, we are forced to pay more for what we've already borrowed. The money we borrowed is simply worth-less by Federal decree. It's INSANE! Why do we put up with this shit?
When the Fed increases interest rates, all it's doing is deciding that those who lend money (or, those who have already lent money) will get a bigger percentage of our incomes.
The volume of money in circulation does NOT contract - at least not in absolute terms. Lenders end up with TONS more money (at our expense) which of course they lend to others and the vicious cycle continues unabated. The Fed has accomplished NOTHING but bleed Americans dry for the benefit of money lenders.
Indeed, by raising interest rates the Fed institutes a perverse kind of socialism wherein the idle rich, by decree, transfer the wealth of working Americans to themselves and their comrades. It will take nothing less than a second revolution to free us from their death grip. France is on its way, and we must follow their lead.
Are you willing to sacrifice to win back your freedom?
“If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”
--Samuel Adams
posted by qrswave @ Thursday, March 30, 2006
14 Comments:
Hey Q, It is truly maddening when you understand their rate hikes on the one hand, and creating new "money" with the other, does NOTHING to stop inflation, and absolutely NO ONE knows what inflation actually is!
I see my fellow citizens as cows in the pen, cattle bred to feed the rulers. I got to read some of that Sam Adams. Those Sons of Liberty had it going on.
I am doing a short performance at a gallery this Saturday and I am going to do an experiment with play money to try to show what inflation is! Normally, I play the flute or electronics, but I feel this will be more instructive (the teacher in me - Hi Vper!)
I am going to ask for volunteers and give some of them chocolates, and give out a little bit of money to the others, and have the others "buy" the chocolate. Then, I'll give the buyers LOTS of money and we'll see what happens. Hopefully the lesson plan will work out so that the chocolate sells for more and shows the inflated price due to the increase in the money supplied.... I hope it works!!! If it doesn't, I'll have to identify quickly why it didn't....
We know it works that way in the real world. Pray with me to the "Art imitates life" God to bless this illustration of monetary policy!
Conservitives used to say "you know how to spend your money better than the government." Now they seem to say "Corporastions know how to spend your money better than you."
Hey Ruby! Sounds like a fabulous idea!
It's really important for people to begin to understand basic monetary policy as it ties into basic economics. And the earlier the age, the better.
However, I would not give up on adults, either. They're not a lost cause and they are often very grateful that they've been made aware of what's going on.
Good luck with your illustration and keep us posted!
Hey LOC, that's a good one!
Really, I've had it. I'm going to have to pay tons more interest on my student loans starting July, thanks to these bastards. I'm a very disgruntled citizen. This is unconstitutional.
Hey qrswave,
I've decided to raise some rates. Therefore, all hits to your blog and Cyclone's blog now will cost 1/4 of 7% of 23 cents. Figure that out and send me a check on a bi-weekly basis. Fees and penalties will accrue.
Fed
Very funny, Fed - now, let's see if you can squeeze it out of me. It'll be like milking a rock.
:)
My friend (who has a blog - oneofcountlessmillions.blogspot.com) is paying off student loans right now.
He is living hand to mouth, and is barely able to afford a basic existence.
We are indentured servants, the lot of us.
miss R, the people hardest hit by these rate hikes, and the ones on the way, are credit card holders, students who have not yet consolidated their student loans, and homeowners with adjustable rate mortgages (ARMs) or interest-only mortgages.
And of course, all our city and state governments, not to mention our corrupt federal government, will have to pay that much more to borrow money to run our cities, states, and our nation. Naturally, the result will be public service cuts all around.
This is insane. None of our politicians have the guts to stand up to bankers. We need NEW blood in Congress. And if they won't leave by the ballot, we must force them out.
QRS,
I agree. There are some good politicians, who do need our support. Ron Paul, John Conyers, Stephanie-Tubbs Jones, Dennis Kucinich, Russ Feingold, and Barbara Boxer...they are some of the good ones.
But most of the politicians really just are complicit in it all. Arianna Huffington wrote a great blog about the problem with lobbyists. Go read it.
http://www.huffingtonpost.com/arianna-huffington/lobbying-reform-lets-cu_b_17990.html
This goes into the heart of the rabid corruption in Washington, which is a bipartisan problem, though the Republicans are more egregious.
Interest rates are still low from a historic viewpoint.
Wait 'till folks catch on that real inflation is over
6% right now! Who will want to lend (or save) at 4% when prices
rise at 6%? Seems like an automatic loss of 2%...and
if the value of the dollar collapses, inflation will be
much worse than now.
Suggest you all payoff your debts or switch to a fixed rate
loan which stays at the same rate as interst rate rise.
Right now, lenders are actually losing money byy loaning it out.
..and for those of you who already ate your chocolates, you'll need
to raise cash eventually in order to buy more unless they give
them out for free or someone gives you more free cash without working
for it.
Rising interest rates are actually a good thing for savers and a non-event for those of us with fixed rate loans. Older retirees have been getting screwed for the last few years on artificially low rates for their hard earned savings. Those with huge credit card debt deserve what they get.
anon 4:30pm: Interest is a scam - pure exploitation. It only works in a controlled environment - one in which usurers control the money supply.
And if you think you're not affected by rising interest rates you're clueless. You don't have to be in debt because your governments (city, state, and federal) and all their agencies do it for you. When interest rates rise, governments can no longer afford to maintain public services.
Older people earned their money, no doubt. But, if they want to have an income as they get older, they should invest in equity and in children, instead of leaching off working Americans by collecting interest - regardless of productivity.
qrswave,
if you don't want to pay interest, then don't borrow. Pay interest at less than the inflation rate is theft! Who is exploiting who when the money you pay back is worth less than the money you borrowed. take a math class, please.
rope a dope: all the interest that's charged is THE REASON money is worth less today than tomorrow. I recommend that YOU take a math class.
Interest IS by definition inflationary. The only reason people agree to pay it is in a controlled environment, wherein those who do not have money are forced to pay interest in order to survive or conduct business.
Also, if you think you are avoiding interest by not borrowing, you're clueless. Every city and state government and their agencies and the federal government and its agencies pay interest hand over fist every minute. I recommend that you get a pair of reading glasses that allows the truth to shine through.
Peace.
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