< HOME  Wednesday, May 17, 2006

Bondbuyers Collect Billions in Interest, Americans Drown in Debt

Paying over 5% interest on every dollar borrowed is like stepping on the gas more than sixty extra minutes each morning but going nowhere for it. America is running to stand still.

Thanks to the Fed, every American borrower, governments and consumers alike, must work harder than ever - just to maintain the same debt-ridden existence - because bond buyers insist on guaranteed profits while they sit back and collect interest.
U.S. Treasuries fell the most in more than two weeks after a government report showed consumer prices in April climbed more than forecast, bolstering concern that inflation is accelerating.
Of course, it's accelerating - the Fed has its foot on the gas pedal!

But, instead of moving forward, our economy - where a handful of people wield tons of cash - simply inflates.
The Labor Department report adds to speculation that the Federal Reserve may be falling behind in its effort to keep inflation in check even as the economy shows signs of slowing. Inflation erodes the purchasing power of a bond's fixed payments.
They don't give a crap how much you and I have to spend on a gallon of gas or a gallon of milk, or how many workers our cities must layoff because they can no longer afford to service the debt needed to "finance" municipal works.

No. They're worried that the interest "investors" collect on their precious bonds will not cover the rate of inflation. The Fed doesn't work for Americans - but for MONEYLENDERS, domestic and foreign.
Investors "want the Fed to be vigilant on inflation,'' said Peter Cordrey, head of liquid products, which include Treasuries, at Prudential Investment Management in Newark, New Jersey. The firm oversees about $170 billion in fixed-income assets. "But the Fed is in a tough spot. The economy can slow down and still have inflation."
No sh*t. It is simply impossible to "fight inflation" by raising interest rates, especially in a debt-ridden economy.

Not only do "investors" collect more from the US Treasury on the Treasury bonds they "purchase," but so does every other tom, dick, and harry lender in the consumer lending market who consequently raises his rates to reflect the new 'going rate.'

It's like one big, massive lending orgy where every lender in the economy is given a license to increase rates on borrowers.

Increasing interest rates serves no purpose whatsoever aside from redistributing wealth from borrowing Americans to moneylenders. What's worse is that these lenders not only collect on the money they lend, but they also collect interest ON the interest that they promptly "reinvest" in bonds.

Talk about easy money. They collect billions upon billions without ever lifting a finger. Yet, Americans remain docile.

Amazing. What will it take for Americans first to realize how badly they're being screwed AND then to do something about it?


At Thursday, May 18, 2006, Blogger Mark Prime (tpm/Confession Zero) said...

Hopefully it will not take much longer, my friend. It'd be a shame if this country squanders the democracy for a little safety, eh?

At Thursday, May 18, 2006, Blogger qrswave said...

I heard Rove was indicted and they're working on Cheney. Nevertheless, I'm having difficulty feeling optimistic after all the shit they've pulled.

They are bound to do something nuts to maintain control.

At Thursday, May 18, 2006, Anonymous Anonymous said...

Venezuela 'may swap oil currency'

Venezuela has hinted it could price its oil exports in euros rather than US dollars, further weakening its links to the US.
President Hugo Chavez said he was considering taking the step following a similar declaration by Iran.

Co-Incidentally, the UK Stock market had its biggest fall in 4 years yesterday, as did other worlwide exchanges. I wonder if the events are related?

Is this going to make Bush 'War Up' on Venezuela??

At Friday, May 19, 2006, Anonymous Anonymous said...

Assuming the bond buyers EARNED the cash to support our borrowing habit, they deserve to be reimbursed for loaning us the money we think we need.No?

At Friday, May 19, 2006, Blogger qrswave said...

In short, No.

See, Difference between lending-at-Interest and Equity Investing; and Moneylenders Profit Most By Exploiting Others' Need For Money

See also, Prabhu Guptara: Conflicts of Interest; and Euros Can't Buy Freedom Any More Than Dollars

"Earning it" the first time around does not justify exploiting others to extort unearned interest in the second instance.

At Friday, May 19, 2006, Blogger qrswave said...

Byrne, I think that coupled with what happened in Ecuador, things are going to get very heated in South America.


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