Topic: Federal Reserve
Fed Cuts Interest Rates; Here We Go Again Are you excited to hear the news that our Federal Reserve Bank has once again cut interest rates and is open to more cuts in the future?by Gary Wood
(conservative libertarian)
Thursday, October 30, 2008
With the Fed announcing they're once again cutting rates, this time to 1%, Chairman Bernanke also left the door open to further rate reductions for December if this move doesn't stabilize the slumping economy. Never one to disappoint Wall Street these moves keep us on track to flat line our interest rate to 0%, a move that failed to improve Japan's slumping 1990's economy from 2001 to 2006. However, to appear globally coordinated central banks worldwide are likely to follow suit.
Will this mean we can finally ease the consumer fear and go Christmas shopping again? Hardly as the move will have negative impacts on savings and investments which are at record low rates to begin with. Rate cuts artificially prop up the economy making things appear to be better, like a magician misdirecting the audience to make their prestidigitation appear to be magical. I'm confident this won't work any better than the massive bailouts or any of the other efforts of the Fed and the Federal Government to 'stimulate' the economy. Their combined patter and misdirecting ways simply keep us on the inflationary course toward meltdown while insuring the economy is never free again.
Why am I so confident? I'm not an economist yet many I respect have been attempting to warn us for centuries just how wrong federal interference is. Another reason my confidence is so high rests with the history of paper money, central banking, and interference in the economy. It's never worked over a long period of time and it always has led to disaster when allowed to continue.
Remember the Jefferson quote, "A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, shall not take from the mouth of labor the bread it has earned." Our government is no longer wise nor is it frugal. Since the inception of the 16th Amendment and the Federal Reserve Bank in 1913 we've witnessed time and again the negative effects here. There are also many examples from history abroad.
So why is this type of policy supported by the federal government, carried out by the private Federal Reserve Bank, and so often demanded by Wall Street? By the time the results of these actions reaches negative fruition a lot of money is made by those most closely connected to the government while the government bureaucrats are able to seize more power. Thomas Sowell stated this quite clearly when he wrote, "mystical references to "society" and its programs to "help" may warm the hearts of the gullible but what it really means is putting more power in the hands of bureaucrats."
We the People need to study history and understand the policies we have witnessed throughout our lifetime are not intended to benefit us. We don't have a free market nor do we have a pure capitalist economy. It is perverted beyond recognition. Don't take my word for it, study for yourself and then prepare to take action at the polls and through your voice. Until we demand an end to this we are bound by it and the hyperinflation that looms on the horizon will happen faster than we realize, resulting in a collapse of our society. If this occurs historians won't blame Ben Bernanke, Alan Greenspan, George Bush, Harry Reid, Nancy Pelosi or Corporate America. We the People will be given the blame for our lack of attention.
The views expressed in this
article are those of Gary Wood only and do not represent
the views of Nolan Chart, LLC or its affiliates. Gary Wood is
solely responsible for the contents of this article and is not an
employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.
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