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Democracy Is A Front For Central Bank Rule

  • Democracy Is A Front For Central Bank Rule
    by Paul Craig Roberts, http://www.paulcraigroberts.org/
    Several years ago when the Federal Reserve had its Fed funds rate at zero to 25 basis points (one-quarter of one percent—0.25%), there was a great deal of talk, somehow presented as urgent, whether the Federal Reserve would raise interest rates.

    RT asked me if the Fed was going to raise interest rates. I answered that the purpose of low interest rates was to restore the solvency of the balance sheets of the “banks too big to fail” by raising debt prices. The lower the interest rate, the higher the prices of debt instruments. The Fed drives bond prices up by purchasing bonds, and the Fed raises interest rates by selling bonds, or by purchasing fewer of them than previously.

    I told RT that a real increase in interest rates would undercut the Fed’s policy of rescuing the balance sheets of the big banks whose balance sheets were loaded up with bad debt that desperately needed a rise in debt prices for the banks to remain solvent.

    When shortly thereafter the Fed raised the overnight funds rate, it blew my credibility with RT. RT did not understand that real interest rates had not increased. Indeed, two days after the “rate increase” the nominal interest rate had not changed. It was still 18 basis points. The announced rate had gone from the old range of zero to 25 basis points to a new range of 25 basis points to 50 basis points. The former max was the current minimum.

    Moreover, over the long time period in which there was such well marketed concern over whether such an inconsequential interest rate rise would occur, inflation had risen, making the real interest rate negative well below the 18 basis points official interest rate. By the time the Fed raised the nominal rate, the real rate was already more negative. Thus, there was no rise in real interest rates.

    The financial press did not explain this, either from incompetence or collusion. RT accepted the fake news as reality and wrote off my credibility. I am often interviewed by RT, but no longer on economic matters, about which I know the most.

    read more.

Who owns the world reserve currency, the dollar, the global monetary hegemony? Look at the Satanic capstone on your dollar bill. The Luciferian New World Order will be complete with the arrival of the Satanic capstone: the Anti-Christ, fake messiah, bringer of false peace, the white horseman of Revelation 6!

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June 21, 2017 - Posted by | Economics, GeoPolitics | , , , , , , ,

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