Old Greeks, Madness … And The Federal Reserve


Fed Chairman Janet Yellin

Consider: How much money will you pay us to borrow your money? Leaving you with only hope that we will repay it? If that seems insane to you, it is. Nevertheless, Negative Interest Rates have been used in Sweden and Switzerland recently and they are predicted everywhere as economies decline. Governments don’t like to pay interest and they are the worlds’ largest borrowers by far. Welfare government promises always outrun their capacity to pay for what they offer. Further, the publicly educated (if you wish to call it such) voters don’t seem to notice or care. It’s a better time to be a politician than to be working for a living …

Long lines of oil tankers are waiting at U.S. and European ports bringing in oil that cannot be landed because all the storage is full already. Industrial production and orders are dropping worldwide. The only really productive places (Europe and the U.S.) are being inundated with cheap and needy migrants. (Well, cheap to hire; not so cheap to support on welfare.) Unemployment runs above 20% in the U.S. if you look at the workforce percentages.

Financial folk are agonizing over whether the Fed will raise interest rates in December. That, if it occurs, will be one quarter of one percentage point, a negligible change but for its direction. Going into a presidential election year, pressure to avoid that will be intense. Politicians who live in the status quo despise any changes. You haven’t heard presidential candidates from either party discussing the Fed’s rate policy at their ‘debates’ have you? That’s reality, not welcome at political events.

Nor have you heard much of all the city, county and state (and union) pension plans that are insolvent because safe investments in bonds and other such interest-bearing securities has been missing some seven years now, thank you Federal Reserve. Those folk are all reliable Democrats so they have to tough it out. Until rebellion, anyway.

We’ll inquire again: How much will you pay us to borrow your money? That’s what ‘negative interest’ rates mean. That’s what the folk you have voted into power are doing with your money (what’s left of it.) If you collect unemployment, Social Security, Medicare, Food Stamps or much else, you are in fact, borrowing it from your kids and grandkids. They are the only ones who will repay the present government deficits. By then, we surmise, with plenty of interest since it will be going the opposite direction. (Yeah, were cynical.)

You’re likely tired of hearing of this. It’s downbeat and gets boring fast. The morning you wake up to headlines about your bank failing with most of your money in it may awaken more interest. And if that is very far off, we’ll buy your lunch … if we have any money left with which to do that.

We are now removed into a world where politics has gone beyond sanity, a politically virtual world where our continued depression is called a ‘recovery.’ A world, if you’ve notice, where we, the U.S, perpetuate war to no obvious gain but very high, obvious costs in lives and treasure. We have abandoned the political values and culture bequeathed from our Founders, that which provided our present, fading world leadership and wealth.

And it is all voluntary, nobody forced us to it. The old Greeks said: “Whom the gods would destroy, they first make mad.” If we recall correctly. Does “How much will you pay me to borrow your money” seem mad enough?


About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much)
This entry was posted in Economics, Goverrnment, Politics and tagged , , . Bookmark the permalink.

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