higher interest rates?

The Federal Reserve is breaking clues that interest rates may be going up soon. This comes at the same time that there are fears that the (falling) dollar will be assisted off the oil denomination stage. But raising interest rates also would reduce the stimulating effect of having cheaper things to sell than the Rest of the World (RoW). Then add in the obvious negative political consequences from crashing mortgaged voters, families and friends, and we can’t justify this as part of a rebuilding effort.

It has an aspect to it of something of a fire sale, (further) plundering of the economy, in anticipation of reversed political fortunes of the corporate rich.

In other words, since the economy is doomed, drive the polarization between the rich and poor to the max, in order to maximize the advantages of controlling wealth during bad times.

Such an interpretation makes a certain sense. I am still having trouble understanding why anyone would want to raise interest rates during a growing realization of massive debt, much of it in default.

It seems impossible that anyone driving such a polarization would be accurately able to predict its outcome.

Wouldn’t this be a great time to focus on infrastructure and health care? To do so would be a way to inject money into the economy, and gain social cohesion at the same time. There is the matter of not being able to do so without taxing the rich.

But, if the money is going to come from the rich anyway (that’s where it is), wouldn’t it be better to take it by taxing them? Isn’t that how they should want it to be taken? It is better to be taxed than to be eaten.

Comments are closed.