The slow crawl out of ZIRP and letting people get a return on their savings to produce capital is the right thing to do. But unfortunately, Yellin is doing it for all the wrong reasons.
What has happened is that the yield on short term bonds is getting HIGHER than on long term bonds. So no one will purchase the long term ones, theres no advantage. Now why is this happening? It’s happening because so many large buyers – China – have stopped buying American debt. The free market is saying “you don’t have value”. So to make them have value the rates have to go UP.
But there’s a problem – we have a 62% labor participation rate, a 23% unemployment rate since 2008. We have huge hoards of brown and blacks on disability because they are lazy. And our nations plan is to IMPORT MORE and destroy the country. To pay for all this welfare we go ONE TRILLION in debt every year. The solution? We need to wean americans off of welfare by hook or by crook it has to happen. Private investigators for disability fraud, remove the mental categories for disability “I dont feel like working working makes me depressed” uhm NO.
But we won’t do that. Instead we will import 377,000 Indians with fake degrees and throw our best and brightest engineers in the streets. Then stomp on their faces and laugh at them for working so hard to get ahead. HA HA! (nelson from the simpsons laugh). That is a blatantly communist system. We are a communist socialist nation in the throes of decay. How the crap did this happen to us?
Well it happened during all those 911 years, the huge distraction when the government murdered 3000 citizens to make up consent to endless war. Except the people didn’t consent they just did it and then they just faked the elections with electronic voting machines. And Americans basically lost control of their nation… until Trump. But all the shills voted in with graft like McCain, well they won’t let things change.
So Yellen is raising rates during a dying great depression economy. SICK! MADNESS.
The solution? We need to change the tax structure violently – NO ONE should ever pay taxes if their earnings are less than 100,000 a year. the Late Great Peter Schiff would argue that the tax code does not apply to our earnings whatsoever it’s all fraud which of course it is. But the courts now declare that regular earnings is “income” even though it isnt and you go to jail. On a lie. So we raise interest rates even though the nation is dying even though we are far far deeper into a great depression than anything that happened in the 1930s.
This move is the sign of the end. This is horrific. You probably have no idea what this means. But to TIGHTEN credit in a dying economy is like pouring a hydrogen bomb on a outdoor barbeque. Things are going to blow up big time. End times. People eating people. Its frightening. The only solace is nothing will happen for a few more years other than budget fighting between demothugs and Rethugocrats.
I wrote an article many years back that 20 trillion in debt would be the breaking point for the system. That at this point the system of shill bond houses could not sell that much on the market so we have secret buyers which is the federal government itself. Which then goes on to try to slowly sell but they cant. Our debt has gone hyperbolic. Straight up. Blasting our nation into oblivion. We know from Greece that once the debt surpasses GDP there is basically no way back ever. Our whole nation will collapse into a welfare state, third world crime, and the middle class will be half starving homeless horrors. Thank you Mr. Bush and Mr. Obama.
So eventually interest rates go UP in a dying economy. This is a sign things are going horrific. This time around, if our interest rates return to 6% then our payment on the debt will be more than 50% of our tax revenues. So that means than rather than adding 25% of our receipts to debt each year, we will add 75% of our tax receipts to our debt each year. AKA the black hole the giant sucking sound. How will we pay the debt when there is no income taxes?
The only way out of this IS the trump plan, push on the growth engine. But so far all he has done is take the regulations off the bankers. And how could he not, they rule us. The trading houses hide our huge bond mess and have for decades. And the whole washington apparatus is against change. So that means our nation dies. And Yellen’s raise today IS the first step to death, the first foot into the chasm. Good luck America, you’ll need them.