Is the Fed's tough talk going to scare inflation away?

Question

http://news.yahoo.com/s/ap/20080625/ap_on_bi_ge/fed_interest_rates

Answer 1

Gotta love the banksters!

Never mind the fact that they print these dollars out of thin air, backed by nothing.  And the fact that our currency, which is essentially paper, is accepted world-wide as the "world's reserve currency" just blows my mind.

But the biggest problem we're having now is the fact that the Federal Reserve is not allowing the free market to control interest rates, but instead deciding that their "experts" in the figurative ivory towers in D.C. and NY know what interest rate banks should charge their customers.

Keeping rates at 1-3% for over a decade has resulted in over-borrowing and malinvestment across the board.  This is not how a free market works.

In a free market, if banks keeps rates too low for too long, or they loan money to risky borrowers, they will start to lose money... then they will have to raise their rates and tighten their guidelines. This is how the it's is supposed to work. If you lose money as a business owner, you raise your prices.

What did the Fed do? They lowered them. (Fighting inflation with inflation is like putting out a fire with gasoline.)

To allow Bernanke and his bankster buddies to arbitrarily set the lending rates for the entire banking system is essentially price-fixing. This is why we are in this mess today, and the whole thing is starting to unravel on them. The consumers are at fault for sure, for borrowing money they could not pay back, but they did not start the problem.

But no one should be bailed out either. This is what happens in a free market when you try to take advantage of the system.  Bailing out the homeowners... and especially bailing out the banks (Bear Strearns)... is only going to  make the problem worse.

Tough talk isn't going to do anything.  Raising rates is what they should do, but really, they should have done that a long time ago.  But they didn't.  

Why?

Because they are fleecing us.  They loan the money to their corporate buddies fresh off the presses before it's devalued.  As the money makes it into the system, it devalues the dollar, wiping out the savings of middle class Americans.  Keeping rates low ensures the stock market stays high, and all their Wall Street buddies continue to make a killing... and makes it to where the average investor has no choice but to put their money into the stock market.  Who wants to make 2% interest on their money in the banks?

They know what they're doing up there.  And it's not good for us.  Most people don't have a clue though.

Answer 2

The Federal reserve private entity illegitimately so in effect since 1913 is having their way with the American Public, and Congress has its hand in the the rule & control over money!



This is the major problem, "who has rule & control over money" It should we the legal citizen majority who has ultimate rule & control over MONEY!

Answer 3

No, they can only put band-aids on a economy that has a broken leg.