Astounding revelation! This VIRUS doesn't CARE what the Federal Reserve central bank does!

The Federal Reserve System central bank, after being threatened -- AGAIN -- by President Trump, decided yesterday to slash interest rates to ZERO, and to start another huge round of Quantitative Easing in an initial amount of SEVEN HUNDRED BILLION DOLLARS. Link: https://www.bloomberg.com/news/arti...e-to-near-zero-to-boost-assets-by-700-billion

What does this 'Fed' action not do?
It does NOTHING to stop or retard the spread of the Corona virus, or, to diminish its ability to sicken and kill people anywhere in the United States.

What do these 'Fed' actions do?
Gut the value of the U. S. Dollar versus other world currencies.
Cripple the dollar-value of commodities like gold, silver, and other 'precious metals'.
Wipe out any returns for people with savings accounts in banks, S&L's, and credit unions.
Destroy even further the free-market economy based on capitalism.
Greatly increase the likelihood of even more government deficit spending.
Greatly increase the likelihood of even greater household debt, which is already at record-high levels:

Links:
https://www.cnbc.com/2020/02/11/hou...-in-12-years-federal-reserve-report-says.html
https://wolfstreet.com/2020/02/07/the-state-of-the-american-debt-slaves-q4-2019/
https://www.washingtonexaminer.com/opinion/americans-in-record-debt-its-our-own-

Conclusion:

-- "I don't CARE what your 'Fed' does -- but maybe YOU should before it wrecks you worse than I will!"

 

Well you know our Grubmint, "Never Waste a Good Crisis"!

 

It gives people money which allows them to stay home and not go work so they won't spread the virus around. It allows businesses to stay closed and still survive. It pays for increased testing so we can know who has it and doesn't. It pays for increased treatments for the sick and accelerated research for a vaccine and cure. These are basically all the things we can do to stop this disease and save lives.

You are against this and yet approve of Trumps's tax cuts for the extremely wealthy, which have been actually doing the very bad things you cite for the past 3 years

This confirms everything I have always thought about conservatives. They are against anything which will improve our lot as human beings and firmly support whatever makes our lives harder or even things that actually threaten our very survival. Just why they have this strange morality, I will not speculate about, but this last post makes it clearly evident it is there and it is something which our own survival should look into ending or limiting as a credible political stance.

 

You're wrong, Aleks... a lot of us Conservatives were never enthusiastic about Trump's big, hooptie 'Tax Cut'. Oh, it did save me about one thousand dollars in tax, but by raising hell, agitating, demanding, and threatening the Fed over interest rates, Trump is COSTING me thousand(s) -- plural... in LOST interest that I should have continued to earn on my savings accounts in banks, S&L's, and credit unions!

As far as using a central bank to conduct more 'magic tricks' involving hundreds of billions of imaginary, new dollars, mostly just to 'rescue' the stock markets and the very wealthy class you so despise, I can't see much justification for that at all. We're going to go back to the Obama regime's paradigms of paying people to stay at home, and mostly, TO DO NOTHING? Oh, and this time we're going to just give everybody and businesses money FOR FREE... WELFARE ON STEROIDS through yet more tax cuts?!

And tell us, Aleks -- how is bankrupting the United States with even MORE tax cuts going to stop the Corona virus? How is making it even easier for irresponsible people to dive even deeper into debt with free credit going to help the solvency of the population -- especially when we already have record-high levels of household debt?!

. "So, lower taxes and crush your interest rates -- if I want your ass, I'LL COME AND GET IT!"

 

So now people not being in debt is more important than those same people being alive?

OOOKay, I gotcha.

I was wrong about some conservatives being like I said. Some are worse.

 

No, Aleks, you don't "gotcha". Why not? Don't you see the obvious fact that the Federal Reserve System is sticking its nose into a medical arena where it does not belong AT ALL!

I have no problem at all with the government spending hundreds of billions of dollars on treating and defeating the Corona virus... are you surprised? I don't even have a problem with the government spending tons of money (Obama-style) providing welfare handouts on a well-defined, closely-monitored, short-term basis to people in certain low-income brackets... are you surprised?

BUT, what I am greatly opposed to is a central bank (the 'Fed') slashing interest rates on people's savings accounts in banks, S&L's, and credit unions at the same time that DEMAND for credit and loans is GIGANTIC! Nothing could be more unfair to savers, or, STOOPID!

Mindless, reckless, runaway 'printing' of hundreds of billions of imaginary dollars is a terrible idea -- it debases the value of the U. S. Dollar, and, just like it did after the Great Recession ENDED in 2009, it fuels rampant inflation -- even though that same central bank IGNORES those large price increases in so many things that Americans routinely have to buy -- housing, transportation, utilities, medical care, prescription medicine, food, hardware products, on and on and on...! All this 'money-printing' goes hand-in-hand with slashing interest rates as being the WORST thing we could possibly do -- and it does NOTHING to stop the spread of the Corona virus!

Plus, it inevitably piles even MORE debt on both households and small businesses, which are already choking with record-high levels of debt: https://www.ccn.com/housing-market-consumer-debt-bubble-will-end-miserably-analyst/ . When they start going 'belly-up' and start declaring bankruptcy, it's going to make the "Great Recession of 2008" look mild by comparison....

Maybe you'll be convinced if you hear this kind of thing from somebody besides me: https://www.businessinsider.com/cor...e-2020-3?utm_source=markets&utm_medium=ingest

 

To me it doesn't even seem like the FED announcements did much to move the market. Last week and this week it was action by Congress that seemed to drive the gains.

 

Being able to devalue one's currency is one of the most important tools an economy has to combat a recession (that and focused deficit spending). Its not necessarily a good or bad thing, but, like a gun, its effectiveness is entirely in the hands of the wielder.

The Fed under Obama was absolutely right to devalue the dollar through the slashing of interest rates and liquidity injections into the economy. It slowed and reversed the shockwave and kicked off 11 years of unprecedented growth.

The problem is that the Fed didn't raise rates in a commiserate rate as the economy was exploding. It kept everything low and let everyone enjoy the rush but by doing so, it failed to forsee the eventual downturn and thus has deprived it of the necessary tool.

By doing it the way I spell out, you would have been able to see increased interest and savings, thus allowing you the ability to cushion yourself for the current situation.

Keynes got it right, but nobody ever wants to follow through with the entire formula.

 

All I can say in response is that at the rate things are going now, I may be morphing into becoming some kind of Democrat, after having been a rock-solid Conservative all my adult life. You can see my dilemma -- all supporting Trump does now is granting approval for him and the Fed to SCREW people (like me) who save money in banks, S&L's, and credit unions, and that is costing me, personally, thousands of dollars. Why in hell should people who responsibly SAVE money go on supporting THAT?!

I quit the Republican Party in 2017 because of all the RINO's. Now I'm probably going to personally 'dump Trump' because he's leading the charge that's slashing my savings accounts while he bullies everyone to slash interest rates -- and, at the very time that interest rates SHOULD be increasing, precisely because of the enormous demand for loans, credit, and "liquidity" by people who manage their own personal financial affairs so POORLY.

To anybody desperate for "liquidity" I would suggest SAVING some money for that 'rainy day' instead of expecting some damned central bank to provide it to you at ZERO interest rates!

. "You're quitting me just because I cheered while you got SCREWED on your savings...?!"