FEDeral Protection

Janet Yelln/ FED Chair

Trump fires a torpedo at the ruling class, suggesting the FED, who lost their independence some time ago, is keeping rates low to protect Obama. Trump is marginally accurate, for the ruling class would like nothing more than to dump the massive recession coming our way on a newly elected GOP president.

More aligned with the truth; however, is that rates need to rise to pull back the excessive money currently in the system, but there is heightened fear even a 0.25 basis point raise in rates will send our fragile economy spiraling downward. This would expose Obama's claims of a great recovery as false.

In addition, due to Obama's economic policies and lack of independence of the FED, few tools remain in the toolbox to counter shocks to the system, which are coming very soon.

It is important to note that in the aftermath of the housing crisis of 2008, virtually every economic decision from bailouts to excessive regulation was the wrong choice.