Timothy Birdnow

The Federal Reserve is raising interest rates again, the fifth time since Donald Trump took office.

Donald Trump is not pleased.

Trump is trying to renegotiate all manner of trade agreements, and to do that he needs liquidity in the market - something raising rates will not help. As he stated: "We’re negotiating very powerfully and strongly with other nations. We’re going to win. But during this period of time I should be given some help by the Fed. The other countries are accommodated,”

End quote.

And he blames the Fed, rightly so, for trying to strangle economic growth at this point. The Federal Reserve did not raise rates even once during the entire Obama Presidency.

I knew this was going to happen just before an election; Trump nominated Janet Yellen's Mini-me, a clone of Yellen with the same political and Keynsian orientation named Jerome Powell. Powell is a lifelong insider and swamp rat who was guaranteed to act against the GOP and Trump's interests. He was promoted by the RINO wing of the party, the people who have a vested interest in seeing Trump fail.

Frankly, there is no real reason to raise rates as we see few signs of major inflation. According to Conservative HQ:

"Earlier this year Maria Bartiromo of Fox Business asked Treasury Secretary Steve Mnuchin about inflation and signs that wages were rising. "We want wages to go up. A little bit of inflation is a good thing. Too much isn’t a good thing but I see only a little bit,” Mnuchin said. Mnuchin added that he sees no signs of too much inflation in the future, reported Breitbart’s John Carney.

A year and a half into the Trump presidency the American economy has seen solid growth, more people in jobs and Wall Street has broken records on a regular basis.

However, in the alternative universe where Wall Street’s Masters of the Universe and the mandarins who control America’s Federal Reserve Bank live, good news for America’s middle-income families is apparently bad news.

President Trump campaigned on policies that would boost the economy to 4 percent – or greater – growth. Now, just when America’s hard-pressed middle-income families are beginning to see the benefits of Trump’s policies, is not the time for the Fed to cool the economy.:

End excerpt.

They are right, and I am convinced this rise in interest rates is intended solely to damage Republican chances in the midterms. The timing is incredible; just a little over two months until the election Just enough time to slow the recovery palpably.

I knew Powell would do that.

Ever since we changed the way government works - direct election of Senators, the creation of a permanent bureaucratic class (which began with the Pendleton act in 1881 after Garfield was assassinated by a job seeker) and funding for all of this by the national income tax - America has been infested with crawling nasties more interested in their own power and privilege than in doing the work of the American People. The only way to end it is to remove these people from the levers of power. Trump, despite his promises, put a good many of them right back in when he came into office. Now, it's understandable as he had to fill a lot of positions and didn't know enough qualified people, but he would have done better to have picked names out of companies in middle America than draw the rancid water from the swamp.

Appointing Powell was a huge mistake, one Trump - and America - will pay dearly for in the coming years.

Posted by: Timothy Birdnow at 08:02 AM | Comments (2) | Add Comment
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