How Lowering Interest Rates To Help The Economy Is Hurting Americans

[rpierce84]

While the Federal Reserve is lowering interest rates once again to stimulate spending and loans while also keeping the stock market from going into further decline, we in the public will suffer even more. The Fed claims that lowering the interest rates will allow for lenders to increase their practices for a public that is already reeling from previous loans. The American people cannot afford more loans as the foreclosure rate is sky-rocketing from our dependence on previous predatory loans. With that said, each time the Fed lowers the interest rate, the value of the dollar decreases which in turn increases commodity prices across the board. The most influential of these commodities is oil, which has now topped $135 a barrel, increasing gas prices throughout the United States. Unlike the 1970’s oil crisis during the Carter Administration and Yom Kippur War, there is not a shortage of oil, just a shortage of cash to buy the gas at the pump. Those most affected by this price surge are the nations truckers, people that move the country day to day, bringing us our products of which are also increasing in cost. The false belief that we will be able to farm our way to oil independence has also hurt the American public with the exception of the American Corn Farmers and Commodity Speculators.
The price of corn has exponentially risen due to an increase in demand of oil from the U.S. and other oil starved nations not to mention a week dollar. This price increase in corn has also increased food prices from avocados to Angus Beef. Take for example rice; it has doubled in value forcing corporations to voluntarily ration the commodity and beef which has increased due to the fact that corn, its food supply, has also increased in value. The list continues as Americans suffer at both the pump and the supermarket.
While prices are increasing, wages are stagnant; Americans are being forced to work for the same wage and in some cases less for the hours that they put in. This can also be attributed to a week dollar, where corporations have to spend more to transport their goods, almost completely eliminating the ability for annual employee raises to the rate of inflation.
The combination of these effects on the economy due to the lowering of interest rates by the Fed have hurt normal tax paying Americans, helped international corporations not bound to our tax code and kept a stock market at an artificially inflated value. If we continue on this course, Americans should assume that they will have to take a loan at a low interest rate so they can continue to work and feed their family.



Discuss

[Moby]

Everyone knows that lowering interest rates to this level is a only a short term fix to boost the economy. Most people should already know that it becomes less effective the more often it used.

The economy is based on borrowing money. Bush, McCain and all have claimed many times that if we stop borrowing money from places like China our economy will take a major hit.

We're stuck and many people want to keep doing the same thing until we go completely bust.

[disrupter]

The long term drag on [destruction of] the dollar is the looting of the US treasury under the excuse of 'defense spending'
which is just flushing money down a toilet, hiding it behind hysterically waving flags.

We have an INSANE defense budget.
We spend MORE THAN THE REST OF THE PLANET COMBINED.
The centrally looted economy.

Say no to all the traitor brass running the pentagon & dragging the Congress along into it.
they are just a pack of parasitic thieves, hiding behind uniforms and acting tersely 'official'.
Don't be fooled,
A traitor in a uniform is the worst kind, because people are more easily fooled by them.
The more stars they have, the more likely they are to tell you ridiculous confabulated lies.

I guess a pentagram should give you a pointer about who they are really working for.

[Dale escondido]

Bad fiscal policy followed by more bad policy.
Do these guys just know that much more than the rest? Is there some parallel universe where irresponsible principles work?
We are now at the beginning of an inflationary curve not seen in half a century. I do suppose this is a way to shrink the debt.
If your wealthy this will be great!
If not ,sucks to be you.