The Fed is poised, yet again, to cut interest rates. I continue to argue that the real drag on our economy is inflation, the devaluing of the dollar, and massive public and private debt. These phenomena are interrelated and cutting interest rates only exacerbates the damage. We continue to pursue desperate policies designed to avoid a short term recession while at the same time making a long term recession more likely.
We actually could use an increase in interest rates along with serious debt reduction on the part of the federal government. Admittedly, those policies produce a certain amount of pain and are politically unpopular. So the ship of state continues to float adrift.
Recent Comments