Sunday, December 21, 2008

Interest Rate Of Zero Makes U.S. More Unproductive.

An interest rate of zero is absurd! It is like saying production of goods that require time and that won‘t be available until some time in the future are just as valuable as goods that are available right now!

It is like saying that producers in the U.S. economy do not need to produce goods now. The interest rate is the premium assigned to goods if we have to wait for them. If that premium is zero then we don’t need them now!

Now take a look at the U.S. economy and see if a zero rate of interest makes any sense. Productive capacity is declining with the bulk of production taking place in other parts of the world and then imported in exchange for dollars. In other words producers in the U.S. are already being diminished by all of the economic intervention. Now these same economic interventionists are sending a signal (interest rate = zero) to producers not to produce goods now.

This is a devious way for the Federal Reserve to manage price deflation. It is their secretive way of destroying productive capacity to try to prop up prices since the barbaric methods of burning crops and killing livestock as was directed during the New Deal to prop up prices would surely cause a revolution nowadays.

Deflationary adjustments during the recessionary period liquidates bad debt and adjusts relative prices which has the benefit of causing the currency to appreciate. This is bad news for the biggest debtor in the history of the world!

The unConstitutional coup is behind the economic terrorism that uses the Federal Reserve to steal from the general populace and to bribe the ego-driven interventionists. It is ultimately the holder of all the welfare/warfare debt and it is behind all the pressure that is being put on its underling named Bernanke to make the interest rate zero.

The last thing the U.S. economy needs is to become less productive!!!

For more information go to http://www.divineeconomyconsulting.com/.

To earn a Masters Degree in Divine Economy Theory go here.

No comments: