Fed interest rates off the rails | AspenTimes.com

Fed interest rates off the rails

Well fans, we are about to watch a grade-B movie that we did not like the first time. The first time was when the Federal Reserve raised interest rates between 2001 and 2005 by 525 percent. That, fans, caused the recession of 2007 to 2012.

The Federal Reserve has promised us, in 2018, we will get a 1 percent increase; and there is no end to it, according to the new Federal Reserve Chairman Jerome Powell.

I am surprised that Trump doesn’t get it. Or maybe he does. His companies have hundreds of millions of dollars of loans.

Here’s my spin: bankers raise interest rates on current loans when the Federal Reserve does, for doing nothing. The Federal Reserve Board is made up of bankers. So, it’s the classic case of bankers enriching bankers. What a scam!

Congress does nothing. I have written every member of Congress three times to just pass a simple law that the Fed cannot raise interest rates (except for inflation) unless 51 percent of Congress agrees. Let them make their case to Congress and the American public for an increase.

Here’s why Trump doesn’t mind rising interest rates: most bankers are Republicans, and as they make money on existing loans they will be very generous in contributions to Trump’s 2020 election campaign. Another obvious scam!

Now, fans, as interest rates go up, who pays? You do! The higher interest expense is passed on to the unsuspecting consumers.

Another way you are going to pay is when the tax cuts stop the interest on our national debt will have soared. The plot thickens, doesn’t it?

See my letter to the Aspen Times in the fall of 2005 predicting the disasters that followed from the Fed raising interest rates 525 percent. Ugh! There is no way to stop this new train wreck.

Richard Goodwin

Snowmass Village