02/27/2015 - Financial Repression: U.S. Interest Rates are Low Because the U.S. Government is Over-Leveraged
James Turk sees the Federal Reserve as constantly warning that interest rates will rise eventually – but it never seems to happen .. “The obvious strategy the Fed has employed is to delay raising rates as long as possible, but to keep the markets on a knife-edge by saying that rates will rise eventually. They always tie it to something, like the level of unemployment or when the economy improves or inflationary pressures become greater or whatever is the latest benchmark. Former FedChairman Ben Bernanke repeatedly said that the Fed would raise interest rates when unemployment fell to 6.5%. We are below that level — at least by the number reported to the public. But the Fed has done nothing about raising rates except to continue jawboning that it will happen.” .. will it happen & when will it happen? .. Turk emphasizes the Federal Reservenever wants to admit the real reason why interest rates are low – it’s financial repression to keep interest rates low & erode the purchasing power of the currency to lessen the burden of debt .. “Interest rates are low because the U.S. government is over-leveraged and cannot afford to pay a fair interest rate.” .. Turk reasons: therefore if the Federal Reserveraises interest rates, then interest payments on the national debt will escalate money printing even faster to the point of hyperinflation.
