THE FED RAISES INTEREST RATES BY 0.75%; The Propaganda Media Pretends It’s The Fed That’s Choking the Economy, Rather Than Biden’s Toxic Profligacy That Forced The Fed to Impose Higher Interest Rates.
The Fed raised interest rates by 0.75% again. This is the third time they’ve raised it by three quarters of a point.
The Dow fell 522 points by the close.
The Atlanta Fednow tracker for GDP projection has reduced its forecast for the third quarter to almost zero — 0.3%.
They’re trying to avoid the psychological shock of a full one point hike.
The media is offering headlines suggesting it’s the Fed who is “taking the economy off the side of a cliff.”
No, it was Joe Biden and the Democrat Congress who did that. They caused this runaway inflation. When you set a fire, the next thing that happens is that the fire department comes to put it out — and you can’t complain when they spray water everywhere and ruin all your furniture by soaking it.
But that’s how the media is playing it. It’s The Fed’s fault!
SMALL BUSINESS PLAYBOOK
The Fed just raised interest rates by another 0.75%, putting Main Street economy ‘dangerously close’ to edge of lending cliff
That’s the unfortunate intention. Biden pumped a trillion plus dollars of excess dollar bills into the economy. And then, just a month ago, he pumped in another $740 billion.
The only way the Fed knows how to correct for this is to raise interest rates so high so as to make it hard to borrow money. This makes it hard for banks to inject new money into the economy — borrowed money is basically money taken from the future and put into circulation in the present. By reducing the amount of money that can be “borrowed from the future,” the Fed hopes to offset the trillions of extra dollars Biden has already flooded the economy with right now.
This is a painful process. It’s ugly. It’s miserable.
Which is why governments usually attempt to not unleash toxic hyperinflation upon their country.
“The Dow Jones Industrial Average slid 522.45 points, or 1.7%, to close at 30,183.78. The S&P 500 shed 1.71% to 3,789.93, and the Nasdaq Composite slumped 1.79% to 11,220.19. The S&P ended Wednesday’s session down more than 10% in the past month and 21% off its 52-week high. Even before the rate decision, stocks were pricing in an aggressive tightening campaign by the Fed that could tip the economy into a recession.”