To the Editor:
Those making a “killing” in today’s record-high stock market should send thank-you letters to the Federal Reserve Bank, which is taking extraordinary measures to keep interest rates at record lows — “When interest rates are low, stocks will grow; when interest rates are high, stocks will die.”
The Federal Reserve accomplishes this by printing $85 billion monthly, $1 trillion yearly, to buy Treasury bonds and also, at a loss, the toxic mortgage-backed securities still on the books of America’s banks — including “too big to fail,” though insolvent, big banks — which brought us the 2008 Great Recession.
By undertaking this costly, dangerous, unsustainable intervention to preserve the big banks and also prop up America’s botched economy, the Federal Reserve Bank (not a government agency, but a collection of private banks owned by massively wealthy individuals worldwide), could trigger runaway inflation and a stock market bubble.
Meanwhile, 16 global banks outside America are being investigated (with billions in fines levied so far) for illegally manipulating the interest rate banks charge one another (the LIBOR rate) for four years improperly rigging interest rates charged citizens worldwide on student loans, mortgages, car loans, etc.
Elites like making their own rules. — Donna Christianson, Little Falls