The Market Ticker - The Question Powell Wasn't Asked

“Mr. Chairman, it is an indisputable fact that what someone has earned and paid taxes on is theirs; indeed, that is a major component of the foundation on which America is based.  It is also an indisputable fact that today’s short term interest rates are below the rate at which the US Government is emitting new money into the economy via deficit spending.

This in turn means that a person who has earned something and wishes to not have the value of it destroyed over time must take risk.  They cannot buy short-term Treasuries, which are backed by the full faith and credit of the government, nor can they buy a federally-insured CD at a bank since the bank is unable to earn a spread over those Treasuries and at the same time pay a CD interest rate that exceeds said financial dilution.  The Federal Reserve claims authority to set short-term interest rates, and therefore, by having said short-term rates below that of deficit…….

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