Our economic crisis isn’t inflation, it’s corporate greed and the GOP will only make that worse
By now, everyone has heard the story of the “tune up-or-else” letter, the one a bank wrote to a credit card holder. The cardholder, a struggling small business owner, called the bank and complained about the interest rate and the annual fee they were charging him. The bank’s response was to say that if the businesses kept raising their prices, it would eventually have to raise interest rates to the point that many people might stop carrying the card altogether. If the businesses kept raising the price without a corresponding increase in interest, the bank would have to raise interest rates much higher still, to the point where many people might stop holding the card altogether.
Since the beginning of modern history, the central bankers of the world have been masters of this game of high interest rates and low prices. They know that there is always a price for everything under the sun, so they set the rates high and wait for the economy to bring that price down. Then, once wages are depressed, prices go up again and interest rates go back down. This game has been going on since the beginning of civilization. The only difference now is that we have the whole world’s economy at stake.
The central bankers know that if they have to let the economy get even worse and drive up interest rates even higher, many people will stop carrying the cards altogether. This will cause a huge depression and a financial catastrophe, the consequences of which will be felt for decades.
So the central bankers of the world, who have the power to print money and make even more money, would love to keep things as they are and go about their business of manipulating the economy at its best. This is why the Federal Reserve, the central bank of the world, wants interest rates to stay very low. This is why they have lowered rates to the point that the entire economy is near suicide and we still have $10 trillion in the bank. But if things get even worse, the Fed would lose their jobs, so they have given in to the demands of the bankers and raised interest rates even higher.
What this has done is to make many businesses and homeowners even more desperate than they were just a few days ago. In many cases, it has led to a massive contraction of the economy, in a very short time, and this is not