- Image by fangleman via Flickr
I thought this picture is appropriate for the subject at hand. It’s also a great way of showcasing different artists’ and photographers’ artwork .
I’m not advocating the end of the Fed. We’ll leave that discussion for another time perhaps.
However, the Feds don’t seem to be concerned about inflation. They explain themselves by saying that now is not the time to raise rates. It will hurt the economic recovery.
If low rates got us into the habit of borrowing money, the solution would have to be raising rates. If interest rates need to come up for risk to go down, how does the Government chooses to solve the problem? Deficit spending in the way of more regulation and greater taxes.
Well, the taxes and regulations are are on their way. That got me thinking.
How much is it costing to keep interest rates low? Could it be the amount that our dollar has depreciated since the ecomomic stimulus has been enacted? That maybe too easy of an answer but it seems suspicious that this would be a pretty sneaky way of paying for the stimulus. That’s what China warned the United States not to do. Still, the value of our dollar has declined.
So, as recently as President Obama went to China I’ve noticed a strengthening of the dollar. Hmmm…. It makes one wonder.
