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Politics : Formerly About Advanced Micro Devices
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To: sylvester80 who wrote (1156189)8/11/2019 6:01:32 PM
From: RetiredNow  Read Replies (2) of 1574045
 
While technically true, that the Fed did not lower rates even once during the Obama years, you are ignoring the elephant in the room. At the beginning of Obama's Presidency, the Fed had already reached the lower bound of Zero Percent Interest Rate Policy. Then they began to implement QE1 through QE3, all during Obama's two terms in office. QE was another way of accomplishing even lower rates across the yield curve by bringing the enormous purchasing power of newly printed dollars to buy up as many treasuries as needed.

Here's a history of rate movement and Yes:
en.wikipedia.org

Here's an economic proof white paper from Northwestern University that proved the impact of QE lowering the yield curve through the purchase of bonds.
brookings.edu

So, in conclusion, you are wrong in your overall message that the Fed did not lower rates during the Obama years. They absolutely did, but they did it through QE instead of through the Fed Rate. Those actions have had the effect of blowing the largest stock market and bond market bubbles in the history of the USA. It has also rigged the wealth transfers in favor of the asset holders, the top 1%, and against the 99%, which is why we are seeing the rise of Socialists such as yourself. You properly diagnose the problem, but your solution is to recycle the failed policies of the past. A better solution would be to fix the root cause, which is the Federal Reserve destroying our free markets through monetary policy central planning and manipulation.

We'll see what happens next, but I have a feeling it won't be pleasant for anyone. Reckonings that restore market balances never are. They are usually accompanied by revolutions and world wars. I hope we can avoid that fate this time. But history repeats its cycles and humans never learn from the past. It's the tragedy of our race.
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