Democracy Is a Front for Central Bank Rule | WHAT REALLY HAPPENED


Democracy Is a Front for Central Bank Rule

Inflation aside, in fact interest rates declined, as my sometime co-author Dave Kranzler reports. http://investmentresearchdynamics.com/has-the-fed-actually-raised-rate...
Despite this publicized “rise” of the Fed funds rate, the 10-year interest rate on Treasuries “has declined 30 basis points this year. Thus for certain borrowers, the Fed has effectively lowered the cost of borrowing.”

Kranzler goes on to point out that

“the spread between the 30-day Treasury Bill and the 10-yr Treasury has declined this year from 193 basis points to 125 basis points – a 68 basis point drop in the cost of funding for borrowers who have access to the highly engineered derivative products that enable these borrowers to take advantage of the shape of the yield curve in order to lower their cost of borrowing.”

Kranzler provides a chart that shows that the spread between the 30-day Treasury bill and the 10-year Treasury bond is narrowing. As the short-term rate rises, the long term rate is falling, and the spread between the long and short rate has declined 68 basis points from almost two percentage points to one and one quarter percentage point.

Clearly, this is not a rise in interest rates.

Clearly also, a rise in the Fed funds rate no longer signals a rise in all interest rates.

Why is the Fed raising short rates when the long rates are falling?

Why do “democratic Western democracies” have central banks that do nothing except protect big banks at the expense of the people?

How long will the insouciant peoples of the West continue to conspire in their own demise?

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