Fighting Inflation, Huh?

The Federal Reserve has caused massive effects on regular people by simply changing the prime interest rate.  For example, after being forced to sell my home in 1999, I had enough money in the bank to earn $1400 per month in interest, mostly on T-bills.  When the FED cut rates in 2001-2, that income stream vanished for me as it did for anyone else who had been old-fashioned enough to hold savings.

Now we are suffering inflation which, at the grocery store and most other necessities regular people must buy in order to survive, far exceeds the year-over-year ratios published by our central government; for regular people it is more like 100% and beyond than like 8.25%.  Of course the central government has a conflict of interest because the numbers it quotes trigger cost of living increases for 2.4 million or so federal civilian employees, for all of us who have paid into Social Security for most of our lives, and undoubtedly for others, creating budgetary problems if they actually keep their promises.  In addition, quoting small numbers allows politicians to pretend that this is no big deal (see Joe Biden "only an inch").

In addition, because this massive inflation is due, directly, to Federal, State and local policies ... policies that contravene the spirit if not the letter of the Constitution ... over the past 2.5 years in particular, the central government has a further interest in pretending that this is no big deal.  Forcing people not to work, then bribing them to postpone going back to work, printing literally trillions of dollars to be spent on boondoggles and given away for nothing or attempting to buy votes, running businesses into bankruptcy, destroying the profitability of the remaining taxpaying business ... these acts and their ilk are directly inflationary.

Now, the Federal Reserve "solves" this problem by jacking up the interest rates to nearly what they were back in the 1990s.  Smooth move; this gives more revenue to everyone who lends money (bankers and investors, mainly; regular people who lend their savings to banks still do not earn squat for interest.)  Among the beneficiaries are the likes of Communist China which holds a substantial hunk of our national debt.

However, for the regular people who have had to borrow money to pay their bills but have not yet earned enough to pay off those loans... or who are still borrowing money... this is no good at all; it simply accelerates their progress toward bankruptcy.

In addition, it will of course have a very significant effect on the central government, whose debt is now on the order of six times what it was in 1999.  Each one percent on sovereign debt of $30 trillion is $300 billion.  At merely 3.33 percent that is a trillion dollars per year of interest on the national debt.

Wherever will the central government find this extra trillion dollars per year?  Only two choices:  Print yet more money, further increasing the national debt and ensuring perpetually high inflation, or tax us all to death.  (Prosperity is not an option; it is in the process of being outlawed, see ESG and other destructive policies/programs.)

Neither alternative is good for the country.  Indeed, putting us in this position is a great way to degrade or destroy our nation.  Good going, globalists; yours is the only visible agenda such wanton destruction serves.