{"id":345614,"date":"2023-03-23T12:20:36","date_gmt":"2023-03-23T16:20:36","guid":{"rendered":"https:\/\/www.sgtreport.com\/?p=345614"},"modified":"2023-03-23T00:30:58","modified_gmt":"2023-03-23T04:30:58","slug":"incompetent-federal-reserve-goofs-again","status":"publish","type":"post","link":"https:\/\/www.sgtreport.com\/2023\/03\/incompetent-federal-reserve-goofs-again\/","title":{"rendered":"Incompetent Federal Reserve Goofs Again"},"content":{"rendered":"<p><em>by Paul Craig Roberts, <a href=\"Incompetent Federal Reserve Goofs Again \" target=\"_blank\" rel=\"noopener\">Paul Craig Roberts<\/a>:<\/em><\/p>\n<p><img decoding=\"async\" class=\"alignleft\" style=\"width: 35%;\" src=\"https:\/\/pbs.twimg.com\/profile_images\/414453170186633216\/Prp9u7JD_400x400.png\" alt=\"\" \/><\/p>\n<p>The Federal Reserve decided it had not wiped out enough banks and again raised interest rates, thereby pushing more banks toward insolvency.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>The goofs think, or pretend to think, that too many Americans are working, making and spending too much money, and causing inflation despite the obvious fact that the rise in prices is due to the lockdowns and sanctions which busted up supply chains and reduced supply.\u00a0<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>The quickest and surest way to reduce prices is to remove the sanctions and repair the Nord Stream pipelines.<span class=\"Apple-converted-space\">\u00a0\u00a0<\/span>Putting people out of work by pushing the economy toward recession reduces supply and will add to price pressures.<\/p>\n<p><!--more Read More--> TRUTH LIVES on at\u00a0<a href=\"https:\/\/sgtreport.tv\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\">https:\/\/sgtreport.tv\/<\/a><\/p>\n<p>As Michael Hudson and I have made clear, higher interest rates cause lower interest rate instruments on the banks\u2019 balance sheets to decline in value, but the banks\u2019 liabilities don\u2019t decline.<span class=\"Apple-converted-space\">\u00a0\u00a0<\/span>The rising interest rates thus push banks into insolvency.<\/p>\n<p>Some economists said the Federal Reserve must remain strong against inflation to reassure Wall Street, blah, blah.<span class=\"Apple-converted-space\">\u00a0\u00a0<\/span>Well, Wall Street wasn\u2019t reassured by the Federal Reserve\u2019s stupidity.<span class=\"Apple-converted-space\">\u00a0\u00a0<\/span>The Dow Jones Average fell 530 points in response to the Federal Reserve\u2019s hike in interest rates.<\/p>\n<p>The Federal Reserve\u2019s ill-considered action will feed depositors\u2019 fear of other troubled banks and continue the drawdown of deposits.<span class=\"Apple-converted-space\">\u00a0\u00a0<\/span>Is the Federal Reserve trying to create a financial crisis?<\/p>\n<p><a href=\"*****\" target=\"_blank\" rel=\"noopener\"><strong>Read More @ PaulCraigRoberts.org<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>by Paul Craig Roberts, Paul Craig Roberts: The Federal Reserve decided it had not wiped out enough banks and again raised interest rates, thereby pushing more banks toward insolvency.\u00a0 The goofs think, or pretend to think, that too many Americans are working, making and spending too much money, and causing inflation despite the obvious fact [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[151149],"_links":{"self":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/345614"}],"collection":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/comments?post=345614"}],"version-history":[{"count":0,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/posts\/345614\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/media?parent=345614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/categories?post=345614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sgtreport.com\/wp-json\/wp\/v2\/tags?post=345614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}