So Is the US Economy Screwed No Matter What the Fed Does?
The Fed has a choice: 1. It can keep interest rates low, hurt savers, and allow rich people to buy up all of America. 2. It can allow interest rates to rise, help savers, and hope that Americans buy high priced homes with even higher interest rates. Maybe those choices suck. While we are in number 1, at present, the Fed could stop speculation in futures markets, and ban easy money loans. Of course, easy money loans are not made much when interest rates are low. But of course, banning easy money lending has been half hearted at best, with the Consumer Protection Agency tied to the Fed. As we move to option 2, we must absolutely stop speculation in the futures markets, or gas prices alone will tank the economy. As far as buying high priced homes with high interest rates, it isn't going to happen without a housing bubble. And a housing bubble would suck too. Economic growth with better paying jobs is not going to happen thanks to worldwide deflation of wages. But the infla