Trump Accused The Fed Of This… And He Might Have A Point

It is clear that Janet Yellen is holding her tongue on raising interest rates, and the Federal Reserve is effectively propping up the stock market in the meantime.
The maneuver will only delay the inevitable, but perhaps that is exactly what the powers that be want.

If Donald Trump is right, the Fed is only holding off on rates in order to spare President Obama the stain of another financial crisis during his time in the Oval Office, stalling only to dump a recession-slash-depression on the next president.

Trump has made this idea a center of his recent talking points. According to HNGN:

Republican presidential contender Donald Trump has once againaccused the Federal Reserve of keeping interest rates low at the behest of President Barack Obama, who Trump says wants to avoid an economic depression during his administration.

Yellen is “keeping the economy going, barely,” Trump told The Hill. “The reason they’re keeping the interest rate down is Obama doesn’t want to have a recession-slash-depression during his administration.”

“They are not raising them because Obama has asked them not to raise them,” Trump told Reuters. “He wants to get out of office, because we’re in a bubble, and when those rates are raised, a lot of bad things are going to happen.”

He added: “Janet Yellen is highly political and she’s not raising rates for a very specific reason: because Obama told her not to because he wants to be out playing golf in a year from now and he wants to be doing other things and he doesn’t want to see a big bubble burst during his administration.”

The comments have – in true Trump style – stirred controversy, with even Janet Yellen responding (indirectly) to the politics of controversy:

US Federal Reserve chief Janet Yellen has one very good reason for raising US interest rates next month: politics.

Although central bankers are supposed to be above base political considerations, few would blame Yellen for wanting to shield herself and the US central bank from attack as the 2016 US presidential race picks up pace.
[…]
To avoid such allegations, Yellen appears to be carefully grooming investors to expect an interest rate rise when the Federal Open Markets Committee meets on December 15-16. At a congressional hearing overnight, she noted that a December rate rise was a “live possibility”.

Is Trump now loud enough to steer the actions of the Fed, which has otherwise proved immovable?

Despite overwhelming evidence that the Federal Reserve has bolstered the biggest banks on Wall Street with its policies, the privately-held central bank has long denied that its moves are political in any way. The president nominates its head, but the agency, set up in 1913, has no checks and balances on its actions, though it does have its share of public controversy.

In pointing out the “independence” of the Fed from any government oversight whatsoever, former Federal Reserve Chairman Alan Greenspan went so far as to say that its relationship with the president doesn’t matter. It is, quite simply, not a democratic or constitutional institution at all – and that is admitted:

“The Federal Reserve is an independent agency. And that means, basically, that there is no other agency of government which can overrule actions that we take. So long as that is in place… what the relationships are [between a Fed chairman and a president] don’t frankly matter.”

It is little wonder the controversial bank would be on the defensive. Questions raised by Ron Paul and others have put the oligarchical instrument of power into a bind with public scrutiny.

Trump underscored the economic damage that has taken place across the ravaged middle class and the effect that low interest rates have had on small businesses, savers, pensioners and investors:

“You know who gets hurt the most? People who practice the American dream and did what should have been the right way – the people that went through 40 years of their life and saved a hundred dollars every week [in the bank],” Trump said.

“They worked all their lives to save and now what happens is they’re being forced into an inflated stock market and at some point they’ll get wiped out,” he added. (source)

Obviously, the Fed knows that the monetary policy it controls is hurting ordinary Americans and whatever is left of so-called Main Street. Perhaps that much is a given.

Maybe Trump will continue to focus on the Federal Reserve in his highly theatrical upstart campaign. Will he ask about where the gold in Fort Knox went too? Trump always has money on the mind, and that could prove very interesting.

What happens next may be difficult to call, but it will make for good political theater, as far as economic bloodsport goes. Financially, everything is on the line. Most people have skin in the game already.

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  • Joe Cabot

    Please provide some evidence that I am a thief or scammer. Thanks.

  • JohnDille

    YOU HAVE BEEN ACCUSING ME OF BEING A LOSER FOR AT LEAST THE LAST FULL YEAR… AND YOU HAVE DONE THAT REPEATEDLY, MOSTLY BECAUSE I HAVE DESCRIBED JUST HOW IMPOVERISHED I HAVE BEEN AT TIMES IN MY LIFE… AND HOW IMPOVERISHED AND DESPERATE SO MANY TENS OF MILLIONS OF OTHER AMERICANS HAVE BEEN. AND YOU KEEP REFERING TO US AS LOSERS, BECAUSE WE HAVE NOT BEEN ABLE TO SCAM THE SYSTEM LIKE YOU HAVE. SO… OBIVOUSLY YOU MUST BE A THIEF OR A SCAMMER OR SOMETHING DESPISCABLE, BESIDES BEING A MERELY DESPICABLE REPUBLICAN… SO… YOU FIRST… HOW IS IT THAT ME AND ALL US OTHER HARD LUCK FOLKS ARE LOSERS??? WHAT HAVE WE FAILED TO DO… WHAT BIG ADVANTAGES HAS LIFE HANDED US THAT WE SHOULD HAVE BEEN ABLE… LIKE YOU… TO TAKE ADVANTAGE OF??? I HAVE ASKED YOU THAT NUMBEROUS TIMES… BUT… JUST LIKE ASKING WHY YOU SEE DEMOCRATS AND REPUBLICANS AS BOTH BEING CRIMINAL ORGANIZATIONS… YOU HAVE NEVER ANSWERED SUCH QUESTIONS. AND NOW…. YOU WANT ME TO TELL YOU WHAT YOU SHOULD ALREADY KNOW… HOW IT IS THAT YOU ARE A CROOK??? IF YOU DO NOT KNOW THAT YOU ARE A CROOK, THEN WHAT DO YOU KNOW??? YOU LOOK DOWN ON PEOPLE LIKE ME… WHICH MEANS YOU MUST BE WEALTHY AND SUCCESSFUL… AND TO BE WEALTHY AND SUCCESSFUL, ONE NEEDS TO BE AT LEAST A BIT CROOKED… OR JUST PLAIN LUCKY… AND YET YOU REFUSE TO ADMIT TO BE EITHER! YOU KEP CLAIMING THAT YOU HAVE WHAT YOU HAVE BECAUSE OF YOUR OWN DUBIOUS MERITS… AND YET YOU CANNOT SEE WHY ONE WOULD REGARD YOUR CLAIMS WITH SKEPTICISM??? NOT A VERY BRIGHT BULB, ARE YOU?

  • Joe Cabot

    Ok, one more try. You accused me of stealing. If you can identify who I stole from, what I stole, and how I stole it, I will answer your questions. Only fair that we go in this order since you made the first accusation. Go ahead.

  • JohnDille

    I WAS 100% POSITIVE THAT YOU HAD NO WAY TO KNOW HOW I HAVE FAILED TO OVERCOME THE MANY HURDLES THERE ARE TO SUCCES FOR THE AVERAGE PERSON. YOU ARE TOO SELF CENTERED AND ARROGANT TO EVEN REALIZE THAT SUCH HURDLES ARE THE NORM… NOT THE EXCEPTION. THANKS FOR CONFIRMING THAT YOU ARE TOO CLUELESS, ARROGANT, AND SELF CENTERED TO HAV ANY IDEA WHAT KIND OF NIGHTMARE THIS WORLD CAN BE FOR A LARGE MAJORITY OF THE NATIONS AND THE WORLDS POPULATION!!! THERE IS SURELY SOMETHING SOUL CLEANSING IN ADMITTING YOUR MOST SORDID FAULTS!!! NOW IF YOU WOULD JUST OWN UP TO ALL THE WAYS THAT YOU HAVE TAKEN ADVANTAGE OF YOUR FELLOW MAN IN YOUR BLIND LUST FOR WEALTH!

  • Joe Cabot

    I was pretty positive that you had no way of answering my question. Thanks for confirming it.

  • JohnDille

    YOU HAVE REPEATEDLY SAID THAT I HAVE FAILED TO MILK THE SYSTEM LIKE A GOOD LITTLE CAPITALIST SHOULD! HOW HAVE I FAILED TO DO THAT, WHEN AND WHERE AND WHAT ARE THE SPECIFICS OF MY VARIOUS FAILURES??? IF YOU CANT BE SPECIFIC, I WILL HAVE TO ASSUME THAT YOU ARE SIMPLY AN ARROGANT SELF CENTERED JACK WIPE, WHO HAS NO IDEA WHAT YOU ARE TALKING ABOUT!!! THE TYPICAL WEALTHY… OR TOTALLY BRAIN WASHED… REPUBLICAN, IN OTHER WORDS!

  • Joe Cabot

    Nice long winded version of avoiding the question. If you know that I have stolen from someone, please tell me what I have stolen, who I stole it from, and how I stole it. Specifics. Not rambling, capitalized generalizations. If you can’t do so, I have to assume that you are lying again.

  • JohnDille

    OBVIOUSLY, YOU ARE FAIRLY WEALTHY, OR YOU WOULD NOT BE SUCH AN ARROGANT SELF CENTERED JACK WIPE. HOW DID YOU GET WEALTHY??? I HAVE NO IDEA… BUT SINCE YOU PROCLAIM THE BENEFITS OF CAPITALISM SO OFTEN, I HAVE TO ASSUME THAT YOU GOT WEALTHY BY SKIMMING SOME OF THE WEALTH THAT SHOULD HAVE GONE TO YOUR CUSTOMERS OR TO YOUR EMPLOYEES, OR TO THE GOVERNMENT… TO PAY WHAT YOU OWE FOR THE INFRASTRUCTURE YOU USED TO GET RICH WITH. DOING THIS IS NOT NECESSARILY EVIL OR CORRUPT… WHY ENGAGE IN A TRADE IF YOU DO NOT AT LEAST BREAK EVEN… OR COME OUT A LITTLE BIT AHEAD??? BUT WHEN SOMEONE IS GETTING SIGNIFICANTLY RICHER THAN OTHERS ARE, IT IS USUALLY A SIGN THAT THEY ARE CHEATING SOMEONE… OR MOST LIKELY… A LOT OF SOMEONES. ONLY YOU AND GOD… IF THERE IS A GOD… WOULD KNOW WHO IT IS THAT YOU ARE CHEATING… AND HOW YOU ARE CHEATING THEM! ALL I CAN SAY IS… A SMALL PERCENTAGE OF THE PEOPLE IN THIS NATION AND THIS WORLD HAVE GOTTEN SPECTACULARLY RICH… AND THE ONLY POSSIBLE WAY FOR THAT TO HAVE HAPPENED IS IF THEY HAVE FOUND WAYS TO ROB MILLIONS OF OTHER PEOPLE IN SOME WAY OR SET OF WAYS. THEY ARE COMING OUT AHEAD ON AN AWFUL LOT OF TRADES…. AND THE ONLY REASON THAT ANYONE WOULD DO BUSINESS WITH SUCH A THIEF IS IF THEY HAVE NO CHOICE IN THE MATTER!!! AND BEING FORCED TO MAKE DEALS WITH THE MAFIA BECAUSE THEY ARE IN A POSITION TO EXTORT YOU IS THE PUREST FORM OF TRUE CAPITALISM THERE CAN POSSIBLY BE!!! CAPITALISM IS EXTORTION… PURE AND SIMPLE…. I NEED AND YOU HAVE, AND YOU CAN ROB ME BLIND TO TAKE ADVANTAGE OF MY NEED… AND THE MORE DESPERATE MY NEED… THE GREATER YOUR ABILITY TO EXTORT ME! EXTORTION IS THE HEART AND SOUL OF CAPITALISM!!! AND APPARENTLY, YOU HAVE MASTERED… AT LEAST ON A PETTY SCALE… THE ART OF EXTORTION!!!

  • Joe Cabot

    What have I stolen from others?

  • JohnDille

    THINK OF DEMOCRATS AS BEING FARMERS OR MINERS OR FACTORY WORKERS… AS A GREAT MANY DEMOCRATS ACTUALLY ARE. THEY TAKE THE VAST RICHES OF THE EARTH, AND TURN IT INTO USFUL STUFF. DEMOCRATS TAKE SOME OF THE VAST WEALTH STOLEN FROM ALL THE REST OF US BY RICH REPUBLICANS, AND TURN IT INTO STUFF THAT ALL THE REST OF US NEED AND WANT… AND THUS CREATE REAL WEALTH… INSTEAD OF MERE PAPER WEALTH THAT REPUBLICANS LIKE TO ROLL AROUND IN AND PLAY WITH!!! INTELLIGENT PEOPLE ALREADY KNOW THIS… BUT REPUBLICANS LIKE YOU ARE TOO BUSY ROLLING AROUND IN THE PAPER THAT YOU HAVE STOLEN FROM OTHERS TO EVER WASTE ANY TIME LEARNING ABOUT HOW THE REAL WORLD WORKS!!!

  • Joe Cabot

    Funny stuff! You and your ilk have a record of poor financial decisions yet you continue to yap about how your fiscal and financial strategies will lead to riches.

  • JohnDille

    MOST DEMOCRATS ARE WORKING PEOPLE… THEIR WAGES ARE TOO LOW FOR THEM TO HAVE ANY MONEY IN THEIR POCKETS!!! SO… TO GET A LITTLE BIT OF THEIR MONEY BACK, THEY HAVE TO SOAK THE RICH REPUBLICANS WHO HAVE BEEN ROBBING THEM BLIND FOR THE PAST 35 YEARS OR SO!!!

  • Joe Cabot

    Yes, we know that the dems hand out public money. Far be it from them to reach into their own pockets.

  • JohnDille

    INTEREST RATES WERE FAIRLY HIGH THE ENTIRE TIME CLINTON WAS IN OFFICE… BECAUSE THE ECONOMY BOOMED AFTER ABOUT HI FIRST 2 YEARS. UNDER CLINTON, THE US ECONOMY GREW BY FAR THE MOST SINCE THE 1960S, UNDER KENNEDY AND LYNDON JOHNSON… AT LEAST AFTER THE FIRST TWO YEARS THAT CLINTON WAS IN OFFICE. BY THEN, HE HAD CLEANED UP THE MONSTROUS MESS THAT REAGAN AND BUSH SENIOR HAD LEFT HIM! UNDER CLINTON THERE WERE 27 MILLION JOBS CREATED… AND REAL INFLATION ADJUSTED PAY ROSE RAPIDLY FOR ALMOST EVERYONE.!!! IF YOU DO NOT BELIEVE IT… JUST DIG A LITTLE IN THE VARIOUS DATA BASES THAT WOULD CONVINCE ANY HONEST AND UNBIASED PERSON!!! BUT, OF COURSE, YOU ARE JUST ANOTHER BRAIN WASHED RIGHT WINGER WHO IS TOO STUPID AND RACIST TO UNDERSTAND HARD FACTS!!! SO GO PEDDLE YOUR RIGHT WING REPUBLICAN LIES AND RACIST FANTASIES ELSEWHERE!!! FOX NEWS WOULD LOVE TO HIRE YOU TO SPREAD YOUR HORSE MANURE ALL OVER THE PLACE!!! YOU WOULD PROBABLY BE WORTH EVERY PENNY THEY PAID YOU… ASSUMING THEY PAID YOU A WHOLE DOLLAR A YEAR!!!

  • JohnDille

    YOU ARE THE RICH REPUBLICAN ON THIS BOARD. WHICH TROUGH DO YOU FEED FROM??? THE REPUBLICAN TROUGH THAT PILES SECRET CASH ON THICK FOR GIANT CORPORATIONS AND THEIR RICH OWNERS… OR THE DEMOCRATIC TROUGH THAT DRIBBLES OUT HIGHLY PUBLIC CRUMBS FOR THE MANY TENS OF MILLIONS OF PEOPLE WHO WOULD OTHERWISE STARVE OR DIE FROM HEALTH PROBLEMS ON THE STREETS??? YOU SOUND TOO ARROGANT AND SELF CENTERED TO BE SOMEONE WHO HAS EVER HAD TO RELY ON THE CRUMBS THAT DEMOCRATS ARE ABLE TO HAND OUT! PEOPLE WHO HAVE STARED STARVATION AND/OR HOMELESSNESS OR DEATH OR GREAT PAIN IN THE FACE, BECAUSE THEY CANT AFFORD FOOD, SHELTER, OR MEDICAL CARE, TEND NOT TO BE SO SELFISH AND SELF CENTERED AS YOU SO CLEARLY ARE! AND YET YOU WONDER WHY I CALL YOU A REPUBLICAN!!!

  • billeboy

    Whoa there Hoss. Clinton started the rate cutting to further pander to blacks getting home loans under The Community Re-Investment Act. And that is the sole reason we took the pipe and went into this great recession. Obama’s people STILL try and blame Bush II for inheriting the junk economy. So, why is it even worse or, at least, no better now?! Grow up on the ‘rich Republicans’ thing and do your homework. I did. The vast majority of the wealth in Congress is held by the Democrats. No joke. So….it’s really the Dems who are proping up The Fed as they have the most to lose. Losers all.

  • g13man

    The FED admits its private and goes on to say the gov will not controll it !
    What happened to justice ? Equality for all ? , Well not since 1913 !!!

  • Joe Cabot

    That is because the folks at the fed know that the republicans and democrats in DC feed from the same trough, so there is no need for favoring one side over the other.

  • Joe Cabot

    Outsiders don’t know how the fed works? It’s rather obvious. Actually it’s in the mission statement: the fed is in place to support the banking system. Making political payoffs is simply a side business run by democrats and republicans. Oh, and you think that Janet Yellen is humoring people? With that half-witted look that she tends to have, she seems to barely be humoring herself.

  • JohnDille

    THIS DATA WILL GET SCRAMBLED ALL UP…. BUT IT SHOWS THAT THE FED CUT THE FED FUNDS RATE 11 TIMES…. YEAH… 11 TIMES… IN THE 15 MONTHS BEFORE THE ELECTIONS IN 2008!!! AND SEVERAL TIMES AFTER THOSE ELECTIONS, AS WELL! THE ECONOMY REALLY WAS THAT BAD BACK THEN!!! NO WONDER A BLACK GUY WON THE WHITE HOUSE! FOLKS WERE CONVINCED THAT REPUBLICANS WERE IDIOTS…AND THEY WERE AND STILL ARE RIGHT TO BELIEVE THAT… AND EVEN A BLACK DEMOCRAT WAS BETTER THAN ANY REPUBLICAN!!!
    Oct 29 Oct 8 -.501.752.25-.50 1.50 Apr 30 -.252.252.75-.25 2.00 Mar 18-.752.503.00-.75 2.25 Mar 16 -.253.253.75 Jan 30 -.503.504.00-.50 3.00 Jan 22-.754.004.50-.75 3.50 2007 Dec 11 -.254.755.25-.25 4.25 Oct 31 -.255.005.50-.25 4.50 Sep 18-.505.255.75-.50 4.75 Aug 17-.505.75
    SO… THE 11 TIMES THAT THE FED CUT INTEREST RATES IN THE 15 MONTHS BEFORE THE ELCTIONS IN 2008 DOES NOT COUNT AS THE FED TRYING TO KEEP REPUBLICANS IN THE WHITE HOUSE AND IN CONTROL OF BOTH HOUSES OF CONGRESS??? CRAFTY FELLOWS THERE IN THE FED…. BACKING REPUBLICANS AT EVERY TURN… EVEN WHILE THOSE SAME REPUBLICANS KEEP BASHING THE FED… BECAUSE THE FED IS COSTING RICH REPUBLICANS TRILLIONS OF DOLLARS A YEAR… YEAH… TRILLIONS… WITH A T…. IN INTEREST INCOME…. EVERY YEAR SINCE OBAMA TOOK OVER!!! DANG OBAMA AND THOSE TRAITOROUS REPUBLICANS WHO RUN THE FED!!!

  • JohnDille

    Oct 29 -.501.251.75-.50 1.00 Oct 8 -.501.752.25-.50 1.50 Apr 30 -.252.252.75-.25 2.00 Mar 18-.752.503.00-.75 2.25 Mar 16 -.253.253.75 Jan 30 -.503.504.00-.50 3.00 Jan 22-.754.004.50-.75 3.50 2007 Dec 11 -.254.755.25-.25 4.25 Oct 31 -.255.005.50-.25 4.50 Sep 18-.505.255.75-.50 4.75 Aug 17-.505.75
    SO… THE 11 TIMES THAT THE FED CUT INTEREST RATES IN THE 15 MONTHS BEFORE THE ELCTIONS IN 2008 DOES NOT COUNT AS THE FED TRYING TO KEEP REPUBLICANS IN THE WHITE HOUSE AND IN CONTROL OF BOTH HOUSES OF CONGRESS??? CRAFTY FELLOWS THERE IN THE FED…. BACKING REPUBLICANS AT EVERY TURN… EVEN WHILE THOSE SAME REPUBLICANS KEEP BASHING THE FED… BECAUSE THE FED IS COSTING RICH REPUBLICANS TRILLIONS OF DOLLARS A YEAR… YEAH… TRILLIONS… WITH A T…. IN INTEREST INCOME…. EVERY YEAR SINCE OBAMA TOOK OVER!!! DANG OBAMA AND THOSE TRAITOROUS REPUBLICANS WHO RUN THE FED!!!

  • Eileen

    As a political outsider, Trump really does not know how the Fed actually works. He may very well be correct, but if so, I am not sure how long Yellen can humor him.