(National Sentinel) Destruction: It took all of Barack Obama’s two terms in office for the U.S. economy to recover from the blood-letting on the New York Stock Exchange and resultant damage done to the stock Americans’ retirement accounts thanks to a crisis in the subprime mortgage market that expanded into an international banking crisis.
In fact, one could honestly say that by the time Obama left in January 2017, the economy was still on the ropes, though markets began to rise immediately following Donald Trump’s victory over the criminal Hillary Clinton the previous November.
Markets continued to rise throughout 2017 as POTUS Trump cut regulations and adopted additional pro-growth policies. The GOP tax reform legislation that he signed in December 2017 was the icing on the cake, and the stock market set record after record in the months to follow.
The economy took off as well, as evidenced by factory orders, production rates, and a tumbling jobless rate that has now leveled off at about 3.7 percent, which is essentially full employment. Minority unemployment rates are also at historic lows.
Then along came Jerome Powell, the president’s pick to head up the Federal Reserve. Despite there being no real indicators that inflation is rampant or even close to becoming a problem, Powell has been steadily raising interest rates over the past several months, and he did so again on Wednesday though the president has been warning against it.
Like before, the markets responded negatively; the Dow Jones fell more than 890 points within 10 minutes of his announcement. As of this writing on Thursday morning, the DJIA is down more than 350 points to about 23,320.
That’s down from a record high of 26,656.98 on Sept. 20.
So let’s review: Powell raises rates; the Dow Jones and other indices fall. What’s wrong with this picture?
What’s wrong is that Powell — who said this week he plans to continue raising rates into next year — seems oblivious to the damage he’s doing to the retirement accounts of ordinary Americans. While he sits atop a fortune of $112 million, making him, at one time, the richest member of the Federal Reserve Board of Governors, average Joes and Janes struggling to make ends meet are watching their retirement accounts tank in much the same way they did at the beginning of the 2008 financial crisis.
And for no reason. Again, there are no signs of rampant inflation.
Some have speculated that the Deep State would tank the U.S. economy if they thought it would harm President Trump’s reelection chances in 2020. We’re not into conspiracy theories, but it’s clear that Powell’s actions are harming, not helping the economy — so what’s his motivation? What’s driving his decision-making?
Whatever it is, POTUS Trump needs to have a face-to-face with Powell and find out just what he’s trying to do before his actions lead us back to the future with an economy that’s barely breathing and a stock market that bled trillions in wealth. — Jon Dougherty
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