U.S. following Greece’s lead

A response to the Federal Reserve devaluating our dollar by $600 billion in an attempt to “stimulate the economy” through more consumer spending and borrowing: Every dollar they create out of thin air weakens the value of the dollar which is held by the American people. This action leads to inflation and undermines our purchasing power of an already weakened middle class.

The private sector is engulfed in so much uncertainty in a policy of spending, borrowing, bailouts, the banks have redirected credit to business and increasing purchase of government debt. The banks are taking in low-cost funds from the Fed and lending it back to the government at a higher rate, producing a small profit, but done on a larger scale it will become lucrative.

The distortion of the Fed’s lower interest rate makes it harder for the private sector to get credit. By keeping interest rates low, it encourages banks to lend to the government at the private sector’s expense.

The idea that government debt is safe is an illusion and the growing concern of the government’s ability to pay back this debt is foolish, and we are headed for the same outcome of Greece and the EU.

Margaret James

Spokane Valley