Federal debt most pressing concern

The Gazette Opinion Staff
Published: January 14 2014 | 1:55 pm - Updated: 29 March 2014 | 2:05 am in

As the federal debt accelerates out of control, the ensuing problems are compounded in a geometric progression. Fiscal policies of the federal debt are nominally the responsibility of the Treasury, which issues U.S. bonds. However, Federal Reserve monetary stimulus policies are the primary engine driving federal debt since 2008.

The Federal Reserve policies of zero percent federal funds rate accommodating monthly immoderate U.S. Bond purchases from Wall Street banks are facilitated by massive increases in the federal debt. The contrived program of endless stimulus of stock and bond prices has been recklessly overheated in an inevitable boom-and-bust cycle.

New Federal Reserve chair Janet Yellen indicates no inclination of meaningful change in disastrous policies causing great harm to the economy.

Federal Reserve policies steadfastly applied since 2008 have been counterproductive for the essential objectives of employment and the economy, which in previous cycles were the rational stimulus for the stock market.

The often cited unemployment rate is moving in an inverse correlation with the real world underemployment rate. The gross domestic product as reported has been abysmal ... and for reasons of methodology is overstated (including no negative factor for unprecedented increases in federal debt).

An oppressive federal debt inexorably continues increasing of its own momentum and is the nationís foremost urgency.

George Black

Iowa City

 

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