Financial elite’s fancy footwork deprives the average worker

PUBLISHED : Thursday, 28 July, 2016, 4:36pm
UPDATED : Thursday, 28 July, 2016, 11:13pm

There has been an inordinate amount of posturing by the US Federal Reserve regarding the raising of dollar interest rates.

First we hear they’ll go up, then the action is postponed, only to be resurrected with more hawkish pronouncements a few weeks later.

Then it’s postponed once more. In the meantime we’re bombarded by a flood of economic data – non-farming payroll jobs, retail sales, jobless, manufacturing, new housing starts, inflation, gross domestic product growth – while the financial world waits with bated breath for each sacred utterance and the markets react in knee-jerk sympathy to every bulletin.

We’re repeatedly told that America is in great health, but I suspect the data is manipulated.

Jake van der Kamp describes many of the US employed as burger flippers (“China’s yuan policy not the reason for job losses in US”, July 12).

With US$20 trillion of debt, and with far greater unfunded liabilities, the US has no hope, and clearly no intention, of ever paying any of it back. So where’s the money going to come from to fund interest payments on another rate rise? Especially as we’ve been told that the US$4.5 trillion printing exercise euphemistically known as “quantitative easing” has been discontinued.

With Europe, China and Japan in the same boat, more and more people will come to realise that our fiat currencies are worth little more than the paper they’re printed on.

Governments and the corporate and financial elite are very much aware – and afraid – of this.

Hence our world’s ever-increasing debt load, the creation of new paper money out of thin air, zero to negative interest rates, and the release of spurious factoids and glib reassurances designed to convince the man in the street that we are actually in good shape.

Failing banks always tell you everything is fine. Until, too late for us, we find out that it’s not.

Wall Street’s pockets might be well filled, thank you very much, but the rather desperate attempt to bolster and create false confidence in our fiat currency system does nothing for the ordinary workforce.

In fact it progressively deprives them of their pensions and savings.

Only those few at the top, for whom maintaining the status quo is essential for the preservation of their empires, will benefit from the financial manoeuvrings of these past few years.

Andy Smailes, Pok Fu Lam