Fed Raises Interest Rates for the First Time in a Decade

Written by on December 18, 2015 in Economy with 27 Comments


By Joshua Krause | Activist Post

There has only been one thing keeping our economy afloat since the crash of 2008. That is, cheap money provided by the Federal Reserve. Everything from stocks to bonds and even real estate, have been pumped up by the Fed’s limitless money supply.

Related Article: The U.S. Dollar Has Already Caused a Global Recession and Now the Fed Is Making It Worse

And the Fed isn’t alone. Central banks all over the world have been utilizing the same strategy of inflating their currency, and provided near zero interest rates. That’s because everybody wants stay competitive by keeping their exports cheap. They’ve been racing to the bottom for years, but now it appears that the bottom has finally been reached.

Today Janet Yellen announced that the Fed would raise interest rates by a paltry .25%,  in the hopes that such a small increase won’t scare investors and bring volatility to the markets. This is the first time rates have been raised since June of 2006, which is an extremely long period of time to go without a rate hike. Yellen admitted that rates would remain low for the foreseeable future, but would be raised incrementally as time goes on. She further added at a press conference that “We’ve worried about the fact that with interest rates at zero, we have less scope to respond to negative shocks.”

Related Article: Century of Enslavement: The History of the Federal Reserve

Or, in other words, the Fed is shooting blanks. They can’t inflate the currency any more without bursting our bubble economy. On the other hand, they know that raising rates will cause the bubble to deflate, since easy money is the only thing supporting it. They’ve been stuck between a rock and a hard place for a long time, and they’ve just decided to take on the rock.

Brace yourselves. The easy money train has made its last stop, and history’s biggest credit expansion has reached its peak. There’s only one direction this economy could go from here, and that’s down.

Related Article: Banks to Begin Charging Customers… Negative Interest?

Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personalTwitter. Joshua’s website is Strange Danger.

Read more great articles at Activist Post.

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27 Reader Comments

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  1. 1042080559170763@facebook.com' Terry Henderson says:

    Doesn’t help me! Does it help you?

  2. 10153472473034735@facebook.com' Zeke Hagazi says:

    How about raising it up their rooooter…

  3. 10205379798004875@facebook.com' Joe Seymour says:

    The economy is in the toilet. Fiat currency has done nothing but add to the fall.

  4. 10207950975363060@facebook.com' James P Moon says:

    It’s all one big shell game, eventually the reality of the situation will become known.
    There is no money!
    Only debt, which banks trade as currency.
    We’ve been swindled into believing we need banks, we don’t, they need us.

    They can print cheap money until it’s coming out of their ears but if nobody wants to borrow it they’ve got a pile of worthless paper.

    It’s all an illusion cleverly disguised as an enigma. They pretend it’s complicated so people will believe they’re just not smart enough to understand when in reality it’s very simple, if people understood the system would collapse.

  5. 1165025076844761@facebook.com' Jim Ehmer says:

    A more important dynamic is the Velocity of Money, which has been, and continues, falling..

  6. 1096699527009704@facebook.com' Brian Mcfarland says:

    That is our money stolen from the American people and the debt is fake

  7. 10206425253462520@facebook.com' Steve Elder says:

    Invest in real money…silver and gold bullion

    • 1008095709249838@facebook.com' David Harris says:

      Good luck finding it

    • 10206425253462520@facebook.com' Steve Elder says:

      It’s easy to find…I can go to a local coin shop and buy as much as I want or go online to a place like JM Bullion….buy it there…

    • 1008095709249838@facebook.com' David Harris says:

      At a cost that will remain worthy of having??

    • 10206425253462520@facebook.com' Steve Elder says:

      You’re not buying so much for it’s worth today…but after the dollar crashes…which will probably be in 2016…people will be looking to hold hard assets as paper money won’t be worth the paper it’s printed on. Silver is currently 14.10 an ounce and is expected to go as high as 500.00 an ounce as the demand for hard currency will be phenomenal.

    • 10153756249598582@facebook.com' Hassan Arif Yaqub says:

      Not going to happen

  8. 1066589133372830@facebook.com' Russell Angerer says:

    Greed will show. The stock market will adjust lower. The little investor will not have enough to to ride it out and loose. It’s called trickle into the rich pockets economics.

  9. 1069480356395568@facebook.com' Cherie Howe says:

    Bad for the country.

  10. 10153582751573417@facebook.com' Dan Kellam says:

    Here comes the global recession! The 2008 will look like a millionaire dropping a penny by comparison.

  11. 10208204375297230@facebook.com' Maureen Janssens says:

    There is no confidence in the economy it is all about greed….

  12. 373375732836229@facebook.com' Elizabeth Luna says:

    The people should sue the federal reserve.

  13. 10153692642248771@facebook.com' Deb De Vito says:

    Cant they just make enough for everybody ?

  14. 10204819553522855@facebook.com' Jose A. Ruiz says:

    It’s an illegal institution.

  15. 113715278987408@facebook.com' Jeremiah Jennings says:

    But Obama is the greatest President we’ve ever had, how can this be? He’s working so hard for the little person and isn’t just another hack taking orders. How could this happen under his watchful guidance? Why isn’t traditional media lambasting him about this?

  16. 674264629340950@facebook.com' Gerardo Maldonado says:

    Im really liking counsious life news, when i check your sources they are almost always dependable.

  17. 10208357782001671@facebook.com' Danny Wagner says:

    If you think the worst thing the fed has done is raising interest… you need to do some fucking reserch.

  18. 1196483177032474@facebook.com' Michelle Turner says:

    This stinks, I smell a rat

  19. 483489248496322@facebook.com' Steven Hartley says:

    Time to stop everything until it goes back to zero.

  20. 10207386005400250@facebook.com' Justine D. Simone says:

    yeah raise rates so it filters to their pay checks while so many are struggling to buy a home!

  21. 10205959332196038@facebook.com' Michael McGinnis says:

    What are interest rates?

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