I ended yesterday’s article not because I ran out of material; but because I feared that I was overtaxing my readers’ attention spans. So today we continue.
There is an old adage in baseball that says, sometimes the best trade is the one you don’t make. With the annual trading deadline rapidly approaching and considering the political news of last week along with just a tad of poetic license that I used, I selected my biggest story of the week just ended. Donald Trump is a crook. Rudy Giuliani is a liar. Neither of those is exactly a surprise. The UPS strike being averted has the potential to have a huge impact on America’s future.
In my mind the decisive battle of World War II was D-Day and today is the 79th anniversary of the landing on the beaches of Normandy. Nazi Germany was trying to destroy democracy anywhere it existed on the globe certainly including in America. The Nazis wanted to replace democracy with right wing authoritarianism. The clearest threat to American democracy today is the American radical right wing which has largely taken over the Republican party. I think it’s most potent attack on democracy was thwarted last week. But we are far from out of the woods and I’d like to briefly explore that topic today.
As I commence writing this article, we are awaiting the Fed’s announcement on interest rates. I am among the many who anticipate a .25% increase. That is not only unnecessary but injurious to the economy. The Fed seems committed to raising rates until (and hopefully not beyond) the point that it puts the economy into a recession. But that’s only a small part of what I want to cover today; the looming debt ceiling crisis is my main thrust.
It didn’t get the “ink” that a lot of other stories did (including one that never happened) but I maintain that the biggest political story of the week just passed was the Fed raising interest rates again. This one almost certainly will have massive negative repercussions in the future. I read and heard all the justifications for the Fed’s move but I still can’t understand why they did it unless one of two -and neither are good – circumstances exist.