Paul Craig Roberts Warns Fed Rate Hike A “Fraud” To Facilitate More Looting By Banksters
KingWorldNews.com
December 17, 2015
On the heels of yesterday’s rate increase by the Federal Reserve, today former U.S. Treasury official Dr. Paul Craig Roberts lashed out at the Fed, calling their rate hike a “fraud,” and claiming that it will be used to facilitate more looting by banksters.
By Paul Craig Roberts, Former US Treasury Official
December 17 (King World News) – Fed Rate Hike A Fraud – Just More Looting By Banksters
The Federal Reserve raised the interbank borrowing rate yesterday by one quarter of one percent or 25 basis points. Readers are asking, “what does that mean?”…
Paul Craig Roberts continues: It means that the Fed has had time to figure out that the effect of the small “rate hike” would essentially be zero. In other words, the small increase in the target rate from a range of 0 to 0.25% to 0.25 to 0.50% is insufficient to set off problems in the interest-rate derivatives market or to send stock and bond prices into decline.
Prior to today’s Fed announcement, the interbank borrowing rate was averaging 0.13% over the period since the beginning of Quantitative Easing. In other words, there has not been enough demand from banks for the available liquidity to push the rate up to the 0.25% limit. Similarly, after today’s announced “rate hike,” the rate might settle at 0.25%, the max of the previous rate and the bottom range of the new rate.
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