By Rudy Barnes, Jr.
Have you noticed that bank stocks go up when the Federal Reserve increases interest rates? That’s because the Fed is an extension of the banking industry, and the stock market is like a briar patch, with banks like Brer Rabbit. While the stock market complains about Fed rate hikes, they allow banks to increase their profits on loans and credit cards.
The stock market is a measure of inflation. Megacorporations on Wall Street produce most consumer goods in America and set their prices. Most have remained profitable by raising prices to compensate for inflation and increased interest rates. Fed rate increases have not slowed inflation and left consumers the victims of both inflation and increased interest rates.
The following commentaries dated from April 2019 remain applicable today. They indicate a US economy plagued by crony capitalism, increasing disparities in wealth and a Federal Reserve that’s unable to control runaway inflation. Unfortunately, elections next month offer little hope for progressive and fiscally responsible economic reform from either party.
(4/27/19): Musings on the Legitimacy of Crony Capitalism and Progressive Capitalism
(6/29/19): Musings on a Politics of Reconciliation: An Impossible Dream?
(2/8/20): Musings of a Maverick Methodist on America’s Love of Money and Lack of Virtue
(3/28/20): Musings of a Maverick Methodist on a Quick and Dirty Economic Revolution
(5/9/20): Exposing the Corruption of Crony Capitalism
(6/27/20): Musings on a Zombie Economy Fostered by the Federal Reserve
(8/22/20): Musings on America’s Two Economies: One for the Rich and One for the Rest
(2/6/21): Musings on the danger of economic disparities and excessive debt in America
(2/27/21): Musings of a Maverick Methodist on Debt as a Vice or Virtue
(3/6/21): Musings on Socialism, Capitalism, Democracy and Debt in Politics and Religion
(10/30/21): Musings on Modern Monetary Theory, and Why National Deficits and Debts Matter
(2/5/22): Musings on the Stock Market, Inflation and Providing for the Common Good
(5/14/22): Musings on Inflation, the Stock Market, and the Economy http://www.religionlegitimacyandpolitics.com/2022/05/musings-on-inflation-stock-market-and.html.
(7/30/22): Musings on Whether or Not We Are in a Recession: But Does It Really Matter?
Today the Dow climbed 600 points as strong bank earnings helped fuel a relief rally. See https://www.cnbc.com/2022/10/16/stock-market-futures-open-to-close-news.html.