Federal Reserve action won't work

It seems that the Federal Reserve (Fed) is suffering from the same malady as our politicians: a serious lack of common sense. They are going to stimulate the economy by purchasing government debt, which is supposed to lower interest rates again.

That part of the economy that they wish to stimulate can't be fixed by lowering the interest rates more than they already have — that is, unless they intend to pay the consumers to borrow money.

Since the stock market is considered as part of the GDP, the growth will appear to be positive only because those who have money to invest will use some of it to buy stocks that are currently on the rise because of the Fed policies.

The rest of us will continue to stretch our dollars to meet our current obligations. If we are lucky, we might even approach that point where we have something remaining after covering the necessities.

Discretionary income is what the Fed calls it, and it is something that the vast majority of the working class have yet to attain.

It appears that the actions of the Fed with respect to consumer debt are not much different than the government-mandated home loan policies of the mid-1990s that caused this mess in the first place.

Judging by the theories of some intellectuals, we won't have to worry about the next recession since according to those individuals, the world ends on Dec. 21 of this year. That theory is based on the calendar of an ancient civilization that disappeared long ago. They don't know why or when that civilization ended. I wonder if those intellectuals ever considered that the calendar was a work in progress that was interrupted when the civilization ceased to exist.

Robert Hibbard

Foothills