The Fed Dropped Interest Rates for Kamala: What’s it Mean to You? (Transcript)

CLICK HERE TO LISTEN TO BOB BARNEY’S 7:11 AM BROADCAST: The Fed Dropped Interest Rates for Kamala: What’s it Mean to You?

Good morning, the time is 7-11, and this is Bob Barney with The Plain Truth Today with another broadcast brought to you by theplaintruth.com. The Plain Truth dot com is where you can go to get all of the news that you need to know as we explain what the news really means to you and your family. We help to show you what your future is going to look like as a result because most of the news that’s going on today (that’s important) is actually found prophesied in the pages of your Bible!

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So, last week, the Fed lowered interest rates by half a point, half a percentage point, and depending on which TV shows you watch, most of them think it was a great thing. Why? Because most of them are supporting Kamala Harris. The Fed basically did such a drastic reduction in the interest rates only to help Kamala Harris get elected. It’s just all pure politics because any smart economist, anybody who’s honest with themselves, know what the result is of lowering the Fed interest rate. Let’s get into this.

Yesterday, in the Sunday edition of ThePlainTruth.com, on the main page, there was an article that we shared and I’m going to read parts of this article if not most of it, in this program. I will give some comments as I read it because it’s someone who’s accurately reporting on Newsmax accurately predicting what this rate cut means to you, to your family, to everyone you know, and to the election in 2024.

While most in the media, and for that matter, most Americans, have been celebrating yesterday’s announcement that the Fed is lowering interest rates by 50 basis points, that’s a half a percent for those who do not know, that is the exact opposite reaction we should have. This is the financial equivalent to junk food. We all know what junk food does to our body, right? Sure, it will result in a few good news cycles, and people will be happy that they get a break on interest rates for a little bit, but what happens after the euphoria wears off? The short answer is, we get more of the problems that this is supposed to fix. It is the proverbial kicking the can down the road one more time, and the result of doing that are never good. It drives further inflation, which is already far higher than officials want to admit. Most Americans are aware that the government’s criteria for measuring inflation have changed over the years, and because of the way that it is calculated today, official data has become essentially meaningless. What’s worse, this was an act of desperation. It wasn’t based on sound financial principles. It was simply a Hail Mary pass that the Fed Chairman Jerome Powell had hoped would create a positive public sentiment as we head towards the November elections. This may be the final nail in our economic coffin. The market is bigger than the Fed, and we’ll have a final say to whatever the Fed does. Anyone who isn’t already in the top 20 percent of Americans in the terms of income and assets is going to hurt financially, while those who are on the top tier benefit from continuation of easy money policies and gross domestic product, GDP growth, based on primarily the government’s job expansion and continued deficit spending. That’s like the family living on credit cards and feeling good about their lifestyle until the debt comes due.

Now, one of the things I had a show of a few months back that I wanted to explain how inflation is the absolute worst tax for poor people. It’s not the tax on rich people. Rich people love inflation. I think I told you the story a long time ago in the 1988 presidential race when I was talking to, at the time, probably one of the richest persons I had ever sold paint to. He made his money in the oil business, and he owned all of the orange groves that sold Publix, their orange juice. He was saying to me how really rich people, the billionaires of this world, love Democrats. They hate Republicans. They hated Ronald Reagan. He hated Ronald Reagan, especially, because under Republicans prices come down, and under Democrats, inflation runs rampant. He said the only way we can make money is you buy orange juice at 10 cents a pound, and you sell it at 40 cents a pound through inflation.

Inflation makes rich people richer.

It makes the middle class and poor people poorer.

So on with the story.

Don’t get me wrong. I’m a huge fan of the free market, and I think we should encourage a healthy profit from our work, but not when it’s explicitly at the expense of other people. While the free market is not a zero-sum game, it can behave as much as the government interferes too much. And make no mistake, our government absolutely has interfered to the point of turning our economy into rubble. To put this in perspective, the United States dollar has lost over 88 percent of its purchasing power through inflation, which is driven by government monetary policy.

I’ll take a break from the story here and give you an example. I do some auctions from time to time, and I was watching a particular auction on PBS, you know, Roadhouse. I think other people watch it as well, and someone was showing a violin that they had bought in 1962. And the person who was the auction appraiser said, what did you pay for it in 1962? And it was a very old violin. It was probably made in the 1700s in France. Then the guy who owned it said, well, that’s what we thought when we bought it, but we took it to have it appraised about 10 years ago, and they said it was a fake, but it does sound good. Well, the person looked at it and said, no, it’s not a fake. It was really the real thing. And she went over, and she said, what did you pay for it in 1962? And he said, well, a lot of money, $1,200. Well, she did a quick calculation in her mind, and she says, you know, $1,200 in 1962 would be about $21,000 today. Do you think you have a $21,000 violin? And the guy goes, absolutely not. Even if it’s real, it’s probably not worth more than what, $5,000 or $6,000. She goes, no, no, you did well, because you would have us pay $21,000 in today’s money in order to come up with $1,200 in 1962. But I’ll tell you what it’s worth right now in 2017.This was 2017, by the way. She said, it’s worth almost $50,000 to $75,000. So, you did well, no matter how you look at it.

The point I wanted to make for this program here is, think a minute, $1,200 in less than 40 years’ time became worth $21,000 in today’s money.

 I had a friend tell me one time who collects gold and says, you know, gold has never gone up a dollar in price. No, I said, how’s that? He goes, gold never goes up. Gold’s the same value it’s always been. The dollar goes down, making the gold, it takes more dollars to buy gold. But the same ounce of gold is really worth the same throughout the ages. It’s just what the dollar does.

To put this into perspective, the U.S. dollar has lost 88% of its purchasing power through inflation, which is driven by our government policies. Specifically, manipulate interest rates into the supply of money. And here’s the kicker, I’m sorry. The Federal Reserve, the entity that creates and executes these policies, isn’t even a government agency. It’s a private organization. It’s actually a private company, a corporation, that we have zero oversight. Yes, the president picks the chairman of the board every, I don’t know, four or six years of the Fed, but the Fed is its own company. It does not have any oversight from our government, and yet we let it print our money and control our monetary policies. If you don’t see a problem there, I don’t know what else, what’s taken up your mind. We’ll go on with this article. This rate decrease was purely a political move intended to keep things together long enough to get through to the next election. That’s why the Fed dropped the rates. Despite claiming that inflation is down and we’re not in a recession, and it’s not the first time we’ve seen this, back in 2007, the Fed cut rates on September 18th, leading to a crash for the next 372 days, and the S&P 500 fell by a staggering 54%, and the housing market absolutely collapsed. Ten of the Federal Reserve’s last 14 rate cuts have led to a recession. Did you hear that? Ten of the Federal Reserve’s last 14 rate cuts led to a recession.

I predicted on this broadcast two months ago when they were saying, will the Fed drop its interest rates before the election, or will they not? And the money was they would not because the economy was not doing good. And then we saw all these bogus numbers from the economy. We saw unemployment rate go down and down. Then finally, last month, we find out they lied, and they added 800,000 jobs that did not even exist to keep a lower unemployment rate. 818,000 jobs, 34% of all the jobs that Joe Biden claims he created, most of those for illegal aliens, 818,000 were made up by the government.

Lies, damn lies and statistics, as Mark Twain would say.

So, the idea that, and I said this back in June, I think I might have even said it in May, but I said it back in June. Of course, they’re going to cut the rates twice before the election. They’re going to cut it probably in, I said, September, and I was right, and then again in October, and I’m going to be right on that one too. They’re going to cut the rates again in October, days before the election to make the people think that the economy is getting better and what’s going to end up happening…I said, if you remember the show, and if you didn’t, maybe one day we’ll rebroadcast it on the 7-11 Evening Broadcast. If you remember the show, I predicted when they cut the rates, buy as many stocks as you can and don’t buy gold. Well, gold actually went up too, because I guess smart people who are buying gold know the result of these interest rate cuts. But I said, buy stocks, buy all the stocks you want to buy. But the minute Kamala Harris is elected, if she is elected, and I don’t believe she has a hell’s chance of anything to get elected, but if she is elected, then I said, be wary, be careful, because then the stock market is going to totally collapse worse than it did in 2008.

I’m telling you right now, be wary.

If you see her get elected, buy as much gold as you possibly can afford, or silver, because this country will be in a recession, depression, worse than we saw since 1929, or maybe even worse. We have borrowed too much money, and we have caused too much inflation, and the American middle class and lower class have been robbed from a lifetime of savings.

 Going on with the article. The bigger problem is that today’s underlying economic conditions are worse than they were in 2007, which led to the big 2008 crash. So, when the correction does happen, it will be far worse than we saw last time. While this rate cut was meant to reduce interest rates across the board, it may actually have the opposite effect, because long-term rates, such as the housing mortgage interest rate, are based on 10-year treasury bill yields, which are actually on the rise. In other words, buckle up, because things are about to get really bumpy. Our already high inflation will skyrocket within the next three to six months, which we have a ripple effect impacting every facet of our economy. As costs continue to go up due to inflation, more businesses will struggle, leading to more layoffs that further will worsen the problem, because that then leads to a reduced economic activity. Consumers will have less money to spend, and they will become understandably more cautious in spending what they have. It doesn’t take long for this to become a vicious downward spiral that takes years, and I mean years, to recover. When this all unfolds, government officials will claim they had no idea this was going to happen, and no one could have seen it coming. But everybody with a brain can see it coming. But we all know better, as the story goes on. This was just a political move to kick the can further down the road, and at this point, the Fed is in a no-win position. A rate cut leads to inflation, but a rate increase at this point would destroy the economy almost overnight.

So there’s effectively no way out. Plus, this all comes at a time when our national debt is at an all-time high of $36 trillion. So high, in fact, that just the interest payment alone now exceeds our entire military budget. One trillion dollars a year we pay just to pay the interest on our debt. One trillion dollars a year. Twenty-five percent of all the tax money you pay goes to pay the interest on our debt to our foreign enemies, China, for example, Saudi Arabia, for example, who owns our debt. Think about that. Expect tremendous volatility over the coming years. If you’re prepared for and make the right decisions, you could come out on the other side stronger in a financial way than if you’d follow what the pundits tell you to do. This was written, by the way, by a man named David Phelps, who created Freedom Founders to help its members achieve freedom that they want in their lives by building a financial foundation that is stable no matter what the economy is.

So anyway, I just wanted to read that to you. That whole article and story you can find in Sunday’s PlainTruth.com main page.

I wanted to continue about this inflation that this rate cut is going to cause. We really do not have a three or four percent unemployment, as we’re trying to tout. We really probably have an eight or twelve percent unemployment rate. So many people today are on the government dole. They’re not even trying to work, and they’re not counted. If you’re not trying to find a job, you’re not counted in the unemployment rate. The real number that is very important to watch is the participation rate. What percentage of eligible workers are working? The last I remember, and this was going back, I believe, in June when I did the show, I think it was in June, it was 62 percent. Well, if you extrapolate that number, that means 38 percent of Americans who could be working are not working.

38 percent, that’s more than a third of all working Americans are sitting home on their butts answering polls that favor Kamala Harris.

I went over this last week, too, about the polls. Many of these polls that you’re seeing that say that she’s in the lead, or this is a neck and neck race, which I’m telling you right now, it’s a blowout for Donald Trump, unless they can steal 20 million votes. But what many people don’t know about these polls is these polls happen between about 12 and 3 o’clock in the afternoon, and they’re calling people at home and asking them if they’re a registered voter. If they say they are a registered voter, they ask them, did you vote in 2016, 2020, and do you intend to vote in 2024? If they say yes to all three things, then they ask them the polls, who they’re going to favor, what issues are important to them. The problem is this, working people, mainly who vote Republican, are at home between noon or one o’clock and three o’clock in the afternoon. That 38 percent of the people I said that aren’t working on the labor participation rate, well, they’re the people sitting home answering these polls. And I got news for you. If you’re going to get your substance by living off the government and getting free housing, free electricity, free food, free rent aid, of course you’re going to be voting for a Kamala Harris and the Democrats, because you don’t care if this country goes down the tubes or not. All you’re caring about is what you can steal whilst breaking the 10 commandments, thou shall not steal. You can steal from your fellow American who is working every single day, paying his taxes or her taxes, so you can stay home, do nothing, stay on the government dole, and answer polls favoring Kamala Harris.

Well, thank goodness that there are still 62 percent of the American public still working in the labor force, and I don’t believe many of those 62 percent that actually work and pay taxes every day are really happy with the economy that Joe Biden and Kamala Harris has brought them for the last three and a half years.

I don’t think there’s very many people at all, they’re very happy when they go to the store, and they see that food did not go up 22 percent like you watch on Fox business. The food has doubled if not tripled in price. What you bought in 2020 is three to four times more than you can buy today. A lot of people are buying different things, cheaper things, in order to keep their food bill down, so maybe effectively they’ve only spent a third more of their income on food, but if they were to buy the same things they want to buy, they would do two or three times what they paid for food.

There was a video a couple months ago, I talked about it, about this younger guy, kind of like one of these Gen Z guys, and he was saying, hey dude, you know I was buying from walmart.com and I look back and there was an order I did in 2020, so I just redid the entire order, and in 2020 it was $144, and when I just redid the order to be sent to my house, it turned out it was $427. It was four times more money. Duh, and that is the plain truth. If we want to get to that today, the truth is food prices have at least tripled, doubled, or tripled, or quadrupled in prices, item for item. If you count in shrinkflation and food substitutes, maybe you don’t have that kind of inflation in your own pocketbook, but you’re paying out the nose. You’re paying out the nose for gasoline, you’re paying out the nose for car insurance, house insurance, you’re paying out the nose for mortgage payments, for the cost of taxes on your home that went up 25 to 50 percent in value because of inflation.

This is what the Fed has done for you.

Now one of the things that really gets me about the Fed, their target rate is a two percent annual inflation. That sounds good. You know, we were at eight or nine percent annual inflation when we really were at 35 or 40 because, you know, they don’t count gasoline, fuel, home fuel oil in inflation. They don’t count what you pay for electricity, or your rent, or your mortgage in the inflation rate. Did you know that? So, what you spend every month in order to break even, to survive, and to have a home, and have a car, and go to work, they don’t even count most of that into the inflation. Think about that. The inflation number itself is a crock, but they say they want a target rate of two percent, and they’re trying to get down from a high of what they claimed it was nine percent when it was really probably 35, 40 percent, down to two percent. Two months ago, they said it was three and a half percent, and then of course the month after that they said it was down three percent, but the month before that they said was three and a half percent, well they had to raise that. It actually was five percent. You know, they always have to recalculate because they lie so often, and the lie gets caught, so then they say, oh we made a mistake, it was really higher last month, but it’s lower this month, and of course the next month they give a lower number, but oh we have to revise last month because we overstated how good it was, it was really worse, and so now it’s down to two and a half percent. It’s not even the two percent target.

Let’s take their two percent target rate. Do you realize what two percent inflation a year really means to your pocketbook? It means in 50 years, and most people are going to live to 70 years old, most people are going to work 40 or more years earning a living, trying to get ahead, paying their taxes and Medicare and social security taxes, and most people are going to see 50 years go by… which means when you’re 10 years old and the time you’re 60 years old, everything you could buy when you were 10 years old is going to be doubled in price. That is the inflation rate that the Fed says they want. So, every 50 years you’re going to have 100 percent inflation, and every 100 years you’re going to have 200 percent inflation.

Think about that for a second.

Are you really satisfied with 200 percent inflation in 100 years, and then they give you maybe 45 percent of that back in pay raises over 100 years? That’s what it works out to be.

You constantly fall behind, and that’s the plan. That’s the plan. I’m just telling you that right now. You need to know that big government, big business, big pharma, big media are all out to screw you out of your hard-earned dollar and make you feel good about it and make you think you’re doing great when you’re going weaker and weaker and more and more in debt and more and more to serfdom.

It is slavery, economic slavery…that is what the Democratic Party and many Republicans as well are trying to get you into. They’re trying to break your back, put you in tremendous debt. This country is in a debt it cannot get out of without a national bankruptcy, and a national bankruptcy means world war because the people that we owe the money to is going to come for something. They’re going to want something for the money we are going to screw them out of in a bankruptcy. A World War will be the result for your children, if you’re old enough to have children, or if you’re the children yourself that’s 18 to 25 years old, you’re going to be the one that’s going to war! To fight a war! Why? Because our government misspent your money in the first place, and now you’re going to die for it, or your children are going to die in a war, your grandchildren are going to die in a war, whether that was caused by our politicians and our big businesses and our Fed. The Fed should be abolished.

The idea of 200% inflation in 100 years, 200% inflation in 100 years, 100% inflation in your lifetime, 100%. Are you happy with that? Do you think you’re doing good? Oh, I just made a 5% raise last year in my pay. Of course, prices went up 33 and a third percent. How does that make you feel? From 1800 until 1920, the Fed was formed, I think, in the 19-teens, but from 1800 to 1920, gold was worth $20 an ounce. A one-ounce gold coin was worth $20, and gold was $20 an ounce.110, 120 years, the price of gold never went up a penny. You could buy a $20 gold piece for $20 in 1800. Well, it was a $10 back then. You’d buy it for $10, and you could buy a $10 gold piece in 1920 for $10 until Roosevelt outlawed you from owning gold. People don’t even know that even happened in America. When Americans would be sent to jail and fined $10,000 if they owned gold coins, when FDR outlawed that you couldn’t even have gold in 1934! This is the nonsense that’s gone on in this country to protect the Fed, and everybody doesn’t even realize it. They don’t even understand what’s going on. 

Since gold was allowed to be bought again, Richard Nixon started that in 1970s, gold was $35 an ounce in 1976 or 1977, $35 an ounce. And today, as of yesterday, or Friday morning is the last I saw, it was $2,620 an ounce, $2,620. Silver per ounce. I believe in the year 2000, I think was $3 or $4 an ounce. Now silver’s $30 an ounce, 10 times more in 20 years. That is what inflation is doing to your pocketbook. That is what big government, big pharma, big business, and the big Fed, the Federal Reserve, is doing to your pocketbook. They’re robbing you blind, and they’re trying to get Democrats like Kamala Harris elected because they’re in collusion with the billionaires to cause inflation, to break your back, to steal away everything you have where you will not own your car, you will not own your home, you’ll be renting. It’ll be the days of It’s a Wonderful Life.

Everybody watched the movie It’s a Wonderful Life with Potter. Remember, Potter owned all the homes and didn’t want the building and loan to give poor people loans for their houses because he wanted to rent to them. Who’s the biggest landowner right now? Blackrock is buying up all the homes and all the apartments. Why? Because they want people not to be able to afford to buy their own. They want to rent to them. And by the way, when COVID-2 comes along and landlords in COVID-1 were not able to charge rent to their people, they had to pay their mortgages, but the people who were renting from them did not have to pay rent. I think most people will remember that. If you don’t, let me let you in on a secret. If you were living off the government dole, you or anybody for that matter, you didn’t have to pay landlord a dime and he could not evict you for not paying any rent. That’s what the government did to landowners that rented out to people. But you think when Blackrock owns all the homes and Blackrock owns all the apartments that when COVID-2 comes along that you’re not going to find yourself out on your butt when you can’t pay the rent because the government’s not going to protect you then because they’re going to protect their donors and their donors is big business like Blackrock and big banks and big pharma and big media and the big Federal Reserve. That’s what they’re beholding to, not to you. Kamala Harris couldn’t care a wit about you.

If you really want somebody that actually cares about the American people, about the American working class, that man is Donald Trump.

You can like him, you can hate what he says, you can hate his attitude, but the man carries the water for the working slob of this country and Kamala Harris and the Democratic Party does no such thing.

So hopefully you wake up and see what’s going on. I do say there’s going to probably be another Fed cut next month to try everything to do to get this dead horse called Kamala Harris over the finish line and I hope it all fails and does not succeed because your life and my life depends on it.

Well, that’s about all the time we have today for the edition of the Plain Truth Today and this is Bob Barney, and I do thank everyone who does listen. Our audience has gone up. I mean, we’re not big like a lot of places out there, but our audience has gone up quite a bit in the last month and a half, two months, so must be doing something right. I don’t know what because I’m telling people things I think most people really do not want to hear and that’s the plain truth. People do not want to hear what I have to say, and I don’t feel bad about that, by the way, because people do not want to hear what God has to say either. People don’t want to follow God’s law. Even churches say, oh, God’s law has been abolished. Jesus Christ did away with God’s law on the cross. They want to be lawless as well. They’re no different than Kamala Harris and the Democrats.

But anyway, I thank those who are tuning in and listening and until tomorrow, thank you for listening again…bye bye.