How can we start “turning back the clock”…, on the “debt clock” that is?

What I’m referring to here is the National Debt, and how we could possibly, at least, slow down the pace as this debt grows higher and higher by the minute.

adebt 1

adebt 1

You can check out the “Debt Clock” at

The speed at which OUR debt grows is really sickening.

Our debt currently grows at a rate of about 3.5 billion dollars a day.

adebt 4

adebt 5

And we waste a sickening amount of our money paying off the interest on our debt alone.

So what can we do about this situation?

The answer is currently, not much.

Historically, politicians are not known for being fiscally responsible.

After all, they’re not spending their own money…, they’re spending ours!

adebt 6

And proposing to reduce the spending, or even reduce the rate of growth, on entitlement programs is usually a “kiss of death” regarding their re-election.

adebt 3

But the bottom line is something needs to be done about the national debt eventually.

I mean, how large are we going to let it grow before it becomes unacceptable?

$50 trillion?

$75 trillion?

$100 trillion?

What comes after $999 trillion?

A quadrillion dollars.

The fact that I’m even “going there” is scary.

Please refer to my blog from March 20, 2019:  Our national debt is a national disgrace!

So again, what can we do about this situation?

President Trump, by virtue of his 2020 Budget, is signaling that he wants the federal government to be more fiscally responsible and more debt conscious.

adebt 8

I have a suggestion, however, that I haven’t heard anyone else talk about yet.

We all know that President Trump is all about deal making.

I would like to see President Trump include portions of our National Debt as bargaining chips in his negotiations with other countries.

adebt 9

President Trump could “trade” military protection, economic considerations, or any other types of “consideration” in return for forgiveness and/or assumption of some our National Debt.

I feel this would be the most painless way to actually start putting a dent into our National Debt without cutting programs or raising taxes.

And as with all loans…, what is the best way to attack your debt?

By paying down the principal!

That, of course, lowers your actual debt, first of all…, but it then also lowers the amount of interest you’re paying.

adebt 10

It’s a win-win-win situation…, and we don’t see many of those types of situations very often.

What do you think?

I value your feedback and I’d love to hear from you!

adebt 7

adebt 2

If you’re not already “following” me and you liked my blog(s) today, please “click” on the comment icon just to the right of the date at the bottom of this article.  From there you can let me know you “like” my blog, leave a comment or click the white “FOLLOW” button at the bottom of that page, which will keep you up to date on all of my latest posts.

Thank you, MrEricksonRules.



Many people are fed up with “The Fed.”

Before we get started…, what exactly is The Federal Reserve or “The Fed?”

“In a nutshell, The Federal Reserve, or “The Fed,” is the central banking system of the United States.  Its job is to help keep our financial systems safe and our economy stable,” according to Erica Gellerman of Credit Karma.

fed 3

You’ve probably heard of the Federal Reserve…, but how does it affect our daily lives?

fed 5

As the central bank of the United States, “the Fed” sets policy that can affect things like mortgage interest rates, stock prices and even our personal finances.

The Fed consists of three key entities:

One, the Federal Reserve Board of Governors. These seven board members oversee the Federal Reserve System.  These “Governors” are appointed by the President of the United States and confirmed by the Senate for 14 year terms.

Two, a network of 12 Federal Reserve banks around the country that do a lot of administrative work.

Three, the Federal Open Market Committee, or FOMC. This committee, whose job is to set monetary policy, is made up of the seven Board of Governors members and five Reserve Bank presidents.

Regarding “the Fed,” we hear the term “setting monetary policy” a lot.  I believe this basically means they decide what they need to do in order to get the outcomes they desire both politically and monetarily, which may or may not be in the best interests of the American people.

fed 7

fed 9

The Fed promotes “a healthy” U.S. economy through its monetary policy.  The FOMC holds eight meetings per year to review economic trends and vote on new monetary policy measures.

Officially, the Fed is supposed to strive for high employment and low inflation.

The Fed also supervises and regulates many banks and other financial institutions to promote stability in the financial markets.

Lastly, the Fed Acts as the government’s banker, while maintaining the Treasury Department’s checking account and processing other transactions like Social Security payments and government payroll checks.

Erica Gellerman of Credit Karma adds, “Before the creation of the Federal Reserve, the U.S. was plagued by financial panics and bank failures.  Banks usually didn’t keep a lot of cash on hand.  If customers lost confidence in their bank — usually after hearing about a failure of another bank — they would rush to their bank to withdraw money. If the banks didn’t have enough cash around, they would end up going out of business. This panic could trigger multiple bank failures, which is what happened during a particularly severe panic in 1907.”

They of course could not have all of these rich bank owners and investors losing money and being dependent on their everyday customers.

fed 11

“After this panic, President Woodrow Wilson signed the Federal Reserve Act, and Congress established the Federal Reserve System in 1913.  The goal of creating the Federal Reserve was to end the instability of the banking system.”

fed 14

“End the instability,” again, meant to take the risk out of being in the banking business for our wealthy friends and passing that honor along to us.

fed 8

“And after the financial crisis that began in 2007, the Wall Street Reform and Consumer Protection Act — aka the Dodd-Frank Act — was passed.  Among other things, this law transferred most consumer protection duties that the Fed performed to the new Consumer Financial Protection Bureau (CFPB).”

I have NOTHING good to say about the CFPB.  I’ll just say the CFPB was a child of Elizabeth “Pocahontas” Warren, then this child was adopted by Barack Obama and took up residence in “the swamp.” Please refer to my blogs of 11/29/17 and 7/2/18 regarding the CFPB and its constitutionality.

Today, Wednesday, 7/31/2019, the Fed cut interest rates for the first time in over a decade, by .25%.

“The cut will likely placate President Trump, who frequently belittles the Fed, and its chairman, Jerome Powell, for raising interest rates too high, too quickly — but also raised questions about whether the U.S. central bank is truly independent, given the stronger-than-expected economic data out of the U.S. in the past few months,” reports Megan Henney of FoxBusiness.

fed 4

The last time the Federal Reserve cut interest rates was in December of 2008, soon after Barack Obama’s election.

Hmmm.  What a coincidence.

If we look at the rate chart here, we can see the effective interest rate was at ZERO for Barack Obama’s entire eight years in office.

fed 1

Isn’t that interesting?

If the economy was so good under President Obama, as we are told by numerous democrats and their media cohorts…, why would the interest rates have to be adjusted down to zero the whole time?

Rates were up over 5% during George W. Bush’s presidency, at 0% during Barack Obama’s entire presidency, and then back up to nearly 3% for Donald Trump’s presidency.

Do we see a pattern here?

What would you anticipate the rate would be if a democrat got elected in 2020?

Here ends the lesson.

fed 12

fed 10

fed 13

fed 2


NOTE:  If you’re not already “following” me and you liked my blog(s) today, please “click” on the comment icon just to the right of the date at the bottom of this article.  From there you can let me know you “like” my blog, leave a comment or click the “Follow” button which will keep you up to date on all of my latest posts.

Thank you, MrEricksonRules.


Up and up The Fed’s interest rate goes, where it’ll stop nobody knows!

The Federal Reserve raised the nation’s borrowing rate by 0.25% for the fourth time this year, despite months of objections from President Trump.

According to Lucy Bayly, the business editor for NBC News, “President Trump fears higher interest rates will take the steam out of the nation’s booming economy.”

She continues by saying, “As head of the Federal Reserve, [Jay] Powell has found himself uncharacteristically singled out for criticism over the central bank’s handling of interest rates, with Trump saying he ‘maybe regretted nominating Powell to the position.’”

“I have a hot economy going,” President Trump said in October, and “every time we do something great, he raises the interest rates.”

Ms. Bayly feel sthat, “Powell’s challenge at this juncture has been to make it clear that the Fed’s decision was data driven and not due to any deference to the political establishment, which would have risked the central bank’s credibility as an independent agency.”

That’s kind of funny.  Why does it seem that “The Fed,” the central bank, only seems concerned about its credibility when there is a Republican president?

During an interview with “Yahoo Finance,” Edward Stringham, an economist, Professor of Economic Innovation at Trinity College and the president of the American Institute of Economic Research, said, “We’ve had artificially low interest rates for years.”  The Fed has apparently admitted to this because Mr. Stringham goes on to say that, “The Fed has said that they want to get away from that [artificially low interest rates].”

What does “artificially low interest rates” mean?  Why would The Fed be dealing with anything that is “artificial?” I take it to mean that The Fed had lowered the rates, or kept them low, for reasons other than financial and/or economic merit.

In other words, it sounds kind of “swampy” and politically motivated to me.

Well, let’s take a look at the recent history of The Federal Reserve Bank, how they’ve handled the rates, and you decide.

When George W. Bush took office in 2001, the interest rate was at 6%.

By June of 2003 the rate was down to 1% due to a recession, the 9/11 attacks, and a war in The Middle East.

The rate was then back up to 5.25% by June of 2006.

It then was down to 1% again by the end of Bush’s term, mostly due to another recession, the housing crisis, bank failures and the bank bailout.

On December 11, 2007, the rate dropped from 4.5% to 4.25%

January 22, 2008, the rate then plummeted to 3.5%

Only eight day later, on January 30, 2008, the rate went down to 3%

On March 18, 2008, the rate dropped to 2.25%

On April 30, 2008, the rate fell to 2%

On October 8, 2008, it fell to 1.5%

Twenty-one days later, on October 29, 2008, the rate dropped to 1%

After Barack Obama was elected president, on December 16, 2008, the rate went to .25%

Note: .25% is the lowest funds rate possible.

Then, for the following 7 YEARS, or basically most of the “Obama years,” the federal interest rate sat there at .25%!  For 7 YEARS!!!

It wasn’t until December of 2015 that they managed to raise the rate to .5%.

The rate stayed at .5% all of 2016 until Donald Trump won the election, at which time the rate immediately went up to .75%.

So, even though all of the “biased, liberal, fake news media” financial “experts” were predicting a stock market crash if Donald Trump won, and all kinds of other economic misfortune, The Federal Reserve felt it was a good time to raise the federal interest rate.

Interesting.  Ponder that for a moment.

Then over the next two years of the Trump Presidency, The Fed chooses to raise the rate 6 more times, all the way back to 2.25%!

On March 16, 2017, the rate goes to 1%

On June 15, 2017, we’re up to 1.25%

On December 14, 2017, the rate goes up to 1.5%

On March 22, 2018, it climbs to 1.75

On Jun 14, 2018, 2%

On September 27, 2018, 2.25%

And on December 19, 2018, The Fed raised it another .25 to 2.5%


“The economy continues to punch well above its weight,” said Steve Rick, chief economist at CUNA Mutual Group. “Although trade tensions and tariffs continue to present uncertainty, the economy has been running red-hot for a long time…”

Is that what you call “a long time” Mr. Rick, a little over a year?

It seems these economists and know-it-all eggheads are in quite a hurry to slow our economy down.


Why was it OK for Americans to sit through all of these down times for close to two decades, but then when we finally turn it around they want to throw down all of these speed bumps?

What do you think?  Is it a case of “the swamp’s” willingness to sabotage the country for the sake of their own survival and desire for power?

I’m thinking that is the case, but then again, I’m becoming more and more cynical by the day.


NOTE:  If you’re not already “following” me and you liked my blog(s) today, please scroll down to the bottom of the page and click the “Follow” button.  That’ll keep you up to date on all of my latest posts.

Thank you, MrEricksonRules.

federal interest rates


President Trump’s economy has been making deposits and it’s earning interest!

What I’m talking about here is the federal funds interest rate.

Simply put, in the United States, the federal funds rate is the interest rate at which banks and credit unions get money from the Federal Reserve.

The lower the fed rate is, the lower the rate that businesses and consumers pay when they borrow money.

The lower the fed rate is, the lower the rate is that we earn on CDs, Savings accounts, etc.

The federal funds target interest rate is determined by a meeting of the members of the Federal Open Market Committee (FMOC) which normally occurs eight times a year, or about every seven weeks.

The FOMC consists of twelve members, the seven members of the Board of Governors of the Federal Reserve System, the president of the Federal Reserve Bank of New York, and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis.

As of September 2018, the target range for the Federal Funds Rate is 2.00–2.25%. This represents the EIGHTH increase in the target rate since tightening began in December 2015 (only a month after President Trump was elected).  Obama never experienced even ONE increase.  

The last full cycle of rate increases occurred between June 2004 and June 2006 as rates steadily rose from 1.00% to 5.25%.  This occurred during the presidency of Republican President George W. Bush.

The Federal Reserve then began lowering rates in September 2007.  Between September 2007 and December 2008 the target rate fell from 5.25% to a range of 0.00–0.25%, the lowest rate in the Federal Reserve’s history.  This occurred as Democrat President Barack Obama took office and the rate remained at 0.25 or less his remaining 7 years in office.

So Obama’s economy basically enjoyed 7-8 years of “free money” from the government and still could not pick itself off of the floor.

Additionally, I find it peculiar that “The Fed” NEVER chose to increase its rate under democrat president Obama, but increased the rates on a regular basis under republican presidents, Bush and Trump.

There are two ways to react to this.  Either we had rate increases under presidents Bush and Trump because their economies were more successful and warranted them (which Obama would argue is not the case), or, the individuals at “The Fed” are a biased group that did all that they could do (rates of 0.0%) to prop up the Obama economy.

I suspect it’s a little of both, but it is annoying when we hear former President Obama take any credit for President Trump’s economy, when the Obama economy could not generate enough steam to even get the Fed’s rate off of ZERO PERCENT.

Of course, the “biased fake news media” has chosen to report and emphasize the negative aspect of the story here (higher interest rates for consumers) rather than report on the general overwhelming success of our economy.  It is very apparent now that they are just unwilling to give President Trump ANY credit for anything that could be perceived as positive.

CNN Business News or all the people out there crying because they are currently paying the outrageous rate of 5.0% on a home loan are not going to get any sympathy from me.  When my wife and I got our first home loan the rates were between 11.0% and 13.0%!  And they had been higher than that!

President Trump has said he is concerned and mad about rising interest rates.  He’s worried The Fed is raising interest rates too fast, in a way that will unnecessarily slow the economy, because they’re concerned about a “phantom inflation threat.”

All in all, I guess these are good concerns and good problems to have.

President Obama never had to worry about his economy being slowed down.

If it would have been slowed down any more it would have going in reverse!


NOTE:  If you’re not already “following” me and you liked my blog today, please scroll down to the bottom of the page and click the “Follow” button.  That’ll keep you up to date on my latest posts.

Thank you, MrEricksonRules.

fed reserve resized


Blog at

Up ↑