RUSH: Jack in Providence, Rhode Island. Hi. Welcome to EIB Network and Open Line Friday.
CALLER: Yeah. Hi, Rush. You know, Janet Yellen seemed to let the cat out of the bag yesterday by admitting, in response to some questions, the possibility of the Fed never raising interest rates on its own. Nevertheless, you know, there’s gonna be a very, very heavy price to pay, almost catastrophic in terms of the economy and the federal government having to pay the higher interest rates on its own debt, when interest rates have to be raised, or the Fed is forced to raise them, which time will come. So my theory is that the goal of the Fed, which seems to be doing the things that support Democrats, is to keep the game going as long as possible on zero interest rates, until such time when the rates must go up, which they’ll have to at some point —
RUSH: Okay, wait a minute. What…? Everybody keeps… For seven years I’ve been saying, “The rates have to go up.”
CALLER: No, no, no.
RUSH: For 50 years, I’ve been hearing, “The national debt’s gonna kill us.”
CALLER: No, let me clarify. The rates will have to go up not because the Fed will have them go up, but the world will make it happen. Just let me finish my point. The goal of the Fed is to keep the rates down so long as the Democrats are in power.
RUSH: Right, right. To keep —
CALLER: When the rates do go up — and they will go up, the world will force it — and there will be calamity, they’ll blame … the average uninformed voter will blame it on the Republicans. In other words —
RUSH: Why? Wait a minute. Wait, what’s gonna happen to make…? The Republicans aren’t in power.
CALLER: No, no, no.
RUSH: You’re saying if the Republicans win the White House?
CALLER: Yeah. In other words, they want to keep the rates at zero as long as they possibly can.
RUSH: I know. It’s the way to make the failing economy look like it’s okay.
CALLER: More than that, Rush — more than that, Rush — is to not have the caving happen when rates finally do go up, and they will go up not because of what the Fed does, because the world will make it, because the dollar will force rates to go up.
RUSH: All right.
CALLER: My point is the goal of the Fed is to keep interest rates zero as long as —
RUSH: We got it. We got it. And Yellen is out there playing games with people by giving them confusing message. I got it. I got it.