Central banks will be forced to raise interest rates because zero and negative interest rate policies are distorting markets and contributing to growing insolvencies of pension funds and insurance companies. Higher interest rates, unfortunately, will punish federal, state, and local budgets highly-dependent, more like addicted, to extremely low borrowing costs. Here lies the problem. The coming Thriller in Milla or fight between the public and private sectors will mark an escalation between the desire of the private sector to see the size and scope of government contract as budgets decline and the unwillingness of the public sector to do it. The desire to raise or raising taxes as the economy enters liquidation confirms the escalating fight.
Headline: Trump says he'd replace Fed chief Yellen if he wins U.S. presidency
WASHINGTON (Reuters) - Republican presidential candidate Donald Trump said he would be inclined to replace Federal Reserve Chair Janet Yellen if he is elected U.S. president in the November election despite supporting the central bank's low interest rates, he told Fortune magazine.
In an interview published late Tuesday, the billionaire real estate mogul also said he "absolutely" backed efforts to diminish the Fed's power and allow congressional audits, and backed away from his pledge to erase the more than $19 trillion in U.S. debt in eight years
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