The U.S. Fed Holding Rates Near Zero Will Not Save The Economy

Yesterday, Wall Street was thrilled to learn the Fed will hold interest rates near zero for at least two more years and sent the Dow Jones Industrial Average up over 400 points. Unfortunately, cheap money won't save the U.S. economy from crumbling.

Since December, 2008 the Fed has held interest rates to near zero, bailed out giant corporations and funded enormous stimulus packages. None of that has brought prosperity and now the Fed is out of new options and is just promising to continue the one of cheap money. It will fail.

Until the U.S. government confronts its vast financial problems, starting with its wars and the staggering spending on its Military Industrial Complex, all of the Fed's approaches will fail.

Dick