RE:TDSB ;Rockit, The Fed can't raise rates because their debt load is so high that the interest on the debt alone would crash the system. They are printing 9 trillion$ this year alone, add that to the already existing debt from past years, throw in welfare, social security, and all the other entitlement programs and if they raise rates, they couldn't afford to pay the interest on their debt obligations. America is the biggest debtor nation the world has ever seen. At least during the 1930's America was a creditor nation, now the huge debt is at all levels of Government, and then add in personal and corporate debt, mortgages, ie: Fannie and Freddie, Medicare, Medicaid, debt owed to other countries, military allowances. I could go on ad finitum.
We are already seeing negative interest rates. They would have to increase any interest rate above the level of inflation for it to have an effect,but that isn't possible because to service debt payments at higher rates would crash the system. The Federal Reserve is trapped, they can't afford to raise rates and the huge amounts of money that they are already printing is causing hot inflation which will lead to hyperinflation. End of game, now it is just a matter of waiting for the system to cleanse itself through a Depressionary style correction. They lived through it in the 1930's and we will find away to survive this, but it is much worse now because the debt is so huge. CHEERS