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27 Aug, 2019 14:50

Interest rates apartheid? RT’s Keiser Report explains why Americans are piling up debt

Interest rates apartheid? RT’s Keiser Report explains why Americans are piling up debt

Almost 80 percent of Americans say they live from paycheck to paycheck. That’s despite a 40-year bull market in bonds where interest rates have been declining year after year for decades.

The Keiser Report discusses the issue, with Stacy Herbert saying: “You see, we need more and more debt in order to grow this fake economy, this fiat economy because if you look around there’s not much industry left here.”

Max Keiser reminds us about the transition from industrialization to financialization 40 years ago when all the jobs went overseas, outside the United States. “And the only money that could be made is on interest rates spread, interest rates arbitrage ... So, it gave rise to a group of ruling class who had access to the cheapest money. They became the richest ...,” Max explains, adding “That’s the interest rates apartheid that has been going on for 40 years.”

Stacy agrees, adding: “Of course, this is what the Fed wants with lowering rates – they want ordinary Americans to cripple themselves with debts, to make themselves have fewer choices in life because you’ve got the paycheck to meet the minimum payment on your credit card debt.”

For more stories on economy & finance visit RT's business section