Brooklyn Bridge

A note to readers: this is an old post on the archive website for Promethean PAC. It was written when we were known as LaRouche PAC, before changing our name to Promethean PAC in April 2024. You can find the latest daily news and updates on Additionally, Promethean PAC has a new website at

The Federal Reserve and the Biden/Obama collective are selling one more round of bunk, and it is dangerous!

Don’t let your neighbor buy into this.  Like everything else with Biden’s campaign it is pure fakery.  Like a desperate "zombie" bank or corporation, Janet Yellen's U.S. Treasury just lit the fuse on the bomb that it sits on: the burgeoning national debt. Late last year, Yellen, the former head of the Fed and now Biden's Treasury Secretary, moved to finance more of the growing federal debt short term, in a desperate effort to secure otherwise absent buyers. The Federal Reserve's Jerome Powell then joined in lockstep, publicly pronouncing that the Fed will be lowering interest rates in 2024. That created the stock & bond market 'boomlet' of the last few months -- a dangerous illusion.

Fed Chair Jerome Powell jawboned this short-term stock and bond market run-up with his chatter about the coming interest rate cuts. At the same time, the Biden Treasury Department engaged in short-term Treasury market manipulation.

But the recent leveraged and hyped stock market run-up is really just a few Big Tech stocks and AI. Shares of the "Magnificent Seven,” as they are now called—Nvidia, Apple, Microsoft, Alphabet, Amazon, Meta, and Tesla—have soared between around 50% and 240% in 2023. On the S&P 500 index, their run-up was nearly two-thirds of that index's 24+% gain in 2023. The Nasdaq Composite, which is wedded to tech, surged 43%, the biggest jump since the U.S. came out of Covid in 2020.

The Obvious

Outside the fantasy narrated by the financiers and their media, the standards of living of the families of working Americans are falling, and entire sections of the vaunted service economy are headed towards collapse (urban office real estate is one example). U.S. Steel is being sold to Japan's Nippon Steel. Young families can't buy homes because they are not being built and existing ones are not now for sale. The Fed's interest rates increased, U.S. Treasury rates rose faster, and ever-increasing mortgage rates rose the most. The results "shrank inflation" by unleashing further havoc on sections of the economy. It erupted with Silicon Valley Bank's meltdown and now sits as a cancer eating at our nation's regional and community banks.

Meanwhile, with the green new steal of the "Inflation Reduction Act," the financial markets are still getting pumped with the massive, worthless spending of "Bidenomics."  Wind, solar, EVs, and batteries are, after all, an inflationary burn pit. Bloated, deficit-financed military spending for "forever wars" produces, and will produce, continued pressure on prices.

Remember when inflation was called "transitory?" In reality, inflation isn't over, witness housing—or the cost of 155 mm artillery shells, up roughly 50%, or your experience at the grocery store. The stock market illusion of November and December is unlikely to last into the spring. All the causes of inflation are still eroding the real economy.

The Fed presidents of New York and Atlanta have already slyly distanced themselves, stating that talk of lowering interest rates is premature. Add to that the otherwise pathetic Larry Summers, the former Democratic U.S. Treasury Secretary, who just intoned to Bloomberg, “...I think there’s still a risk that the market is probably underestimating: that we’re not going to quite make as much progress on inflation as people hope, and that there’s not going to be quite as much room for Fed easing as people hope...”

Deeper Background

Let's back up. In early November, urged on by the advice of the U.S. Treasury Department's Treasury Borrowing Advisory Committee, a desperate decision was made to sell more of the Treasury debt in short term bills and notes. The Treasury Borrowing Committee happens to be made up of those Wall Street banks who comprise the New York Federal Reserve's "Primary Dealers." It is these folk who sell—and most importantly "make the market" to ensure the liquidity of U.S. Treasuries, and they don’t do this out of the kindness of their hearts.

The offering of short-term T-bills and notes, with high interest rates and shorter terms, are more "liquid," and these issues immediately found buyers looking for quick profit, such as money market mutual funds.

T-bills, which have one-month to one-year maturities, topped a 5% interest rate back at the beginning of June. The U.S. Treasury also increased the sale of Treasury "notes," which are from two to five years duration—still short term—to relieve pressure on 10-year and 30-year Treasury bond rates. Which means that a whole lot of T-bills will have to be refinanced within one year! The Treasury notes, in turn, will have to be refinanced within two to five years. This is not kicking the can down the road; the can has been kicked into the ditch.

The refinancing of these T-bills will now be coming on top of wave after wave: the already existing, record-breaking $34 trillion in federal debt which is being continually rolled over, that is refinanced through those "primary dealers." After the end of Quantitative Easing, all this is being refinanced at the going, much higher, interest rates. The interest on the federal debt has already reached an approximate $1 trillion dollars a year—the size of the U.S. defense budget. Further, the entire predatory central banking, City of London-Wall Street nexus knows it, and their financing rates will rise.

All of this is also sending the value of the U.S. dollar in international money markets down. The dollar buys fewer goods. It also means that the reason for foreign central banks and private interests to hold dollars as a reserve currency is disappearing. Add to that the Biden collective's loose talk of taking the now frozen reserves of Russia—now sitting primarily in European central banks—and giving them to Ukraine. As a result, the confidence in the entire globalized central banking system could blow apart.

A Donald J. Trump second presidential term is required. The substantial issues facing our nation require a thoughtful, confident, and seasoned President.

Righting the ship involves bankruptcy reorganization of the Federal Reserve into a Third National Bank and credit creation directed to U.S. infrastructure and industry. That requires a President with guts, unafraid of the rapacious financiers and their threats and criminal schemes. We should not be begging for loans from Wall Street and the City of London speculators; instead, we should be issuing credit via a Third National Bank into our physical economy to produce. To the same end, we need a Glass-Steagall reorganization of the U.S. commercial banking system, protective tariffs, and hefty taxes on speculative capital gains. Only one man has shown that he has the character to do this and that is Donald J. Trump.