Posted on 08/17/2019 7:50:23 AM PDT by Kaslin
Rates should be cut because the Fed is manipulating them to be much higher than what the market would charge based on their false premise that economic growth causes inflation.
If a person believes more in free markets than elite academics seeking to please the Swamp, then he should be for the rate to be cut to the market level.
They cut rates once and its a fever? Media is insane!!!!
What does Barry ZIRP have to say?
LOCK HIM UP.
Economic growth can lead to more competition for workers and for materials which may lead to increased prices for wages and resources. The increased prices will lead to inflation. Then, the interest rates will need to be raised to slow down the economy in order to prevent inflation from happening. Economic growth does lead to inflation. It is a normal part of the business cycle.
Yes, that is true. And during that period there were several “easings” of monetary policy that were not “rate cuts”. Each the QE iterations were easings, and so the continual rehash that this is the first cut in a decade is technically accurate but essentially wrong.
I do have to defend the Fed on one point as far as the rate hike in December goes. They had no real way of knowing at that time that Trump intended to destroy confidence in the global economy the way he did with his tariffs.
Had they really known he would carry through with that, they would have known how devastating it would be to economic activity, and probably would have refrained.
Now of course they’re bound to ease more in response to the dismal outcomes of the stupidity from Trump.
Troll, troll, troll your boat....
I find a lot of interesting ideas in the Austrian model, which suggests other reasons for inflation. One is that inflation is really caused by governmental devaluing or debasing of the currency.
Market based price increases are not inflation.
Then, the interest rates will need to be raised to slow down the economy in order to prevent inflation from happening.
The proper response is to let the market adjust, not the elites manipulating the market. Slightly higher prices in the short term are not a problem when people are making more money.
I do have to defend the Fed on one point as far as the rate hike in December goes. They had no real way of knowing at that time that Trump intended to destroy confidence in the global economy the way he did with his tariffs.
...
Nobody should believe the Fake News or you when it comes to what’s destroying confidence in the global economy.
One is that inflation is really caused by governmental devaluing or debasing of the currency.
...
That’s mostly true. Pumping money to stimulate an economy in recession devalues the currency. The way to prevent this is not to allow the Federal Reserve to put the economy in recession with interest rates manipulated to be higher than what the market would charge, which they justify with their false premise that economic growth causes inflation.
Rates are already extremely low and the economy is better then its been in many years. Jobs for just about anyone willing to work, too.
You have to monetize the debt you know to keep the ponzi scheme going you know.
We already have a giant stimulation via .gov spending. Lower rates ensures .gov will continue to spend. This economy has been very unhealthy for decades. Lower rates ensures more .gov spending and makes it ‘easier’ for them. The death of savers continues.
Yea, that’s the other part. Too much government is what leads to the devaluing and debasing. Part of what turned me into a classic libertarian/anarchist. With a twisted constitutionalist conservative bend. LOL.
Give me 0% auto financing and I may buy a new car. Will that help the economy?
Why don’t you buy Argentine bonds?
They are under IMF restriction and not allowed to run a deficit.
Their ten year bond is yielding 25%.
http://www.worldgovernmentbonds.com/country/argentina/
Check out those Argentine bonds. They aren’t allowed to run a deficit.
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