Posted on 03/15/2020 2:47:15 PM PDT by Kaslin
During a press conference on Sunday, President Donald Trump announced that the Federal Reserve is taking drastic action to cushion the economy from the Wuhan coronavirus outbreak that has become a pandemic. According to Trump, the Federal Reserve will drop the interest rate to near zero.
"The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent," the Federal Open Market Committee said in a statement. "The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. This action will help support economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective."
From the Wall Street Journal:
The Fed will buy at least $500 billion in Treasury securities and $200 billion in mortgage-backed securities over the coming months to help unclog markets that grew dysfunctional last week, the central bank said. It said it would initiate the program, called quantitative easing, on Monday.
The Fed said it was activating swap lines with five other central banks, including the European Central Bank and the Bank of England, to smooth out disruptions in overseas dollar-funding markets, effectively encouraging foreign central banks to use existing facilities to supply dollars to their own financial systems.
The central bank also announced a series of steps to boost lending, including by lowering the rate charged to banks for short-term emergency loans from its discount window to 0.25% from 1.75%. It said it would encourage banks to tap their capital and liquidity buffers to lend to households and businesses affected by the coronavirus.
Futures markets for equities halted at limit down of -5%
We don’t know when this will be over.
I know most here cannot fathom what negative means but rest assured it won't be forever, it will likely be about five years or more, enough time to destroy the Fed and replace with with the historical Treasury controlled currency.
Negative Interest Rate Policy NIRP will wipe out the defocot and begin to reverse the national debt.
Young and able Americans should write business plans and apply for business loans that will pay them while they start up. Yes, some will fail, perhaps many but that's expected.
With Americans getting out of a service economy, out of the Oligarchy concocted life of servitude, the Socialism of Sanders will be left in the dust.
Once Americans understand once again how good capitalism can be for health and quality of living, the leftists will become confirmed as losers and liars.
We do NOT have a capitalist system now. We have an OLIGARCHY.
OLIGARCHY, NOUN
Power structure
(from Greek ὀλιγαρχία (oligarkhía); from ὀλίγος (olígos), meaning 'few', and ἄρχω (arkho), meaning 'to rule or to command' is a form of power structure in which power rests with a small number of people. These people may be distinguished by nobility, wealth, family ties, education or corporate, religious, political, or military control. Such states are often controlled by families who typically pass their influence from one generation to the next, but inheritance is not a necessary condition for the application of this term.
Think of the fake news media, only six corporations, all working together, control more than 90% of what Americans see and hear. That's Oligarchy, not capitalism.
The same phenomena exists in every facet of the American economy.
The Fed has been the liquidity provider to America's Oligarchy.
The result is a dying Middle Class as more and more Americans have been pushed into servitude where they never get ahead or not by much.
A thriving Middle Class can only be made possible by creating upward mobility.
A Sustained and intensely focused NIRP can bring back capitalism and land struggling Americans solidly into the Middle Class which they've been shit out of.
The President I believe will destroy the Fed and in time most here will understand why it is necessary and beneficial to Americans.
The Fed's only product is DEBT. Like drug pushers they addict Americans on debt products forcing people to believe "that's the way it is" and that's how it's always been.
No, it wasn't always that way.
Once the FED is dead and buried, it will be time to bring back Treasury issued US Notes backed by gold and silver as indexes of monetary stability. I envision US Cybergold electronic payment methods to continue convenience in purchasing.
I agree. Let the recession happen! We really do need a good old fashioned deflation! Things in the end would be more affordable for the real middle class.
The way this goes is the Top suffers little loss and the wealth gap widens because the powerful protect the powerful (by convincing us the Top needs protection from their decisions)
Don't lend them your money if you don't like their offer.
All this for a flu with a 98% survival rate. I can’t believe how this is exploding.
Private banks and companies can still choose to charge higher interest and T-Bills are already preferred because the US Government is the only government the world trusts to not go under and to pays it’s bonds.
The EU offers negative interest rates, and people buy those because it still minimizes the cost of inflation.
So, what’s your real problem with this? We should be offering negative interest rates, too.
Dow futures down 900...link here to watch all night..
https://www.cnbc.com/pre-markets/
...
Well, that to me proves the Left and their billionaire shorting market manipulators are winning. No sports, hoarding, no eating out, everyone scared, including the smart Freepers...if we keep going on this, it will be like the solient green experiments where the rats started eating each other...once we hear of neighbors shooting each other, society will start breaking down, those armored vehicles the municipalities bought will be in the streets, and then governors and PDJT will order lockdown.
L8r
Invest that money in EU’s negative interest rate bonds, then, and see what you “make.”
Your cries fall on deaf ears, everywhere.
Banks can charge what they want to high risk people.
So, what’s the problem? Low interest rates are not the same as poor lending habits, at least in this universe.
They’re panicking. And in the meantime are cratering our markets further.
...
It’s not all panicking. Futures are purchased by big money, not investors like us...and Soros/Gates type money, who want PDJT out, manipulate at our expense. The Wuhon virus and market go hand in hand to PDJT’s detriment.
You can stop watching the future - they are halted. They will halt again tomorrow at open. The shorts are stacked so massive against the longs right now the markets are going to crash at open.
All this for a flu with a 98% survival rate. I can’t believe how this is exploding.
...
Yeah, I’m with you...makes you wonder what REALLY is going on.
Well as Trump has been asking for a long time, now is a very good time to refinance the national debt!
Sounds good, but who wants to buy paper at near zero rate of return?
The market is not the determiner except in the minds of rapacious capitalists who are not conservatives.
It is not classical conservatism to allow the rich to use others money for free.
...
Do you really know who gets to use that low interest money in line with market rates?
You and all the other taxpayers who are responsible for the federal debt.
Did you notice Futures tanked 1,000+ points on the news?
...
Why would I care about what short term traders are doing in a very volatile market?
How so?
"Shame on Trump."
Trump didn't do it. He may have agitated for it and cheered it, but the Fed didn't do it because Trump wanted them to.
Well why should we pay that debt? The Fed is a racket.
We get skewered on taxes and on reasonable return for letting the bastards use our money.
Thought the economy was fir all the people. Oops?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.