Low interest rates have destroyed savers and has helped to create housing and asset inflation. Throw in the obvious credit card dynamics of .gov propping up the economy via debt and spending.
Posted on 03/22/2022 7:46:00 AM PDT by Browns Ultra Fan
This is the chart from hell as The Fed is expected to take interest rates higher.
At least mortgage rates are down slightly today.
With 8+ rate hikes forecast over the next twelve months. Meaning that Powell’s Fed money gun is going to slow.
(Excerpt) Read more at confoundedinterest.net ...
Do you think it is an error to raise rates at this time? Why?
Confounded. My Grampa would use that word. And it was always in a not so nice adjective way.
Don’t ya wanna get higher?
I wanna take you higher
Hey, hey, hey, hey
Boom laka-laka-laka, Boom laka-lak-goon-ka boom
Does this mean I might actually get some interest from my bank account?
Eight times in twelve months? I am very dubious of this...I don’t believe it.
It’s because the economy is overheated.... /s
Government debt interest payments are going to go up. Way up. Goodie.
They’ll raise it 1/8 of one percent each time. Won’t matter. You’d better invest in wheelbarrows.
More jawboning. Believe it when you see it.
Yes, but inflation will gobble up every bit of it and more. Isn't Socialism great!
I don't see Powell doing this. A couple times maybe. But raising interest rates in the face of a weakening economy is a recipe for disaster. Democrat pols running scared already.
Optimist! The spread between fed and credit card rate means no reason for savings interest from a bank.
We are not even on the paper standard anymore.
No need for wheelbarrow just scientific notation on receipts.
I like to compare the Fed to magicians spinning plates in the air, but a post on Zero Hedge gave a much better analogy:
The Fed is spinning operating chainsaws in the air.
Whatever happens, it is gonna hurt a lot.
I keep $25 in my local bank savings account—had it that way for years—waiting for the bank to start paying interest.
This could be the year.
Low interest rates have destroyed savers and has helped to create housing and asset inflation. Throw in the obvious credit card dynamics of .gov propping up the economy via debt and spending.
“Do you think it is an error to raise rates at this time? Why?”
Interest rate increases at this point, given all other influences, will probably increase costs and inflation.
It is the wrong Rx for the patient.
There is probably no correct Rx for the patient.
Like Elvis....the experts have already killed the patient.
He just does not know he is dead yet.
George Washington had a sore throat and the experts bled him to death.
Policies after 2007/8 screwed most of the Keynesian levers, if there ever were any.
M2 velocity is 50% of its lowest ever level.....graph looks like a ski slope.
Keynes would argue that we should have zero inflation.
https://fred.stlouisfed.org/series/M2V
Most all of the bogus trillions pumped into the economy reside on the balance sheets of corps, banks, and investment funds.
Higher interest will reduce productive sector economic expansion and further impoverish the already abused consumer.
But that’s just my opinion and I do not feel strongly about it.
“There is probably no correct Rx for the patient.”
What they will do: total DC-controlled electronic economy, social credit system.
And we thought our current dollars were fiat.
It is actually time for you to not have a bank account!! Banks can freeze your accounts!!
Everyone keeps saying that the federal reserve is going to rates. Meanwhile, the federal reserve is STILL doing Quantitative Easing Infinity.
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