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Stock Market Crash Proves Federal Reserve Must Cut Interest Rates
National Interest ^ | 8/5/2024 | Desmond Lachman

Posted on 08/05/2024 9:37:08 AM PDT by whyilovetexas111

We have to hope that the Federal Reserve realizes that today’s stock market weakness is unlikely to be a passing fad given the poor underlying world economic and political fundamentals. Maybe then the Fed will do the right thing and start cutting interest rates aggressively to provide long-overdue support to a weakening U.S. economy.

(Excerpt) Read more at nationalinterest.org ...


TOPICS: Government; History; Politics; Society
KEYWORDS: bidenrecession; economics; stockmarket; useconomy
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To: wny

No, government is the problem. Spending money like it is going out of style.


21 posted on 08/05/2024 10:19:53 AM PDT by mulligan (Ean En bbnnEeThe tontn)
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To: cymbeline
Correct, but I think inflation is a way that the big guys exploit we little guys.

Yes it is.

It is also a way to steal the wealth of those holding dollars in foreign countries.

That was the genius of the Petro-dollar.

Until a few months ago anyone buying oil on the international market had to use US Dollars to do so.

That made the US Dollar the world's reserve currency.

Hence billions of dollars being held overseas provides a dumping ground for excess dollars in circulation.

It also made it possible for the US to tax foreign holders of US Dollars by the use of inflation of the dollar.

22 posted on 08/05/2024 10:20:17 AM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: whyilovetexas111

They will cut interest rates now.
Which might cause things to look good in the short term — See? Bidenomics is working!!!!
But by about January 2025, inflation will be very obvious — See?? President Trump is tanking the economy!!!!


23 posted on 08/05/2024 10:35:47 AM PDT by ClearCase_guy (I think women should get out of women's sports before they get hurt.)
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To: 1malumprohibitum

The housing market isn’t taking off anytime soon given the current mortgage rates. The other issue with the housing market is the higher costs just to build a new home due to material costs being higher.

Let’s face it, government isn’t going to cut spending anytime soon, if ever. Spending is like cocaine for the government, and they can’t get enough it. How else are the elected officials supposed to get their handouts and kickbacks.

Raising rates would likely just crash the system considering how much Americans and businesses have tied up in credit.

At some point in time, the Powers-that-Be, need the U.S. and all of the other countries around the world to have their economies and currencies collapse. Out of this situation, there will be an offer from the IMF, World Banks, U.N., etc.; that those countries which subscribe to the new global currency, will have all their debts reset to zero. There will also need to be additional powers handed over of course, in order to insure full compliance.

Anyone want to doubt that, just go look at the debt-to-GDP for numerous countries and you’ll see how there is a near-zero chance that their debts will ever be covered. Especially when the interest debt is exceeding what can be paid.


24 posted on 08/05/2024 10:39:28 AM PDT by voicereason (When a bartender can join Congress and become a millionaire...there’s a problem.)
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To: whyilovetexas111

Wrong. Their job is to keep inflation in check as their primary job. Stock market is not the #1 concern.

Inflation hurts everyone especially the poor and middle class.


25 posted on 08/05/2024 10:47:04 AM PDT by for-q-clinton (Cancel Culture IS fascism...Let's start calling it that!)
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To: Pontiac

Yep. Watch the first quarter of the Trump administration they’ll finally admit to a real inflation rate.


26 posted on 08/05/2024 10:47:42 AM PDT by for-q-clinton (Cancel Culture IS fascism...Let's start calling it that!)
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To: Pontiac

“[inflation] is also a way to steal the wealth of those holding dollars in foreign countries.”

Money, currency, debt, inflation, finance ... the slipperiest of subjects!

Also the army of deceivers out there.


27 posted on 08/05/2024 10:49:36 AM PDT by cymbeline (we saw men break out of a concentration camp.”)
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To: whyilovetexas111

Well, since the stock market hasn’t actually crashed, or even entered correction territory as of yet, I would have to say.. NO!

So many free money addicts and investment whores desperately want those rates lowered, inflation be damned!

Screw that. Let’s talk when the markets shed around 33%.


28 posted on 08/05/2024 10:55:54 AM PDT by Pox (Eff You China. Buy American!)
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To: whyilovetexas111

It’s the FED picking winners and losers, as always.

Which group are you in??


29 posted on 08/05/2024 10:57:59 AM PDT by citizen (Put all LBQTwhatever programming on a new subscription service: PERV-TV)
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To: Darksheare

The Harris bump is over.


30 posted on 08/05/2024 11:12:47 AM PDT by cowboyusa (YESHUA IS KING AMERICA, AND HE WILL HAVE NO OTHER GODS BEFORE H mediaIM!)
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To: whyilovetexas111

And how die we get boxed into this situation? I would say just a part of the problem is by playing fools games with interest rates for selfish reasons. It sure made it easy for the government to borrow into the stratosphere.


31 posted on 08/05/2024 11:15:32 AM PDT by Revel
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To: whyilovetexas111

Here’s a question. The DOW opened at 39,056 and it currently sits at 38,786 which is -270. Yet the ticker says it’s down -921. What am I missing?


32 posted on 08/05/2024 11:20:16 AM PDT by Blood of Tyrants ("Gays for Gaza is like Chickens for KFC"- B. Netanyahu )
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To: Kazan

Let the marketplace set interest rates. Why let a bunch of partisan leftists screw things up after decades of demonstrated incompetence? I wouldn’t let Yellen or Powell babysit my cat.


33 posted on 08/05/2024 11:26:49 AM PDT by JayGalt (Fight! Fight! Fight!)
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To: whyilovetexas111

is it irony when ‘National Interest’ is advocating the destruction of the nation by inflation?


34 posted on 08/05/2024 11:31:55 AM PDT by wafflehouse ("there was a third possibility that we hadn't even counted upon" -Alice's Restaurant Massacree)
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To: Kazan

Volker kept rates high but cut taxes on production, so there were more goods to be chased.


35 posted on 08/05/2024 12:46:45 PM PDT by Mr. Blond
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To: Yo-Yo

And bank accounts it’s not far down the road from happening?.


36 posted on 08/05/2024 1:05:11 PM PDT by Vaduz
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To: Vaduz
And bank accounts it’s not far down the road from happening?.

When they close the banks, maybe people will wake up.

37 posted on 08/05/2024 1:07:49 PM PDT by 1Old Pro
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To: whyilovetexas111

An “emergency cut” would be the dumbest move imaginable right now.


38 posted on 08/05/2024 1:11:20 PM PDT by montag813
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To: All
The S&P finished down 3%, its biggest daily drop since September 2022,

Kamala and Biden sure haven't brought much stability to people's retirements.

39 posted on 08/05/2024 1:12:06 PM PDT by 1Old Pro
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To: 1malumprohibitum

5. 20% import tariff
6. Open ANWR for drilling


40 posted on 08/05/2024 1:12:46 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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