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To: rb22982

At some point interest rates will have to rise, when inflation is 7-10% or higher, loaning money at 2% makes no sense.....

If rates don’t increase the rate of inflation will be even worse than it would be otherwise....


100 posted on 07/26/2021 2:20:35 AM PDT by srmanuel (`)
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To: srmanuel
At some point interest rates will have to rise, when inflation is 7-10% or higher, loaning money at 2% makes no sense.

Inflation is 5.4%+ and rising and US bonds are at 1% today and mortgages are at 2-3%. I don't think you realize the Fed Res is simply printing money to buy US Bonds and forcing large banks to buy the rest (and with 12:1 leverage, still not a terrible deal for the primary banks)

If rates don’t increase the rate of inflation will be even worse than it would be otherwise....

Absolutely, you can see it now. Inflation is effectively the middle class tax increase that's needed by the federal government but can't pass the traditional way.

102 posted on 07/26/2021 4:15:42 AM PDT by rb22982 ( )
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