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To: Sacajaweau

——raising interest rates for no reason.——

Au contraire mi amiga........ he had a good and seemingly valid reason

The rates were raised to slow economic growth and dampen inflation

Growth > 3% -> inflation > 2% allowable target

He plainly stated that in his address the next day

His reason was to control American business by controlling the money supply and the economy


30 posted on 12/27/2018 12:47:04 PM PST by bert ( (KE. N.P. N.C. +12) Invade Honduras. Provide a military government)
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To: bert
Here's what's happening, in a nutshell:

Economic growth comes from two places: population growth and productivity growth.

If the population is flat for a full year but productivity grows at 2%, then you'll have 2% growth. The same holds true if productivity is flat but population grows at 2%.

If population and productivity both grow at 2%, then you have compounded growth for the year of 4.04% (2% on top of 2%).

The U.S. has underlying problems that constrain this growth, so growth rates of 5% or more are not sustainable unless one or both of these change dramatically.

44 posted on 12/27/2018 1:13:07 PM PST by Alberta's Child ("I'm a cool dude in a loose mood! Hey -- two ginger ales for my girls!")
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