Fed holds rates steady near zero and indicates it will stay there for years

CNBC ^ | 09/16/20 | Jeff Cox

[LIConFem]

Gold. Standard. Now.

[eyeamok]

the Fed will allow inflation to run somewhat above the 2% target rate

Which has been no less than 5% since I was born and if we use the same basket of goods we used 30 years ago it is around 12%

[EEGator]

Good luck with that.

[MeneMeneTekelUpharsin]

Seems like I heard a long time ago, “Don’t fight the Fed.” FYI

[buckalfa]

Wow back in 1957 I earned 4% interest on a grade school pass book savings account through the local bank.

[Moonman62]

Great advice. Their influence is considerable such as when the stock market took off back in March when they got involved. Before that, they were trying to kill the economy with interest rates above what the market would charge (remember Trump taking the Fed to task frequently on Twitter?). The China virus made the Fed end their war on the economy and go into stimulus mode.

[ncfool]

Trump was right again on the high Fed rate.

[going hot]

Seems like a good time to start a 6 or 7 figure business project with the SBA loan.

[Toddsterpatriot]

if we use the same basket of goods we used 30 years ago it is around 12%

12% a year? You could borrow against your home and make millions with that much inflation. You must be loaded.

What's your secret?

[Georgia Girl 2]

Trump is firmly in control of the Fed as I have stated we nauseum. After Trump is reelected it will be absorbed by the Treasury Department and our new dollar will be backed by gold. The Fed’s days are numbered.

[Toddsterpatriot]

our new dollar will be backed by gold.

Why?

[Georgia Girl 2]

So the dollar cannot be devalued. Why do you think we went off the gold standard in the first place?

[Moonman62]

Because of its pleasing appearance and density, or because it’s the standard of value for grumpy people.

[Moonman62]

I wish I thought of that reply.

[Moonman62]

What happens when there isn’t enough gold to exchange for dollars?

[Georgia Girl 2]

Well for one thing the price of gold will not fluctuate anymore. They will set a price for gold probably based on the cost of living at the time and that will be the price of gold going forward. Maybe $5000 per oz.

[Toddsterpatriot]

So the dollar cannot be devalued.

What happens to the dollar when China, for instance, redeems $1 trillion? Just how much gold do you think we've got?

[Toddsterpatriot]

They will set a price for gold probably based on the cost of living at the time and that will be the price of gold going forward. Maybe $5000 per oz.

Currently, $5000 buys about 2.5 oz of gold.

You want us to devalue the dollar by about 60%, in the name of dollar stability?

[Georgia Girl 2]

If China sells US Treasury bonds somebody buys.