Posted on 06/08/2022 11:08:54 AM PDT by RandFan
Cutting through Washington’s muddled message on the economy, Sen. Rand Paul (R-KY) predicted late Tuesday that recent unchecked federal spending will result in double-digit inflation, a recession, and growing unemployment.
“I wish I had better news, but we will get through this as a country. We're a strong, resilient country, strong, resilient people. We just have to get people in charge of our government who understand that we have to live within our means,” the straight-talking senator said in a Facebook Live Q&A with constituents.
Long a proponent of a balanced budget and reduced federal spending, Paul said that after a series of mega spending bills to counter the COVID-19 economic hit, the pain is about to hit.
And unlike others in Washington, he said that high gas prices, increased mortgage rates, and unemployment will rise as a way to temper inflation eventually.
“Nobody knows the future. And this is my prediction,” said Paul. “I think we can go back to double-digit interest rates. I think that that's in our future, but I think a recession and high unemployment is too, and that's the way inflation gets cured."
Paul was addressing a question from a real estate agent worried about higher interest rates affecting sales.
“I think the Federal Reserve is going to keep putting them up a half a point every time they meet. I think that happens probably every four to six weeks until they reach the inflation rate and inflation rate is 8.5%, and we're closer to the Fed funds rate being around 3% or so. So, you can see how there's still quite a bit of ways where interest rates are going to rise. And this is something people have to think about in making their plans,” he said, advising new buyers to lock in their best rate now.
“Recession?”
Nope.
We are headed for Holodomor territory.
I’ll hold out for 8-10% AA triple tax free 30 year insured non callable NYS municipal bonds
With 10,000 plus a day being let in through the southern border, it’s only a matter of time before the fecal matter hits the airflow device.
Good. Having an effective interest rate of zero for 2 decades is not normal, and this intentional manipulation of the economy is due for a massive correction.
If they try to postpone it, we’ll still get a massive correction, only it will get even worse.
Great investment advice from Kramer in Airplane! (1980) =>
“Municipal bonds, Ted. I’m talking double-A rating. The best investment in America.”
All according to plan.....
And this will not be relegated to just the US. It will be global. Watch and see.
If there’s one group of people that should STFU it should be real estate agents.
Sir/mam, you’re house is definitely worth $1,000,000,000,000. Let me see if I can find a buyer. Buyer agent them convinces clients that they’re getting a deal at $1,000,000,000,000 and they better move fast.
Worse than used car salesman.
I don’t know about you, but I would like to see Rand Paul take over as Majority Leader in January.
Exactly
None of us have got our new property tax/school tax bills yet that will have all that increased spending.
And the local governments….”you can’t afford to live here? Fine. Well we’ll find someone that can….eventually that someone doesn’t come.
If there’s one group of people that should STFU it should be real estate agents.
Sir/mam, you’re house is definitely worth $1,000,000,000,000. Let me see if I can find a buyer. Buyer agent them convinces clients that they’re getting a deal at $1,000,000,000,000 and they better move fast.
Worse than used car salesman.
Wrong....it’s what the current market will bear....meaning...will it appraise...do comps support the price, will price qualify for a loan, etc.
Why make stuff like your nonsensical post up?
I suspect we will blast through the recession and end up in a depression so quickly that the left will be able to say “See the expectations of a recession were overblown”!
Not without replacing 3/4’s of the GOP Senators.
That’s not happening, people are happy with their Bush League Republicans, apparently.
“Double digit” Interest rates. Certainly, however only for borrowers. We’re not going to see 15% overnight rates at the FED, or even perhqps 5% T bills ever again. There are I-Bonds available to purchase but are limited to $15k annually.
It ain’t the 1970s anymore. “Tall Paul” Volcker, the cigar chomping FED chairman is dead and buried. He knew the remedy for fiscal mismanagement by Congress was going to be extremely painful, and it was. But he saved the USD as a credible store of value.
They simply don’t have that option any longer. I hear a lot of talk about “reducing the balance sheet”. Near as I can yell, it’s a lot of worthless $@itt nobody wants to buy in the first place. Not at par anyway. (Which is why they bought it in the first place, it isn’t worth anything).
The FED isn’t supposed to be in the re-hypotheticated collateralized real estate market anyway.
(It will be global.)
Yeppers
the current fiscal, monetary, and regulatory polices are heading USA straight for another Great Depression
the playbook couldn’t be more accurate, its like a perfect Trifecta
Wrong…..the current market and all others is grossly inflated. One of the reasons is the marketing and sales strategies used.
I used to do appraisals. Emphasis on USED to.
I realized Perry quick that I wasn’t that dishonest and unethical….ie get an appraisal request from a broker or loan officer… need the house to be worth $325k….guess what….a few adjustments here and there and VOILA…the house is worth $325k. Do that over the course of time and they’ve just inflated the market to their benefit.
My broker wanted me to offer $230 for a house I got for $207 and probably could have got for about 170-180.
All of that manipulation was one of the reasons that led to the housing crash. I saw it firsthand.
The ones who live through it will be. Like the generation coming out of the Great Depression.
I guess we're back to taking restaurant butter patties home with us.
We’ll have to agree to disagree.
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