Posted on 08/25/2023 7:50:17 AM PDT by janetjanet998
Federal Reserve Chair Jerome Powell signaled the US central bank is prepared to raise interest rates further if needed and keep borrowing costs high until inflation is on a convincing path toward the Fed’s 2% target
Just raise it to 20 and be done with it. That’s where it is going anyways.
Higher rates on the huge public and private debt ( credit card) and loans
Yippie
And the Dow drops 250 points.
That means more banks will be going belly up.
Why does the federal reserve have a target inflationary rate? Because the federal reserve was created by the banks to rob you of your money at that inflationary rate. They are making money on inflation.
Measuring "price" inflation as the 2% goal is hogwash.
Keeping "monetary" inflation at around 2% in a debt-based monetary system makes sense.
They're doing everything off the CPI - "price inflation".
They're thieves.....
Buckle up. China has fallen. Europe is falling. The US will be next.
“Convincing path to 2%”
Correct target.
If inflation is 2%, then the 10 year should be 2% + the risk free time value of money, which is about 3 or 4%.
That would be 5 to 6% for the 10 year treasury.
To get there, they need to jack the overnight rate up above 6% for a while.
“Measuring “price” inflation as the 2% goal is hogwash.”
It is the correct measure and correct target.
Not if you truly understand debt-based money.
If what you're saying is true, then why is the money supply crashing right now - both here and in Eurodollars?
>>China has fallen.
China is going to let enterprises fail, wipe out stockholder and give the bondholders a haircut.
The CCP’s experiment with free market capitalism has run its course. They will keep what they think works and restructure the rest.
“It doesn’t matter if a cat is black or white, so long as it catches mice.” — Deng Xiaoping
On the other hand, if the cat doesn’t catch mice ...
The contraction in M1/M2 is a desired effect of higher rates.
Yes, I took Economics in College.
Did you?
“the risk free time value of money, which is about 3 or 4%.”
You are not allowed to make up numbers.
I was waiting to hear if that was going to happen. Not that I want people to lose their shirts, but I hope it keeps dropping.
And yet all three major indices in the green.
But when the bear finally comes out, he’s gonna be hungry.
Nah...not an economics major in college...engineering...
Allowed me to see how much economics people pull the wool over the eyes of their clients.
How do I know this?
Working side by side in a financial house with people who managed portfolios in the billions - who could barely do math, and who went along with the status quo - you know, the things they learned in college with their economics major.
Maybe try doing an RCA (Root Cause Analysis) on debt-based money and see what you come up with? It might surprise you.
In other words you dont know the subject so you’ll impugn the contrary view.
In other words, I wrote for 1 1/2 years on the coming 2007/2008 economic crash. I've written for 1 1/2 years on the current global crash making its way to the US - going so far as to correctly call out its origins in China, then making its effects known in Europe, then the US...which is what we're seeing right now, but it will get much worse.
I didn't lose a dime in 2007/2008, and I won't be losing any money this time around - even though I have a lot to lose.
How did you do during that time? Did the economics major save you?
Interest rate hikes are what brought inflation under control under Reagan.
Of course, none of that excuses the Federal Reserve's role in printing money since 2008 or the Covid stimulus cash that cause the inflation problem to begin with.
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