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Posted on 07/21/2025 12:36:31 PM PDT by Angelino97
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Lower interest rates and you will definitely increase inflation. Trump mentioned the other day that he would like to see it under 1%. Doing that would send the dollar on a downward death spiral. Good for gold though and I suggest everyone buy some.
Lower interest rates will cause an increase in inflation and is being advocated as a way to deal with the crushing accumulated debt. Lower interest on the debt, pay it down with cheaper future dollars. The problem is, this only works if congress stops digging the hole. Freeze spending at current levels for 5 years, 1%-2% interest rates, 3.5% inflation and the problem starts to go away. Finding a market for 1% - 2% t-bills might be a problem with other asset classes offering much better returns.
Looks like they really are planning on getting rid of Powell.
Rep. Anna Paulina Luna
@RepLuna
·
2h
I have formally referred Jerome Powell to the DOJ for criminal investigation.
Chairman Powell knowingly misled both Congress and executive branch officials about the true nature of a taxpayer-funded project. Lying under oath is a serious offense— especially from someone tasked
Show more
https://x.com/RepLuna/status/1947341001204633997
The dollar is already down 10% so far this year. Lower rates much lower than now, it goes into a death spiral. If you think imports cost a lot now, wait to see what happens then and the other side of the coin so to speak, exports zoom and we get outbid for our domestic products.
Insanity
Buckle up. I’m expecting Argentina levels of inflation and dollar devaluation in the not so distant future.
I get such a kick out of these economists posturing like they know how to control the economy. They make plausible arguments but their track record sucks. It reminds me of when I first interacted with investment brokers. They explained to a very untutored trustee (me). When they finished I said so we try and hedge our bets with diversity and sharpe ratio. They gasped and said NO, it’s not betting. But they were wrong it is betting & I’ve been betting w/o input from the pros for 35 years.
The economists strike me as even more clueless and arrogant. They destroy the economy while pretending to save it. As it slowly recovers from their meddling, due to factors that have nothing to do with economist actions or pronouncements economists want us to buy into their pseudoscience again.
Audit & retire the Fed. They may have some rational purposes. We should ID those as narrowly as possible and not allow them to set interest rates or meddle with our economy. They are a partisan and compromised body and their interests do not align with the American people.
“But make no mistake – this is a call for more inflation.”
Make no mistake, this writer’s chance of being right is random.
Argentina's out of control inflation has already been turned around, with their own undiplomatic firebrand with bad hair, President Milei... Inflation was 300% and is now at 25%. Poverty rates were over 54%, and are now under 33%. Immigration has been greatly restricted. 18 Federal Ministries have been cut down to 9. Thousands of government employees were let go (ARG has about the population of California). Government spending has been cut by 30%. They had their first year without a deficit in 123 years. Getting rid of Leftist policies is what HEALS economies, even though an up front shock is often a part of the process.
Trump understands the fiscal situation. Social welfare cannot be cut and he needs to support it or even increase to buy votes. But spending must decrease, taxes need to increase, and the subsidizing the “not working” part of the population needs to be scaled back.
Spenginbg cuts = no go
Tax increases = no go
Making people work = no go
So take money away with tariffs which lessens the demand side, inflate the currency which is just a slower moving default on debt and cause higher taxation both of which will eventually force people back to work.
Currency devaluation will also help increase the price and therefore demand for imports again lower the demand side.
Interest rate will increase the Fed only controls short term rates unless it simply restricts borrowing by crowing out private borrowing.
It is going to get real ugly on this course. Ask Jiimmah.
I do remember when a slice of pizza was 35 cents.
Yeah I know. I was talking about how Argentina was before Milei. Good luck trying to get Congress to cut spending like that. Won’t happen until they are forced to after a financial collapse.
Whoever is going to be the next Fed Chairman should work closely with Scott Bessent.
I think Mickey D burgers used to be 10 cents.
As a college grad, I bought gas for 29.9.
I feel that this conversation has gone on for far too long without someone saying “end the fed”.
So, “End the Fed”.
Presodent Trump wants a lower Dollar.
The Fed needs to be dissolved along with those running it.
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