PLEASE RAISE INTEREST RATES!!!!

[Atreus21]

The Fed better stop dropping the interest rates. Inflation is going to skyrocket.

 

[FoBoT]

crap, i am going to buy more guns/ammo/food storage

 

[LegendKiller]

Originally posted by: Atreus21
The Fed better stop dropping the interest rates. Inflation is going to skyrocket.

What is the alternative?


I love how internet prognosticators completely ignore the other side of the equation.

 

[NoStateofMind]

Originally posted by: LegendKiller
Take your pick.

1. Raise rates, suck liquidity out of the market, have the biggest banks fail, credit face a massive contraction, and drive us into a deep recession or even potentially a recession. The dollar will be worth more, but the US economy will be worth far less.

2. Drop rates to maintain liquidity, blunt the possibility of a debilitating recession, face a dropping dollar for a period of time, but eventually the dollar will rebound.

I wonder if the Weimer Republic thought the same thing. :laugh:

 

[Slew Foot]

Most people dont care about the rate that banks lend each other money, or that bank are going under because they made bad bets, or that credit cards are getting harder to obtain. They care that the purchasing power of their dollars has been going to shit, and to compound their pain in what appears to be in large part, a bailout of banks and wall street, makes them seeth even more.

 

[bamacre]

Originally posted by: LegendKiller

Originally posted by: Atreus21
The Fed better stop dropping the interest rates. Inflation is going to skyrocket.

What is the alternative?


I love how internet prognosticators completely ignore the other side of the equation.

Correct me if I am wrong, but aren't you doing the same?

 

[LegendKiller]

Originally posted by: PC Surgeon

Originally posted by: LegendKiller
Take your pick.

1. Raise rates, suck liquidity out of the market, have the biggest banks fail, credit face a massive contraction, and drive us into a deep recession or even potentially a recession. The dollar will be worth more, but the US economy will be worth far less.

2. Drop rates to maintain liquidity, blunt the possibility of a debilitating recession, face a dropping dollar for a period of time, but eventually the dollar will rebound.

I wonder if the Weimer Republic thought the same thing. :laugh:

ROFL, so somebody tosses back the Weimar at me when I have been posting about that for more than a year? Please sparky, come up with a new trick that I haven't already even mentioned.

The Weimar was a completely different situation, there wasn't any consideration to saving an economy and providing domestic liquidity. Additionally, that was a country that was completely devistated by a war, with a massive section of their population dead or wounded.

Try to compare apples to apples.

 

[LegendKiller]

Originally posted by: bamacre

Originally posted by: LegendKiller

Originally posted by: Atreus21
The Fed better stop dropping the interest rates. Inflation is going to skyrocket.

What is the alternative?


I love how internet prognosticators completely ignore the other side of the equation.

Correct me if I am wrong, but aren't you doing the same?

Am I?

Please provide a complete rundown of how keeping rates the same would benefit us, including what will happen in the intermediate phases to the liquidity of the economy, the effects that will have from the banks to J6P.

I don't expect anything less than a few paragraphs. I will enjoy seeing your scenario, as I am sure you don't have anything to provide.

 

[LegendKiller]

Originally posted by: Slew Foot
Most people dont care about the rate that banks lend each other money, or that bank are going under because they made bad bets, or that credit cards are getting harder to obtain. They care that the purchasing power of their dollars has been going to shit, and to compound their pain in what appears to be in large part, a bailout of banks and wall street, makes them seeth even more.

Part of the problem is that they define the financial markets in forms of debt only relative to their lives and their viewpoints of banks and WS.

Little do they know the problems inherent in having banks go under in large numbers or a complete contraction of credit and the economy and what affect that will have on unemployment.

What's interesting is the scenario they describe now is exactly the one they beat the Fed with, ala "The Fed caused the GD by raising rates and contracting liquidity to save the dollar". Whoops.

 

[NoStateofMind]

Originally posted by: LegendKiller

Originally posted by: PC Surgeon

Originally posted by: LegendKiller
Take your pick.

1. Raise rates, suck liquidity out of the market, have the biggest banks fail, credit face a massive contraction, and drive us into a deep recession or even potentially a recession. The dollar will be worth more, but the US economy will be worth far less.

2. Drop rates to maintain liquidity, blunt the possibility of a debilitating recession, face a dropping dollar for a period of time, but eventually the dollar will rebound.

I wonder if the Weimer Republic thought the same thing. :laugh:

ROFL, so somebody tosses back the Weimar at me when I have been posting about that for more than a year? Please sparky, come up with a new trick that I haven't already even mentioned.

The Weimar was a completely different situation, there wasn't any consideration to saving an economy and providing domestic liquidity. Additionally, that was a country that was completely devistated by a war, with a massive section of their population dead or wounded.

Try to compare apples to apples.

Oh I forgot, this is not a fiat failure. This is fiats greatest accomplishment! Please tell all these inferior peons how the great fiat created the wealth of the Weimer Republic! Tell them that after the hyperinflation the furious fiat fire to heat houses was crucial to the survival of a few citizens. I stand by your side fighting the ignorance of many who refuse to except fiat as the one true God!

 

[LegendKiller]

Originally posted by: PC Surgeon

Originally posted by: LegendKiller

Originally posted by: PC Surgeon

Originally posted by: LegendKiller
Take your pick.

1. Raise rates, suck liquidity out of the market, have the biggest banks fail, credit face a massive contraction, and drive us into a deep recession or even potentially a recession. The dollar will be worth more, but the US economy will be worth far less.

2. Drop rates to maintain liquidity, blunt the possibility of a debilitating recession, face a dropping dollar for a period of time, but eventually the dollar will rebound.

I wonder if the Weimer Republic thought the same thing. :laugh:

ROFL, so somebody tosses back the Weimar at me when I have been posting about that for more than a year? Please sparky, come up with a new trick that I haven't already even mentioned.

The Weimar was a completely different situation, there wasn't any consideration to saving an economy and providing domestic liquidity. Additionally, that was a country that was completely devistated by a war, with a massive section of their population dead or wounded.

Try to compare apples to apples.

Oh I forgot, this is not a fiat failure. This is fiats greatest accomplishment! Please tell all these inferior peons how the great fiat created the wealth of the Weimer Republic! Tell them that after the hyperinflation the furious fiat fire to heat houses was crucial to the survival of a few citizens. I stand by your side fighting the ignorance of many who refuse to except fiat as the one true God!

How would a gold standard have helped the Weimar?

 

[NoStateofMind]

Originally posted by: LegendKiller

Originally posted by: PC Surgeon

Originally posted by: LegendKiller

Originally posted by: PC Surgeon

Originally posted by: LegendKiller
Take your pick.

1. Raise rates, suck liquidity out of the market, have the biggest banks fail, credit face a massive contraction, and drive us into a deep recession or even potentially a recession. The dollar will be worth more, but the US economy will be worth far less.

2. Drop rates to maintain liquidity, blunt the possibility of a debilitating recession, face a dropping dollar for a period of time, but eventually the dollar will rebound.

I wonder if the Weimer Republic thought the same thing. :laugh:

ROFL, so somebody tosses back the Weimar at me when I have been posting about that for more than a year? Please sparky, come up with a new trick that I haven't already even mentioned.

The Weimar was a completely different situation, there wasn't any consideration to saving an economy and providing domestic liquidity. Additionally, that was a country that was completely devistated by a war, with a massive section of their population dead or wounded.

Try to compare apples to apples.

Oh I forgot, this is not a fiat failure. This is fiats greatest accomplishment! Please tell all these inferior peons how the great fiat created the wealth of the Weimer Republic! Tell them that after the hyperinflation the furious fiat fire to heat houses was crucial to the survival of a few citizens. I stand by your side fighting the ignorance of many who refuse to except fiat as the one true God!

How would a gold standard have helped the Weimar?

Exactly our point brother! Gold couldn't have helped them, and as we see now, the WeimAr Republic was better off with the fiat funk! So are we. Its not like Fiat has no intrinsic value, I mean look at it this way, at least when they aren't worth as much and you can't buy gas, you can burn it for heat. Ignorant people miss point that don't they!!! Long live Fiat forever, money has never been better (provided you have enough ink ).

 

[Robor]

Originally posted by: Fern
Why are you personally concerned about the value of the dollar vis-a-vis other currencys? I think there is much irrational concern about this among the general populace here in the US.

Do you have bills (owe money) in foreign denominated currency?

Are you planing on purchasing imported products and afraid the price will rise (after currency translation)?

The only product which readily comes to mind that we all purchase and is affected by the reduced value of the dollar is oil (gas really).

A lower value dollar helps with our balance of trade deficet in 2 ways: as foreign products become comparatively more expensive we purchase less, as US products become comparatively cheaper foreigners purchase more. Eventually, this alone will serve to support the value of the dollar (more demand for dollars by foreigners purchasing US goods).

IMO, the manipulation of interest rates should be used for other, better purposes than currency value adjustments. If our US economy were "overheating" (growing too rapidly) interest rate increases would be made, instead we're trying to avoid (or come out of, or minimize) a recession. That calls for interest rate decreases, not increases.

Fern

One situation where the weak dollar directly affects us is when we travel to other countries and get a crappy exchange rate. It makes travel more expensive. Sure, we can travel within the US and avoid that but what about people who send money in USD to family in foreign countries? I know the Philippines exchange rate went from about 60 pesos a couple of years ago to just under 40 now. That's a big hit.

 

[LegendKiller]

Originally posted by: PC Surgeon


Exactly our point brother! Gold couldn't have helped them, and as we see now, the WeimAr Republic was better off with the fiat funk! So are we. Its not like Fiat has no intrinsic value, I mean look at it this way, at least when they aren't worth as much and you can't buy gas, you can burn it for heat. Ignorant people miss point that don't they!!! Long live Fiat forever, money has never been better (provided you have enough ink ).

So you really have nothing.

Typical RPB.

 

[Fern]

Originally posted by: Robor

Originally posted by: Fern
-snip-

One situation where the weak dollar directly affects us is when we travel to other countries and get a crappy exchange rate. It makes travel more expensive. Sure, we can travel within the US and avoid that but what about people who send money in USD to family in foreign countries? I know the Philippines exchange rate went from about 60 pesos a couple of years ago to just under 40 now. That's a big hit.

Yes. That fits under "foreign bills'.

My father-in-law lives in Italy (my wife's an Italian citizen). The devaluation keeps from making a trip anytime soon.

As regards sending money abroad, this strikes me as more a problem for the person residing overseas as their dollars will not now go so far.

I don't think we're talking about a large egment of the US population in any case, which is really my point.

Fern

 

[ElFenix]

Originally posted by: GTaudiophile

Originally posted by: FoBoT
but won't that help our trade imbalances

If only we still manufactured/exported anything...worth a damn...

take that airbus!

 

[Fern]

Originally posted by: PC Surgeon

Originally posted by: LegendKiller
Take your pick.

1. Raise rates, suck liquidity out of the market, have the biggest banks fail, credit face a massive contraction, and drive us into a deep recession or even potentially a recession. The dollar will be worth more, but the US economy will be worth far less.

2. Drop rates to maintain liquidity, blunt the possibility of a debilitating recession, face a dropping dollar for a period of time, but eventually the dollar will rebound.

I wonder if the Weimer Republic thought the same thing. :laugh:

Domestic Inflation (Weimar Republic) and foreign currency translation rates (OP's concern) are two different things.

The Weimar Republic purposefully printed an enormous amount of currency to pay the war reparation debts forced upon it after WWI. Obviously this caused tremendous inflationary pressure within the country itself.

But domestic inflation and currency devaluation do necessarily go hand-in-hand. Often when we've experienced high inflation here causing the fed to jack interest rates we have also had the dollar rise (even though we have high inflation).

Fern

 

[bamacre]

Originally posted by: LegendKiller

Originally posted by: bamacre

Originally posted by: LegendKiller

Originally posted by: Atreus21
The Fed better stop dropping the interest rates. Inflation is going to skyrocket.

What is the alternative?


I love how internet prognosticators completely ignore the other side of the equation.

Correct me if I am wrong, but aren't you doing the same?

Am I?

Please provide a complete rundown of how keeping rates the same would benefit us, including what will happen in the intermediate phases to the liquidity of the economy, the effects that will have from the banks to J6P.

I don't expect anything less than a few paragraphs. I will enjoy seeing your scenario, as I am sure you don't have anything to provide.

Calm down, dude. I only asked a question.

 

[LegendKiller]

Originally posted by: bamacre

Originally posted by: LegendKiller

Originally posted by: bamacre

Originally posted by: LegendKiller

Originally posted by: Atreus21
The Fed better stop dropping the interest rates. Inflation is going to skyrocket.

What is the alternative?


I love how internet prognosticators completely ignore the other side of the equation.

Correct me if I am wrong, but aren't you doing the same?

Am I?

Please provide a complete rundown of how keeping rates the same would benefit us, including what will happen in the intermediate phases to the liquidity of the economy, the effects that will have from the banks to J6P.

I don't expect anything less than a few paragraphs. I will enjoy seeing your scenario, as I am sure you don't have anything to provide.

Calm down, dude. I only asked a question.

I am pretty tired of RPB's having all of the answers without any backup. Their "answers" are hyperbole about gold idolation with no substance, or unsupported "raise rates" without consideration to what that would do.

I do consider the alternatives, since I live in them every day. Yes, it's quite a fix we got ourselves into, but keeping the dollar strong while letting our economy and financial markets to collapse won't fix anything. If anything that'll be far worse, as the Great Depression taught us.

 

[jpeyton]

Originally posted by: bamacre
Calm down, dude. I only asked a question.

Don't worry; you'll soon realize there are apologists for every sort of bad news you hear today. LK has made the economy his pet project, much like TLC will (without fail) chime in on how Iraq is roses and sunshine.

It's par for the course on an online forum.

 

[LegendKiller]

Originally posted by: jpeyton

Originally posted by: bamacre
Calm down, dude. I only asked a question.

Don't worry; you'll soon realize there are apologists for every sort of bad news you hear today. LK has made the economy his pet project, much like TLC will (without fail) chime in on how Iraq is roses and sunshine.

It's par for the course on an online forum.

Yes, because I advocate a rosy picture without being a realist. More tripe from the usual suspects.

I repeatedly as for solutations to the problem, or at least an outlook on what the solutions would do, yet I get nothing but "let banks burn" bullshit that doesn't result in anything.

As I said before, it reminds me of kids, or knuckle draggers, running around saying "make it a parking lot" just because they can.

The world is infinitely more complex with plans within plans.

 

[NoStateofMind]

Originally posted by: jpeyton

Originally posted by: bamacre
Calm down, dude. I only asked a question.

Don't worry; you'll soon realize there are apologists for every sort of bad news you hear today. LK has made the economy his pet project, much like TLC will (without fail) chime in on how Iraq is roses and sunshine.

It's par for the course on an online forum.

Nail on the head :thumbsup:

 

[NoStateofMind]

Originally posted by: LegendKiller

Originally posted by: bamacre

Originally posted by: LegendKiller

Originally posted by: bamacre

Originally posted by: LegendKiller

Originally posted by: Atreus21
The Fed better stop dropping the interest rates. Inflation is going to skyrocket.

What is the alternative?


I love how internet prognosticators completely ignore the other side of the equation.

Correct me if I am wrong, but aren't you doing the same?

Am I?

Please provide a complete rundown of how keeping rates the same would benefit us, including what will happen in the intermediate phases to the liquidity of the economy, the effects that will have from the banks to J6P.

I don't expect anything less than a few paragraphs. I will enjoy seeing your scenario, as I am sure you don't have anything to provide.

Calm down, dude. I only asked a question.

I am pretty tired of RPB's having all of the answers without any backup. Their "answers" are hyperbole about gold idolation with no substance, or unsupported "raise rates" without consideration to what that would do.

I do consider the alternatives, since I live in them every day. Yes, it's quite a fix we got ourselves into, but keeping the dollar strong while letting our economy and financial markets to collapse won't fix anything. If anything that'll be far worse, as the Great Depression taught us.

How dare they idolize gold! Blasphemy! Idolize fiat and we will forgive you. Do not mind that it is only paper and ink, it is valuable to those without heat. We don't need any dissent in the church! Repent that fiat is God and thou shalt be saved, repent not and find yourself unable to carry the heavy burden of Gold. The father FED has decreed that the interest rates will be lowered so that you may be able to get that loan to support yourselves during the coming winter with heat. See how kind father FED is? On your knees you infantile fool and praise father FED , the son of the FED and the wholly FED ghost. We are your only hope to survive!

 

[LegendKiller]

Originally posted by: PC Surgeon

Originally posted by: jpeyton

Originally posted by: bamacre
Calm down, dude. I only asked a question.

Don't worry; you'll soon realize there are apologists for every sort of bad news you hear today. LK has made the economy his pet project, much like TLC will (without fail) chime in on how Iraq is roses and sunshine.

It's par for the course on an online forum.

Nail on the head :thumbsup:

Ever think he was also describing an RPB?

 

[bamacre]

Originally posted by: LegendKiller
I am pretty tired of RPB's having all of the answers without any backup. Their "answers" are hyperbole about gold idolation with no substance, or unsupported "raise rates" without consideration to what that would do.

I do consider the alternatives, since I live in them every day. Yes, it's quite a fix we got ourselves into, but keeping the dollar strong while letting our economy and financial markets to collapse won't fix anything. If anything that'll be far worse, as the Great Depression taught us.

How about we not lump a bunch of people into a "paulbot" category? I don't lump others into an "Obamabot" category, and considering some of those here that supposedly support him, you should know why.

Besides, Paul is not exactly looking good in the race for the nomination.

I don't know a whole lot about economics nor monetary policy, and never claimed to. That's why you don't see me trying to argue staunchly in threads like these.

Again, I was just asking a question, and even asked to be corrected if I was wrong.