Should the Fed keep raising interest rates until no one borrows anymore?

[Anarchist420]

Although it's just a f**king pipedream, I think they should. It would prevent the government from borrowing further, and it would give back wealth that was confiscated from inflation.

People would also save more and when they spent, they wouldn't be borrowing to do so. They'd be spending part of their savings.

Debt should be liquidated, and bankrupt businesses allowed to fail. The market would correct itself from there. Warren G. Harding and Martin Van Buren already proved that it works. FDR and Obama also proved that it works by doing the opposite. FDR's keynesian policies NEVER ended the Great Depression and Obama doing the same as FDR won't fix the economy either.

 

[Jadow]

nothing wrong with borrowing.

Say someone has a really awesome idea, but in order to produce / market it, etc... they need to borrow money to start a business. What is wrong with that?

you will kill innovation

 

[ElFenix]

van buren had 2 panics. wtf are you holding up him as a success story?

 

[bamacre]

If Bernanke increases rates, what does that do to our budget?

 

[First]

Van Buren? He was a fucking disaster, one massive panic followed by half a decade of depression.

 

[Fern]

Should the Fed keep raising interest rates until no one borrows anymore?

Although it's just a f**king pipedream, I think they should. It would prevent the government from borrowing further....

What?

Look, I don't spend any time thinking about the Fed etc., but:

If I understand correctly, if the Fed raised rates it would only affect what other banks pay to borrow, thereby making us (citizens) pay a higher rate. I do not see how the Fed can make Uncle Sam pay a higher rate on borrowing. The world market would have to demand a higher rate (lower bond price) on US treasury securities for that to happen.

I won't even mention the effect on GDP and how it might be bad timing...

Fern

 

[soccerballtux]

They could raise what banks get on their reserves on deposit at the Fed, but doing that would be a blatant politicization of the Fed and congress would fuss and take away their power.

 

[IronWing]

The Feds' ability to influence rates has been rather anemic throughout this crisis.

 

[LegendKiller]

Troll thread is trollish.

 

[soccerballtux]

Troll thread is trollish.

should be easy for you to see difference between troll and uninformed you've been here long enough...

 

[JS80]

should be easy for you to see difference between troll and uninformed you've been here long enough...

uninformed troll?

 

[ShawnD1]

If Bernanke increases rates, what does that do to our budget?

Makes it worse because now the interest is higher on borrowed money.


Also, the point of raising interest rates is to slow the economy, prevent bubbles, allow stable growth. It's not supposed to be some weird toy. Another anarchist troll thread.

 

[Capt Caveman]

Reported: Lock and Ban

His threads get more stupid by the day.