Michael Snyder, The Economic Collapse: 12 Reasons Why The Federal Reserve May Have Just Made The Biggest Economic Mistake Since The Last Financial Crisis
Has the Federal Reserve gone completely insane? On Wednesday, the Fed raised interest rates for the second time in three months, and it signaled that more rate hikes are coming in the months ahead. When the Federal Reserve lowers interest rates, it becomes less expensive to borrow money and that tends to stimulate more economic activity. But when the Federal Reserve raises rates , that makes it more expensive to borrow money and that tends to slow down economic activity. So why in the world is the Fed raising rates when the U.S. economy is already showing signs of slowing down dramatically? The following are 12 reasons why the Federal Reserve may have just made the biggest economic mistake since the last financial crisis…
Read more ....
WNU Editor:I have said it more than once in the past .... this is not going to end well. The only question that needs to be answered is when.
12 comments:
To Janet Yellen:
https://youtu.be/Yj-OBgpeOEY
How come rates didn't go up while Obumf*ck was POTUS?!
Encyclopedia Galactica
A bad economy is the number one detrimental cause to a leader's polls and popular support.
Hmmm...
Inflation was rampant over the last years. It was largely ignored because the price of petrol collapsed. Still, everything else's prices rose or the quantity/quality decreased. Why interest rates were kept low then and now rise is a matter of no little conjecture.
Garbage pickup is 50% of the service as before and still the rates increased.
Cable went up.
A multitude of new taxes are being considered, because the potentates of Liberal-assdom just cannot spend enough.
IMO there is absolutely no reason to have inflation except for 3 factors.
-Population increase.
-resource decrease
-relative value of different jobs or resources
If the population does not increase nor does a resource decrease why should there be inflation?
Because we have always had it?
Aizino,
There is inflation because the money supply, via cash or electronic money in whatever form, increases all the time. Supply and demand, we have a huge ever increasing supply of money which devalues each dollar or pound (or whatever) that exists. When there is more money you need more of it to buy the finite amount of goods and services that exist. Debt is constantly being turned over and monetized via fractional reserve banking. It is one giant pyramid or 'Ponzi' scam that is almost coming to its sad end. You virtually can not afford to buy any medium to big ticket item without borrowing which actually drives inflation because the created debt adds to the 'money supply'.
If interest rates are raised, and I think they have been in America, it means we are starting to get inflation run away a little bit. They would not raise rates unless it is serious because the economy is tapped out via debt.
Basically, the world is in serious trouble because of debt. We were bankrupt long ago but the fudge still goes on! I'm amazed it has lasted this long, I thought it was game over in 2008!
The 800lb gorilla in the room is the US Fed holding 4-5 trillion from quantitative easing over the past few years. This money will need to be flushed through the system .... which in turn means higher interest rates and inflation. President Trump will be blamed for this, but the real culprits are the Obama administration, and the Democrats/Republicans in Congress who supported this insane policy.
A lot of problems the writer of the article talks about are debt related. The overlying problem is that people are over exposed so interest payments of debt can take a large portion of their disposable income away. Sooner or later this will be resolved. Better to do it in a controlled manner.
House hold / Personal Debt
Government debt
Government policies form tax rates, choosing winners and losers
Money lovers are as dangerous as the extremist political and religious believers, but those banker types do as more damage and take evil to a higher level.
TWN is thinking along the lines of Thomas Jefferson and there is a lot to that.
IMO if you expand the money supply, because there is not enough, it matters who gets the money 1st as it is introduced into the system.
Those people have an edge in relation to others and would over time become richer. Think of a casino. If a casino offers 50.5% to 49.5% odds, over time they own everything. Some casinos will still go broke but most will not.
Post a Comment