Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Kev, have you considered that econ101 doesn't actually call for our Economic Armageddon? There is a tremendous difference between normal business cycles and the destruction of the basis of our economic lives that YOUR plan calls for.
Deflation is NOT our enemy, deflation simply means it's time to pay our bills, stop living in la la land, in a fantasy and face the reality.
If we started raising interest rates on time back in 2001 and gradually raise them after that for many years, yes, then we could avoid this economic Armageddon and all bubbles that we created since then.
We used QE and ZIRP to protect this bubble, when it needed to be destroyed. We also need the public to understand that the lies about debt have to end.
There is no other way out of this mess that doesn't involve pain and sufferings for many. There is no such a thing as a free lunch. If we don't end this madness with zero interest rates and adding more debt we will inaugurate a dark age and cease to exist as a nation. You pay for DENIAL, you get a bill in the end. A bill that bankrupts you.
I just told you that any uptick in interest rates represents a massive increase in a servicing of our debt. Why do you think FED artificially floored rates at zero and is stealing money from the taxpayers for this scam? We are still adding debt. We are stealing money from the future to protect status quo of today.
What is our future, zero interest rates for ever, for the rest of our existance? Or how about negative interest rates????? This is perversion of the system.
This scam needs to stop. We need to raise interest rates and face the devil in the Dark Forest of Deflation!!!!
Do you know what percentage of the federal budget is used to service debt?
Am I delusional? Nope you still can't show that our debt load is unmanageable, you keep repeating the same bs but haven't shown anything that actually proves our debt load isn't something we can manage
I'm also not sure if you are aware of how treasury auctions work
Last edited by yellowbelle; 09-19-2015 at 12:09 PM..
Reason: orphaned text deleted
Deflation is NOT our enemy, deflation simply means it's time to pay our bills
how?
how does increasing interest rates pay off debt? It means it cost more to borrow money, everyone who buys a home now has a higher monthly payment, if they can't afford it now, why do you think they will be able to pay at a higher rate?
you think it is "servicing" the debt by having the banks pay people to hold onto their money? If the government wanted to just return money to the people, they would just do that at tax season... hoarding money in the banks does not grow the economy
The only people that would benefit from increased interest rates are the people who are leveraged into receiving the payments, that does not help the person pay off the debt, it just increases the profit
you keep saying it is part of economic cycle, so what? yes it is there, just like death is part of the life cycle... you do not aspire to "die" as a form of population control, sure we could kill off the elderly to create more jobs for the younger people right?
Do you know what percentage of the federal budget is used to service debt?
Am I delusional? Nope you still can't show that our debt load is unmanageable, you keep repeating the same bs but haven't shown anything that actually proves our debt load isn't something we can manage
I'm also not sure if you are aware of how treasury auctions work
Keeping interest rates at zero allowed us to service our debt relatively easy. But we can't keep interest rates at zero forever and keep stealing money from the public, from the future. The free ride is about to end. The Fed already ended QE program and now it wants to raise rates.
The resulting rise in interest rates will mean rising costs to service the debt.
You are one of those guys who are believing in fairly tails. You think we can print money forever, we can add and service our debt by cheating our way thru never ending inflation.
We have been in a fantasy world of ZIRP, zero interest rate policy, for about 7 years, the purpose of which partly is to mask the effect of the massive debt. If we had normal interest rates the cost of servicing the debt would be the single biggest item in the budget, and even small increases in natural interest would bankrupt the country now.
Keeping interest rates at zero allowed us to service our debt relatively easy. But we can't keep interest rates at zero forever and keep stealing money from the public, from the future. The free ride is about to end. The Fed already ended QE program and now it wants to raise rates.
The resulting rise in interest rates will mean rising costs to service the debt.
You are one of those guys who are believing in fairly tails. You think we can print money forever, we can add and service our debt by cheating our way thru never ending inflation.
We have been in a fantasy world of ZIRP, zero interest rate policy, for about 7 years, the purpose of which partly is to mask the effect of the massive debt. If we had normal interest rates the cost of servicing the debt would be the single biggest item in the budget, and even small increases in natural interest would bankrupt the country now.
So you literally can't actually provide proof to back your statement, can't answer any question so what's the point here?
Just keep repeating yourself and maybe you will gain followers
how does increasing interest rates pay off debt? It means it cost more to borrow money, everyone who buys a home now has a higher monthly payment, if they can't afford it now, why do you think they will be able to pay at a higher rate?
you think it is "servicing" the debt by having the banks pay people to hold onto their money? If the government wanted to just return money to the people, they would just do that at tax season... hoarding money in the banks does not grow the economy
The only people that would benefit from increased interest rates are the people who are leveraged into receiving the payments, that does not help the person pay off the debt, it just increases the profit
you keep saying it is part of economic cycle, so what? yes it is there, just like death is part of the life cycle... you do not aspire to "die" as a form of population control, sure we could kill off the elderly to create more jobs for the younger people right?
We will destroy and shrink our debt thru massive bankruptcies and defaults. Everyone who took too much debt will suffer. Either you pay it back with strong dollar or you default.
Housing prices will be cut in half, so yes if you finance your house purchase you will pay higher interest, but your purchase price will be lower.
Time to deflate the greatest debt bubble in the history of the world. We are at the end of the world. The world we know ended in 2001. We get the glory and wealth during Inflation cycle and then we get the poverty and the shame during Deflation cycle. We should take our medicine with a sense of justice and reserve. The Fed is trying to cheat so we don't have to take our medicine. We are trying to cheat God, cheat the Law of Nature. But it won't work.
So you literally can't actually provide proof to back your statement, can't answer any question so what's the point here?
Just keep repeating yourself and maybe you will gain followers
You want proof, how about Japan?
You are very naive. You just stay relaxed and trust our government. Have they ever let us down before? Is Fed spending debt in traditional sense? Does debt even matter? If debt doesn't matter for the government, then why should it matter for us individuals?
The government can't defualt right? They can just print money when they need it? Does this make a Fed spending money counterfeit dollars?
A lot of questions, and not many answers.
Last edited by Dr. Kevin; 09-12-2015 at 12:47 AM..
How will raising rates increase inflation??? That doesn't make any sense. The Fed typically raises rates to fight against inflation.
I thought you were a genius that knew everything.
She will raise because the U.S. econ has slowly and steadily improved
I didn't say raising rates will increase inflation I said inflation will erode the debt over time. It's pretty clear I didn't connect the two
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
