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.
So far, as far as I can tell, interest rates have not risen on savings accounts deposits. Only $180 billion dollars had been drained from the system and it will take close to a trillion to have any meaningful effect for savers. Economic repression continues.
More than $180B. $80-100B/yr since QE started.
Just don't forget that almost all that drained interest is swept right back to the Treasury reducing our national debt by that same amount.
Just don't forget that almost all that drained interest is swept right back to the Treasury reducing our national debt by that same amount.
I was speaking about the recent Fed drain to b raise the Federal Funds rate to its new target rate. It was done almost by decree rather than by draining money from the system. It is absolutely incredible how the U.S system now resembles a Centrally Planned Politburo for the Billionaires. It has actually arrived.
No, only 25 basis point increase now and much more to come. I see interest rates going up as high as 30% this time around, Volcker raised them over 20% in early 80's. We need to start destroying debt. Almost all companies have more debt today that they did in 2009; and almost all companies are furiously buying up their own shares to try to hide the dismal truth about this recovery. Recovery? Where? In America? What recovery ever needed trillions of FED money-creation, ZIRP for 7 years, and the trumpeting of new part-time and minimum-wage jobs to make the administration running things claim success?
The fly in the FED soup is becoming more real every day now. The strong US Dollar is threatening to destroy the fragile facade of calm the FED has woven for the last 14 years. QE and ZIRP are anti-Dollar ruses. The FED has been committed to the wounding of the Dollar in order to force up asset prices, stocks, commodities, and housing. A strong dollar cripples all those markets.
The only thing that can keep the Dollar from rising is MORE QE. And the FED seems to have used up it's political capital for QE, which people now understand, is nothing more than a transfer of trillions of dollars from America's future to the richest people in the world today, a grand theft casino operation. Yes, QE did save the banks, the very people who caused this crisis.
The strong dollar will sink all the assets the FED has inflated: stocks, commodities, housing. God Bless the Strong US Dollar!!!
We will only see very high interest rates with very high inflation. And that does not look to be in our future very soon. Too low employment. Too low global demands, too cheap commodities.
QE has not devalued the USD. The vast bulk sits as reserves in banks, not enough lent out and not enough out in the general circulation to do so.
We will only see very high interest rates with very high inflation. And that does not look to be in our future very soon. Too low employment. Too low global demands, too cheap commodities.
QE has not devalued the USD. The vast bulk sits as reserves in banks, not enough lent out and not enough out in the general circulation to do so.
What QE did was very insidious. It lowered the standard of living for 99% of the population. That is: junkier housing, junkier clothing, junkier food, longer working hours, lower pay, no job security, destroying higher paid manufacturing jobs and creating lower paid service jobs, longer time to retirement or no retirement at all, more stress in life, higher medical costs, etc.
What QE did was transfer and concentrate wealth to the top 1% by giving free money to the Billionaire Class.
I don't argue that QE has inflated assets for those middle and upper class participants.
But all your other stink about the middle class has been going on for decades before the world ever knew of QE. Higher interest rates won't solve that.
And IMO there is little anyone can do to bring it all back. Maybe major war.
I would support proposals that help create more and better middle class jobs, lower middle class taxes, lower corp taxes, more central freebies like HC. Massive infrastructure projects/jobs and jobs programs. Anything to ease the middle class dilemma of wage malaise. I don't see capitalism doing it willingly on its own.
I don't argue that QE has inflated assets for those middle and upper class participants.
But all your other stink about the middle class has been going on for decades before the world ever knew of QE. Higher interest rates won't solve that.
And IMO there is little anyone can do to bring it all back. Maybe major war.
I would support proposals that help create more and better middle class jobs, lower middle class taxes, lower corp taxes, more central freebies like HC. Massive infrastructure projects/jobs and jobs programs. Anything to ease the middle class dilemma of wage malaise. I don't see capitalism doing it willingly on its own.
QE has destroyed and distorted all economic incentives. By giving free money to the Billionaire Class it removed all normal economic incentives. Billionaires make money not by capital investment and growth but rather by financial manipulation, eg. issuing themselves stock options and buying it back with corporate debt.
QE is not about lowering rates, it is all about wealth transference. The Billionaire Class has developed a Centrally Planned and Controlled economic system which benefits them and only them. It is a rebirth of the Feudal System. It is what they like.
QE has destroyed and distorted all economic incentives. By giving free money to the Billionaire Class it removed all normal economic incentives. Billionaires make money not by capital investment and growth but rather by financial manipulation, eg. issuing themselves stock options and buying it back with corporate debt.
QE is not about lowering rates, it is all about wealth transference. The Billionaire Class has developed a Centrally Planned and Controlled economic system which benefits them and only them. It is a rebirth of the Feudal System. It is what they like.
Fed set rates always 'distort' markets, much of its purpose.
QE is specifically about lower rates. Sure it followed that assets would inflate, much of its purpose.
And yes low rates encourage borrowing and then borderline feasible business propositions. Again all in line with purpose.
Were do you keep your money/savings, if I can ask?
Fed set rates always 'distort' markets, much of its purpose.
QE is specifically about lower rates. Sure it followed that assets would inflate, much of its purpose.
And yes low rates encourage borrowing and then borderline feasible business propositions. Again all in line with purpose.
Were do you keep your money/savings, if I can ask?
Zero interest money is only available to super large corporations that are run by Billionaires and used for their own personal benefit, E.g transfer factories to areas where slave labor is available or stock buybacks. If I could get my hands on trillions of dollars of money at 0%, I too could be a billionaire overnight, but the ZIRP window is only available to the Billionaire Class. This is a worldwide. phenomenon.
It's all easy to understand. Play a game of Monopoly where one player gets as much free money as he/she likes and observe the results. The Billionaire Class has control of the printing press and control of the government and is printing an unlimited amount of money for itself. This is the weak dollar in operation.
Zero interest money is only available to super large corporations that are run by Billionaires and used for their own personal benefit, E.g transfer factories to areas where slave labor is available or stock buybacks. If I could get my hands on trillions of dollars of money at 0%, I too could be a billionaire overnight, but the ZIRP window is only available to the Billionaire Class. This is a worldwide. phenomenon.
It's all easy to understand. Play a game of Monopoly where one player gets as much free money as he/she likes and observe the results. The Billionaire Class has control of the printing press and control of the government and is printing an unlimited amount of money for itself. This is the weak dollar in operation.
Not so. We bought a car this summer with zero interest. My kids recently got into a nicely appreciating house for a very low mortgage rate. Our home ARM mortgage went way low before I paid it off. My line of credit at my local bank has a very low rate. A few years back I borrowed at 3% for an investment that paid better than 10%. We are no billionaires or large corps.
Yes I agree the game is stacked in big money's favor, especially post-2008. This is not a new phenomenon. This is why I think it will take unconventional means to raise our middle class.
you are wasting your time here . it is like trying to describe the color orange to a blind person .
they only believe what they believe is the correct way of viewing things and things can only play out as they see it ,.
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.
