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The FED has been the problem. Now the FED is trying to make up for the 2001-2015 FED. The FED has been weakening the dollar for so many years to support the global markets that it has been almost euthanized. FED UNWIND is destroying Dollars in FED balance sheet, which strengthens the dollar.
Some people will argue that low interest rates are ALWAYS good. This is nonsense. High rates limit debt - and too much debt is bearish economically. High rates provide life-support for local currency, and support the SAVING CYCLE and save our banks. High rates force down prices of manufactured inflation bubbles, that force people to live in the streets and will eventually lead to civil war.
The markets are not everything. Our myopia for low-rates = stock gains misses many larger pictures, including inflated prices which are killing the world that has to pay for and does not own manufactured goods.
We NEED higher rates cyclically, even if they hurt stocks. We DEFINITELY need the FED unwind, not matter what it does to Global Markets - the Weak Dollar seeds the Global Economy; the Strong Dollar harvests the Global Economy - we need both -we need to develop a farmer's eye for understanding how nature works -- we are also nature.
One can make money in a BULL MARKET and in a BEAR MARKET. We will revitalize our economy only by lowering debt and lowering prices and the only way to do that is by deflating the global economy, which should grow cyclically and deflate cyclically. A FED that tries to FIX the system in the PERPETUAL GROWTH position is a mistake of hubris and unwise.
so far the fed has done very good job navigating us . trillions of dollars injected in to the economy have made things a whole lot less bad , we have had no 1929 style depression , inflation is low and the economy is growing and so far we have not become a japan .
you and your idea the country needs this deflation /depression cycle is nuts and the worst that can happen to us . .
so far the fed has done very good job navigating us . trillions of dollars injected in to the economy have made things a whole lot less bad , we have had no 1929 style depression , inflation is low and the economy is growing and so far we have not become a japan .
you and your idea the country needs this deflation /depression cycle is nuts and the worst that can happen to us . .
The CRAZY FED (Greenspan, Bernanke and Yellen) destroyed America and they increased the gap between the rich and the poor 10-fold. Think about it? Whom does 0% interest rates help make even richer? The poor class which is already maxed out in loans - or the top 1% with all kinds of collateral to get MORE LOANS?
But, now we have Jerome Powell who is the first SOBER FED CHAIR we have had since PAUL VOLCKER.
Saving the Dollar is the number one job of the FED today. A stronger Dollar makes Americans richer. A weak Dollar allows foreigners to buy American Assets (houses, for instance) on the cheap. A stronger Dollar will allow Americans holding dollars to buy foreign assets on the cheap (businesses, homes, property). I do not believe in a strong Dollar perpetually - but it is necessary NOW. It WILL deflate the world economy brick by brick - and it will cause much pain - I don't wish for this - but, in the long run, it will reduce debt and prepare for the next Global Economy.
NOTHING grows perpetually Mathjack. Watch Nature. FED UNWIND of the Bernanke Bubble has just begun, and has a loooooooooooooooong way to go.
Good Luck and God Bless our new Fed Chief Powell. I'm sure you will like him like the other three stooges I mentioned above . Even if Powell brings deflation and depression to the world, you will still like him and the Fed right? I expect you to defend the Fed until the end...lol
By the way, since 2016 our government policy regarding US national debt has changed little that I can see. If the current administration does not do something then it will be no better than the previous administration in this respect.
By the way, since 2016 our government policy regarding US national debt has changed little that I can see. If the current administration does not do something then it will be no better than the previous administration in this respect.
All governments WANT to be able to point to NO INFLATION so they can keep Interest Rates low and spur economic "growth" with borrowing. No government wants to be the bad guy who address inflation with higher rates. Higher rates mean you won't get re-elected. Voters always seem to want the guy who promises "good times" even if it is a lie.
Obama knew NOTHING about economics. Because of this, he turned everything over to the "experts" (Bernanke, Paulson and L'il Timmy Geithner). Obama SHOULD have known something about economics; I think Obama's specialty was "social justice".
America voted Obama in because he promised CHANGE. He could have dismantled the TRUSTS like Teddy Roosevelt did; instead, like Bill Clinton before him, he joined the country club.
Obama was graceful, articulate, thoughtful, charming. He was not a leader; he was a manager.
What is a leader? Is he the guy who gets everyone in a room, writes down everyone's opinion, tries to find common ground, manages the group consensus, comes up with a plan everyone can live with? No, that is a consensus manager. A leader takes a country often where it does not want to go, but where it needs to go. A leader leads, it does not follow group consensus. It does not follow polls and campaign strategists. Real leaders strap the world on their back and carry the world into the future, often when the world is screaming and accusing and demanding attention, fearful of going forward, not certain what "forward" is or means. Great leaders go alone where they need to go. People have to learn to follow again. They have grown accustomed to listening to their own opinions and thinking leadership is just talking.
All governments WANT to be able to point to NO INFLATION so they can keep Interest Rates low and spur economic "growth" with borrowing.
False. Some inflation is healthy and USA has a target inflation rate above 0%.
Quote:
Originally Posted by C2BP
The CRAZY FED (Greenspan, Bernanke and Yellen) destroyed America
Hyperbole meter off the charts. de·stroy dəˈstroi verb = put an end to the existence of (something) by damaging or attacking it.
I'll go out on a limb and bet you're sleeping in America in a climate controlled environment in a soft bed with a full belly, just like everyone else posting on this forum.
Quote:
Originally Posted by C2BP
Whom does 0% interest rates help make even richer? The poor class which is already maxed out in loans - or the top 1% with all kinds of collateral to get MORE LOANS?
Go ask a lower income person who has a job because low interest rates kept capital moving and businesses operating.
I just want to point out that the national debt doubled under Obama’s watch.
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. Even if Powell brings deflation and depression to the world, you will still like him and the Fed right? I expect you to defend the Fed until the end...lol 