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Old 07-11-2019, 09:17 AM
 
823 posts, read 483,991 times
Reputation: 1247

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Quote:
Originally Posted by lieqiang View Post
This is pretty funny.

1. You literally spent years generating threads about how the recession was a lie since based on zero interest rates and debt, if interest rates ever rose it the house of cards would come crashing down.

2. Fed then raised rates 9 times without the economy crashing as you predicted, and your regularly scheduled rants grew noticeably less frequent and vociferous.

3. Now you're back saying rate cuts are coming so that must mean we are heading into a recession (you know, the thing you previously claimed we never left) so now it's the rate cuts that are the harbinger of doom.

Rates rising? End of days! Rate cuts? End of days!
In what delusional fantasy world do you live Lieqiang? Fed failed to normalize interest rates. That means this entire experiment since 2001 has failed. They can NEVER normalize interest rates. If FED continued raisin interest rates in March, April, May and June, as they should, this entire Zombie Economy would collapse by now. Housing market bubble canít handle 5% mortgage interest rates.

We NEED a strong currency. We need to reduce the debt bubble, globally. We NEED to reward savers, not just speculators. The mass of Americans are savers; speculators are a tiny minority.

Artificially low interest rates protects BAD DEBT. Is that what we need? This repression of interest rates does not allow deflation to do its job. Central Bankers have been repressing deflation since 2001. ZOMBIE CREATION. Deflation is a force of evolution. Companies that can't compete during difficult times need to fail. That is how evolution works.

But ZIRP is designed to reward debt and punish saving. Modern monetary policy views saving as negative -- money is NOT being funneled into the economy, but withdrawn from the economy. What MMP does not recognize is that both sides of the coin must be expressed, survived, endured. They believe, apparently, that loading the markets to favor growth will defeat deflation. This is an illusion. Like Day and Night, both sides of the coin are needed. MMP sees only the negative side of deflation and only the positive side of inflation -- philosophically and psychologically, this is one-sided, and delusive.

The FED promised that we could have everything, and growth perpetually. That was a lie, or at least it was wrong. We have too much debt, debt that will need to be paid off (unlikely) or which will end in default (very likely). What does massive default imply? Deflation. We have put it off, delayed it, by ZIRP; but delaying deflation is NOT inspiring Growth. Growth (Inflaton) flows out of Deflation; and Deflation flows out of Inflation (Growth). That is a Law of Nature.

Good Luck!
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Old 07-11-2019, 09:20 AM
 
823 posts, read 483,991 times
Reputation: 1247
Quote:
Originally Posted by mathjak107 View Post
you are letting facts get in the way of these good story lines ...... perhaps he should work for cnbc ...they can't get their headlines correct either .
What do you know about facts? Your entire financial life success is based on this Fed manipulation and propping up financial markets. If it was up to you and your own intelligence level you would be a failure as you were back in 2008. Good luck.
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Old 07-11-2019, 09:21 AM
 
2,736 posts, read 1,754,976 times
Reputation: 5962
Quote:
Originally Posted by C2BP View Post
In what delusional fantasy world do you live Lieqiang? Fed failed to normalize interest rates. That means this entire experiment since 2001 has failed. They can NEVER normalize interest rates. If FED continued raisin interest rates in March, April, May and June, as they should, this entire Zombie Economy would collapse by now. Housing market bubble canít handle 5% mortgage interest rates.

We NEED a strong currency. We need to reduce the debt bubble, globally. We NEED to reward savers, not just speculators. The mass of Americans are savers; speculators are a tiny minority.

Artificially low interest rates protects BAD DEBT. Is that what we need? This repression of interest rates does not allow deflation to do its job. Central Bankers have been repressing deflation since 2001. ZOMBIE CREATION. Deflation is a force of evolution. Companies that can't compete during difficult times need to fail. That is how evolution works.

But ZIRP is designed to reward debt and punish saving. Modern monetary policy views saving as negative -- money is NOT being funneled into the economy, but withdrawn from the economy. What MMP does not recognize is that both sides of the coin must be expressed, survived, endured. They believe, apparently, that loading the markets to favor growth will defeat deflation. This is an illusion. Like Day and Night, both sides of the coin are needed. MMP sees only the negative side of deflation and only the positive side of inflation -- philosophically and psychologically, this is one-sided, and delusive.

The FED promised that we could have everything, and growth perpetually. That was a lie, or at least it was wrong. We have too much debt, debt that will need to be paid off (unlikely) or which will end in default (very likely). What does massive default imply? Deflation. We have put it off, delayed it, by ZIRP; but delaying deflation is NOT inspiring Growth. Growth (Inflaton) flows out of Deflation; and Deflation flows out of Inflation (Growth). That is a Law of Nature.

Good Luck!
There we go. Thatís more like it.
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Old 07-11-2019, 09:23 AM
 
823 posts, read 483,991 times
Reputation: 1247
Quote:
Originally Posted by BigCityDreamer View Post
Rate cut = stock market goes higher

Sounds good to me.
Do we need the FED to protect and prop up the stock market with low interest rates? No, we do not. We play both sides of the market (LONG and SHORT). When stocks fall we can make money on the SHORT side. When stocks rise, we can make money on the LONG side. We do not need the FED protecting investors. If the Strong Dollar CRUNCHES markets, we will be able to respond.
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Old 07-11-2019, 09:24 AM
 
5,443 posts, read 2,013,160 times
Reputation: 6897
3 month Treas bonds are currently yielding 2.20%
Treas bonds between 1 and 7 years are below 2%, the 3 year is only 1.79%


Of course this is backwards, normally the longer the period the higher the rate. The lower rates for 1 to 7 years can only happen because of high demand at auction for intermediate term bonds. There must be a lot of professional investor pessimism about the 2020 to 2026 time period. They are hedging their bets and protecting capital.
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Old 07-11-2019, 10:09 AM
 
71,563 posts, read 71,730,589 times
Reputation: 49156
Quote:
Originally Posted by C2BP View Post
What do you know about facts? Your entire financial life success is based on this Fed manipulation and propping up financial markets. If it was up to you and your own intelligence level you would be a failure as you were back in 2008. Good luck.
I was a failure in 2008 ? You don’t know a thing about me do you ... but I guess I can just say it matches your endless predictions and what you think you know
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Old 07-11-2019, 01:12 PM
 
Location: On the road
5,940 posts, read 2,893,129 times
Reputation: 11381
Quote:
Originally Posted by C2BP View Post
In what delusional fantasy world do you live Lieqiang? Fed failed to normalize interest rates. That means this entire experiment since 2001 has failed. They can NEVER normalize interest rates
The goal posts have been moved. Now we're focusing on "normalizing" (as in meeting some nebulous term only you can customize later) instead of "raising rates" as before.





Quote:
Originally Posted by C2BP View Post
If FED continued raisin interest rates in March, April, May and June, as they should, this entire Zombie Economy would collapse by now.
So when you said if they raised rates it would collapse you didn't mean 9 times, you actually meant +4 = 13 times then they meet your super secret conditions for rate rises triggering collapse. Gotcha.


Quote:
Originally Posted by C2BP View Post
The FED promised that we could have everything, and growth perpetually.
The FED has never promised anything of the sort, you're attributing your own hyperbole to them in order to attack it and claim it unreachable later.
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Old 07-11-2019, 05:41 PM
 
1,114 posts, read 232,010 times
Reputation: 1669
Quote:
Originally Posted by C2BP View Post
That is their way of telling us we are heading into recession? Rate cuts are coming so we can have MORE asset bubbles and take on MORE debt. No question the global economy is a mess. And MORE debt will make it more of a mess.

See how bizarre the world has become. Central Banks fear a meltdown so they are bankrupting us slowly. BITING THE BULLET is not in their vocabulary. We will all pay for this, if not us, then our children. Good Luck!!

All central banks know is the encouragement of more debt. Record low interest rates weren't the answer, so now they say negative rates are the answer. LOL

It will all end badly for the average person. And once people start to lose confidence in central banks and their bag of magic tricks.....the game is up.
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Old 07-11-2019, 07:13 PM
 
8,314 posts, read 9,076,885 times
Reputation: 6683
Quote:
Originally Posted by C2BP View Post
In what delusional fantasy world do you live Lieqiang? Fed failed to normalize interest rates. That means this entire experiment since 2001 has failed. They can NEVER normalize interest rates. If FED continued raisin interest rates in March, April, May and June, as they should, this entire Zombie Economy would collapse by now. Housing market bubble canít handle 5% mortgage interest rates.

We NEED a strong currency. We need to reduce the debt bubble, globally. We NEED to reward savers, not just speculators. The mass of Americans are savers; speculators are a tiny minority.

Artificially low interest rates protects BAD DEBT. Is that what we need? This repression of interest rates does not allow deflation to do its job. Central Bankers have been repressing deflation since 2001. ZOMBIE CREATION. Deflation is a force of evolution. Companies that can't compete during difficult times need to fail. That is how evolution works.

But ZIRP is designed to reward debt and punish saving. Modern monetary policy views saving as negative -- money is NOT being funneled into the economy, but withdrawn from the economy. What MMP does not recognize is that both sides of the coin must be expressed, survived, endured. They believe, apparently, that loading the markets to favor growth will defeat deflation. This is an illusion. Like Day and Night, both sides of the coin are needed. MMP sees only the negative side of deflation and only the positive side of inflation -- philosophically and psychologically, this is one-sided, and delusive.

The FED promised that we could have everything, and growth perpetually. That was a lie, or at least it was wrong. We have too much debt, debt that will need to be paid off (unlikely) or which will end in default (very likely). What does massive default imply? Deflation. We have put it off, delayed it, by ZIRP; but delaying deflation is NOT inspiring Growth. Growth (Inflaton) flows out of Deflation; and Deflation flows out of Inflation (Growth). That is a Law of Nature.

Good Luck!
That's just embarrassing.
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Old 07-11-2019, 07:48 PM
 
823 posts, read 483,991 times
Reputation: 1247
Quote:
Originally Posted by lieqiang View Post
The goal posts have been moved. Now we're focusing on "normalizing" (as in meeting some nebulous term only you can customize later) instead of "raising rates" as before.






So when you said if they raised rates it would collapse you didn't mean 9 times, you actually meant +4 = 13 times then they meet your super secret conditions for rate rises triggering collapse. Gotcha.


The FED has never promised anything of the sort, you're attributing your own hyperbole to them in order to attack it and claim it unreachable later.
The Fed experiment has failed!!!! Wake up Lieqiang. Our leaders have not been honest with us. There has never been any real economic recovery or economic growth since 2001. We have massive debt globally. We did not do our job since 2001, which is to raise rates, cut prices (housing, education, health care, food, cars...), strengthen the Dollar, and reward SAVING.

Because of the FED's "creativity" in tricking deflation from 2001-2019 we now have none of the blessings of deflation: housing is unaffordable, as is health-care, education, transportation....and we don't have savings to funnel into a new bull market in stocks. We have record debt; and we are being forced to keep interest rates near zero to protect the banks from the onslaught of default and bankruptcy and bank default.

The FED has painted us into the corner. They thought they were saving us from discomfort. But they only delayed it.
INFLATION (GROWTH) for certain number of yours then DEFLATION (CONTRACTION) for certain number of years. That is the Law.
For Every Inflation there is an equal and opposite DEFLATION. That is a basic law of nature. (Cannot trick you way out of it.)


Good Luck :-)👍
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