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Old 07-11-2019, 07:59 PM
 
826 posts, read 483,991 times
Reputation: 1253

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Quote:
Originally Posted by Hopelesscause View Post
Yep, it defies all common logic. Low unemployment, low inflation = rate cut! Nothing makes sense anymore.
It makes perfect sense if you know that everything is a lie, fake and phony. Unemployment numbers are joke, inflation numbers are fake.....look at the housing prices in the last 8 years for example.
Low inflation......I don’t think so.

I thought and hope Powell would continue to unwind the balance sheet. He lost his nerve - maybe. Let his actions tell us. He NEEDS to unwind the balance sheet, destroy debt, strengthen the Dollar, bring on the deflation that the Bernanke FED subverted by spending money from the future to trick (delay) DEFLATION.

These clowns at the FED only managed to delay or postpone DEFLATION. They haven’t fixed anything. Perpetual growth? That is an illusion and philosophical folly. Good Luck ��
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Old 07-11-2019, 08:17 PM
 
826 posts, read 483,991 times
Reputation: 1253
Quote:
Originally Posted by heart84 View Post
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.
The FED was created to try to avoid deflation. So the FED failed, in that they are tasked with the impossible task. Deflation cannot be avoided- only endured. The FED failed from the beginning. Resisting Deflation is doomed to fail. Encourage expansion; then encourage contraction (and saving, and debt-elimination, and support the currency, and crush prices so people can afford to live again).
The FED works for the banks and the corporations. They were hired by the banks and the corporations to avoid deflation and preserve their riches. But they cannot do it.

We won't get a restart until we unload our debt. Deflation is a REQUIREMENT. Deflation means a lot of suffering for everyone. It has a bright side, when driven or accompanied by higher interest rates;
DESTROYS DEBT for next Business Cycle (2019-20???)
ENCOURAGES SAVING (which funds reflation, the first stage of the Business Cycle).
STRENGTHENS THE LOCAL CURRENCY. We really don't want our currency to be destroyed.
DESTROYS PRICE INFLATION (housing, education, health care, transportation).

We NEED higher interest rates. The economy will not expand with the kind of debt-load we are carrying. But politicians cannot admit to themselves or their voters that darkness - deflation - economic death is necessary and inevitable. Can you imagine what the "other" party would say to that? VOTE FOR US, WE'LL BRING BACK THE GOOD TIMES FOR YOU!

Good Luck ��
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Old 07-11-2019, 08:21 PM
 
1,116 posts, read 232,010 times
Reputation: 1673
Powell could actually be playing Trump now. Trump is demanding lower rates and a weaker dollar (and trashing Powell along the way). So if the Fed does lower rates at the end of July, and bad times come before the 2020 election (as I am predicting they will), the Fed won't have enough ammunition left to stave off those bad times. All the blame is then placed on Trump for crying about lowering rates with a record market and "solid" employment numbers. Trump has set himself up to be the ultimate scapegoat for when the bad times come.

Personally I think it is absolutely absurd if the Fed cuts rates at the end of July given where the markets and employment numbers are currently. Really reckless and the suggestion that negative rates are good is even more reckless by people like Lagarde. There is no way out for these central banks.
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Old 07-11-2019, 08:57 PM
 
826 posts, read 483,991 times
Reputation: 1253
Quote:
Originally Posted by heart84 View Post
Powell could actually be playing Trump now. Trump is demanding lower rates and a weaker dollar (and trashing Powell along the way). So if the Fed does lower rates at the end of July, and bad times come before the 2020 election (as I am predicting they will), the Fed won't have enough ammunition left to stave off those bad times. All the blame is then placed on Trump for crying about lowering rates with a record market and "solid" employment numbers. Trump has set himself up to be the ultimate scapegoat for when the bad times come.

Personally I think it is absolutely absurd if the Fed cuts rates at the end of July given where the markets and employment numbers are currently. Really reckless and the suggestion that negative rates are good is even more reckless by people like Lagarde. There is no way out for these central banks.
The President wants prosperity always. They all do. All politicians want low rates, easy borrowing, and prosperous citizens. Of course, it's not so simple. Low rates forever doesn't work. As we are learning now. The FED chair (Powell) needs to do what is needed by the economy and the country -- damn the public and damn the president.

As I mentioned earlier the Central Bank was created to AVOID DEFLATONS even though they are built-in. DEFLATIONS (economic "rest cycles") are regenerative and useful. But they are politically negative and used against the party in power (the opposing party promises "perpetual growth" and blames the opposite party for what is essentially nature's law -- "for every inflation there is an equal and opposite deflation".
Central banks' Job is to "avoid the appearances of economic depression". How do they do this? They find creative/destructive ways of stealing money from the future to spend today. That is what QE is all about, the illusion of growth without the benefits of deflation. Appearances matter, especially where voters are concerned.

Our leaders have chosen to perpetuate debt slavery instead of deflation. But this only delays the moment of decision. Do we go through the deflation/depression when bankruptcy hits the populace or do we have a debt-forgiveness party and watch the banking system collapse as a result?

Good Luck 👍
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Old 07-11-2019, 11:56 PM
 
Location: Olympus Mons, Mars
5,691 posts, read 8,599,419 times
Reputation: 5786
the PARTAY is on, aka Fed Powell Palooza (credit: CNBC for this term ), Dow and S&P 500 futures pointing UP, close above 3000 most likely tomorrow...
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Old Yesterday, 02:15 AM
 
71,584 posts, read 71,730,589 times
Reputation: 49184
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 am still waiting to hear how you know a thing about me , and are able to tell me i was a failure in 2008 ?
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Old Yesterday, 02:16 AM
 
71,584 posts, read 71,730,589 times
Reputation: 49184
Quote:
Originally Posted by C2BP View Post
The FED was created to try to avoid deflation. So the FED failed, in that they are tasked with the impossible task. Deflation cannot be avoided- only endured. The FED failed from the beginning. Resisting Deflation is doomed to fail. Encourage expansion; then encourage contraction (and saving, and debt-elimination, and support the currency, and crush prices so people can afford to live again).
The FED works for the banks and the corporations. They were hired by the banks and the corporations to avoid deflation and preserve their riches. But they cannot do it.

We won't get a restart until we unload our debt. Deflation is a REQUIREMENT. Deflation means a lot of suffering for everyone. It has a bright side, when driven or accompanied by higher interest rates;
DESTROYS DEBT for next Business Cycle (2019-20???)
ENCOURAGES SAVING (which funds reflation, the first stage of the Business Cycle).
STRENGTHENS THE LOCAL CURRENCY. We really don't want our currency to be destroyed.
DESTROYS PRICE INFLATION (housing, education, health care, transportation).

We NEED higher interest rates. The economy will not expand with the kind of debt-load we are carrying. But politicians cannot admit to themselves or their voters that darkness - deflation - economic death is necessary and inevitable. Can you imagine what the "other" party would say to that? VOTE FOR US, WE'LL BRING BACK THE GOOD TIMES FOR YOU!

Good Luck ��
so far the only thing doomed to fail seems to be all your predictions . WE HAVE BEEN HEARING THE SAME OLD ANTI FED STUFF FOR YEARS

Last edited by mathjak107; Yesterday at 02:59 AM..
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Old Yesterday, 02:23 AM
 
Location: California
30,701 posts, read 33,473,253 times
Reputation: 26124
No!!!! There's no call for it.
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Old Yesterday, 05:23 AM
 
Location: Central CT, sometimes NH.
3,476 posts, read 5,146,483 times
Reputation: 3532
These rate cuts are illusionary bandaids and the greatest impact has been on keeping mortgages low and stock prices higher. As far as true business investment and expansion its impact has not been impressive. Most businesses are able to get loans in the 5% range (Libor +2.5% to 3%). If a business cannot put together a business plan to expand with a cost of borrowing that low then perhaps they don't have a quality business and their longterm business is not sustainable.

There has been a lot of junk propped up by low funds. A quality product or service will generate double digit growth in its growth stage and should be able generate revenue to more than handle a 5% cost of funds. The same holds true for the consumer end. If the housing market collapses when mortgages top 5% and employers cannot handle paying employees a 3% annual raise in a full employment environment then there is a problem with employment beyond the Fed Funds Rate.
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Old Yesterday, 06:52 AM
 
71,584 posts, read 71,730,589 times
Reputation: 49184
corporations have record levels of their own cash , many don't even need loans .
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