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Old 06-25-2008, 12:46 PM
 
717 posts, read 629,398 times
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Who agrees with the FED not moving interest rates?

I do not agree. It is time to start fighting inflation.
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Old 06-25-2008, 01:22 PM
 
Location: Apple Valley Calif
7,474 posts, read 20,668,994 times
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Quote:
Originally Posted by AJGIANTS View Post
Who agrees with the FED not moving interest rates?

I do not agree. It is time to start fighting inflation.
What are you recommending they do? Which way do you want them to go?They should be raising the interest rate, which they indicate they will do next time.
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Old 06-25-2008, 01:31 PM
 
717 posts, read 629,398 times
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Quote:
Originally Posted by Donn2390 View Post
What are you recommending they do? Which way do you want them to go?They should be raising the interest rate, which they indicate they will do next time.
yes, I wanted a quarter raise. Im no expert but the way I see it inflation, due to fuel costs, is becoming a drag on the economy.
You have to start fighting it now- there is every indication inflation is becoming a problem. If they wait too long to fight it it will be too late.
Next meeting they must raise rates.
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Old 06-25-2008, 01:51 PM
 
Location: Texas
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I bet they wont. That being said, Bernanke needs to pull a Volker and jack them things up sky high while the dollar can still be saved.
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Old 06-25-2008, 02:12 PM
 
Location: Charlotte, NC
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I vote for a rate increase, too. I know they say that inflation is only at a 3% annual rate but that's on the consumer end. My company is a manufacturer and we're getting hit HARD with inflation--there will be a ton of price increases to retailers throughout the year and eventually this will need to be passed on to consumers. Additionally, the falling dollar is of course of great concern.
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Old 06-25-2008, 09:29 PM
 
Location: Heartland Florida
9,324 posts, read 24,253,912 times
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If they do not raise rates, who will buy their "securities" anymore? Once investors give up on the dollar, I think it will take enormous rate hikes to bring back confidence in the dollar. I doubt they will do it as inflation benefits the central bankers too much.
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Old 06-25-2008, 11:53 PM
 
655 posts, read 756,887 times
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I would like to see a gradual 2-2.5% increase over the next 18 months. Plus all my resources is sittin in cash at the moment and I need some interest
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Old 06-26-2008, 12:10 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
24,540 posts, read 42,159,088 times
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Quote:
Originally Posted by tallrick View Post
If they do not raise rates, who will buy their "securities" anymore? Once investors give up on the dollar, I think it will take enormous rate hikes to bring back confidence in the dollar. I doubt they will do it as inflation benefits the central bankers too much.
I think we (US) shot ourselves in the foot on gaining the confidence of investors... ( Enron, Worldcom, sub-prime, and now LOW returns + huge 'spread' making banks lots of dough).

Ben has his hands full, not sure there is a silver bullet, or maybe us 'retiree's (fixed income) will take the hit. I wonder what the US has as a 'value' to get our trade deficit improving. Foreign Direct Investment may come back if China government messes up, but... They are playing a pretty straight game at the moment, the Olympics offer them a great 'promotional' if they get it right. Maybe we need to upset our own apple cart and have some other countries come 'help-us-out'. I'm afraid its going to take a crisis of some type.
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Old 06-26-2008, 04:37 AM
 
Location: western East Roman Empire
7,387 posts, read 11,210,649 times
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Interest rates have been way too low for the last six or so years, and the result has been a massive mis-allocation of resources in the domestic economy and utter confusion in the dollar's functioning as a unit of account and store of value.

No, it's not too late, the US economy still has solid underlying fundamentals, and the potential to bring them to full force, but if we have another four years of suicidal monetary policy, with suicidal fiscal policy on top of that, then it may well be.

By the naked eye, so to speak, I estimate that an equilibrium short-term interest rate for domestic economy should have been around 5%-6% and long-term rate around 7%-8%.

As it stands, to correct the current imbalances, and with real inflation around 10%-12%, interest rates would need to be in that range for about a year or two for a quick, albeit painful, fix, or in the 6%-8% range for at least two-four years for a more gradual approach.

Fat chance in an election year, but the biggest concern is that neither of the top two candidates have hinted that they have any notion of how the US's suicidal monetary policy has devastated the domestic economy. They have no clue.

Good luck dodging high inflation, and maybe the tax man on top of that.

There is no hope for a solution in the next four years, but it may be possible to minimize the damage.

Be careful about how you pull that lever: to be sure, vote in the interest of self-defense first, but where possible vote in the interest of sound money for all.

Last edited by bale002; 06-26-2008 at 05:22 AM..
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Old 06-26-2008, 06:26 AM
 
Location: Charlotte, NC (in my mind)
7,946 posts, read 15,390,015 times
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If the Fed would have raised rates, oil would have tanked yesterday, but now it is rising again because of a lower dollar. Ben thinks housing is the biggest issue to the economy and it isn't by far. The falling dollar and oil prices are CRIPPLING this country.
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