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The Fed has a mandate to work towards and keeping a 2.00% inflation rate as measured by the real consumer price index. They have failed since that rate has been mandated to meet 2.00% inflation since then. Inflation this year only showing at .90% through July. If a cure to high inflation is to raise interest rates, then the opposite is true when you want inflation higher. This is not a surprise that the fed dropped rates and they may go lower those looking to refinance should be able to get in at 3.5% or lower if not now, soon. View Quote Not long ago 2% was the ceiling to stay under(the lower the better), then the "asymmetrical" target(once they could no longer control it in this credit environment), now it's the floor. As inflation rises they'll keep raising the "target". The whole thing has become a clown show but my 401K likes it, for now. |
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The mandate is to control inflation but not to keep it 2%+. Not long ago 2% was the ceiling to stay under(the lower the better), then the "asymmetrical" target(once they could no longer control it in this credit environment), now it's the floor. As inflation rises they'll keep raising the "target". The whole thing has become a clown show but my 401K likes it, for now. View Quote What are the Federal Reserve's objectives in conducting monetary policy? |
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I'm surprised the markets aren't up a bit. https://www.bloomberg.com/news/articles/2019-09-17/new-york-fed-announces-operation-to-ease-money-market-rates View Quote |
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At which point you take all your money out of the bank and stash it somewhere. No reason to pay the bank to hold more money than you need them to (and pay them for the privilege). View Quote |
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@DK-Prof @Admiral_Crunch Why are you guys surprised? Powel and most importantly the market has telegraphed the rate cut. View Quote View All Quotes View All Quotes Quoted:
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I am honestly surprised the Fed decided to do that. @Admiral_Crunch Why are you guys surprised? Powel and most importantly the market has telegraphed the rate cut. I am surprised that they decided to do it in the first place. |
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Quoted: I’m not surprised by the announcement (as you said, everyone knew this was coming). I am surprised that they decided to do it in the first place. View Quote |
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The Fed has a mandate to work towards and keeping a 2.00% inflation rate as measured by the real consumer price index. They have failed since that rate has been mandated to meet 2.00% inflation since then. Inflation this year only showing at .90% through July. If a cure to high inflation is to raise interest rates, then the opposite is true when you want inflation higher. This is not a surprise that the fed dropped rates and they may go lower those looking to refinance should be able to get in at 3.5% or lower if not now, soon. View Quote |
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Sure is nice that morgage ryes, auto loans, and credit card rates don’t go down.
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Quoted: Japan is a good study....they basically had the same thing we had in the 90s instead of the 2000s. We are just 10-20 years behind them....there are a tremendous amount a parallels to be drawn View Quote |
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It was doomed from the start. Trump has played the markets like a fiddle and the market buy every freaking tweet. Honestly it was funny at first but it’s almost sad now when you realize how easily the pros are manipulated. The Fed never pushed back hard enough from the start with all of this. Because of that, now all they can do is try and slow down the train with no brakes. View Quote View All Quotes View All Quotes Quoted:
Quoted: I’m not surprised by the announcement (as you said, everyone knew this was coming). I am surprised that they decided to do it in the first place. I'm going to have to disagree with you there. After Jerome Powel's speech and Trump's tweet the market barely registered a blip. 1 to 1.3% down and then corrected by the close nearly level or level with the open for the day on the Dow, Nasdaq etc. Didn't bother with the exact numbers because its nothing in the overall spectrum. My .02. Attached File |
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@midcap Do our differences matter? Immigration. Culture of accepting wide amounts of diversity including destructive behavior. Others? View Quote View All Quotes View All Quotes Quoted:
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Blame Trump for lowered interest rates and cheap money. Study Japan and the Japanese reaction. It's one reason why the Japanese have bought a lot of home safes and gold. We are just 10-20 years behind them....there are a tremendous amount a parallels to be drawn Do our differences matter? Immigration. Culture of accepting wide amounts of diversity including destructive behavior. Others? That's sort of uniquely american. Every where else, sure there are people out there that are the small minority that are like that, here...everyone wants to be a baller. |
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The biggest difference is that as Americans we like to show off and make bank. That's sort of uniquely american. Every where else, sure there are people out there that are the small minority that are like that, here...everyone wants to be a baller. View Quote View All Quotes View All Quotes Quoted:
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Blame Trump for lowered interest rates and cheap money. Study Japan and the Japanese reaction. It's one reason why the Japanese have bought a lot of home safes and gold. We are just 10-20 years behind them....there are a tremendous amount a parallels to be drawn Do our differences matter? Immigration. Culture of accepting wide amounts of diversity including destructive behavior. Others? That's sort of uniquely american. Every where else, sure there are people out there that are the small minority that are like that, here...everyone wants to be a baller. |
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You have a lot of good insights @midcap I'm curious do you think America could ever get to the point of the EU, Japan, etc... to have negative interest rates? View Quote View All Quotes View All Quotes Quoted:
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Blame Trump for lowered interest rates and cheap money. Study Japan and the Japanese reaction. It's one reason why the Japanese have bought a lot of home safes and gold. We are just 10-20 years behind them....there are a tremendous amount a parallels to be drawn Do our differences matter? Immigration. Culture of accepting wide amounts of diversity including destructive behavior. Others? That's sort of uniquely american. Every where else, sure there are people out there that are the small minority that are like that, here...everyone wants to be a baller. But you really need to see why our rates would go negative...that would mean that things are so bad, the Fed would want people to not buy treasuries and and buy riskier assets. it could happen...I am not sure if it will. I am also not sure why the Fed is even lowering rates right now. The Fed has two mandates...low unemployment and not letting inflation get out of hand. |
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For a dumb person who wants to buy some land, what's the consensus?
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It entirely depends.....keep in mind, that you could technically make money by buying a German Bund despite it being negative if the exchange rate goes into your favor. But you really need to see why our rates would go negative...that would mean that things are so bad, the Fed would want people to not buy treasuries and and buy riskier assets. it could happen...I am not sure if it will. I am also not sure why the Fed is even lowering rates right now. The Fed has two mandates...low unemployment and not letting inflation get out of hand. View Quote View All Quotes View All Quotes Quoted:
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Blame Trump for lowered interest rates and cheap money. Study Japan and the Japanese reaction. It's one reason why the Japanese have bought a lot of home safes and gold. We are just 10-20 years behind them....there are a tremendous amount a parallels to be drawn Do our differences matter? Immigration. Culture of accepting wide amounts of diversity including destructive behavior. Others? That's sort of uniquely american. Every where else, sure there are people out there that are the small minority that are like that, here...everyone wants to be a baller. But you really need to see why our rates would go negative...that would mean that things are so bad, the Fed would want people to not buy treasuries and and buy riskier assets. it could happen...I am not sure if it will. I am also not sure why the Fed is even lowering rates right now. The Fed has two mandates...low unemployment and not letting inflation get out of hand. One needs to research Forex and the global economy for longer than I care to know before thinking of currancy exchange for profit. And of course that brings up GOLD which may well be the Darling to save everyone's ass in the longterm. Once everyone has paid off everything and owes nothing other than utility bills and whatever medical insurance we end up with outside of medicare etc... |
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Good points there @midcap One needs to research Forex and the global economy for longer than I care to know before thinking of currancy exchange for profit. And of course that brings up GOLD which may well be the Darling to save everyone's ass in the longterm. Once everyone has paid off everything and owes nothing other than utility bills and whatever medical insurance we end up with outside of medicare etc... View Quote View All Quotes View All Quotes Quoted:
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Blame Trump for lowered interest rates and cheap money. Study Japan and the Japanese reaction. It's one reason why the Japanese have bought a lot of home safes and gold. We are just 10-20 years behind them....there are a tremendous amount a parallels to be drawn Do our differences matter? Immigration. Culture of accepting wide amounts of diversity including destructive behavior. Others? That's sort of uniquely american. Every where else, sure there are people out there that are the small minority that are like that, here...everyone wants to be a baller. But you really need to see why our rates would go negative...that would mean that things are so bad, the Fed would want people to not buy treasuries and and buy riskier assets. it could happen...I am not sure if it will. I am also not sure why the Fed is even lowering rates right now. The Fed has two mandates...low unemployment and not letting inflation get out of hand. One needs to research Forex and the global economy for longer than I care to know before thinking of currancy exchange for profit. And of course that brings up GOLD which may well be the Darling to save everyone's ass in the longterm. Once everyone has paid off everything and owes nothing other than utility bills and whatever medical insurance we end up with outside of medicare etc... The biggest question you have to ask yourself is that even when everything is paid off...you still have to worry about the local govt coming in and taking your property. Let's say our dollar goes to pot, and it's not worth much, I don't think the local goverments are just going to sit there and accept 50% on the tax dollar. They are going to raise taxes. |
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Gold has always been gold. so it has that going for it I suppose. The biggest question you have to ask yourself is that even when everything is paid off...you still have to worry about the local govt coming in and taking your property. Let's say our dollar goes to pot, and it's not worth much, I don't think the local goverments are just going to sit there and accept 50% on the tax dollar. They are going to raise taxes. View Quote View All Quotes View All Quotes Quoted:
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Blame Trump for lowered interest rates and cheap money. Study Japan and the Japanese reaction. It's one reason why the Japanese have bought a lot of home safes and gold. We are just 10-20 years behind them....there are a tremendous amount a parallels to be drawn Do our differences matter? Immigration. Culture of accepting wide amounts of diversity including destructive behavior. Others? That's sort of uniquely american. Every where else, sure there are people out there that are the small minority that are like that, here...everyone wants to be a baller. But you really need to see why our rates would go negative...that would mean that things are so bad, the Fed would want people to not buy treasuries and and buy riskier assets. it could happen...I am not sure if it will. I am also not sure why the Fed is even lowering rates right now. The Fed has two mandates...low unemployment and not letting inflation get out of hand. One needs to research Forex and the global economy for longer than I care to know before thinking of currancy exchange for profit. And of course that brings up GOLD which may well be the Darling to save everyone's ass in the longterm. Once everyone has paid off everything and owes nothing other than utility bills and whatever medical insurance we end up with outside of medicare etc... The biggest question you have to ask yourself is that even when everything is paid off...you still have to worry about the local govt coming in and taking your property. Let's say our dollar goes to pot, and it's not worth much, I don't think the local goverments are just going to sit there and accept 50% on the tax dollar. They are going to raise taxes. |
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St Louis president said it should have been a larger 0.5% cut.
https://www.stlouisfed.org/on-the-economy/2019/september/bullard-explains-recent-fomc-dissent |
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St Louis president said it should have been a larger 0.5% cut. https://www.stlouisfed.org/on-the-economy/2019/september/bullard-explains-recent-fomc-dissent View Quote Attached File |
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Quoted: why in god's name would we WANT higher inflation? View Quote 1. It’s not what “we” want, it’s what the Fed, or Government wants. 2. Cheaper dollar spurs exports. US made stuff becomes cheaper relative to other currencies. 3. Declining dollar value encourages borrowing and discourages saving. Both of which increase the all important velocity of money. 4. A low interest rate, cheap dollar, encourages speculative behavior. People throw money into houses, cars, the Market (it’s the only game in town) All of which juices the economy and also makes people feel richer, further encouraging more spending. The above has been going on for so long, and inflated everything so much, that they literally cannot stop, unless (or until) they want to see the whole thing come crashing down. |
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Can't answer that but I hope there is a revolution and the commies are gone. View Quote View All Quotes View All Quotes Quoted:
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Effects from the trade war. China devalued the yuan, this rate cut will just make it worse on them as their temporary export bump will be erased when money becomes cheaper to invest here. Don't know what will happen with export countries other than China. This is a trade war of value attrition and eventual inflation. I just wonder at what point does China's economy eventually comes off the rails? What they will do? Will they whimper into depression or lash out by going full communist Great Leap forward and start acting stupid regionally? |
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I'm not surprised by the announcement (as you said, everyone knew this was coming). I am surprised that they decided to do it in the first place. View Quote View All Quotes View All Quotes |
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Quoted: The biggest difference is that as Americans we like to show off and make bank. That's sort of uniquely american. Every where else, sure there are people out there that are the small minority that are like that, here...everyone wants to be a baller. View Quote a - French b - Italians c - Chinese d - Indians e - Jordanians f - Qatari g - Saudis h - Kuwaiti i - Russian j - Israeli k - Dubai anyone? I could go on. If you spent any time among urban populations, you will know that your statement is 100% inaccurate. |
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Quoted: why in god's name would we WANT higher inflation? View Quote While I disagree with his conclusions, Harry Dent does cover it in one of his demographic books, The Demographic Cliff. BTW, a long time ago Peter Schiff warned that once they go down the path of QE and NIRP, there's no turning back. It works until it won't work at which point you hyperinflate. |
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Quoted: You have a lot of good insights @midcap I'm curious do you think America could ever get to the point of the EU, Japan, etc... to have negative interest rates? View Quote |
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Amazing how the "greatest economy we have ever had" is utterly crippled by a 2% interest rate to the point where the POTUS is begging for negative rates and QE, compared to the 1980s and 1990s when rates were in the 7-10% range before moderating to the 5-6% range by the late 1990s.
Anyone who can't see we have an America bubble that will make 08 look like Child's play is kidding themselves. |
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Quoted: How does that happen when the peasants haven't got the MEANS to make the commies go away? View Quote In Romania, the police and the military fired into the unarmed crowd. The crowd still walked towards the muzzle. People were dropping left and right and the crowd finally reached the muzzles of the police and soldiers. At that point, the police and soldiers lost heart and could no longer shoot down their countrymen. At that point, it was over. I met a Romanian woman who was there. They were all younger people (late teens, early 20's) who figured out they had no future and thus nothing to lose. Remember the fall of Mubarak in Egypt? Unarmed crowd. About the best they had were lasers and they painted the helicopers with them. Remember Hong Kong. They're still protesting. Remember France? Guilet Juane (Yellow Vest) movement is still happening. Our news hasn't reported on it, but it's also spread to other European nations. Gonna be a lot of blood, but it can be done. |
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One of the Fed Chairs recently said the Fed should do everything it can to ensure that Trump isn't reelected. If that isn't biased, I don't know what is.
End the Fed. |
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Remember the fall of the Soviet Union? When the police could no longer control the masses the Army was called out. The Army refused to leave the barracks. The government knew it was over. In Romania, the police and the military fired into the unarmed crowd. The crowd still walked towards the muzzle. People were dropping left and right and the crowd finally reached the muzzles of the police and soldiers. At that point, the police and soldiers lost heart and could no longer shoot down their countrymen. At that point, it was over. I met a Romanian woman who was there. They were all younger people (late teens, early 20's) who figured out they had no future and thus nothing to lose. Remember the fall of Mubarak in Egypt? Unarmed crowd. About the best they had were lasers and they painted the helicopers with them. Remember Hong Kong. They're still protesting. Remember France? Guilet Juane (Yellow Vest) movement is still happening. Our news hasn't reported on it, but it's also spread to other European nations. Gonna be a lot of blood, but it can be done. View Quote View All Quotes View All Quotes Quoted:
Quoted: How does that happen when the peasants haven't got the MEANS to make the commies go away? In Romania, the police and the military fired into the unarmed crowd. The crowd still walked towards the muzzle. People were dropping left and right and the crowd finally reached the muzzles of the police and soldiers. At that point, the police and soldiers lost heart and could no longer shoot down their countrymen. At that point, it was over. I met a Romanian woman who was there. They were all younger people (late teens, early 20's) who figured out they had no future and thus nothing to lose. Remember the fall of Mubarak in Egypt? Unarmed crowd. About the best they had were lasers and they painted the helicopers with them. Remember Hong Kong. They're still protesting. Remember France? Guilet Juane (Yellow Vest) movement is still happening. Our news hasn't reported on it, but it's also spread to other European nations. Gonna be a lot of blood, but it can be done. I'd say they lean more towards socialism than not. |
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Quoted: Yellow Vests are not exactly pro-freedom / market. I'd say they lean more towards socialism than not. View Quote |
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Yellow Vest is a coalition of left and right which united together against the gas tax increase and later globalism. It is anti-Macron. If you're getting your information from the MSM including Faux, you're being lied to. View Quote View All Quotes View All Quotes Quoted:
Quoted: Yellow Vests are not exactly pro-freedom / market. I'd say they lean more towards socialism than not. PARIS—The French government is weighing whether to reinstate a wealth tax, a key demand of yellow vest protesters who accuse President Emmanuel Macron of favoring the rich over the working class. So, that is propaganda? |
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Quoted: https://www.wsj.com/articles/france-could-keep-wealth-tax-in-bid-to-placate-yellow-vests-1544025588 So, that is propaganda? View Quote |
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You know Rupert Murdoch owns the WSJ, don't you? View Quote View All Quotes View All Quotes Quoted:
Quoted: https://www.wsj.com/articles/france-could-keep-wealth-tax-in-bid-to-placate-yellow-vests-1544025588 So, that is propaganda? Post some of the sources then to use. |
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Welcome to an economy that is predicated on financial idiocy. Gotta keep enabling financial retards to make retarded financial decisions with borrowed money, otherwise those consumer spending numbers aren't gonna be pretty... God forbid we discourage reckless borrowing on the personal and governmental levels via higher interest rates. View Quote Using other people's money to buy depreciating items is for fools. But most people are fools with money.... |
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Quoted: Lol Post some of the sources then to use. View Quote Suggest you go find some independent news source on U-tube. Follow the financial news instead. My point behind mentioning GJ is that tyrannies can be overthrown. The people must want it enough and be willing to sacrifice. Here in estados unidos there is pretty much a blackout about it. But we don't have to turn to Europe for examples of the people pushing back. That brief moment at the Bundy Ranch where the cowboys stood off against federal agents is another good example. We learned afterwards it was all about Hairy Reed trying to get land for a Chinese solar project. I'm glad the Feds backed down and avoided Concord/Lexington Pas Deux. It did make the statists more desperate to disarm the deplorables. On the lesser scale, the election of Trump was a rejection of establishment politicians. Neither party wanted hi and nothing has changed since his ascendancy to the presidency. Both still want him out. After all, there is only one party but it has two faces like a coin; obverse and reverse. Just like the Fourth Estate with its controlled opposition. |
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