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Fed funds rate was 14% in the late 70’s early 80’s to battle inflation.

Posted on 4/15/22 at 7:52 am
Posted by Bass Tiger
Member since Oct 2014
48778 posts
Posted on 4/15/22 at 7:52 am
Those double digit Fed funds rate were historically high in the inflationary and eventually stagflation period following the Vietnam war and the cessation of a gold backed USD. I’m not sure but I believe total US government debt was less than a trillion dollars in 1980.

If interest rates climbed into double digits to curb inflation in the late 70’s/80’s where the hell are we heading with 30 trillion in government debt on the books?
Posted by loogaroo
Welsh
Member since Dec 2005
33696 posts
Posted on 4/15/22 at 7:54 am to
Hold on to your britches.
Posted by LuckyTiger
Someone's Alter
Member since Dec 2008
47098 posts
Posted on 4/15/22 at 7:54 am to
Say goodbye to the American Dream.

It was a good run. Sad the way it’s going to end.
Posted by theunknownknight
Baton Rouge
Member since Sep 2005
58337 posts
Posted on 4/15/22 at 7:54 am to
it all makes sense when you realize that elites are crashing the dollar on purpose because they are positioned globally to get super rich from it at this point

as well as opening a huge opportunity for a power grab for the America they rebuild in their image
Posted by Bunk Moreland
Member since Dec 2010
57834 posts
Posted on 4/15/22 at 7:59 am to
I read some of the libertarian/goldbug type sites and I know it is in their nature to push precious metals. But, there is some good analysis on those sites and they have gone full tilt lately with dozens of pieces about how the western sanctions on Russia are totally insane and going to destroy the dollar.

I understand all of the WEF stuff, but I wonder if the neocons are carrying out their orders or are too dumb to understand their policies are going to destroy us.
This post was edited on 4/15/22 at 8:00 am
Posted by stout
Porte du Lafitte
Member since Sep 2006
171255 posts
Posted on 4/15/22 at 8:01 am to
If you didn't own shite before you will never own anything now. Sucks for those people
Posted by NC_Tigah
Member since Sep 2003
126479 posts
Posted on 4/15/22 at 8:05 am to
quote:

Fed funds rate was 14% in the late 70’s early 80’s to battle inflation.
Posted by loogaroo
Welsh
Member since Dec 2005
33696 posts
Posted on 4/15/22 at 8:08 am to
Remember all those bailouts? Even after Katrina I didn’t like the way they were so willing to just hand out money.
At least Trump un-handcuffed the economy and GDP was growing.
Posted by SingleMalt1973
Member since Feb 2022
15281 posts
Posted on 4/15/22 at 8:08 am to
Posted by UncleFestersLegs
Member since Nov 2010
11946 posts
Posted on 4/15/22 at 8:14 am to
10% interest rate is $3T in interest payments. US government revenue in 2021 was $4T. Do the math
Posted by LuckyTiger
Someone's Alter
Member since Dec 2008
47098 posts
Posted on 4/15/22 at 8:16 am to
quote:

If you didn't own shite before you will never own anything now. Sucks for those people

Home ownership will be a challenge.
Posted by Bass Tiger
Member since Oct 2014
48778 posts
Posted on 4/15/22 at 8:16 am to
quote:

it all makes sense when you realize that elites are crashing the dollar on purpose because they are positioned globally to get super rich from it at this point


The elites have been positioning since the financial meltdown of 2008/2009 when they took cheap government money and started buying hard assets like real estate.
Posted by bbvdd
Memphis, TN
Member since Jun 2009
25895 posts
Posted on 4/15/22 at 8:19 am to
If we hit double digit FFR I’m putting my entire 401k in 30yr treasuries
Posted by Sidicous
NELA
Member since Aug 2015
18619 posts
Posted on 4/15/22 at 8:20 am to
quote:

I’m not sure but I believe total US government debt was less than a trillion dollars in 1980.

US Debt didn't crack the trillion mark until midway through Reagan's 2nd term after most of his Star Wars Inititive spending.

Reagan "spent" his way out of stagflation with SWI that, until Obama, had him by percentage comparison outspending everyone else. However, that spending set us up for 2 boom periods in the 90's. 1st with the tech and manufacturing that came directly from SWI and 2nd with the Dotcom surge (that ended in a bubble but still leads us to today with many of the investors and even same companies around now and did raise the entire stock markets base worldwide).
Posted by Bass Tiger
Member since Oct 2014
48778 posts
Posted on 4/15/22 at 8:21 am to
quote:

f we hit double digit FFR I’m putting my entire 401k in 30yr treasuries


I’m not sure what to do yet.
This post was edited on 4/15/22 at 8:37 am
Posted by bbvdd
Memphis, TN
Member since Jun 2009
25895 posts
Posted on 4/15/22 at 8:25 am to
Clip those 15-20% coupon payments for a few years then sell when interest rates come back to normal for a huge gain

15% would be over 200k per year.
Posted by Homesick Tiger
Greenbrier, AR
Member since Nov 2006
54765 posts
Posted on 4/15/22 at 8:27 am to
I remember 18% interest rate on credit cards.
Posted by UncleFestersLegs
Member since Nov 2010
11946 posts
Posted on 4/15/22 at 8:33 am to
quote:

If we hit double digit FFR
I honestly don't think they will because they can't. They will inflate away government debt and destroy the middle class. That's always been the plan
Posted by Diamondawg
Mississippi
Member since Oct 2006
33524 posts
Posted on 4/15/22 at 8:48 am to
quote:

If we hit double digit FFR I’m putting my entire 401k in 30yr treasuries


All eggs in one basket. What if we default? I suppose there's no place safe if we do but I don't like the one basket concept.
Posted by Hangover Haven
Metry
Member since Oct 2013
28484 posts
Posted on 4/15/22 at 8:53 am to
quote:

Hold on to your britches.


Locked in at 2.65..
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