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Street Hawk
LSU Fan
Member since Nov 2014
2337 posts

Can someone make a case for 0% interest rate?
If we lower interest rates now, doesn't the Fed miss having an important tool at their disposal when an actual recession hits and the rates already at zero? Do we go negative then with the rates à la ECB?


Shepherd88
Member since Dec 2013
2689 posts

re: Can someone make a case for 0% interest rate?
It’s fools gold.


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70
OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
7272 posts

re: Can someone make a case for 0% interest rate?
I agree with Trump. Inflation is nearly zero. Why are we artificially decreasing inflation via the fed when there is none? Those boneheads have zero idea wtf they are doing.

We should be near zero to remain competitive in the global trade markets.

ETA: Forgot to mention Trump can restructure our debt in that case and prolong the maturity dates 50 to 100 years. That would save us trillions. Trump knows what he is doing here.
This post was edited on 9/12 at 6:54 am


BestBanker
New Orleans Saints Fan
Around here.
Member since Nov 2011
11027 posts

re: Can someone make a case for 0% interest rate?
quote:

Can someone make a case for 0% interest rate?

I can certainly use much lower borrowing rates to increase my access to capital for investment. That's my case.

Apparently this ploy did some good after the recession, and I for one, would like to see how this move would function in a strong economy.


Thib-a-doe Tiger
LSU Fan
LaTour and in BRgetthenet's head
Member since Nov 2012
30867 posts

re: Can someone make a case for 0% interest rate?
quote:

Apparently this ploy did some good after the recession, and I for one, would like to see how this move would function in a strong economy.




They could be lower, don’t want 0 though. Because when SHTF again, it would be worse


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20
LSURussian
LSU Fan
Member since Feb 2005
116135 posts

re: Can someone make a case for 0% interest rate?
quote:

Why are we artificially decreasing inflation via the fed
What does this mean?


OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
7272 posts

re: Can someone make a case for 0% interest rate?
quote:

What does this mean?


Pull out a basic macroeconomics book, you need all the help you can get.


LSURussian
LSU Fan
Member since Feb 2005
116135 posts

re: Can someone make a case for 0% interest rate?
quote:

What does this mean?



Pull out a basic macroeconomics book, you need all the help you can get.
Translation: "I have no idea what it means but I read it somewhere and it sounded really intelligent so I plagiarized the quote."

Prove me wrong.


OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
7272 posts

re: Can someone make a case for 0% interest rate?
quote:

"I have no idea what it means but I read it somewhere and it sounded really intelligent so I plagiarized the quote." Prove me wrong.


You’re a complete fricking moron who has been disgraced on this board until recently because everyone either died or quit posting.

The interest rate and inflation have an inverse relationship that’s simple Econ 102


LSURussian
LSU Fan
Member since Feb 2005
116135 posts

re: Can someone make a case for 0% interest rate?
quote:

The interest rate and inflation have an inverse relationship
If that's true, since you posted earlier that "inflation is near zero" that must mean interest rates must be really high now, right?

quote:

that’s simple Econ 102
You keep mentioning Economic courses that you never attended. Why is that?


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OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
7272 posts

re: Can someone make a case for 0% interest rate?
quote:

If that's true, since you posted earlier that "inflation is near zero" that must mean interest rates must be really high now, right?


The relative rate is high. There is zero inflation we should be reducing our interest rate aggressively to match the desired 2%. Do you not understand?

quote:

You keep mentioning Economic courses that you never attended. Why is that?




LSURussian
LSU Fan
Member since Feb 2005
116135 posts

re: Can someone make a case for 0% interest rate?
quote:

There is zero inflation (sic) we should be reducing our interest rate aggressively to match the desired 2%.
The Bureau of Labor Statistics released the August inflation numbers earlier this morning.

Declining energy prices (-4.4%) kept the annualized inflation rate at 1.7% in August. That's not "zero."

BUT.......

quote:

The core inflation rate, which excludes volatile items such as food and energy, rose to 2.4 percent in August, the highest in a year and above market consensus of 2.3 percent.
LINK

You can't even get simple facts correct. It's like you just make shite up to fit your narrative.


OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
7272 posts

re: Can someone make a case for 0% interest rate?
Inflation is at 1.7% and dropping. During this same timeframe wage growth has increased 3.2%. We are not experiencing a 2% inflationary environment


LSURussian
LSU Fan
Member since Feb 2005
116135 posts

re: Can someone make a case for 0% interest rate?
quote:

Inflation is at 1.7% and dropping.
It dropped by a whopping .1% for ONE MONTH, mainly due to a drop in oil prices. With energy and food prices removed, inflation was 2.4% in August.

Don't pretend that the Fed shouldn't be paying attention to the core inflation rate.

The "2%" figure is the Fed's inflation goal. The core inflation rate is currently exceeding that goal.


OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
7272 posts

re: Can someone make a case for 0% interest rate?
quote:

Don't pretend that the Fed shouldn't be paying attention to the core inflation rate.


The Fed is LOST. They have no idea what they are doing. I have full faith and confidence in Trump and Mnuchin.


LSURussian
LSU Fan
Member since Feb 2005
116135 posts

re: Can someone make a case for 0% interest rate?
quote:

The Fed is LOST. They have no idea what they are doing.


But you know what the Fed should be doing, right?


OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
7272 posts

re: Can someone make a case for 0% interest rate?
quote:

But you know what the Fed should be doing, right?


I may not have complete command of modern monetary theory (although it is superb), but Trump and Mnuchin do.


LSURussian
LSU Fan
Member since Feb 2005
116135 posts

re: Can someone make a case for 0% interest rate?
quote:

I may not have complete command of modern monetary theory (although it is superb),
OMG. That is sad.


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50
UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
633 posts

re: Can someone make a case for 0% interest rate?
quote:

I may not have complete command of modern monetary theory (although it is superb), but Trump and Mnuchin do.


This is so stupid. I'm sorry. I don't even necessarily disagree with you as much as everyone else on this board, but - This. Is. Stupid.

Trump, prior to being President, "believed" the EXACT OPPOSITE of what he currently "believes". The only thing he has complete command of is the narrative.

quote:

ETA: Forgot to mention Trump can restructure our debt in that case and prolong the maturity dates 50 to 100 years. That would save us trillions. Trump knows what he is doing here.


FML, consider what the hell you're saying... 1) Sell Long Bonds 2) Interest Rates Rise 3) Debt Based Economy implodes. Who is buying the bonds anyway? It's just kicking the can. Rock in a hard place. This is so frustrating to explain...

Repeat after me: "Interest Rates Can't Rise."

If interest rates go higher, you'll see a Q4 repeat. On steroids. If we had buyers for long bonds, why didn't we refinance everything in Q12017??? Or why didn't Obama do it (since MMT is so smart) when interest rates were at 0%?

*steps off soapbox, DV away*


OleWarSkuleAlum
Alabama Fan
Member since Dec 2013
7272 posts

re: Can someone make a case for 0% interest rate?
Sorry random internet guy but I’m going to stick with the world’s most successful businessman. Obama didn’t think to restructure it. Trump is lightyears ahead.


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