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Can someone make a case for 0% interest rate?
Posted on 9/11/19 at 11:54 pm
Posted on 9/11/19 at 11:54 pm
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?
4
Posted on 9/12/19 at 6:48 am to Street Hawk
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.
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 9/12/19 at 6:54 am
Posted on 9/12/19 at 8:33 am to Street Hawk
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.
Posted on 9/12/19 at 10:25 am to BestBanker
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
Posted on 9/12/19 at 10:30 am to OleWarSkuleAlum
quote:What does this mean?
Why are we artificially decreasing inflation via the fed
Posted on 9/12/19 at 11:07 am to LSURussian
quote:
What does this mean?
Pull out a basic macroeconomics book, you need all the help you can get.
Posted on 9/12/19 at 11:11 am to OleWarSkuleAlum
quote:Translation: "I have no idea what it means but I read it somewhere and it sounded really intelligent so I plagiarized the quote."
What does this mean?
Pull out a basic macroeconomics book, you need all the help you can get.
Prove me wrong.
Posted on 9/12/19 at 11:12 am to LSURussian
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
Posted on 9/12/19 at 11:16 am to OleWarSkuleAlum
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 interest rate and inflation have an inverse relationship
quote:You keep mentioning Economic courses that you never attended. Why is that?
that’s simple Econ 102
Posted on 9/12/19 at 11:18 am to LSURussian
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?
Posted on 9/12/19 at 11:27 am to OleWarSkuleAlum
quote:The Bureau of Labor Statistics released the August inflation numbers earlier this morning.
There is zero inflation (sic) we should be reducing our interest rate aggressively to match the desired 2%.
Declining energy prices (-4.4%) kept the annualized inflation rate at 1.7% in August. That's not "zero."
BUT.......
quote:LINK
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.
You can't even get simple facts correct. It's like you just make shite up to fit your narrative.
Posted on 9/12/19 at 11:33 am to LSURussian
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
Posted on 9/12/19 at 11:39 am to OleWarSkuleAlum
quote: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.
Inflation is at 1.7% and dropping.
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.
Posted on 9/12/19 at 11:44 am to LSURussian
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.
Posted on 9/12/19 at 11:47 am to OleWarSkuleAlum
quote:
The Fed is LOST. They have no idea what they are doing.
But you know what the Fed should be doing, right?
Posted on 9/12/19 at 11:48 am to LSURussian
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.
Posted on 9/12/19 at 11:50 am to OleWarSkuleAlum
quote:OMG. That is sad.
I may not have complete command of modern monetary theory (although it is superb),
Posted on 9/12/19 at 12:11 pm to OleWarSkuleAlum
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*
Posted on 9/12/19 at 12:50 pm to UpstairsComputer
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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