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Started By
Message
re: Someone Please Explain How Jerome Powell Is Any Different Than Previous Fed Chairmen?
Posted on 10/8/18 at 12:02 pm to NC_Tigah
Posted on 10/8/18 at 12:02 pm to NC_Tigah
quote:
I ask if you understand the danger of not normalizing rates? You said you do. When you make that evident, I'll be happy to have an intelligent conversation with you
Yea maybe a little bit of hypothetical inflation.
And raising rates leads to a recession. You can see the beenefits of keeping rates low in countries like Australia who are in the midst of a 27 year expansion. LINK
This post was edited on 10/8/18 at 12:04 pm
1
Posted on 10/8/18 at 12:04 pm to Trump_Gump
Nah not really, Keynesianism doesn't have as much emphasis on the monetary side as it does on the fiscal side.
Usually though when people complain about Keynesianism on the monetary side, they are lamenting the fact that rates are low. I'm not sure what your contention is. Perhaps you want dovish policy?
Usually though when people complain about Keynesianism on the monetary side, they are lamenting the fact that rates are low. I'm not sure what your contention is. Perhaps you want dovish policy?
This post was edited on 10/8/18 at 12:05 pm
Posted on 10/8/18 at 12:11 pm to Trump_Gump
quote:no and you make it even more evident in your response that you are (1) not familiar with FOMC directives, and (2) not familiar with risks of maintaining aberrantly low rates in a normal economy.
Fixed your post
Posted on 10/8/18 at 12:11 pm to Lou Pai
I want low rates so we can continue this economic expansion. Ideally, I want the Fed either audited, removed or replaced. It hasn’t kept us out of inflation or recsessions, in fact they’ve worsened it.
Posted on 10/8/18 at 12:14 pm to NC_Tigah
quote:
(2) not familiar with risks of maintaining aberrantly low rates in a normal economy
Neither do you, which is why you can’t name a single real life consequence of keeping rates low. You’re a clueless Keynesian like the rest if them.
Posted on 10/8/18 at 12:17 pm to Trump_Gump
quote:
I want low rates so we can continue this economic expansion. Ideally, I want the Fed either audited, removed or replaced. It hasn’t kept us out of inflation or recsessions, in fact they’ve worsened it.
The reason that the fed doesn't keep rates low for forever is for the very reason you are pointing to on making recessionas/inflation worse.
Posted on 10/8/18 at 12:18 pm to Trump_Gump
quote:No.
Yea maybe a little bit of hypothetical inflation
FOMC dictums certainly do include maintaining stable prices and moderate long-term interest rates. Rate adjustments are a tool to do that. But crippling inflation is not a current imminent risk. The risk of aberrantly low rates is negation of any stimulatory tools in the event of economic downturn.
Posted on 10/8/18 at 12:20 pm to Trump_Gump
quote:Now then, what would the consequence have been if, heading into September 2008, the Fed Funds Rate had been at 0.25%?
why you can’t name a single real life consequence of keeping rates low. You’re a clueless
Posted on 10/8/18 at 12:25 pm to NC_Tigah
quote:
Now then, what would the consequence have been if, heading into September 2008, the Fed Funds Rate had been at 0.25%
Nothing, you’re making hypothetical situations again. Try posting actual examples, thanks.
Posted on 10/8/18 at 12:28 pm to NC_Tigah
quote:
FOMC dictums certainly do include maintaining stable prices and moderate long-term interest rates. Rate adjustments are a tool to do that. But crippling inflation is not a current imminent risk. The risk of aberrantly low rates is negation of any stimulatory tools in the event of economic downturn
The Fed can’t control inflation, only the invisible hand can. Only a socialist would favor the federal reserve system. It is the antithesis of free market principles. The market should be setting rates not a room full of theologians.
Posted on 10/8/18 at 12:31 pm to Trump_Gump
quote:You lose.
Now then, what would the consequence have been if, heading into September 2008, the Fed Funds Rate had been at 0.25%
Nothing
Posted on 10/8/18 at 12:31 pm to Trump_Gump
I'm so confused with what you are trying to say. You don't like inflation but you like low rates? 
Posted on 10/8/18 at 12:33 pm to NC_Tigah
quote:You claim on the one hand, lowering rates is stimulatory. On the other, you claim there is no effect in lowering them. It's a conundrum.
You lose.
Posted on 10/8/18 at 12:33 pm to Trump_Gump
There’s so many points that are dead wrong in your post that it’s too frustrating for most to even attempt in arguing and steering you back on course.
Edit: this is hot off the press from Brian Wesbury. Give it a read and maybe it’ll help you . LINK
Edit: this is hot off the press from Brian Wesbury. Give it a read and maybe it’ll help you . LINK
This post was edited on 10/8/18 at 12:35 pm
Posted on 10/8/18 at 12:37 pm to NC_Tigah
You’re quoting yourself and trying to pass it off as a source. Try again socialist
Posted on 10/8/18 at 12:40 pm to Trump_Gump
quote:Are you arguing that all of the various treasuries (e.g., important 10 year) are determined by exclusively non-market forces, and are you arguing that the market of lenders and borrowers are FORCED to set their rates according to those non-market forces?
The market should be setting rates not a room full of theologians.
Posted on 10/8/18 at 12:44 pm to Trump_Gump
quote:Were that true, I'd be quoting a good source
You’re quoting yourself
But actually this is the reference:
quote:
I want low rates so we can continue this economic expansion.
Posted on 10/8/18 at 12:46 pm to wutangfinancial
quote:
I'm so confused with what you are trying to say. You don't like inflation but you like low rates?
The Fed itself says monetary policy determines the inflation rate. The Fed determines monetary policy, so inflation (or lack thereof) falls squarely in their laps.
That is quite a startling statement, if you think about it. The Fed doesn’t just regulate inflation; the Fed causes inflation. It’s not a side effect but a deliberate one. And they admit doing so, right in their own documents.
PCE inflation has lagged below 2% for years now until this year. The Committee reminds us at every meeting that it is, in fact, concerned about this. But its concern has not stopped it from pursuing policies that produce everything but inflation. The point here is that, by its own self-imposed goals and definitions, the Fed has failed to accomplish a key part of its mission. Why is there no inflation in Japan today? And why hasn’t there been for 25 years? With the most massive quantitative easing and the lowest interest rates ever seen, Japan has gone to great lengths to create inflation. But it hasn’t worked out.
Posted on 10/8/18 at 12:47 pm to NC_Tigah
quote:
Were that true
You just quoted yourself. Keep editing son.
Posted on 10/8/18 at 12:48 pm to Trump_Gump
quote:False.
The Fed itself says monetary policy determines the inflation rate.
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