Raise or Lower Interest Rates?

troll

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I was reading this great thread: http://www.jesseshunting.com/forums/index....howtopic=167815

I was wondering how any of you feel about the fed lowering interest rates.

I personally don't like it. I feel we are an oil-based economy. Every time the Fed lowers the interest rate, the value of the dollar falls. This in turn causes oil to go higher. Am I confused?
 

Orygun

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Raise the rates and deal with whatever happens, including not bailing out companies that put themselves into trouble.
 

Buck-eye

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We are just in a tight spot right now. Too many folks are in waaay over their head in their houses. Each forclosure costs somewhere in the area of $80k. If we let all those happen then the banks tighten up, and dont loan money. I dont know the fix other than waiting until the market corrects itself. Like stocks, housing is cyclical and will rebound. I hope sooner than later. I am potentially taking a job out of state and to sell my house I would take a real $100K loss. Thats money I put in, not growth equity.
 

rcrosby

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The fed lowering interest rates is trying to put off the inevitable. At one point foreign governments are going to say no more, we simply will not purchase your debt any longer. Then what do we do? Seriously... You can't run huge a deficit and promise everything to everyone if nobody is willing to purchase our debt. When it comes down to it increasing the money supply at over 18% annually and lowering interest rates is bailing out or attempting to bailout lenders at the expense of the dollar. Anyone who has any percentage of assets tied up in dollar or close to dollar investments is insane.

This is exactly what will happen IMHO...

1. People will continue to go about it as they have. They will start to notice inflation and maybe they put off a trip or a major purchase believing that prices will go back down. This increase in savings will offset or hide the true inflation rate.

2. People will realize that prices are not going down. They will realize the only protection to their wealth in this economy is tangible assets. Whether it be gold, silver, guns, bullets, wheat etc they will gobble up and hoard whatever assets they can find just to get out of dollars. This will cause a huge spike in inflation compounding the rate at which people are fleeing dollars.

3. Productivity will decline as people spend their time and effort simply getting out of dollars as fast as possible. Workers may demand to be paid by day or even by hour with inflation at such a high level.

4. The government will propose a solution. Such as, in light of the recent economic turmoil the United States along with Canada and Mexico have joined together in effort to stabilize the markets. Effective immediately all dollar currency as well as all private holding of gold and silver bullion is illegal. Dollars can be turned in for this amount of the new currency the "Amero" and gold and silver for this amount of "Ameros". Just as the last gold confisication the government will freeze the price of gold and silver and after the citizens have taken another worthless paper fiat currency they will raise the price. Other draconian measures will be introduced to regulate markets, banks and the people from this ever happening again.

We may have a choice of either a solution like this or a choice to act like true American Patriots and demand a limited system of government where once again politicians answer to the people. Where the government fears the people and not the other way. Where the Constitution is not "Just a goddamn piece of paper" as Bush said. And we may demand a sound currency not manipulated and controlled by bureacrats and private banking interest.

If you don't think this is plausible try and find one fiat currency that has ever survived... Find one that hasn't been inflated until the end value was zero.


Watch Money Masters video about how money is created and controlled

Freedom to Facism Video regarding the Federal Reserve and IRS
 

BelchFire

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And what will the Feds do when they cut the interest rate to 0.50% and the market continues to slide? Cut it another 3/4 point? Sooner or later (and I'm betting sooner), they're going to run out of rope but the horse is going to keep runing. And it won't be pretty if the Feds stop lowering the interest rate because they have to. I'm with Buck-eye on this one. I say stop lowering it and let those people who made poor investment decisions suffer the consequences by themselves. And that's the problem. When they make bad choices it bites us ALL in the butt. It's a lose/lose situation, so why not stop lowering the rate?
 

Tank

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<div class='quotetop'>QUOTE </div>
4. The government will propose a solution. Such as, in light of the recent economic turmoil the United States along with Canada and Mexico have joined together in effort to stabilize the markets. Effective immediately all dollar currency as well as all private holding of gold and silver bullion is illegal. Dollars can be turned in for this amount of the new currency the "Amero" and gold and silver for this amount of "Ameros". Just as the last gold confisication the government will freeze the price of gold and silver and after the citizens have taken another worthless paper fiat currency they will raise the price. Other draconian measures will be introduced to regulate markets, banks and the people from this ever happening again.

We may have a choice of either a solution like this or a choice to act like true American Patriots and demand a limited system of government where once again politicians answer to the people. Where the government fears the people and not the other way. Where the Constitution is not "Just a goddamn piece of paper" as Bush said. And we may demand a sound currency not manipulated and controlled by bureacrats and private banking interest.

If you don't think this is plausible try and find one fiat currency that has ever survived... Find one that hasn't been inflated until the end alue was zero.[/b]
I believe that, as much as I hate to admit it, this may happen (Amero).

What is the solution Rcrosby? What do you think should be done now, at this very point in time?? How do we make politicians answer to the people?
 

mitchshrader

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when they steal more than you can stand, you have to stop it..

how is a lot bigger at this point, than 'if'.
 

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