The Federal Reserve didn't raise interest rates despite higher inflation?
Thoughts people.
Answer:
They can't raise it right now, unless they want a economy in a full stall. We are close to that now, have you looked at the cost of things. if interest go up that might bring a crash on sooner so all they can do now is let it ride or cut it. They can't let it slide to far down while trying to put us on the world market, and that is their intention, the goal is to equalize the economies around the world and bring on world wide capitalism or as some see it, the new world order.
Higher interest rates could do a lot more damage to the economy the slowing down of the construction market show that. Better off just let it ride for 3 to 6 months before the interest rates should be raised again. We currently have more homes in foreclosure than we did in the great depression...
Not really. I'm sure the politcicians like The Shrub and Bernake talk all the time. Next year is election year and no one wants to go into reelection with higher rates looming. But I can bet you a dollar to a donut after the elections next year zoooom off to the sky we go.
The FED is in a real quandary today. With a national debt approaching 9 trillion dollars and a trade deficit closing in on 900 billion a year, the FED pays an enormous debt service to investors in US notes and bonds. Interest rates along with energy costs are 2 factors that directly influence the overall price of goods and services throughout our economy. Subsequently, the very act of increasing interest rates which used to be an anti-inflationary measure is now certain to create higher inflation. The FED has overproduce dollars to such an extent so as to guarantee heavy inflationary pressures for some time. Our only pitiful salvation is that the dollar continues to lose value against other currencies which partially alleviates the impact of the looming inflation.
I think we are almost guaranteed a recession as a result of declining productivity, a very slow growth in GDP, sluggish gains in personal income, a negative savings rate and a world which is swamped with US dollars.
The FED does not know what to do, and so they decide to do nothing. Too many dollars--Americans have been financially raped!
Ty, Mark, you guys seem to miss the point just a bit. Bernake is an inflationary banker. While tenured he taught inflationary policies...it was his forte at the time. Now, he has a chance to prove he was right so he is going to try and make it work.
The problem for him is just beginning - without a metal backing our dollar it makes no difference what he does. The market knows what is going on and will adjust accordingly if left alone.
We have the inflation because more dollars are being added into the system. Bernake stop printing the M3 months ago. No one knows how much he has flooded the market with dollars.
As the husing bubble continues to collpase (my best guess - through march 09) and the governments overseas keep selling off thier bonds - then inflation will continue. At the present rate we will be into a full blown recession by the end of the year - it will be so bad Bush will have no choice but to start another war - yes I said it and yes I meant it
He will declare a national emergency next year, possibly suspend the elections and then set the moves for the north american union into motion.I hope I am wrong - but - i dont think so
Time will tell guys - better start buying that gold and silver now while its still cheap enough to afford to get it.
This has been known for quite a while. you haven't seen the inflation because its not being placed out in the open. It's on the cost of goods. True conservatism from this point on would be highly suggested. might i also suggest talking with your neighbors(per 3 would be best). and begin setting up greenhouses for year round vegetable supply. Plan accordingly. If you need ideas and/or designs. Send me an email. Don't fret, we will make it through this mess.
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