hiwall
Has No Life - Lives on TB
So let's just look only at the history of the USA and not any foreign country.
We had high inflation in the 80's. The Fed did what it needed to do and raised interest rates. They raised rates into the mid-teens.
Today inflation is as bad or more likely much worse than back in the 80's. Raising the interest rates from 1/4 of 1 percent to 1/2 or 3/4 of one percent will do Nothing. Our current low rates have never been done in history. And our economy is now dependent on these historically low interest rates. So will the Fed raise rates to 15% or even to 20% to stop the high inflation? Just who thinks that would ever happen.
We have very high inflation now and have had for some time and yet the Fed is still printing new money and feeding it into the system. They have not even stopped doing that. And talk is that maybe the middle of Next year they might possibly bump rates by a quarter of a percent. By then we could have real inflation greater than 20% and possibly much greater.
It is too late and Federal Reserve has shown they have no guts to rates rates. And they know raising rates will destroy the economy. Who will buy a house if mortgage rates are 15% to 20%? Who will buy a new car or truck with interest rates of 15% or more?
What about the many thousands of bonds priced at 1 to 3 percent interest? What happens to them? What happens to cities, counties, schools when bond rates skyrocket?
We had high inflation in the 80's. The Fed did what it needed to do and raised interest rates. They raised rates into the mid-teens.
Today inflation is as bad or more likely much worse than back in the 80's. Raising the interest rates from 1/4 of 1 percent to 1/2 or 3/4 of one percent will do Nothing. Our current low rates have never been done in history. And our economy is now dependent on these historically low interest rates. So will the Fed raise rates to 15% or even to 20% to stop the high inflation? Just who thinks that would ever happen.
We have very high inflation now and have had for some time and yet the Fed is still printing new money and feeding it into the system. They have not even stopped doing that. And talk is that maybe the middle of Next year they might possibly bump rates by a quarter of a percent. By then we could have real inflation greater than 20% and possibly much greater.
It is too late and Federal Reserve has shown they have no guts to rates rates. And they know raising rates will destroy the economy. Who will buy a house if mortgage rates are 15% to 20%? Who will buy a new car or truck with interest rates of 15% or more?
What about the many thousands of bonds priced at 1 to 3 percent interest? What happens to them? What happens to cities, counties, schools when bond rates skyrocket?
