Stagflation

[Eagler]

When morons think 5% is a high interest rate and speak of cutting them to move a manipulated market...

 https://www.businessinsider.com/stagflation-recession-us-economy-outlook-gdp-dimon-inflation-rate-cuts-2024-4?amp

Enjoy your high prices on everything!

Eagler

[Captain Virgil Hilts]

Well, 5% is high for a prime rate.

Further, using the Fed to manipulate the interest rate in order to control inflation and stagnant wages is a complete JOKE.

The interest rate won't help inflation until it just lain kills real estate, and the automotive industry. At which point, wages will nose dive, and unemployment will soar.

The interest rate doesn't do squat for inflation. Inflation is driven by government spending, and the government giving away money. Plain and simple.

Government spending has been driving inflation insane for more than 60 years, and every time inflation surges, the prices never return to where they were, and wages fall further behind.

That's why in the fifties and early sixties, a working man with a decent job could buy a house, a car, feed a wife and three or more kids, have a stay at home wife, and have money saved. That was literally the norm, 60-70 years ago. And now that is near impossible.

People have become more miserable ever since. Jefferson once said "if we can prevent the government from wasting the people's wages under the pretense of "taking care of them", the people cannot help but to become happy." The government has been doing just the opposite, and an ever increasing rate, since Woodrow Wilson. It was accelerated by Franklin Roosevelt BEFORE World War II. Lyndon Johnson made it exponentially worse in 1968 with the help of congress. Only one president we have had since the turn of the 21st century has made it better.

The government will not control the insane level of spending, and regulation. The current $34,000,000,000,000 national debt can be accounted for solely by government entitlement spending since 1968.

The Republic has been in crisis since the citizens discovered they could vote themselves largesse from the public coffers.

We will continue to see inflation, until such time as the government moves to the Sowell/Freidman/Laffer model for the economy. Wages will fall further behind. Every time the government dumps billions into the economy, as in 2009 and 2021, inflation will surge to record levels.

[Lazerr]

Yeah when the interest rates suck, I tend not to buy anything on credit.  I assume it's not just me who thinks like that.

A large purchase I might want, but not need, isn't going to happen when I'm getting raped on interest.

Tell me how me not buying things is going to help the economy.

[Eagler]

5% is not a high interest rate..ever

Not for a car or house loan and not for a cd..it's ridiculously low

Savers should be rewarded not ppl living way beyond their means via cheap credit with majority running maxed out on crazy credit card monthly interest rates...which is all many know these days as that is how it's been the majority of thier adult life

Inflation can be controlled with interest rate hikes but you have to have the balls to raise it to the level required to affect/crush the market properly....never happen these days as everyone is a political lightweight..

And of course the government has to stop TRILLION dollar deficits for it to work so there is that which goes back to corrupt politicians..

Enjoy your high prices going forward!

Eagler

[Meatwad]

Doesnt help when this country sends hundreds of billions of dollars cash aid to other countries due to corruption and money laundering schemes so certain people in power get kickbacks for it

[Captain Virgil Hilts]

Yeah when the interest rates suck, I tend not to buy anything on credit.  I assume it's not just me who thinks like that.

A large purchase I might want, but not need, isn't going to happen when I'm getting raped on interest.

Tell me how me not buying things is going to help the economy.

Their intent is exactly that, to stop you from buying things, to "cool the market".

Demand doesn't cause inflation so much as printing money to pay the INTEREST on the government debt, which kills the value of the dollar. Then they dump that devalued dollar into the economy as "incentives" and entitlements.

[Captain Virgil Hilts]

5% is not a high interest rate..ever

Not for a car or house loan and not for a cd..it's ridiculously low

Savers should be rewarded not ppl living way beyond their means via cheap credit with majority running maxed out on crazy credit card monthly interest rates...which is all many know these days as that is how it's been the majority of thier adult life

Inflation can be controlled with interest rate hikes but you have to have the balls to raise it to the level required to affect/crush the market properly....never happen these days as everyone is a political lightweight..

And of course the government has to stop TRILLION dollar deficits for it to work so there is that which goes back to corrupt politicians..

Enjoy your high prices going forward!

Eagler

Sorry, 5% is stupid for a mortgage. Kills the housing market, keeps younger people out of homes, too.

Low interest doesn't drive inflation.

Government spending, government debt, and the government printing money to service the debt does. It kills the value of the dollar. Everywhere. From there, inflation goes insane.

[AKIron]

In '81 I was going to school on the GI bill, working part time, and raising a family. I started looking to buy a house. When I found the interest rate was 18% I said screw this and went back into the AF. Best decision I ever made. Thank you Jimmy Carter.

[Captain Virgil Hilts]

In '81 I was going to school on the GI bill, working part time, and raising a family. I started looking to buy a house. When I found the interest rate was 18% I said screw this and went back into the AF. Best decision I ever made. Thank you Jimmy Carter.

What? You didn't like malaise? And runaway staglfation?

[Maverick]

I tend to agree that the main cause of inflation is out of control government spending. When you print more money the value of the money decreases, especially when the printing outpaces the ability to pay back the loans taken out to provide the overspending.

The phrase that inflation is transitory is a flat out lie, gaslighting at it's worst. The RATE of inflation is transitory. The effects, not nearly so much. That is why you can't buy a 2500 sq ft 4 bedroom house on a residential lot (1/4 acre or little less) for $27000 like they were in the 1960's. I remember the folks looking to buy a new house and that was the price of the one they considered. They didn't buy and it was a good thing because my Dad went into the VA hospital the next year and died a year later.

I disagree that 5% interest is not high. The reason is simple as it depends on the amount being borrowed. The majority of borrowed money for a responsible person is for housing ie buying a house. The difference between a 5% and say a 2.25% interest rate on a large sum of money (over $150k) is substantial for a working family with an income of less than $100k. I refinanced my home and went to 2.25% from 3.75% and the difference was 1/3 of my mortgage payment on a 30 year loan. Cars / trucks now are costing more than houses were in the 80's. I know because my first house was $55k and my payments at 14% interest, which was the "norm" at that time, made the payment over $1250 a month. I am seeing reports and prices indicating common vehicles ranging in price from $30k to over $100k. I'm not talking about the idiot EV's either. Paying over $70k for a base f150 is ludicrous. Now if the loan amount is not large then 5% isn't silly but those new cars / trucks are requiring payments of over $1100 a month for sometimes up to 7 or 8 years.

If you crush private spending you risk, not a recession but a depression, due to lack or elimination of public demand for goods outside of food. No demand or private spending for durable goods means massive lay offs or outright closing of means of production. Lack of jobs means even less spending creating less demand and slower production of what goods are left. Over leveraging or investing with borrowed money led to the stock market collapse in the 1920's and cascaded down the pipe costing the country dearly.

[Eagler]

Sorry, 5% is stupid for a mortgage. Kills the housing market, keeps younger people out of homes, too.

Low interest doesn't drive inflation.

Government spending, government debt, and the government printing money to service the debt does. It kills the value of the dollar. Everywhere. From there, inflation goes insane.

5% doesn't kill the housing market selling 90k homes for 420k does

Low interest rates we have juiced the market with since 08 has caused this ...add it the trillions for stay home with your flu $$$$ and you have what we see today...

Eagler

[RotBaron]

The interest rate doesn't do squat for inflation. Inflation is driven by government spending, and the government giving away money. Plain and simple.

This is a difficult concept for the masses to either grasp or believe and a much smaller group to acknowledge. The latter are corrupt people that Jefferson and friends would have sent to the gallows.

We haven’t heard the phrase austerity in a long time because it’s so politically inconvenient; data manipulation is so much easier and when caught just call it a ‘conspiracy’, aided by the MSM they’re off the hook.

[Eagler]

Government spending went ape sheet when the interest rates were lowered to almost nothing...

Guess some think negative interest rates would be fantastic lol

Eagler

[AKIron]

$400K houses are never going back to $90K. If they were to for whatever reason no one will sell theirs or build new ones. No one.

[AKIron]

If interest rates are up and I'm an investor what do I build? Not houses because people aren't buying. I build apartments because people who can't or won't buy at high rates still must have a place to live.