FWIW

[Captain Virgil Hilts]

5% is not an "exorbitant interest rates"..

An economy is not healthy if it can't handle that...

Lowering it down  to what 2%?

It's why the market is screwed now...it'll allowed the donutheads to artificially raise prices because joe 6 pack could " afford the monthly payment "...

Lowering it again now will raise prices again for the same reason and not just homes but every freaking thing..

Some of us aren't leveraged to the limit with numerous maxed out credit cards or loans..

Eagler

Again, the interest rate doesn't drive inflation. If the interest rate drove inflation, then the 3% interest rate during the first Trump administration would have caused 9% inflation. It didn't. The first Trump administration had 3% inflation. If interest rates resolved inflation, then the Biden administration wouldn't have seen 9% or high inflation. But it did, despite 5%+ interest rates. They raised the interest rates six times, and not once did the inflation rate drop in return.

Government debt, government spending, and government printing more money, despite having nothing to back it with drives inflation. Government spending floods the market with money, driving up prices. Government debt, and the government printing money, reduces the value of the money.

A 15 year mortgage should never have an interest rate of more than 2-1/2% or 3%. Not for anyone with a decent credit rating and a reasonable debt:income ratio.

The Federal Reserve setting the interest rate is just another method of politicians trying to control the market with government power. The Federal Reserve shouldn't even exist. Thee market should determine the interest rate. Government interference has never helped the economy. Never. The market will correct itself, and rather quickly, and properly, without government interference.

[Eagler]

Sure but lower interest rates inspire the government to print and spend more money they don't have..

A higher interest rate makes our debt more attractive for others to buy so we as a nation can continue to live like spoiled fat Americans living on extended credit..

Eagler

[Captain Virgil Hilts]

Sure but lower interest rates inspire the government to print and spend more money they don't have..

A higher interest rate makes our debt more attractive for others to buy so we as a nation can continue to live like spoiled fat Americans living on extended credit..

Eagler

No, interest rates have no influence on the government printing and spending money they don't have. Congress doesn't care in the least about the interest rate on money it borrows.

The interest rate the Federal Reserve sets doesn't govern foreign purchase of debt.

[Shuffler]

Easy to tell who is the business man and who just works for the man. 

[Busher]

No, interest rates have no influence on the government printing and spending money they don't have. Congress doesn't care in the least about the interest rate on money it borrows.

The interest rate the Federal Reserve sets doesn't govern foreign purchase of debt.

While you represent yourself as a PhD in economics, it's much simpler. If someone convinces the FED that the TB rate ought to be 2% (down from 4.25%) what would motivate large international investors to finance the US debt if they can get a better rate from any other developed nation.

[Captain Virgil Hilts]

Easy to tell who is the business man and who just works for the man. 

Yep. I've owned my own business for about 30 years.

[Captain Virgil Hilts]

While you represent yourself as a PhD in economics, it's much simpler. If someone convinces the FED that the TB rate ought to be 2% (down from 4.25%) what would motivate large international investors to finance the US debt if they can get a better rate from any other developed nation.

 

I never claimed to have any degree in economics.

The Federal Reserve shouldn't exist. And the U.S. should be getting out of debt, not trying to finance more debt. The debt is causing inflation. Inflation is a defacto tax on the middle class and poor.

[Busher]

I never claimed to have any degree in economics.

The Federal Reserve shouldn't exist. And the U.S. should be getting out of debt, not trying to finance more debt. The debt is causing inflation. Inflation is a defacto tax on the middle class and poor.

Every country needs a central bank that operates independently of the Goverment.

But as to the USA's national debt, we agree. The US has a national debt of roughly $100,000 for every man, woman and child.

https://worldpopulationreview.com/country-rankings/countries-by-national-debt

Hate to mention it but a large recently passed bill will reportedly increase that debt by a mere $3.4 trillion.

[Captain Virgil Hilts]

Every country needs a central bank that operates independently of the Goverment.

But as to the USA's national debt, we agree. The US has a national debt of roughly $100,000 for every man, woman and child.

https://worldpopulationreview.com/country-rankings/countries-by-national-debt

Hate to mention it but a large recently passed bill will reportedly increase that debt by a mere $3.4 trillion.

We have zero need for a "central bank" that attempts to set fiscal policy for the nation. Especially not one controlled by politicians. The Federal Reserve has never been a positive influence on the nation. And the Federal Reserve is not even remotely independent of the government or politics, it is far more an agent of the deep state bureaucracy. Allow the market to set the interest rate, it will always self correct within a fiscal quarter, two at the most. The dollar should be on a gold or silver standard. Government interference in the market has been a negative more than 75% of the time, and never truly a positive.

There's neither need nor excuse for the government debt. It's what happens, as Bastiat warned, when people discover they can vote themselves largesse from the government coffers. Government is in many ways an illusion where some believe they can live at the expense of others. The federal government should be shrunk by 75%, and the spending by the same or more. It might fit within the Constitution then.


I was never in favor of that bill. There was much of it I do not like at all. There are few people, and no groups I agree with on everything. Nor do I believe I am correct all the time.

[Busher]

deep state bureaucracy.

Wow I think this coversation is over. My paranoia level is far too low to discuss hidden bad guys.

[Eagler]

We just hang the Gaddafi threat over them and they'll continue to use the bloated dollar until that threat is neutralized one way or another..

Eagler

[Eagler]

This..



Eagler

[Captain Virgil Hilts]

deep state bureaucracy.

Wow I think this coversation is over. My paranoia level is far too low to discuss hidden bad guys.

If you aren't aware of Woodrow Wilson's administrative bureaucracy of experts, and the fact that there is, indeed, a massive element of bureaucracy deeply and firmly embedded in the federal government, accountable to no one, then, yeah, this conversation is likely over.

[Animl-AW]

Well first one must understand how the economy works, obviously some do not. Shocking, I know

I did notice hypocritical references that some are not allowed to speak, yet my thread is set to malfunction.

Obviously its not AH but MH

[DmonSlyr]

I think yall are missing this main understanding. A government is only as powerful as its businesses that fund it. If you rob your business through fear of big powerful business, than you inevitably reduce the potential tax revenue overall. Many countries have not become large due to this. Business ownership is crucial. Investment is crucial. Remember that government is 150x more powerful than any one business. Its their responsibility not to accept bribes or become corrupted by business and its also their job to enforce ethical business standards and laws to prevent gangs and business gangs. Generally, a single business cannot destroy a nation. A single government can, whether by military or swipes of the pen affecting millions of businesses and their jobs at once.