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MorTech 09-21-2024 01:53 PM

All that really needs to happen is for the Fed to stop monetizing government debt...Inflation will go to about minus 4% which would be natural in a free productive market.

Aces4 09-21-2024 01:55 PM

Quote:

Originally Posted by jimjamuser (Post 2372351)
Prices won't RETRACT. Historically they go up 3% each year. The FED has just reduced the BORROWING rate by 1/2 of a percent. They initially raised the RATE to keep prices from going up (say 7%) now they are satisfied that PRICES have STOPPED going up. Now they hope that PRICES will go back to about a 3% rise. So, they reduce the BORROWING rate by 1/2 of a percent.
.........The FEDS purpose is to prevent a wild price SPIRAL that gets out of control.

Too late, it's already out of control.

Aces4 09-21-2024 01:56 PM

Quote:

Originally Posted by jimjamuser (Post 2372348)
There is a double correlation between wages and costs. This is called the wage SPIRAL. As wages go UP prices for goods goes UP. But, as prices go UP that INCREASES demand for wages to go UP.
......Compared to other advanced economies the US in 2023 had STRONGER GDP and the lowest inflation.In general , after Covid people talk about the US recovering better than Europe.
.......Adjusted for inflation the 2024 minimum wage is 40% LOWER than the 1970 minimum wage. My OPINION ......is that was caused by greedy outsourcing to China.

Cause no longer makes any difference, it's worse and getting more so.

Bill14564 09-21-2024 02:02 PM

Quote:

Originally Posted by MorTech (Post 2372362)
All that really needs to happen is for the Fed to stop monetizing government debt...Inflation will go to about minus 4% which would be natural in a free productive market.

The last time inflation was anything close to -4% was during the recession of 2007-2009. Wasn't a great time then, isn't something to try repeating.

jimjamuser 09-21-2024 02:11 PM

Quote:

Originally Posted by MorTech (Post 2372362)
All that really needs to happen is for the Fed to stop monetizing government debt...Inflation will go to about minus 4% which would be natural in a free productive market.

I seem to remember that there are problems with an inflation rate that is negative. i believe that the FED tries for plus 2%.

MorTech 09-21-2024 07:26 PM

Quote:

Originally Posted by Bill14564 (Post 2372369)
The last time inflation was anything close to -4% was during the recession of 2007-2009. Wasn't a great time then, isn't something to try repeating.

Because it was counterfeited monetary inflation of the 20s that caused it...Bernanke even admitted to this. The Fed counterfeit money racket is pure evil. It is theft.

With a counterfeit money racket you can "volatility wash" almost anything to zero...First thru inflation...then deflation (John Law/Mayer Rothchild figured this out). Thomas Jefferson was far smarter than any government worshipping stooge.

Notice how Greenspan/Rubin/Clinton masked inflation by suppressing the price of gold that caused the DotCom bubble and the huge bust aftershock. BRICS+ is working to get away from the USD/Euro because they are not stupid...What they replace it with will be less stupid :)

Bill14564 09-21-2024 07:31 PM

Quote:

Originally Posted by MorTech (Post 2372413)
Because it was counterfeited monetary inflation of the 20s that caused it...Bernanke even admitted to this. The Fed counterfeit money racket is pure evil. It is theft.

The 1920s?? And it took 88 years before it caused a recession?? Or was the recession of 2008 a reaction to something that was going to happen in the 2020s, 12 years later?!


Even conspiracy theories have to make a little sense.

biker1 09-21-2024 07:38 PM

I think you are confused. Prices have not stopped going up, as you claim. The rate of increase has slowed.

Quote:

Originally Posted by jimjamuser (Post 2372351)
Prices won't RETRACT. Historically they go up 3% each year. The FED has just reduced the BORROWING rate by 1/2 of a percent. They initially raised the RATE to keep prices from going up (say 7%) now they are satisfied that PRICES have STOPPED going up. Now they hope that PRICES will go back to about a 3% rise. So, they reduce the BORROWING rate by 1/2 of a percent.
.........The FEDS purpose is to prevent a wild price SPIRAL that gets out of control.


Bill14564 09-21-2024 08:29 PM

Quote:

Originally Posted by MorTech (Post 2372418)
What are you even talking about?

Just a guess but I would think I was talking about the post that I quoted that attributed the recession in 2008 with the counterfeited monetary inflation of the 20s.

I assumed (perhaps a mistake) that "the 20s" meant either the 1920s or the 2020s but perhaps "the 20s" meant something else.

Bill14564 09-21-2024 08:54 PM

Quote:

Originally Posted by biker1 (Post 2372415)
I think you are confused. Prices have not stopped going up, as you claim. The rate of increase has slowed.

Prices rarely stop going up. If they start going down we begin to talk about a recession.

If the rate of increase has slowed then we say we are getting inflation under control.

EDIT: As you point out below, these two statements are in agreement. I misunderstood and answered as if you were arguing inflation was not under control because prices have not stopped going up. I see now that was not your position at all.

biker1 09-21-2024 09:15 PM

I think that is what I said. I was just responding to yet another insane comment by our favorite serial poster ;-)

Quote:

Originally Posted by Bill14564 (Post 2372427)
Prices rarely stop going up. If they start going down we begin to talk about a recession.

If the rate of increase has slowed then we say we are getting inflation under control.


jimjamuser 09-22-2024 10:01 AM

Quote:

Originally Posted by biker1 (Post 2372415)
I think you are confused. Prices have not stopped going up, as you claim. The rate of increase has slowed.

Gas at Sam's has gone DOWN to $ 2.77 per gallon. When people talk about "Prices" you have to keep in mind there are short term prices and long term prices. Obviously, long term - prices are going to go UP. Just like my example of buying a well running used car for $ 60 when I was 18 years old. But, short term, like one or two years, prices can go DOWN. The FED saw that prices had stopped going up, so they dropped the prime rate down 1/2 of a %.

Normal 09-22-2024 10:20 AM

Gold standard
 
I’m for the gold/silver standard. The theft of our purchasing power through the printing of money has gotten way out of hand. DC has never had a dollar they didn’t want to spend on votes. The Ponzi scheme of printing dollars has to end.

biker1 09-22-2024 11:04 AM

Reread your own post. You said prices have stopped going up. Not true no matter how much you cherry pick a few examples of highly volatile commodities.

Quote:

Originally Posted by jimjamuser (Post 2372540)
Gas at Sam's has gone DOWN to $ 2.77 per gallon. When people talk about "Prices" you have to keep in mind there are short term prices and long term prices. Obviously, long term - prices are going to go UP. Just like my example of buying a well running used car for $ 60 when I was 18 years old. But, short term, like one or two years, prices can go DOWN. The FED saw that prices had stopped going up, so they dropped the prime rate down 1/2 of a %.


Bay Kid 09-22-2024 11:42 AM

Quote:

Originally Posted by MorTech (Post 2372413)
Because it was counterfeited monetary inflation of the 20s that caused it...Bernanke even admitted to this. The Fed counterfeit money racket is pure evil. It is theft.

With a counterfeit money racket you can "volatility wash" almost anything to zero...First thru inflation...then deflation (John Law/Mayer Rothchild figured this out). Thomas Jefferson was far smarter than any government worshipping stooge.

Notice how Greenspan/Rubin/Clinton masked inflation by suppressing the price of gold that caused the DotCom bubble and the huge bust aftershock. BRICS+ is working to get away from the USD/Euro because they are not stupid...What they replace it with will be less stupid :)

It is now just funny money.


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