Interest Rates Should Go UP
Interest rates SHOULD go up. interest rates are designed to control the flow of money, since 2008 the borrowing rate has in a sense been 0%,,,,,and this has NEVER helped the economy at all. Japan has had close to 0% for interest rates for close to 30 years now and they haven't gain a damn thing except the banks making more money. We had the last locally owned bank swalled up by a bigger one out of Omaha just this summer, This is all cheap money has created,,,,
With new pickups close to $50,000 and farm ground up to and well over $10,000/ac we have major inflation in the market,,,,you need to raise interest rates. I don't care what some idiot with a Doctoral degree from some Ivy league schools says, money is to cheap,,,,
the Feds numbers they use are all fudged anyway,, just like the USDA numbers are,,,just a bunch of BS designed to moved the market in whatever way the biggest players want the market to move.
Cheap money is the worse thing for a economy long term....
Re: Interest Rates Should Go UP
I agree with you Highyields about cheap money being the worst thing to happen to the economy. However by the same token, it`s the only thing that has kept the economy from going into a freefall. We should`ve had a gold backed money that would force us to live withing our means....but that ain`t no fun
But for a rate hike to be anymore than symbolic, the fed would have to raise the rate 4 whole points. That would reward savers more than 1% and give them 5% and that would be enough to give the fed a "tool" for their toolbox.
Here`s the problem 4% extra interest on a $18 trillion national debt would be $720 Billion that would go right onto the deficit. Politicians ain`t gonna cut spending, especially $720 Billion worth of cutting. Plus if there was anything beyond a 0% teaser rate, durable goods in this country would really take a hit...what few we still do manufacture here anymore.