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Guest-5ty5s4
Guest
Thank you, that's some serious perspective and experience!!!They announced that they are cutting back on the easing actions -- they are still systematically pumping money into the financial system. I read that they had increased the money supply by around 30% during the last year. And then they wonder why we have inflation!!!! The Feds are going to have to raise the rates because this inflation is not going away any time soon -- and they are starting at almost a 0% prime to the member banks. They were talking about a quarter of a point quarterly over the next year -- which is a drop in the bucket compared to what is needed to put the brakes on this situation. They are between a rock and a hard spot. These interest rate increases will increase the debt service on the national debt -- causing a lot of other problems. In my mind, the people who are in charge just don't get it! The inflation rate is similar to 1979, but we're not even close to putting on the brakes as they did then.
Some history -- in 1979, the mortgage rates for home loans were 9.5%. We took our normal Christmas season break. When we came back in January 1980, the rates jumped to 21% and 22% or more. EVERYTHING stopped cold.
The part about everything stopping cold - I wonder how badly they are willing to push it before that happens? Surely there is TREMENDOUS political pressure to "keep the graph looking pretty." You know, "market goes up" sort of thing.
The last thing they want is to stop everything cold and have the public snap out of it and say "Wait a second! The conspiracy theorists were right!"
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