PDA

View Full Version : The Fed is at it again.... more inflation coming.




EvilEngineer
11-28-2007, 12:55 PM
http://biz.yahoo.com/ap/071128/wall_street.html

Looks like there will be another rate cut in December... they just don't get it do they.

Smiley Gladhands
11-28-2007, 01:34 PM
I believe that Fed funds futures are now pricing in TWO consecutive 25 basis point rate cuts (per CNBC this morning).

Hmmmmmmmmmm.

What did the last 2 cuts do the dollar and oil prices and gold? Hmmmmm. I wonder what the next two cuts will do to the dollar and oil prices and gold. Hmmmmmm.

It's a race to see who can destroy the economy/dollar first: politicians or the Fed. They're in a dead heat, but the Fed is starting to pull ahead. However, I wouldn't count out Congress quite yet. Their incompetence and desire to pander know no bounds.

Danny Molina
11-28-2007, 02:00 PM
I heard about this on the news. It's very disappointing but I couldn't expect any less from Bernanke.

I wonder how much longer it will be till the AUD passes the USD.

mordechai
11-28-2007, 04:29 PM
It's a race to see who can destroy the economy/dollar first: politicians or the Fed. They're in a dead heat, but the Fed is starting to pull ahead. However, I wouldn't count out Congress quite yet. Their incompetence and desire to pander know no bounds.


Hahahahaha!!!

The Fed needs to up interest rates. Not by much, but they need too, in order to try to fix this.

But, upping the rates would mean admitting there's a problem. And the Fed doesn't want to do so. They're afraid that everyone would know our economy isn't as strong as they are trying to fool everyone into believing.

I'm sorry, Bernanke.... cats already out of the bag.

But, admitting you have a problem is the first step to.......

fsk
11-28-2007, 04:58 PM
It's a no-win situation.

If they don't cut interest rates (or raise rates), then they risk a hyperdeflationary crash of the dollar, due to the Compound Interest Paradox (explained on my blog).

If they cut rates, they risk hyperinflation. Foreign holders of dollars may decide to ditch their dollars.

Green Mountain Boy
11-28-2007, 05:07 PM
It's a no-win situation.

If they don't cut interest rates (or raise rates), then they risk a hyperdeflationary crash of the dollar, due to the Compound Interest Paradox (explained on my blog).

If they cut rates, they risk hyperinflation. Foreign holders of dollars may decide to ditch their dollars.

Yeah, they basically have to keep cutting rates so that more credit can be created to prop up the existing credit that's ready to default. The thing is, we have been hyperinflating for years now, but no one talks about it.