finance.yahoo.com— WASHINGTON (AP) -- The Federal Reserve said Tuesday that it will likely keep interest rates at record lows for the next two years after acknowledging
Aug 9, 2011View in Crawl 4
That is the longest forecast of continued slowdown I've ever seen the Fed make. Usually they'll predict out the next quarter, maybe two. Now they're saying "PLEASE start buying houses and big things, we promise we won't jack up the rates anytime soon!" Same message to businesses to start assuming some risk in expansion.
Does anyone notice the Fed is not encouraging the gov't to cut spending right now? There's good reason for that!
i don know the answer to this; but could the FED not just print more money instead of having an interest rate... and achieve the same effect? aren't they doing just that? gotta love inflation.
Basically they create money and lend it at interest to maintain control over the borrower. When they lower the interest rate it causes more people to borrow and more money to be created.
Ultimately this system leads to complete control over everyone who uses money. That's why a lot of people are against the idea that someone can create money anytime they want.
When the Fed increases the money supply they are reducing the purchasing power of the cash that you have. This is what will happen instead of defaulting. They will pay their debts with worthless printing press money. It happened after WW1 in Germany. It also happened in Argentina & Zimbabwe.
I keep a 100 trillion dollar bill from Zimbabwe in my wallet as a reminder. I spent 7 bucks for it at a coin shop. I guess at the time in Zimbabwe, you could buy a loaf of bread with it.
I agree with the forecast and am glad Fed is atleast notifying the public of the forecast. Though I think they can do much more -- the central problem we still face is that we are trading with China were the currency is not open to the markets, basically no matter how devalued our currency gets they can manipulate theirs for specific bids and projects. Get some balls politicians and fix the real problems.
In the mean time we can do alot: 1. call the politicians and ask them to focus on currency issue with China, 2. move our money from all those that were responsible for the down fall of our economy JP Morgan Chase, BofA, Goldman Sachs, Citi Bank, 3. Invest locally credit unions, local banks, buy local goods (if you can find it), 4. Call Fed and ask them to loan directly to businesses bypass the banks. 5. Look at opening a business that would sell in overseas markets, I am starting to do this now
bestenemyAug 9, 2011
Welcome to Japan, 20 years of zero rate policy and counting.
amaoicanAug 9, 2011
And their currency keeps gaining value no matter what they do... heh.
jaydub99Aug 9, 2011
That is the longest forecast of continued slowdown I've ever seen the Fed make. Usually they'll predict out the next quarter, maybe two. Now they're saying "PLEASE start buying houses and big things, we promise we won't jack up the rates anytime soon!" Same message to businesses to start assuming some risk in expansion.
Does anyone notice the Fed is not encouraging the gov't to cut spending right now? There's good reason for that!
uwmbaseballAug 9, 2011
I don't follow financial news too much but what is the good reason??
jaydub99Aug 9, 2011
Because it would send a fragile economy into a tailspin. You cut gov't spending when the economy is chugging along on its own.
punkrawkerAug 9, 2011
i don know the answer to this; but could the FED not just print more money instead of having an interest rate... and achieve the same effect? aren't they doing just that? gotta love inflation.
davedavisAug 9, 2011
Yes it's exactly the same except they don't have to print the physical money because people use checks and credit cards.
davedavisAug 9, 2011
Basically they create money and lend it at interest to maintain control over the borrower. When they lower the interest rate it causes more people to borrow and more money to be created.
Ultimately this system leads to complete control over everyone who uses money. That's why a lot of people are against the idea that someone can create money anytime they want.
fmelloAug 9, 2011
When the Fed increases the money supply they are reducing the purchasing power of the cash that you have. This is what will happen instead of defaulting. They will pay their debts with worthless printing press money. It happened after WW1 in Germany. It also happened in Argentina & Zimbabwe.
I keep a 100 trillion dollar bill from Zimbabwe in my wallet as a reminder. I spent 7 bucks for it at a coin shop. I guess at the time in Zimbabwe, you could buy a loaf of bread with it.
ViewertAug 9, 2011
Fear that another recession is unavoidable, along with worries that Europe may be unable to contain its debt crisis, has rattled stock markets.
Closed AccountAug 9, 2011
Thanks for that insight. You are the first person to make that astute point.
redstringAug 9, 2011
That should please Wall Street and Obama (to help his re-election) but the working class will suffer for it.
lincolnperki51Aug 9, 2011
I agree with the forecast and am glad Fed is atleast notifying the public of the forecast. Though I think they can do much more -- the central problem we still face is that we are trading with China were the currency is not open to the markets, basically no matter how devalued our currency gets they can manipulate theirs for specific bids and projects. Get some balls politicians and fix the real problems.
In the mean time we can do alot: 1. call the politicians and ask them to focus on currency issue with China, 2. move our money from all those that were responsible for the down fall of our economy JP Morgan Chase, BofA, Goldman Sachs, Citi Bank, 3. Invest locally credit unions, local banks, buy local goods (if you can find it), 4. Call Fed and ask them to loan directly to businesses bypass the banks. 5. Look at opening a business that would sell in overseas markets, I am starting to do this now
For those that don't believe me about the banks: http://www.bloomberg.com/news/2011-08-09/goldman-sachs-sued-by-u-s-agency-over-securities-sold-to-credit-unions.html
http://georgewashington2.blogspot.com/2011/08/bank-of-america-down-15-today-after.html
and a thousand more articles like these are out there.
what1happenAug 9, 2011
They will stay down at least till 2013,
kasha34Aug 14, 2011
Oh, you mean until Obama is re-elected?