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Fed's Kashkari says 'now is the time to start slowly moving' rates up

cnbc.com

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Re: Fed's Kashkari says 'now is the time to start slowly moving' rates up

#11

Post by MrDrone »

Molitor5901 wrote: post #3

Rates up, rates down, I'm so confused. Too much liquidity supposedly means inflation, too little liquidity means deflation. Would not lower rates mean more consumer spending, thereby injecting more spending and fluidity in the system? I can't help but shake the feeling that the federal reserve is here for the wealthy, the bankers, and not for the rest of us, and anything they do is ultimately not for our benefit, but…

> I can't help but shake the feeling that the federal reserve is here for the wealthy, the bankers, and not for the rest of us, and anything they do is ultimately not for our benefit, but for theirs.

Because that is what's happening. Our economy is fractured after years of catering to the wealthy at the expense of the working class (anyone who finances their life via their labor.)

Re: Fed's Kashkari says 'now is the time to start slowly moving' rates up

#12

Post by jazzypants »

petcat wrote: post #5
sco1 wrote: post #2

> Corporate earnings are through the roof. They’re doing great. The consumer is hanging in there. The labor market is hanging in there. Are we though? Thank god corporate profits are ok...

> "Corporations are people, my friend. Of course they are. Everything corporations earn ultimately goes to people. Where do you think it goes? Whose pockets? Whose pockets? People's pockets. Human beings, my friend." - US Presidential candidate, Mitt Romney, 2011

It's strange how they agree with that statement until it comes time for legal culpability or personal responsibility of any kind.

Re: Fed's Kashkari says 'now is the time to start slowly moving' rates up

#13

Post by deepsquirrelnet »

petcat wrote: post #8
treebeard901 wrote: post #4

Yen carry trade unwind, inflation in Japan, hit to the NASDAQ, AI bubble pops, Japanese investors pull money back home and Treasuries lose its largest foreign creditor. Who knows what happens next.

US Treasury just bought about $10 billion worth of Yen

Praise FSM. Without circular investments we'd all be broke.

Re: Fed's Kashkari says 'now is the time to start slowly moving' rates up

#14

Post by _diyar »

petcat wrote: post #8
treebeard901 wrote: post #4

Yen carry trade unwind, inflation in Japan, hit to the NASDAQ, AI bubble pops, Japanese investors pull money back home and Treasuries lose its largest foreign creditor. Who knows what happens next.

US Treasury just bought about $10 billion worth of Yen

Finally a new type of circular financing to talk about!

Re: Fed's Kashkari says 'now is the time to start slowly moving' rates up

#15

Post by tharmas »

imglorp wrote: post #7
sco1 wrote: post #2

> Corporate earnings are through the roof. They’re doing great. The consumer is hanging in there. The labor market is hanging in there. Are we though? Thank god corporate profits are ok...

Don't corporate profits depend on the 99% (the poors) spending? If the consumers fail, and stop spending, how long before the corporations feel mildly inconvenienced?

Well, actually they have a new model. I call it the "Apple" model. Low volume sales on high value items where you can charge more.

Even NVidia has moved to this model: make your money from selling high-end GPUs for Data Centers and forget the low-profit margin (GeForce) GPUs for gamers/consumers.

The whole economy is moving to that model for many things.

Re: Fed's Kashkari says 'now is the time to start slowly moving' rates up

#16

Post by huntertwo »

Molitor5901 wrote: post #3

Rates up, rates down, I'm so confused. Too much liquidity supposedly means inflation, too little liquidity means deflation. Would not lower rates mean more consumer spending, thereby injecting more spending and fluidity in the system? I can't help but shake the feeling that the federal reserve is here for the wealthy, the bankers, and not for the rest of us, and anything they do is ultimately not for our benefit, but…

Inflation is bad, we have high inflation due to the energy crisis, the treatment for high inflation is increasing interest rates.

Re: Fed's Kashkari says 'now is the time to start slowly moving' rates up

#18

Post by ToValueFunfetti »

sco1 wrote: post #2

> Corporate earnings are through the roof. They’re doing great. The consumer is hanging in there. The labor market is hanging in there. Are we though? Thank god corporate profits are ok...

Could you point to some evidence that we are not? Or at least an anecdote or an opinion on what the issue is or anything at all of substance rather than a provocative question and a bit of snark? What am I supposed to take away from this- I don't even know whether 'we' refers to the consumer or participants in the labor market

Re: Fed's Kashkari says 'now is the time to start slowly moving' rates up

#19

Post by bryanlarsen »

imglorp wrote: post #7
sco1 wrote: post #2

> Corporate earnings are through the roof. They’re doing great. The consumer is hanging in there. The labor market is hanging in there. Are we though? Thank god corporate profits are ok...

Don't corporate profits depend on the 99% (the poors) spending? If the consumers fail, and stop spending, how long before the corporations feel mildly inconvenienced?

I'm not sure about the 99%, but I think we've established in the last few years that the economy can keep humming along quite nicely in the short term with only 10% of the population increasing their spending significantly in real terms. I doubt it would work with 0.1%. 1% might be enough.
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