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Federal Reserve raises rates by 0.75%

usatoday.com

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Re: Federal Reserve raises rates by 0.75%

#111

Post by lovich »

darth_avocado wrote: post #82
mark_l_watson wrote: post #17

You can argue either side to this, and make a good case. My personal preference is to trigger a recession and reduce inflation. The easy cop-out solution is to say a "big f*ck off" to pensioners, lower middle class, and poor people and let inflation soar, but I believe that long term this would be more destructive to the general economy. Better take the long term view here and not kick the can down the street.

Here's another perspective to this. An induced recession at a time when most people and businesses are recovering from historic losses that came about in the pandemic, is the worst. In a recession, spending from the top 10% of the population slows down, which in turn stops the trickle down economics, and hits the lower 90% of the society the hardest. And when that happens after a 2 year long period where they were al…

> …which in turn stops the trickle down economics…

It ever started?

Re: Federal Reserve raises rates by 0.75%

#112

Post by bpodgursky »

jcadam wrote: post #45
nostromo wrote: post #22

Earlier quoted context omitted.

A key driver to inflation is that wages for lower-income workers was finally starting to rise. Tanking the economy will hurt these people the most. But yes, inflation would flatten.

Still waiting for inflation to hit my effing salary. I know it won't, because we're entering stagflation territory and unemployment is going to go up. COVID was a massive wealth transfer from the lower and (esp) middle class to the oligarchs.

Have you asked for a raise?

Re: Federal Reserve raises rates by 0.75%

#113

Post by hunterb123 »

hindsightbias wrote: post #109
hunterb123 wrote: post #46

Earlier quoted context omitted.

We reduced our oil production before the invasion. Gas prices were multiplying before the invasion. Putin did not force the reduction of our own supply. The current administration did. The invasion may have been the consequence of the reduction of our production and amplified the "price hikes", but it wasn't the cause of the "price hikes", the initial action of reducing production and relying on foreign imports was.

The administration did not cut production. Covid did. The oil industry is dragging their feet.

We were net exporters during covid under the last admin.

This is the policy the current admin enacted that cut our production:

https://www.csis.org/analysis/biden-makes-sweeping-changes-o...

Please point to something that supports your theory that "covid did it" and oil companies are "dragging their feet".

- edit, at my post limit -

@vel0city: Banning new leases two years ago hurt our production output. Banning new subscribers and preventing renewals would hurt your revenue, why would you think it wouldn't apply here?

It seems you're trying to rationalize away the obvious change in policy and its effects because of some reason unknown to me.

Would you support retracting this policy decision since in your mind it has little effect and in my mind it's the leading cause of our loss of net export status?

@deeg: the article says offshore leases may not show declines for 10 years as the leases are longer, but onshore could "conceivably show up faster".

Your point seems to be this policy hasn't hit us fully yet? Are you for it? How confident are you that it didn't cause the loss of our net export status?

Re: Federal Reserve raises rates by 0.75%

#115

Post by beezle »

Ridiculous that the Fed doesn't just raise 200bp and be done. They could have done this six months ago (call it 250bp then) if they truly believe that the level of interest rates will have a material effect on the inflation rate.

The piece meal, drip drip increases just raises uncertainty for consumers and businesses while ensuring they are "behind the curve"

Re: Federal Reserve raises rates by 0.75%

#116

Post by iso1631 »

fsociety999 wrote: post #49
iso1631 wrote: post #23

Earlier quoted context omitted.

If you think the dollar is worth less then no doubt that's reflected in say gold prices, which were between 1600 and 1900 from July 2011 to April 2013. They are currently 1800. If all that extra money had devalued fiat currencies globally (at roughly the same value), why hasn't gold increased?

Gold markets are manipulated like crazy. This article talks about it a bit https://www.bullionstar.com/blogs/ronan-manly/gold-silver-pr... There have been a number of cases of banks being found guilty of it as well: - https://www.reuters.com/article/us-usa-metals-charges/u-s-ch... - https://www.reuters.com/article/jp-morgan-spoofing-penalty-i... Look up naked short selling if you want to see how this works. Essential…

Lovely. So what comodities would you prefer? Corn's about the same as in 2011, Copper, Soy etc.

US M1 supply has increased 40 fold since 2011. If that's hiding "real" inflation, why are commodities less than 1/10th of the cost they were 10 years ago?

Re: Federal Reserve raises rates by 0.75%

#118

Post by prepend »

mbfg wrote: post #105
darth_avocado wrote: post #82

Earlier quoted context omitted.

Here's another perspective to this. An induced recession at a time when most people and businesses are recovering from historic losses that came about in the pandemic, is the worst. In a recession, spending from the top 10% of the population slows down, which in turn stops the trickle down economics, and hits the lower 90% of the society the hardest. And when that happens after a 2 year long period where they were al…

please show where trickle down economics ever worked, anywhere.

I mean the US economy in the 20th century seems like a pretty good example, right? It “worked” by having the wealthiest realize most gains but also making the US the most powerful economy in the world and still has a large sized middle class with houses, pensions, 401ks, etc.

Re: Federal Reserve raises rates by 0.75%

#119

Post by afterburner »

beezle wrote: post #115

Ridiculous that the Fed doesn't just raise 200bp and be done. They could have done this six months ago (call it 250bp then) if they truly believe that the level of interest rates will have a material effect on the inflation rate. The piece meal, drip drip increases just raises uncertainty for consumers and businesses while ensuring they are "behind the curve"

The piecemeal approach ensures they avoid massive shocks and over-correction. The cure should not be worse than the disease.

Re: Federal Reserve raises rates by 0.75%

#120

Post by drexlspivey »

cavisne wrote: post #87
dnadler wrote: post #26

Something I haven’t seen discussed much is the impact of inflation on the existing federal debt. This is actually a positive for taxpayers as the federal debt will become cheaper. Obviously we’re still spending a ton and are issuing debt at higher rates now, so it’s not some kind of magic cure or anything.

Is the debt rate fixed on federal debt? I can’t find much info on this. Ie if the fed funds rate doubles what’s the impact on the interest rate payments the government makes.

Yes the bond coupon payments are fixed, only the newly issued debt will be affected.
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