Tomorrow's a big day for the economy...

#1
Orange_Crush

Orange_Crush

I'm Dr. Rosen Rosen
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#1
March 15th...


Time to make a decision about raising the debt ceiling. Also, the Fed is talking about raising interest rates.

If they decided to raise interest rates into this still struggling economy while also refusing to raise the debt ceiling, would that tell us anything about the economic expectations, and the Fed's/Govt's plans for the economy going forward?
 
#2
#2
Orange_Crush said:
March 15th...


Time to make a decision about raising the debt ceiling. Also, the Fed is talking about raising interest rates.

If they decided to raise interest rates into this still struggling economy while also refusing to raise the debt ceiling, would that tell us anything about the economic expectations, and the Fed's/Govt's plans for the economy going forward?
Click to expand...

Both will happen .. book it
 
#3
#3
Biopsyman said:
Both will happen .. book it
Click to expand...

But if they raised interest rates into a still struggling economy while refusing to raise the debt ceiling... What would that tell you?

I'm not saying wither will or won't happen. I'm asking the board what a combined decision would indicate.
 
#4
#4
Hmmm.. Its right now 10:10 Eastern Daylight Savings Time. But the posts are showing one hour earlier. Has Freak forgot to spring forward?
 
#5
#5
Orange_Crush said:
But if they raised interest rates into a still struggling economy while refusing to raise the debt ceiling... What would that tell you?

I'm not saying wither will or won't happen. I'm asking the board what a combined decision would indicate.
Click to expand...

It's .25 rate hike.. The Federal reserve should've been raised years ago ..
 
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#6
#6
There will be more borrowing moving forward ... The goal is to slow down and watch the debt increases which will not happen
 
#7
#7
Orange_Crush said:
But if they raised interest rates into a still struggling economy while refusing to raise the debt ceiling... What would that tell you?

I'm not saying wither will or won't happen. I'm asking the board what a combined decision would indicate.
Click to expand...

It indicates two things. One, that congress is OK with paying our bills. Two, the economy is heating up and they want to make sure inflation doesn't tick up.

That's what it always means when that happens.
 
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#8
#8
Orange_Crush said:
But if they raised interest rates into a still struggling economy while refusing to raise the debt ceiling... What would that tell you?

I'm not saying wither will or won't happen. I'm asking the board what a combined decision would indicate.
Click to expand...

They need to raise the interest rate by at least .25 each quarter until the prime is at least 5%, regardless.
 
#9
#9
Danl said:
They need to raise the interest rate by at least .25 each quarter until the prime is at least 5%, regardless.
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Probably the best way to cause a fiscal crisis. Ramp up the interest payments to a trillion dollars or more.
 
#12
#12
TheDeeble said:
Probably the best way to cause a fiscal crisis. Ramp up the interest payments to a trillion dollars or more.
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We should pay off the damned debt (significantly) instead of running it up further. Our bond market and individual savers should not have been destroyed by reducing the interest rates in the first place.
 
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#15
#15
n_huffhines said:
They need to not set interest rates and let the market figure it out.
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The interest rate they set is what the Fed charges to lend money to the banks, the rate you get from the bank is determined by the market.
 
#16
#16
hog88 said:
The interest rate they set is what the Fed charges to lend money to the banks, the rate you get from the bank is determined by the market.
Click to expand...

It's totally skewed by what the Fed does. This might help:

Interest rates are not set by the laws of supply and demand. Each bank that has money to lend doesn’t independently set rates based on what the market will bear. At their core, the interest rates that we pay on borrowed money for our businesses are set by the Federal Reserve.
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https://www.americanexpress.com/us/.../how-the-federal-reserve-sets-interest-rates/
 
#18
#18
hog88 said:
The interest rate they set is what the Fed charges to lend money to the banks, the rate you get from the bank is determined by the market.
Click to expand...

Huff is correct,but he's forgetting about the IMF setting rates also. The interest rates are set by the international lending institutions like the IMF and the Fed.
 
#19
#19
C65LVL_WsAEqAS8.jpg
 
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#21
#21
One Week after debt hike deadline. No debt limit increase.


From the TSP a week ago...

The U.S. Treasury was unable to fully invest the Government Securities Investment (G) Fund due to the statutory ceiling on the federal debt. However, G Fund investors remain fully protected and G Fund earnings are fully guaranteed by the federal government. This statutory guarantee has effectively protected G Fund investors many times over the past 25 years. G Fund account balances will continue to accrue earnings and will be updated each business day, and loans and withdrawals will be unaffected. - See more at: https://www.fedsmith.com/2017/03/21...-to-offset-debt-ceiling/#sthash.Lvh9kzNa.dpuf
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The Federal Gov't could not continue investing in the G-Fund because it's out of money and credit. But don't get nervous because your investments in the G-Fund are guaranteed by the Federal Gov't (who is out of money and credit, so couldn't continue investing in the G-Fund that you're invested in).

From the Congressional Research Service:

Congress has granted to the Secretary of the Treasury the authority to take certain actions that allow the Treasury temporarily to continue borrowing cash from the public without increasing the public debt. The Secretary is authorized to take these actions, which effectively reduce the obligations of the government that are counted toward the public debt ceiling, only during a “debt-issuance suspension period. - See more at: https://www.fedsmith.com/2017/03/21...-to-offset-debt-ceiling/#sthash.Lvh9kzNa.dpuf
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So, the gov't can steal from citizens above and beyond taxation.
 
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#22
#22
when FORD was president we was very concerned in 1 year having a 1 billion deficit in fiscal year 75
 
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