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Rate hikes are good!!!!!!!!!!
- Thread starter myminitrading
- Start date
Hi Stonedinvestoor.
It is amazing how US policymakers try to solve their economic porblems by depreciating the US currency. If they contnue this path, it will be no surprise to see a 1987 style stock market meltdown despite the fundamental soundness of the US economy. If the US policymakers want to generate economic growth, they should rather pursue the comparative advantage card and not the $ devaluation path ( i.e. promote BA not salvage GM).
It is amazing how US policymakers try to solve their economic porblems by depreciating the US currency. If they contnue this path, it will be no surprise to see a 1987 style stock market meltdown despite the fundamental soundness of the US economy. If the US policymakers want to generate economic growth, they should rather pursue the comparative advantage card and not the $ devaluation path ( i.e. promote BA not salvage GM).
Quote from stonedinvestor:
re: Now if the Fed gets spooked by the falling dollar and that ties their hands leaving them unable to lower rates
I believe it's just the opposite. A falling dollar scenario you would ease policy. The tricky thing is the economy is really humming it was a mid cycle slowdown. The next rate move should be up. If the fed defends the dollar he might be unleashing the Inflation genie. especially wage- as productivity is now decidedly weak.
....?
This continued weak dollar policy year after year losing 15%-20% on our currency it's got to come back and haunt us at some point.
You understand that, I understand that. But the average voter does not. If you're a politician you much prefer inflation to the practical alternatives, i.e., raising taxes or reducing spending. We are attempting to inflate our way out of debt. The end result is pretty much the same whether you tax or whether you inflate, but in the former case you get lots of guff, and in the latter, people just wake up one morning and don't know what hit them.
You understand that, I understand that. But the average voter does not. If you're a politician you much prefer inflation to the practical alternatives, i.e., raising taxes or reducing spending. We are attempting to inflate our way out of debt. The end result is pretty much the same whether you tax or whether you inflate, but in the former case you get lots of guff, and in the latter, people just wake up one morning and don't know what hit them.
Quote from Manolis:
It is amazing how US policymakers try to solve their economic porblems by depreciating the US currency. If they contnue this path, it will be no surprise to see a 1987 style stock market meltdown despite the fundamental soundness of the US economy. If the US policymakers want to generate economic growth, they should rather pursue the comparative advantage card and not the $ devaluation path ( i.e. promote BA not salvage GM). [/B]
Comparative advantage, I don't think we have that edge anymore. We are too dependent on foreign goods and services, the only one way for the US economy is the downward path. How pathetic.
Quote from socalpt:
Comparative advantage, I don't think we have that edge anymore. We are too dependent on foreign goods and services, the only one way for the US economy is the downward path. How pathetic.
US has still the best porn industry in the world. Things are better than you might think.
Not only are higher rates good , but highert oil is also a good thing. Just look how the market loves higher oil today.
"Comparative advantage, I don't think we have that edge anymore. We are too dependent on foreign goods and services, the only one way for the US economy is the downward path."
There is a duopoly in the commercial aircraft business with BA beating the competitition badly. There is no real competition for the US military aitcraft business.
There is a duopoly in the commercial aircraft business with BA beating the competitition badly. There is no real competition for the US military aitcraft business.