Rising Interest Rate is a good thing!

[Overnight]

...Which is better, government paid education and lower rates of imprisonment, or government paid food and higher rates of imprisonment? I am a capitalist. I prefer the former.

Maybe instead of subsidizing welfare programs, the government should subsidize private companies to pay their workers those higher wages. Think about it.

If the truck drives get a $10 per hour boost, they may want to start driving again, which will help the supply chain issue.

Maybe instead of food stamps, give the workers an extra $10 per hour. So shifting money from social programs into people's paychecks. You know?

 

[piezoe]

Maybe instead of subsidizing welfare programs, the government should subsidize private companies to pay their workers those higher wages. Think about it.

If the truck drives get a $10 per hour boost, they may want to start driving again, which will help the supply chain issue.

Maybe instead of food stamps, give the workers an extra $10 per hour. So shifting money from social programs into people's paychecks. You know?

This idea has some merit but only were the increased wage can not be met by the private sector as opposed to the private sector learning to depend on government subsidy. We should strive for an honest economy.. Most businesses that find they are incapable of operating in the private sector without built in government subsidy of their labor force should be allowed to close their doors. They will be replaced with viable better run businesses. There is a place for government and a place for the private sector. Our job ought to be to get the mix right.

Why should government subsidize McDonald's and Walmart's share holders?

 

[HeSaidSheSaid]

Current U.S. Treasury rates:

1 year - 0.450%
2 year - 0.880%
3 year - 1.15%
5 year - 1.47%
7 year - 1.66%
10 year - 1.73%

Why are these rates so low?
Recent CPI prints are high single digits.
Because ... maybe ... the U.S. Treasury can't afford to pay higher interest rates?
So, to keep these rates so low, the FED has become one of the largest buyers of U.S. debt.
But where does the FED get all this money?
They don't have any money.
So, they print it.
Where is the inflation coming from?
The FED.
Are higher interest rates good?
Only if you think that rising inflation is good.
And it is certainly not good for non-investors - individuals without assets.

ok, you had a point. then, I think big money is going to take the market down 10% on the bad catalyst (perhaps, in the next two or three weeks). (rate hike is a legitimate concern as in don't fight the FED). You know big money (like Goldman, Stanley, JP, Black Rock, Citadel,...) is going to shake the tree to make some nervous monkeys jump, so the'd collect shares at lower prices, then take them back up later on.

 

[naturecumforexlover]

In the last decade fed just made everything hyped be it currencies, stocks or cryptos, now its high time to pull the strings fed!

 

[cobco]

https://mises.org/wire/federal-reserve-keeps-buying-mortgages

 

[Paulsy]

As we all agree, interest rates are major market movers when it comes to forex trading. It is often the biggest factor determining the perceived value and direction of that currency. Higher interest rates are used to cap inflation and growth. It is because higher rates make borrowing more expensive and sitting on cash becomes more attractive.

 

[Tumescent]

The effects of inflation may slow down because people won’t spend money as much as they used to which may also lead to the prices going down. For those who have variable rate mortgages, the rates may go up.

 

[HeSaidSheSaid]

the FED policy on interest rate has been a contributing factor to the jump inflation, but I think the main, immediate culprit that causes the high inflation is the supply chain and logistic problem: goods is not produced fast enough to be shipped to the consumers while the demand for food from the 7.7 billions of people on earth won't subside because of covid. Once people accept covid as seasonal flu, and learn to live with it, then the supply chain and logistic problem would settle down, then inflation would come back down. it's matter of perception of the disease.
then perhaps FED raising quarter point on interest rate would be a symbolic gesture to calm the mass.

 

[Damanuelman]

It is not a joke. I am dead serious. Look at the economy. Look at the data. Look at the increase in wages and compare that to inflation. People at the bottom end are doing much netter now. Ask yourself, am I doing better now than i was three years ago?

Like they say man, I don't think facts care about feelings. I don't care whose in the Whitehouse. But yes I prefer the anti chaos anti risk people. This ain't Vegas. Once I see my local business expanding and growing then I'll care. I can really care less about these billionaire dollar companies making more billions.

 

[piezoe]

Like they say man, I don't think facts care about feelings. I don't care whose in the Whitehouse. But yes I prefer the anti chaos anti risk people. This ain't Vegas. Once I see my local business expanding and growing then I'll care. I can really care less about these billionaire dollar companies making more billions.

All competent politicians are acutely aware of what you really care about.