Trump's plan to raise interest rates could be a disaster for America

Thats funny, I was reading articles before the election was over saying that in the first quarter of the presidents tenure interest rates were going to go up...

Good lord you are really reaching..

eta: If they were saying its going up after the election... how exactly is this Trumps fault?

because he said things... so he was not even president elect and Yellen is going to bow and scrape to him... seriously walk away from politics you and a few others here are going completely off the rails and the man isnt even in office yet.

Doesn't mean the savings/CD rate will increase.

Reaching? How is reporting someone's own words reaching?

I guarantee you Trump's Fed appointees will raise rates more than the current ones would on their own.

originally posted by: CB328
Not only that but consumer spending will fall which could cause a recession.

So people will be buying less products made in China.

Big deal.

That is what a 'recession' is.

originally posted by: CB328
Reaching? How is reporting someone's own words reaching?

I guarantee you Trump's Fed appointees will raise rates more than the current ones would on their own.

If they were saying its going up after the election... how exactly is this Trumps fault? because he said things... so he was not even president elect and Yellen is going to bow and scrape to him... seriously walk away from politics you and a few others here are going completely off the rails and the man isnt even in office yet. edit on 12-11-2016 by Irishhaf because: additional thought

Yes reaching...

They were going to do this if it was Hillary or Trump.. and yet this is trumps fault... What the deuce...

originally posted by: CB328
Not only that but consumer spending will fall which could cause a recession.

You just don't get it.

That is not avoidable we are going to have a crash. The only question is when and how large it is.

Borrowing money does not create wealth, it steals future wealth.

There comes a point in time where that borrowing must be paid back or defaulted. That is just a return to reality.

The market does not care if it is unpleasant or if you don't want it to happen, as soon as it believes the US is not a safe debtor nation rates will go up. When will that happen without Fed intervention? Well it could be when Deutche Bank fails and causes chaos, it could be when China implodes from its insane Real Estate bubble that makes our 2008 bubble look small by comparison - this actually appears to be happening now, or many other possible sparks.

The whole worlds economic system is incredibly fragile right now, it is a powderkeg, and quite frankly I am amazed it hasn't blown up the in the last 3 or 4 years.

By saying you want to continue keeping rates low you are asking for an even bigger economic collapse in the near future. The Fed knows this, they are basically backed into a corner where there is no good solution, keeping rates low makes things worse, but raising them probably will also. Even the Fed now knows the best course of action is to raise them because it is inevitable they will go up whether they like it or not, so it is best to try to ease into it.

originally posted by: ketsuko
Like it or not, interest rates need to start going up. It will suck when it happens, but part of the problem with the economy is all the extra, valueless cash that has been pumped by all the qualitative easing. One of the mechanisms to remove that extra cash that depresses dollar value is by raising interest rates.

Not to mention, with interest rates so low they might as well be zero, what incentive is there for people to save for the future? Your savings do not appreciate in value because they do not collect interest.

QE in itself, has not increased the money supply. It has enlarged the Feds balance sheet so they could swap out bad loans that existed on the books of banks with bonds etc parked at the Fed. So in effect it was designed to reset the banks balance sheets whilst funding government debt etc. See here.

We have to realize that all the wealth from past decades was obtained from bubbles that no loger can fuel world growth. So economies have to reset to a much lower value than today. The Fed cannot really do much but control the sink rate of the titanic by playing music to calm passengers.

Suggest people find a life vest (minimize all outgoings by going solar, growing own food etc).

a reply to: proximo


Quite correct in my opinion. But the main problem and its a big one, is how do you have an economic plan for a post industrial world, which historically, is unprecedented. When you have legislators that are non creative accountants. From here on in AI. will do most of the paid work, technology has essentially made the working population redundant. Their is no plan B. Chaos comes with tipping points historically speaking.

The problem has already reached many countries, and their chaos has caused many to emigrate to where its not as bad, But of course it soon will be, as it only speeds up the inevitable. So where is plan B, in a Keynesian economic system?

a reply to: kurthall

I meant LA as in Louisiana

a reply to: kurthall

I meant LA as in Louisiana