The Fed can't meaningfully raise rates because the economy is now forever broken. 50 years of deficit spending, money printing, wars, raiding the alleged Social Security trust fund, an unintentional UBI experiment, and a new rush to spend trillions before the mid-terms mean that there's no alternative.
If the Fed raised rates to 5% the interest on the national debt would eat 30% of the annual federal budget. It can't happen. The Fed can't raise rates much more than 1%.
The "bubble" is is the new normal.
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CuryNeil
:
ah simpleton economist. based on your logic, there wouldn’t be dotcom crash, and the 2008 housing bubble crash and tulip bubble would have lasted forever. BTW, “new normal” is a nonsensical newspeak. if certain thing become normal, then it is not new. if you believe “bubble” is normal, then it is no
emirsway
Only exception
:
You might be a cunning linguist, but your stream of conscious narrative combined with your sardonic verbiage obfuscates any meaningful insight and instead converts your comment into a decidedly dangerous diatribe. I am quite alliterate, as you can see, and certainly not as illiterate as you infer. Be gone!
TCFIT_365
CuryNeil
:
Nice try. You understand that in the 1980s the Fed raised rates to over 15% to stop inflation and that the federal debt was a fraction of what it is now ... The "new normal" is an impossibly increasing federal debt and endless deficit spending, coupled with no way to fight inflation. A first. Interest rates will not significantly rise because they can't.
eyenation
:
Well why not? Figuratively speaking of course. Raising a decent cash position and sitting on it for several months until clear, low risk opportunities arise, seems very prudent to me right now.
Myrrh
eyenation
:
Under the mattress won't help when the Fed and the Federal Government blow up the money supply. In fact, "under the mattress" means you're losing ~5% / year at the moment. Worse later.
CuryNeil : ah simpleton economist. based on your logic, there wouldn’t be dotcom crash, and the 2008 housing bubble crash and tulip bubble would have lasted forever.
BTW, “new normal” is a nonsensical newspeak. if certain thing become normal, then it is not new. if you believe “bubble” is normal, then it is no
Unicore Will CuryNeil : Huh? Whatever!
Only exception Unicore Will : Yeah whatever. Maybe buy a dictionary. Learning won’t be a bad thing.
https://youtu.be/cx7VnKMZew4
emirsway Only exception : You might be a cunning linguist, but your stream of conscious narrative combined with your sardonic verbiage obfuscates any meaningful insight and instead converts your comment into a decidedly dangerous diatribe. I am quite alliterate, as you can see, and certainly not as illiterate as you infer. Be gone!
TCFIT_365 CuryNeil : Nice try. You understand that in the 1980s the Fed raised rates to over 15% to stop inflation and that the federal debt was a fraction of what it is now ...
The "new normal" is an impossibly increasing federal debt and endless deficit spending, coupled with no way to fight inflation. A first.
Interest rates will not significantly rise because they can't.
eyenation : Well why not? Figuratively speaking of course. Raising a decent cash position and sitting on it for several months until clear, low risk opportunities arise, seems very prudent to me right now.
Myrrh eyenation : Under the mattress won't help when the Fed and the Federal Government blow up the money supply. In fact, "under the mattress" means you're losing ~5% / year at the moment. Worse later.