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why is the Fed still keeping interest rates low

is the goal to inflate the bubble as much as possible
Abusive boyish codepig clown
  11/19/17
i'm sure it has to do with Boomers
ruby ceo
  11/19/17
...
hot violent market
  11/19/17
...
Abusive boyish codepig clown
  11/19/17
because they can't raise them without causing a 1930s era de...
silver autistic native voyeur
  11/19/17
...
Unhinged senate pozpig
  11/19/17
...
Beta mentally impaired halford center
  11/21/17
Judging by how my car insurance just shot up 7%, my cable bi...
Flesh Titillating Foreskin
  11/19/17
do you think oil was pushed artifically low starting in 2015...
silver autistic native voyeur
  11/19/17
Yes.
Flesh Titillating Foreskin
  11/19/17
i honestly believe this too. i still believe in peak oil
silver autistic native voyeur
  11/19/17
Pretty sure they're about to tick it up a bit
Chocolate razzmatazz national
  11/19/17
25 basis points!!!!!!!!
silver autistic native voyeur
  11/19/17
Lol it's a good sign man no worries
Chocolate razzmatazz national
  11/19/17
They are in a bind. They can't raise too much. It will colla...
nofapping brilliant theatre
  11/19/17
...
bateful blue karate multi-billionaire
  11/19/17
and LOL at the national debt
silver autistic native voyeur
  11/19/17
...
Unhinged senate pozpig
  11/19/17
This is the real reason. They can’t raise rates or else th...
sinister brunch macaca
  11/20/17
inflation in real estate, healthcare, education etc are beca...
French Confused Deer Antler Stage
  11/19/17
totally wrong. inflation in real estate, healthcare, and ed...
Abusive boyish codepig clown
  11/19/17
Many of these claims are pretty dubious
Chocolate razzmatazz national
  11/19/17
pretty retarded to draw some connection between currency val...
Abusive boyish codepig clown
  11/19/17
You forgot the main culprit in healthcare which is MASS subs...
sinister brunch macaca
  11/20/17
...
Abusive boyish codepig clown
  11/19/17
I hope global economic collapse + blue states getting fucked...
Abnormal stead party of the first part
  11/19/17
Kikes
sickened dilemma
  11/19/17
...
Abusive boyish codepig clown
  11/19/17
This is ofcourse a major part of the problem. There are a lo...
nofapping brilliant theatre
  11/19/17
...
Abusive boyish codepig clown
  11/19/17
1) https://salo-forum.com/index.php?threads/the-secret-curre...
French Confused Deer Antler Stage
  11/19/17
inflation still low. wages still shit.
Garnet hall national security agency
  11/19/17
lol @ thinking inflation is "low"
Abusive boyish codepig clown
  11/19/17
this. and shrinkflation is real too
silver autistic native voyeur
  11/20/17
What's the alternative?
razzle bespoke factory reset button scourge upon the earth
  11/20/17
This is a difficult question. What is the alternative TODAY?...
nofapping brilliant theatre
  11/20/17
They're counting on ETH to propel the economy to unheard of ...
Nubile dashing cuck
  11/20/17


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Reply Favorite

Date: November 19th, 2017 1:58 PM
Author: Abusive boyish codepig clown

is the goal to inflate the bubble as much as possible

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34723664)



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Date: November 19th, 2017 1:59 PM
Author: ruby ceo

i'm sure it has to do with Boomers

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34723675)



Reply Favorite

Date: November 19th, 2017 9:19 PM
Author: hot violent market



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726927)



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Date: November 19th, 2017 7:36 PM
Author: Abusive boyish codepig clown



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726016)



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Date: November 19th, 2017 7:37 PM
Author: silver autistic native voyeur

because they can't raise them without causing a 1930s era depression

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726030)



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Date: November 19th, 2017 8:45 PM
Author: Unhinged senate pozpig



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726632)



Reply Favorite

Date: November 21st, 2017 3:00 PM
Author: Beta mentally impaired halford center



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34740977)



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Date: November 19th, 2017 7:40 PM
Author: Flesh Titillating Foreskin

Judging by how my car insurance just shot up 7%, my cable bill 3%, my cell phone bill 4% and my gym membership like 13% -- LJL at their inflation stats. Only thing that's remotely flat this year is gasoline. Everything else is fucking you in the ass -- even Netflix. Even TTT soda is way up in price. I remember paying $1.49 for a 2 liter last year. It's $1.59 now.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726061)



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Date: November 19th, 2017 7:42 PM
Author: silver autistic native voyeur

do you think oil was pushed artifically low starting in 2015 to mess with the russians?

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726073)



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Date: November 19th, 2017 7:44 PM
Author: Flesh Titillating Foreskin

Yes.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726102)



Reply Favorite

Date: November 19th, 2017 7:45 PM
Author: silver autistic native voyeur

i honestly believe this too. i still believe in peak oil

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726109)



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Date: November 19th, 2017 7:42 PM
Author: Chocolate razzmatazz national

Pretty sure they're about to tick it up a bit

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726081)



Reply Favorite

Date: November 19th, 2017 7:45 PM
Author: silver autistic native voyeur

25 basis points!!!!!!!!

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726107)



Reply Favorite

Date: November 19th, 2017 7:46 PM
Author: Chocolate razzmatazz national

Lol it's a good sign man no worries

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726114)



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Date: November 19th, 2017 7:50 PM
Author: nofapping brilliant theatre

They are in a bind. They can't raise too much. It will collapse the world economy. But like the poster above said, they are causing inflation but not admitting to it. Housing all over the world has become a giant speculative bubble. Every major city has an issue - Toronto, Shanghai, Mumbai, NY, SF, Sydney, Melbourne, London, Dubai, Berlin ... and that's just the tier one cities. Same thing is happening in tier 2 and even some tier 3 cities. If you bought in 2009-2012 timeframe you are fucking golden. Everyone else is stroking their dicks as they wait for prices to come down which they won't because of the low interest rates.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726162)



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Date: November 19th, 2017 7:50 PM
Author: bateful blue karate multi-billionaire



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726167)



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Date: November 19th, 2017 7:59 PM
Author: silver autistic native voyeur

and LOL at the national debt

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726249)



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Date: November 19th, 2017 8:44 PM
Author: Unhinged senate pozpig



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726629)



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Date: November 20th, 2017 9:17 AM
Author: sinister brunch macaca

This is the real reason. They can’t raise rates or else they’d effectively have to refinance govt debt at higher rates since something like 2/3rds of govt debt matures in under 7 years. It is constantly being refinanced. Doing so would drive up interest costs which would further crowd out DEM PROGRAMS and cause a real revolt.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34729777)



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Date: November 19th, 2017 8:52 PM
Author: French Confused Deer Antler Stage

inflation in real estate, healthcare, education etc are because they are a politically safe asset to buy for foreigners or the government. its all about incentives. that and actual scarcity of goods is more or less solved by developed governments for now. factories can produce so much shit by either third world labor or automation that COGS don't figure into the equation as much as taxes, regulation, etc.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726699)



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Date: November 19th, 2017 9:21 PM
Author: Abusive boyish codepig clown

totally wrong. inflation in real estate, healthcare, and education is almost 100% the work of government intervention in the housing, health care, and education markets. 30-year fixed-rate mortgages wouldn't exist without Fannie and Freddie. Tuition would be cut in half overnight if the feds pulled out of the student loan biz entirely. health care is an amalgamation of government retardation involving drug patents, medicare (plus the predictable fraud associated with it), state-imposed caps on the number of docs, etc.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726948)



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Date: November 19th, 2017 9:22 PM
Author: Chocolate razzmatazz national

Many of these claims are pretty dubious

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726958)



Reply Favorite

Date: November 19th, 2017 9:29 PM
Author: Abusive boyish codepig clown

pretty retarded to draw some connection between currency valuations and prices in only a few particular sectors when obvious regulatory and government interventions make the difference. it's not like people are suddenly demanding 10x the amount of higher education or 4x the amount of medical care or 5x the amount of housing

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34727018)



Reply Favorite

Date: November 20th, 2017 9:18 AM
Author: sinister brunch macaca

You forgot the main culprit in healthcare which is MASS subsidies (Medicaid Medicare Obamacare chip etc)

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34729784)



Reply Favorite

Date: November 19th, 2017 9:19 PM
Author: Abusive boyish codepig clown



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726921)



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Date: November 19th, 2017 9:30 PM
Author: Abnormal stead party of the first part

I hope global economic collapse + blue states getting fucked by elimination of SALT deduction and property tax cap will finally allow me to buy a home.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34727032)



Reply Favorite

Date: November 19th, 2017 8:45 PM
Author: sickened dilemma

Kikes

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726637)



Reply Favorite

Date: November 19th, 2017 9:21 PM
Author: Abusive boyish codepig clown



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726949)



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Date: November 19th, 2017 9:35 PM
Author: nofapping brilliant theatre

This is ofcourse a major part of the problem. There are a lot of Jews on the top that aren't that good but they have an aura of goodness about them because the media tells us so. Starting from the execs at Goldman Sachs and other banks to the last couple of Federal Reserve chairs, to many of the Senators - these people's thoughts are supposed to be above reproach. But their policies have been ruinous for many. Wealth and income equality are at stratospheric highs, young people can't find appropriate housing, wages haven't gone up enough, etc.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34727087)



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Date: November 19th, 2017 9:36 PM
Author: Abusive boyish codepig clown



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34727096)



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Date: November 19th, 2017 8:47 PM
Author: French Confused Deer Antler Stage

1) https://salo-forum.com/index.php?threads/the-secret-currency-war-s-of-2008-present.5933/

"As we have seen in prior political eras, there has been a great deal of theoretical and semi-theoretical economic and political discussion around the role of currencies, and modern economies in general. In at least part, these discussions often gravitate to the extreme views of Austrian influenced Goldbugs (in the US, often overlapping with "Paulbots") on one side, and the "Everything is fine" school spread by modern media and major governments. The purpose of this thread is not to debate the differences between Keynes, Austrians, and MMT, but to explain why much of our understanding of not only the current economic and political environment is wrong, but also our understanding of the last decade.

By way of background, prior to mid-2005, the People's Republic of China (PRC) Yuan (CNY) was "pegged" at roughly 8.27 to the United States (USG) Dollar (USD). In theoretical terms, the People's Bank of China (PBOC) would print money to buy up the USD received by Chinese Exporters. Depending on one's views of economics, either the PBOC was paying a subsidy to Chinese Exporters, a subsidy to US Importers, or allowing the USG to export it's inflation to the PRC. After much cajoling by the administration of President George W Bush, this "peg" was dropped over time to roughly 6.83 USD/CNY. Noticably on a chart, this new peg started roughly July 2008. As we know, by late 2007, signs of serious financial contagion were visable, with the fall of Bear Sterns in March 2008, and a dramatic escalation of the crisis in the fall of 2008, which would culminate in the Global FInancial Crisis (GFC) of 2008-2009.

The author is negative towards accusations that the lack of PBOC money printing before this point trigged the crisis, since the crisis has been going for months at that point, and was completely predictable years before.

In November 2008, to respond to the GFC, the USG Federal Reserve (Fed) purchased 600 Billion dollars of Mortgage Backed Securities by the simple expedient of printing (electronic) money, referred to as "Quantitative Easing" (QE). While normally the injection of 600 Billion USD into the global economy would have caused an impact, conditions were such that the Fed continued to do so for months afterwards, ending up with 2.1 Trillion USD worth of purchases by June 2010, when they attempted to let the purchased securities mature ("tightening").

At roughly the same time, the PBOC let it's "peg" slide even more, letting the CNY "strengthen". Why?

As a basic concept, the author has a dim view of politicians around the world. Politicians do not put much stock in a stable currency, which is the reason almost every fiat currency since the Bank of England (BOE) banknotes has been overseen by some form of separate body, even if only on paper. Left to their own devices, politicians seldom go to any effort to redeem excess money supply. Almost every Western government, save perhaps Germany, Norway, Japan, and Switzerland, has engaged in questionable accounting for pension liabilities, preferring to spend to buy votes or the support of factions today, rather than secure tomorrow.

Almost every government, going back to the Romans, faced with a crisis that requires spending, will print money if it can get away with it. For the most spectacular recent example, the NSDAP government of Germany (1933-1945) spend it's entire period in government engaged in one form or another of inflationary spending until ending the war with even the death penalty not being enough to stop major business stakeholders from accumulating illegal foreign reserves.

The historical record suggests that the ascension of former World Bank employee, then New York Federal Reserve Bank President Timothy Geithner, to the position of Secretary of the Treasury, engaged in a very dangerous game with the PRC. By allying with his former colleagues at the Fed to print money to stabilize the Global Financial System, he forced the PRC to either accept socially disruptive levels of inflation, or drop the peg against the dollar. Where Goldbugs, in particular, go wrong is in ascribing the QE1 era to wanting to subsidize the massive deficit spending of the late Bush II/Early Obama transition, while that was part of it, it also was something of a defensive measure to force the PRC to stop it's currency war or subsidize the USG in it's moment of weakness.

However, the USG could no longer act in a vacuum. The BOE had printed right along with the Fed. Starting in March 2009, the European Central Bank (ECB) has started it's own QE. In October 2010, the Bank of Japan (BOJ), returning to traditional Japanese Mercantilist views, started it's own QE. Other banks, ranging from the Swiss National Bank (SNB), to Sweden, Israel, even Canada, went along with QE, arguably to prevent the USG or ECB from undermining their economies in turn. The world was in yet another a barely controlled currency war, parts of which rage to this day.

Faced with this situation, the Fed announced another round of QE, now called QE2, from November 2010-June 2011. In turn, the other banks did as well. Also, at this point, political developments such as the Fiscal Cliff in Congress further increased the amount of debt issued by the USG, as well as worried political decision makers about the stability of the US Economy.

Because both the political and economic decision makers in the US at this point aligned, the Fed decided to embark on QE3, open ended purchases of roughly 40 (later 85) Billion USD a month, plus reinvestment of maturing securities. By comparison, the issuance of US Treasury debt around that time was roughly 40-55 Billion/month (annualized). In effect, the Central Banks of the World had reached the point where all of them were printing money, which made their political masters (and their financial markets) happy, and were buying up government debt at an incredible pace.

One of the unexpected events of this global money printing was that previously uneconomic projects, such as high-risk oil exploration, creating a massive logistics network for 3rd party goods, or building new retail space in already saturated markets, was actually viable on a financial basis. The credit-fueled oil boom, and cheap global credit, allowed a massive expansion of global production, that in turn kept global goods inflation down, in nominal dollar terms. On paper, it looked like the world's central banks had achieved Economic Paradise, buying government debt, reducing (real) government expenses, dropping interest rates, beating inflation, and all of it dumped on someone else.

The problem was, however, is that there were two major costs. While most goods are subject to commoditization, real estate, financial services, and health care, to name a few, are not. Hot money flowed around the world, from Cyprus to London to Vancouver to New York, destabilizing local housing markets and forcing out prospective home buyers across the world. Residential Rents went up for all classes around the Western world, and Private Equity Funds and financial instruments because methods to generate immense fees for the Financial-Industrial Complex, both in USG and Globally.

As for the other major cost, assuming a world of no inflation, increase to the demand for debt (too much money) means that the price paid for debt will go up, dropping the yield (or increasing risk). This was, and is, a serious issue for the net creditors of the world, be they Japanese insurance policy owners, US Pension Funds, or elderly retirees. In real terms, they ended up being the loser of the Secret Currency Wars. "

2) lol at paying a normal interest rate on the national debt, at 5% it would be half the budget on interest alone.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34726647)



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Date: November 19th, 2017 9:36 PM
Author: Garnet hall national security agency

inflation still low. wages still shit.

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34727093)



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Date: November 19th, 2017 9:36 PM
Author: Abusive boyish codepig clown

lol @ thinking inflation is "low"

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34727102)



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Date: November 20th, 2017 12:25 AM
Author: silver autistic native voyeur

this. and shrinkflation is real too

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34728267)



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Date: November 20th, 2017 12:30 AM
Author: razzle bespoke factory reset button scourge upon the earth

What's the alternative?

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34728293)



Reply Favorite

Date: November 20th, 2017 9:09 AM
Author: nofapping brilliant theatre

This is a difficult question. What is the alternative TODAY? Or what was the alternative in 2008 when this recession started?

I don't think the bailouts should have happened. W had the opportunity to take some tough decisions then and clean out rot from the system. No bail out, no QE, and some mild easing of interest rates was what was needed back then. Would have tough on wall street but we would have come back better. But he was a fag and Obama was fag too. Both GC cucks.

The alternative today is keep doing this till shit hits the fans. The Feds' only hope right now is that we get a late 1990s style super economy where they can quickly normalize rates and no one notices. I think that is what they praying for. But the internet revolution was kinda unique. Maybe something like that will come along. Maybe it won't.



(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34729729)



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Date: November 20th, 2017 9:19 AM
Author: Nubile dashing cuck

They're counting on ETH to propel the economy to unheard of heights

(http://www.autoadmit.com/thread.php?thread_id=3802525&forum_id=2#34729793)