Tuesday, Dec 16, 2008
Only .25% to go!
BBC News: US rate cut to zero - 0.25% range
The US Federal Reserve has slashed its key interest rate from 1% to a range of between zero and 0.25% as it battles the country's recession.
In its statement, the Federal Reserve warned that "the outlook for economic activity has weakened further".
It predicted that rates would stay at the current exceptionally low levels "for some time".
Posted by flintster1994 @ 07:45 PM (1549 views) Add Comment
30 Comments
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1. renting2 said...
How long before we in the UK are down there too?
2. flintster1994 said...
Very soon I imagine. But for how long, when lifes essentials become astronomically expensive(barring houses of course)?
3. Neo-serf said...
All this meddling will eventually lead to depression.
Rome fiddling whilst burning - re-arrange that sentence Bernanke
4. gone-to-colombia said...
Idiotic
5. flintster1994 said...
And the Dow takes off! Hillarious!
6. sold 2 rent 1 said...
flintster1994,
"And the Dow takes off! Hillarious!"
So does gold. Up $19 at $856
Who says we can't have the end-of-money.
7. flintster1994 said...
S2R1
Not me!
8. sold 2 rent 1 said...
flintster1994,
Have you read:
The End of Money
http://www.chrismartenson.com/the_end_of_money
9. flintster1994 said...
S2R1
Read it some time ago, I think from a previous link of yours. An excellent read. The thing is though, I passed the link around a bit, amongst select famy and friends, but nothing! Those who read it didn't seem to want to discuss or even contemplate a society without fiat currency. Strange I thought but I suppose we are still a long way away from the majority being able to grasp the real possibility of change in a new sort of way.
I use the word "possibility," as I am never 100% certain about anything. I believe that anything can happen, even stuff that is wildly off track from the norm. I'm sure you get my drift. Anyway house prices are the least of things to be thinking abot right now!
10. flintster1994 said...
I don't get why the Dow has taken off when the rkets had already priced in a cut of at least .5?
Am I missing something?
11. sold 2 rent 1 said...
flintster1994,
"house prices are the least of things to be thinking abot right now"
Agreed. Most people on this site will never buy a house unless they have at least a 50pc deposit by 2010.
BLT mortgages LTVs are already down to 75pc
It is time to start preparing for the new world and forget about the old world of "house prices boom and busts"
12. sold 2 rent 1 said...
flintster1994,
"I don't get why the Dow has taken off when the rkets had already priced in a cut of at least .5? "
The Martin Armstrong high is in April 2009. This should be a great shorting oportunity.
13. debtfree said...
This is the point of no return for the dollar, the short false bull run is over.
bye bye miss american pie
Singing, "this'll be the day that I die.
"this'll be the day that I die."
This is the pull of the trigger that finally destroyed the dollar.
Now lets see what the chinese do with all that funny money ?
14. fjcruiser said...
Traders will have been covering their shorts and of course the market never goes down at year end, does it ? Fundmanagers think with the markets closing up they can attract new money next year. Slim chance IMHO.
15. Prudentman said...
Oh dear o dear. I cant see how all these historical upheavals will not end in blood and tears.
He who goes a-borrowing has always gone a-sorrowing and will always go a-sorrowing - make no mistake about that.
16. debtfree said...
S2R1,
Why would you mention a 50% deposit and get ready for the new world, but then promote an article 'the end of money' ?
Its very confusing.
Debtfree
17. gardeniadotnet said...
15. Prudentman said... He who goes a-borrowing has always gone a-sorrowing
Seems to me the whole world has gone a-borrowing.
18. sold 2 rent 1 said...
debtfree,
The new world will contain a new monetary system
19. nopensionnohouse said...
I just re-read s2r1's article and I think the end of money argument is flawed.
He says that “every single dollar in circulation is loaned into existence by a bank, with interest” But that wasn’t the case before we ditched the gold standard… and certainly the case today with Quantitive Easing.
I understand that to the US Gov, quantitive easing means buying up things like CDO’s, bad debt and in some cases physical property. Therefore ALL dollars are NOT being loaned to people via banks. Some dollars are being used to buy up falling or toxic assets in an attempt to prop things up.
To give one example. Say I’m lucky enough to own some property that purchased as part of a quantitive easing campaign. The dollars in my pocket are not on loan to me are they? I don't owe anyone anything?
So unless I’m not getting something here the whole end of money argument is false?
20. sold 2 rent 1 said...
nopensionnohouse,
"He says that “every single dollar in circulation is loaned into existence by a bank, with interest” But that wasn’t the case before we ditched the gold standard… and certainly the case today with Quantitive Easing."
Money was created as debt under the gold standard.
Quantitive Easing may not create money as debt but 1 trillion created by the Fed under QE will allow banks to create a further 9 trillion as debt
21. bellwether said...
Debtfree @ 15 sounds very improbable, I mean if everyone is going to short the USD out of existence what exactly are they buying instead?
22. bellwether said...
actually DF@13
23. nopensionnohouse said...
“Quantitive Easing may not create money as debt”
So, if you admit that the statement “every single dollar in circulation is loaned into existence by a bank, with interest” is false, which is the whole premise, then the whole end of money argument collapses.
That was too easy. Much easier than free energy anyway.
NEXT!
24. p. doff said...
18. sold 2 rent 1 said...''The new world will contain a new monetary system''
And I bet that will be fiat too.
Anyway, what do we do with all the 'old money' we've been saving? Will we be able to just swap our £s for Ameros (or cowrie shells etc) at our local HSBC?
25. sold 2 rent 1 said...
nopensionnohouse,
Not so fast.
QE is an exceptional option to create money with no debt - it breaks the normal rules Chris talks about
However it does not solve the problem of perpetual debt expansion.
Remember the debt bubble has been building for 60 and possiby 250 years.
Although QE doesn't create more debt it allows banks to create up to 9 times the QE value.
The key point is that even with QE the debt bubble will still get bigger.
QE is designed to get banks lending again - this is the problem.
26. sold 2 rent 1 said...
p. doff,
"Anyway, what do we do with all the 'old money' we've been saving? Will we be able to just swap our £s for Ameros (or cowrie shells etc) at our local HSBC?"
Most people will lose everything.
27. nopensionnohouse said...
“The key point is that even with QE the debt bubble will still get bigger.
QE is designed to get banks lending again - this is the problem.”
Yes, I agree but this doesn’t mean end of money!! That’s all I’m saying.
28. Nopensionnohouse said...
And you don’t have to be so bleeding apocalyptic all the time! It doesn’t serve you well!
29. nopensionnohouse said...
And you don’t have to be so bleeding apocalyptic all the time! It doesn’t serve you well!
30. renting2 said...
Isn't QE paying twice for one asset?