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Charlie Don't Surf

End Of Us Rate Hikes?

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FOMC meeting minutes show committee members see an end to hikes

The dollar slumped to a seven-month low against the euro and an almost two-week low versus the Japanese yen Tuesday after minutes from the latest Federal Reserve monetary-policy meeting suggested the policy-making board could be at the end of its cycle of tightening interest rates.

http://www.marketwatch.com/News/Story/Stor...&dist=bigcharts

Sounds like they're losing their nerve. For the time being anyway.

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Nah...

********

http://www.advfn.com/news_U-S--March-core-...2_15084695.html

WASHINGTON (AFX) -- U.S. core consumer prices increased at the largest pace

in a year, the Labor Department said Wednesday.

The core consumer price index -- the measure of retail-level inflation that

excludes food and energy prices -- increased 0.3% last month, matching a 0.3%

gain in March 2005.

Overall, consumer price inflation also picked up in March, rising 0.4%.

The gains in both the consumer price index and in core prices were above

Wall Street expectations.

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I don't know I wouldn't yet bet the house on hyperinflation yet take a look at this graph

http://stockcharts.com/gallery/?$UST10Y:$UST2Y

fed clearly see the end of the business cycle approaching and they will be watching to see if they have to keep raising rates. we are clearly entering into a real resource crunch phase as evidenced by metals and energy prices. as austrian economic predicts in periods where the business cycle culminates with low interest rates prices go up.

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Stagflation looks increasing likely

So with high inflation and low economic growth, so those with IO mortgages the debt will be eroded by inflation, as long as they can pay their mortgage due to higher rates!!.

Did we have stagflation in the seventies and debts quickly eroded?

Lou

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So with high inflation and low economic growth, so those with IO mortgages the debt will be eroded by inflation, as long as they can pay their mortgage due to higher rates!!.

Sigh.

High price inflation with low wage inflation makes debts _worse_. The only reason the inflation of the 70s wiped out debt was because _WAGES_ were inflating as fast as prices.

And high price inflation with declining wages as British companies sack all their workers and shift the jobs to China to save money so they end up on the dole or in minimum wage jobs at Starbucks is even worse than that.

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Sigh.

High price inflation with low wage inflation makes debts _worse_. The only reason the inflation of the 70s wiped out debt was because _WAGES_ were inflating as fast as prices.

And high price inflation with declining wages as British companies sack all their workers and shift the jobs to China to save money so they end up on the dole or in minimum wage jobs at Starbucks is even worse than that.

Thanks for clarifying..

Lou

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  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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