Thursday, January 31, 2008

Why the Fed is just making everything worse

Rate cuts: why the Fed is just making everything worse

By slashing interest rates to 3%, or -1.1% in inflation-adjusted terms, the US central bank is effectively giving money away. But that's no way to restore confidence - or help people rebuild their finances.

Posted by mary @ 11:21 AM (628 views)
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12 thoughts on “Why the Fed is just making everything worse

  • There is absolutely no way that those folks can know what they are doing……..

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  • japanese uncle says:

    One cannot help reaching the conclusion that this is deliberate, not due to the incompetence. People in the real corridor of power wish to see the US economy disintegrated and anhilated.

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  • I agree with JU: This is deliberate.

    I am trying to work out why it is deliberate. Is it an attempt to inflate away the debt before the US brings in “Paul Volkner Mark 2” to return value to the $? Is the ploy to get Asia to have worthless US holdings while getting the benefit of Asia’s money? Or is it a plan to keep the US economy on the rails AS MUCH AS POSSIBLE until this year’s election has taken place.

    Over enthusiastic rate cutting could make the eventual situation worse though.

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  • tyrellcorporation says:

    I think the reluctance of China to re-value the Yuan has made the Yanks think they can aggressively devalue the Dollar to both inflate away their huge debt and at the same time make US exports far more competitve globally – ‘if you won’t move, we will’. Paulson et al have banged on relentlessy about the artifically weak Yuan and I believe the destruction of Dollar value is specifically targeting this problem. Also, at the same time it massively devalues the Chinese Dollar holdings – which has to be a good thing strategically for the US.

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  • To an angry mob WW III doesn’t seem like such a bad idea….

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  • They are out to destroy the US Dollar, the US economy, and bring in the North American Union (same as our EU in Europe) and bring in The Amero – A New North American Currency!

    Welcome to the New World Order people!!

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  • Dollar in deep poo poo

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  • Dollar going down down down

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  • Here’s their plan…

    The Globalists (Central Bankers, Politicians) are going to crash
    the US stock market and US dollar (as we’re witnessing right now).

    Then when Americans are desperate, broke and starving they’re
    going to introduce a new FIAT currency called the “Amero.”

    This is all part of the “North American Union” where they making
    Canada, the USA and Latin America one country.
    Which Boosh secretly signed WITHOUT Congress’ or the
    American People’s approval.

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  • JU and TR – Agreed. They must know they are pushing on a piece of string. Also suspect they are buying the financial institutions some time to soften the blows and let them unwind as much as possible.

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  • Is the FIAT AMERO a sports car or a 4×4?

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  • Sure aint amphibious

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