Fed interest rate hike!

I was discussing with my colleges last week about the rare but impending rate hike that will occur before years end. While we all agreed on the rate hike most of us could not agree on why after 10 years the decision was made. Here was my take:

I believe “they” would do whatever to prop up crude in this environment.
I normally don’t pay attention to the rhetoric of this administration however that speech from the pentagon discussing a new strategy to attack the Islamic State had an obvious effect on the barrel. This “man” is having his strings pulled by the banking cartel, to me that is obvious and if you follow that type of thing you are well aware of this.

So what is the Federal reserve doing right now to compensate?


Go to the link and you can see this truly epic money printing binge in real time!
The numbers can’t even keep up with the nation debt folks! Keep in mind each dollar printed is actually a unit of debt not a unit of wealth.

So the federal Reserve is flooding the world with an enormous amount of debt while it’s not needed.

Why is it not needed?

Look at the money velocity, we are at historic lows as far as the rate of cash that is flowing through the economy. It appears that most American families are getting back on their feet and the housing market has leveled off as far as owners starting to see some value in their homes once again.

The enforcement arm of the federal Reserve is the military and the banks control everything period. I believe what we are about to witness as a country is going to break the backs of the millennials.

Our founding fathers stated that it is the responsibility of each generation to pay off it’s own debts.

Clearly this administration feels otherwise

Wow. From lucid to insane and back again twice.

what part don’t you understand, maybe I can help?

Don’t know where the founding fathers said that.

Barack Obama has signed every balanced budget that Congress sent to him. If you don’t like debt, then kindly identify the spending that could be eliminated that Congress could not identify and/or reverse the Bush tax cuts that turned a surplus into a deficit.

The insane part.

Why does the banking cartel want an interest rate hike, for starters? It’s basically the least likely lobbying force in the country to want one.

Second, why are you complaining about “this administration” in one breath and the federal reserve in another? The administration has no control over the FR.

It’s a Jeffersonian quote to James Madison

You do understand how the Federal Reserve works right?

This is not about tax cuts or balanced budget proposal because clearly this has not had any benefit for the middle class. Possibly some relief but not the advantages and increase of wealth the upper class is enjoying.

The FR has all the control.

Secondly I am not complaining, I am just bringing up the rate hike and again you got it!

Why do they want a tax hike? That’s my point.

We often have threads where noobs try to learn basic finance and economics from the Board’s experts. My advice to expert and noob alike is not to bother with this thread.

Not a big supporter of ’ this “man” ', are you?

An interest rate increase is not a tax increase.

Can someone PM me when we get to the Illuminati?

To start with, The Powers That Be who control interest rates aren’t The Powers That Be who control oil prices.

TPTB who control oil (let’s just call them OPEC) are fighting a worldwide glut of oil. They’re using an old business tactic called “cutting the price to maintain cash flow,” hoping that they can outlast the frakkers, shale oil extractors, alternative fuels and other technologies that have turned the market upside down.

You’ll also see in that story that the price of crude oil FELL again this morning, despite the interest rate hike.

As for why TPTB who control money decided to raise interest rates, it’s because for the first time in years they feel like the economy is strong enough that they think people will actually feel like they can afford to pay interest when they borrow money.

And as a basic lesson in economics, the Fed doesn’t “flood the world” with debt. They price it at what the buyers will pay for it. Consider the fact that buyers (other countries, big banks, etc.) have been willing to buy American debt for years, DESPITE THE FACT THEY WERE GUARANTEED TO MAKE VIRTUALLY NOTHING IN INTEREST. If Big Banking is trying to control all the world’s money, you’d expect them to have wanted to charge more for it.

So your first assertion is wrong and your second assertion doesn’t make sense. But don’t let me stop you from defending your viewpoint. Just bring facts.

My bad didn’t mean tax hike

Let me re phrase, if you do not understand how money in this country flows then you probably will start thinking Illuminati, conspiracy, wack job etc…

I had a great conversation with a bunch of people last night about this and we all had our own opinions on why the Fed is raising the interest rates.

While my opinion as stated above is just that, an opinion. I think it has everything to do with crude and our current economic situations. That’s it

If you know who prints this countries money and you know how the banks distribute that money more than likely you will have an opinion on what is going on. Those who do not understand tend to put down what they do not understand or run.

I am looking for input from those who are involved, to bring up a discussion on the cause and the possible ramifications of this rate hike.

I have children who are going to inherit this mess that we are leaving them.

I am not a fan of this administration for this reason.

If you know your history then you would know that this country has always struggled to separate itself from a central banking system.

If you think your children will have it better than you then that’s good, but I doubt that.

I thought this was a Great Debate page.

Thank you

Are you lecturing us on macroeconomics and at the same time talking about physically printing money having an effect on the world economy?

And Madison quietly tried to talk Jefferson out of the idea because he knew it was unworkable. You’ll note that there is nothing about a balanced budget written into the US Constitution.

:eek: :eek: :smack:

The FRB just raised its target interest rate to a breathtaking 0.50% (reminiscent of Weimar Germany?)
Or, in more easily grasped units, 500 MILLION nanopercents.

The Horror! The Horror!

L.O.L. :smiley:

This aggression of the metric system on our economy WILL NOT STAND.

During the long economic growth period of the 80’s and 90’s, the federal funds rate was never below 3% and rarely below 5%. We had remarkable growth during that time.

The rate currently is at virtually zero, and has been for years. The Fed has chosen to raise it a quarter of a percentage point. I think we’ll survive.

I want to put this horrific interest rate hike into perspective. This is the first time in history that the FRB has DOUBLED the target rate in one fell swoop. The notorious rate doubling from 6.5% to 13% in the late 1970’s took over four years to complete. And the FRB has already threatened to raise the rate again – that would amount to a TRIPLING.

And note that, due to the explosive exponential power of tyrannical compound-interest, the 500 MILLION nanopercent rate is actually more than 501.2 MILLION nanopercents of simple interest. An extra 1,200,000 nanopercents may not seem like much, but to debtors already staggering under the weight of 0.5% interest it can be back-breaking.

Let’s do the calculations. Borrow a mere million dollars at the target rate and you will have to pay $13.70 of vigorish EVERY DAY. This usurious rate reminds us of Brooklyn loansharks! And you better believe the Fed will send boys around to break your kneecaps if you can’t come up with the $13.70.

(At least there’s one silver lining in this horrid cloud. Next year is a leap-year, and since the Fed is too stupid to multiply its base rate by 366/365, the daily vigorish on your million-dollar loan will drop to $13.66 throughout the coming year. But in 2017 it will automatically jack back up to the higher rate.)

jerry’smissingfinger, how am I doing? I’ve tried to discern the key idea in your post and bolster your case. Have I missed anything?