Will the Fed hike rates? Should it? - page 2.

spazzdla

legendary

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Quote from: oblivi on September 13, 2015, 01:18:38 PM

We are headed towards negative rates and eventual QE4. I wonder how many QE installations can they go on for until the system goes pop. So far it seems to work. AS long as people keep accepting dollar worldwide, I dont see how the system will crash because at the end of the day what matters is people accepting the money as valid or not, even if the root of the creation of the money is scammy, it seems people dont care as long as it buys you things.

China will probably bring them to an end. Martin Armstrong seems to have a very good time line for this.

spazzdla

legendary

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Rates will NEVER pass 1% as long as the USD exists, ever ever ever.

NEVER again will there be an interest rate of 1% until the USD completely collapses and probably most fiat currencies with it.

oblivi

hero member

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We are headed towards negative rates and eventual QE4. I wonder how many QE installations can they go on for until the system goes pop. So far it seems to work. AS long as people keep accepting dollar worldwide, I dont see how the system will crash because at the end of the day what matters is people accepting the money as valid or not, even if the root of the creation of the money is scammy, it seems people dont care as long as it buys you things.

yayayo

legendary

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I think the FED will hike the rates to avoid loosing credibility only to lower them again after a few months.

The so-called "recovery" is bogus, based on manipulated statistics and the perception of healthy (= rising) stock markets. Hiking the rates will lead to a stock market crash that will in turn worsen psychological indicators and (to a degree) the real economy.

I'm not only sure that the FED will lower the rates again, I'm also sure, that we will see another round of Quantitative Easing (= monetary inflation).

ya.ya.yo!

OROBTC

legendary

Activity: 2912

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...

I have no idea if the Federal Reserve will raise sort-term rates in the coming week. We will know by Tuesday afternoon (US ET) I believe. Eventually, rates do have to go up. ZIRP is not a solution for long.

* * *

I contend that positive real interest rates in general are a good thing. Without positive rates, investors will not invest for the long-term. They will speculate, especially re asset prices (stocks, bonds and real estate).

Even w/ ZIRP, who is building factories here in the USA? Of course some are, but not many.

Pensions and retirees want positive interest rates.

As do I.

What say you all? Stake your claims, make your cases...

Disclosure: sold my stocks and long-term bonds recently

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