Posted on 11/23/2022 1:39:48 AM PST by EBH
(Reuters) - The Federal Reserve may need to raise interest rates to a higher level and hold them there for longer in order to successfully moderate consumer demand and bring down high inflation given the amount of spare savings households still hold since the pandemic, Kansas City Fed President Esther George said on Tuesday.
"The dynamics of this excess saving and the distribution...is a key factor shaping the outlook for output, inflation and certainly for interest rates," George said during an economics conference hosted by the Central Bank of Chile in Santiago. "Higher saving of course can lessen a precautionary pullback in consumption, and it could well take a higher interest rate for some time to convince households to hold on to their savings rather than spend it down, and that of course (is) adding to inflationary pressure."
(Excerpt) Read more at msn.com ...
Do these elite bankers even actually realize what is happening out in the real world?
The elites have a long-term plan. By destroying savings, they can buy up all the assets for a fraction of the value.
They want you to save, so your savings can be taken from you.
The elites have a long-term plan. By destroying savings, they can buy up all the assets for a fraction of the value.
They want you to save, so your savings can be taken from you.
Basics economics no longer apply. They are sabotaging the world’s economy.
I thought that 56% of American households were living paycheck-to-paycheck. Where are all these wealthy people?
Interest rates are still far too low to encourage people to invest in debt instruments.
The Vanguard Intermediate Term Bond ETF (BIV) - $12.6 billion under management - invests only in 5-10 year US Treasury debt and investment grade corporate debt.
It pays just 2.30%. And - because bond prices move inversely to increasing interest rates - the BIV share price has crashed from $94 to $74!
Apparently not.
This is not demand driven inflation. Its deficit spending and energy supply driven.These problems are not being addressed. We are doomed.
I can remember when I opened my first bank account as a teenager, the interest on that savings account was somewhere around 10%. Today, banks give you 1% (or significantly less), while they loan that money out at 15-25% via credit cards. What a scam.
People with excellent credit ratings (low risk) benefit with much lower interest rates. In fact, if you are super diligent about paying your cards down each month, you will pay zero interest.
The Fed is going to keep raising rates until something breaks.
In other words they want you broke and starving.
Only the young and the innocent.
There was a time in the past when rising wages and a burgeoning economy were desired things: It was called prosperty for all!!
How much does it matter that the elites are steering money into worthless projects, i.e things the general public won’t buy, like electric cars ( even bitcoin?); if so, isn’t it another reflection of their being completely out of touch?
It seems more like intentional economic ruination.
I was surprised to learn that “deadbeat” is the term for credit card users who pay the entire balance every month, thereby depriving the banks of their usurious fees.
Maybe congress could stop spending $4.6 trillion!!!
They can cancel those spending bills and end inflation right away!!
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