[Graybeard58]

Ping to a Republican-American Editorial.

If you want on or off this ping list, let me know.

[Pelham]

I vote with Michaelson.

[Brilliant]

It the Fed raises rates, we will instantly be in an inflationary spiral as businesses try to spend the trillion dollars in cash reserves they have on their books right now.

[aposiopetic]

If you were on FOMC, would you vote to raise the rate?

[sickoflibs]

RE :” The Fed pledges to keep short-term rates near zero. But as John C. Michaelson of Imperium Partners Group of New York City detailed recently in an excellent Wall Street Journal op-ed, the Fed's strategy has “pernicious consequences,” as recent history proves. Low rates depress investment returns, so companies must divert money for operating expenses to meet their pension obligations; that leads to job losses and pay cuts that reduce consumer spending. Governments that increase payments to their pension funds to make up for lost investment income exacerbate their budget crises; those that carry these losses as unfunded liabilities worsen future crises.

Banks are discouraged from lending to job-producing companies because they can invest their near-zero-interest loans in zero-risk government bonds. Low rates also failed to produce the promised spike in consumer spending because shell-shocked Americans are deathly afraid the recession may deepen and the government's response will make things even worse. This same fear and loathing has companies, even those making record profits, sitting on their cash reserves, now estimated at nearly $2 trillion. “

Sounds like Peter Schiff

Super Low interest rates boost the stock market and some sales like home and cars but has long term consequences that are bad, as well as those above.

Why the F#$%%$ does the federal government pay more interest on bonds than the federal reserve is charging for the money?? Is it long term vs short term?

[Venturer]

So we watched Japan fail using the Obama plan and went ahead and did it anyway.

Did Obama and his suckbutts in the Congress want us to fail?

Insanity is trying the same thing and expecting a new result.

[April Lexington]

Ok. Let me get this straight. I'm a business guy and I borrow money. The cost of that money is going up as interest rates rise. I'm supposed to borrow more and pay more interest? NOT! My costs go up as interest costs increase. So... I lay somebody off to cover the higher cost of money... Obama/Geithner/Summers/Krugman...idiots all...

[April Lexington]

This is just another stupid wealth transfer scheme. Take more from the productive class in the form of higher interest costs and give that money to bond holders (grannies) who live better. Just like taxing and redistributing to po folk... What is mine becomes yours, thanks to government efforts. Only the free market should be allowed to set interest rates. And... we don't have one of those because the supply of money (Federal Reserve printing) is now infinite...

[PSYCHO-FREEP]

Sorry, they like the Ben Burn-yank-me method of economic recovery most; By throwing money out of helicopters over our cities first. If he has to, he will....

Oh, wait!

[rockinqsranch]

Thanks for the ping Graybeard. “Remember in November” as seems now is the battle cry, and yes Michaelson makes sense, but then too....he’s not trying to destroy the country.