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To: expat_panama
The only way for the Fed to effectively prop up the economy is through interest rate cuts.

If interest rates are effectively 0%, then the Fed's interest rate policy is like a Ferrari without any fuel. It looks great, but it won't get you anywhere.

2 posted on 12/03/2015 4:25:27 AM PST by Alberta's Child ("It doesn't work for me. I gotta have more cowbell!")
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To: Alberta's Child

I don’t believe they will raise rates. I think it will be an economy killer. I believe the only took they have left is to THREATEN to raise rates, trying to cause people And companies to borrow and consume and, in essence, get in before the 8spending rate hike. The thing is, if they don’t do it this time they will look like the boy who cried wolf. I.e. they can only do it once.

This month my theory will be tested. But if I’m right, the veil will be lifted on how the economy is REALLY doing.


11 posted on 12/03/2015 4:45:49 AM PST by cuban leaf (The US will not survive the obama presidency. The world may not either.)
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