Posted on 06/13/2018 11:03:02 AM PDT by DCBryan1
The Federal Reserve hiked its benchmark short-term interest rate a quarter percentage point Wednesday and indicated that two more increases are likely in store ahead.
The move pushes the funds rate target to 1.75 percent to 2 percent. The rate is closely tied to consumer debt, particularly credit cards, home equity lines of credit and other adjustable-rate instruments.
In an unusually terse statement that ran just 320 words, the Federal Open Market Committee changed multiple phrases from its previous missives, pointing to a more optimistic view on economic growth and higher inflation expectations.
(Excerpt) Read more at cnbc.com ...
How are people going to be incentivized to save for their futures if money doesn't compound? Besides which, the lower interest rates under George 2 were supposed to be temporary, so the gov could pay off debt. Instead, the DC Idiots spent with no restraint.
The BS logic is that “the economy is overheating and the FED has to tap the breaks on it”. Since when do we need any breaks tapped on the economy?
Is anybody buying that? The fed is optimizing its return on the FRN’s that they loan into circulation.
That is where mechanization comes into the picture.
Fast food places like McDonalds are ready to roll out thousands of robots/food machines.
They don’t require breaks, can’t sue for discrimination or unlawful termination, don’t get medical benefits, etc. etc. etc.
“Cold equations”
I saw a number of red flags in 2006-07 that precipitated the real estate collapse in 2008. The biggest one was a report I read about major real estate deals in places like Dubai where the buyers were showing up at the closings with bags of U.S. cash. The U.S. government financed much of the Iraq war through off-budget expenditures, and one of the most expensive parts of the operation was the strategy of shipping pallets of U.S. currency to Iraq to bribe tribal leaders. Many of them simply took the money, bought real estate in other more stable Middle Eastern countries, and fled the scene.
None of this was really a big secret at the time. It's no coincidence that the price of oil peaked right around that 2006-07 time frame. Between low interest rates and this kind of unreported currency printing, the U.S. dollar had effectively lost a lot of its value.
Yep. I do believe that this time it really is “different”.
They can jack up the minimum wage all they want and all it will do is eliminate entry level jobs. The minimum wage is so fascist. It makes me sick.
When you say "audit the Fed" what exactly are you looking for? Like a financial audit?
We're on track for trillion dollar deficits even with the Trump economy running flat out. What's going to happen during the inevitable downturn? The government will be powerless to help because two trillion or three trillion dollar deficits are not sustainable.
The FED is trying to bring in a recession right before the midterms.
Well there could be two take aways from this:
1) The economy is so hot they had no choice
2) The Fed is determined to kill this recovery in its infancy as part of its allegiance to the Deep State.
Cynically my conclusion as well. When in the last 30 years have they been so quick to raise rates?
Obama did not put up with rate hikes.
The Fed is trying to prevent a recession. Trump's guy is the Fed Chair now. Are you saying he's out to hurt the administration?
Obama's recovery was so weak that it couldn't take rate hikes without faltering.
Totally agree. As good as things are its going to take years to repair consumer balance sheets. In general they are up to their eyeballs in consumer debt, particularly mortgage debt. Their ability to survive month to month could really be hit with mortgage hikes.
Thanks.
Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
February 28, 2011
from page 10...
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), which was signed into law and became effective on July 21, 2010, changed the scope of some services performed by the System. Among other things, the Dodd-Frank Act establishes a Bureau of Consumer Financial Protection (Bureau) as an independent bureau within the System that will have rule-writing authority with respect to most federal financial consumer protection statutes and supervisory authority with respect to these statutes over some institutions previously supervised by the Board. The Dodd- Frank Act will also vest the Board with all supervisory and rule-writing authority for savings and loan holding companies. In addition, the Dodd-Frank Act creates a Financial Stability Oversight Council (FSOC) of which the Chairman of the Board is a member. Some of the FSOC’s responsibilities include identifying systematicallyimportant nonbank financial companies to be supervised by the Board. The Dodd-Frank Act also establishes the Office of Financial Research (Office) within the U.S. Department of Treasury to provide support to the FSOC and the member agencies.
They sure propped up the puppet.
Hmmm, I guess pretty soon the media will have to credit Trump /s
Nope, just throughout the Obama recession.
That first paragraph is standard CPA cya talk. CPA’s are pretty much required to put language like that in their audit reports.
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