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To: Moonman62

Donald, you obviously have not shopped for groceries since Obama took office. And you need to know that housing prices in all desirable areas are now out of reach of middle class.

It is all the result of ARTIFICIALLY low interest rates forced on us by the FED. Because ordinary savers can not get enough interest to keep up with inflation, they are chasing hard assets such as stocks and housing, both have done very well with the ZIRP (zero interest rate policy) by the FED.

Please let interest rates settle near real rate of inflation, which is the historical norm for 100 years, not the phony inflation number gov’t puts out which ignores volatile sectors.

And please impose tariffs on every country with whom we have ugly trade deficits. That $850 trade deficit every year represents loss of 20-30 million manufacturing jobs, which is why middle class has their tits in the ringer. Most manufacturing jobs are middle class jobs, and manufacturing is the largest category for wealth creation in the country.


15 posted on 12/17/2018 10:48:14 AM PST by entropy12 (One million LEGAL immigrants/year is too many, without vetting for skills, Wealth or English skills.)
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To: entropy12

Donald, you obviously have not shopped for groceries since Obama took office. And you need to know that housing prices in all desirable areas are now out of reach of middle class.

It is all the result of ARTIFICIALLY low interest rates forced on us by the FED.

...

You’re right, but the damage has already been done.

Putting rates artificially low to save the economy was a consequence of putting rates too high (relative to the markets and the yield curve) previously.

Continuing the Fed’s cycle of destruction will only make it worse.

It’s now time for wages and other earnings to inflate to catch up with housing and food prices.

Recessions and the Fed’s manipulations are inflationary in the long run.


26 posted on 12/17/2018 10:54:05 AM PST by Moonman62 (Give a man a fish and he'll be a Democrat. Teach a man to fish and he'll be a responsible citizen.)
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To: entropy12

Housing prices didn’t just go out of reach after Obama left office.

As for shopping for groceries, you don’t think prices went up under Obama?

Low interest rates do hurt those trying to live off savings, but they help many others buy homes, vehicles, appliances...

Is 19.5% interest charged on your credit card not enough? You do realize that interest floats on the prime interest rate right? Sure, let’s let it go to 7%. Then you can pay around 27% interest for your credit cards, and seven percent more on the purchase of anything you buy.

Retailers will have to raise rates because the money they borrow to conduct business will force them to raise prices across the board.

Hmmm, weren’t you just bitching about inflation?


34 posted on 12/17/2018 11:03:10 AM PST by DoughtyOne (01/26/18 DJIA 30 stocks $26,616.71 48.794% > open 11/07/16 $215.71 frm 50% increase in 1.2183 yrs)
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