Million dollar question: Will the fed raise rate today?

Answer 1

On one hand, the Fed MUST raise rates a lot higher, and on the other, they CAN'T raise rates. Confusing ?

A pause = falling dollar and bad news for Treasury auctions.
Another 25 bp hike = further erosion of the weak housing market and GDP loss vis a vis reduced equity extraction.

The Fed creates inflation when it grows the money/credit supply and has no reason for doing so. The extra money created from thin air flows into prices and manifests itself there as 'inflation'. However, there are two kinds of inflation. When housing prices rise 20%/year etc, that is the kind of inflation politicians and the Fed love. BUT, when it the money finds its way into food, energy and other items on the expense side of the ledger, then that's BAD inflation.

The end result: The Fed says its fighting inflation, but the Fed is the body that CAUSES the inflation to begin with. All this time the Fed has been raising rates and at the same time continuing to grow the money supply. It knows the US can never pay back all the debt with honest dollars, so it must create new ones (thereby reducing the value of existing dollars). To cover up these activities, the Fed stopped publishing the M3 aggregate this past March. However, by looking at M2, we can extrapolate and estimate that the Fed has grown the money supply 10% in the past 10 weeks.

So they tell us they're fighting inflation from one face, when from the other they are creating it. Anyone who wants to learn more about this should check the reference listed below and subscribe.

Hope this helps!

Answer 2

i could nonetheless vote my judgment of acceptable and incorrect. yet when the question were to be, IF i could substitute my allegiance from Democrat to Republican for $10 million money, you're damned acceptable i could, and could even vote for the corpse of Adolph Hitler ---------- keep in recommendations, a million guy, a million vote. If I had the skill and replaced into replaced into provided $10 million to position in McCain, and the alternative is to stay out my existence an similar as i'm with Obama, i could put in Obama, because i'm no longer that selfish. Obama 08 =============== existence is so effortless, yet we insist on making it complicated Confucius 551 - 479 BC =============== Peace Jim .

Answer 3

If I knew that for sure I could make a million dollars today.

Answer 4

I sure hope not. I doubt they will, however. Stagflation, however, might soon become a concern with rising oil prices so that could just be a huge problem all around. Rampant inflation mixed with no productivity growth would be a bad thing.

Answer 5

I asked this question myself - I think they wont - but if they do this will probably be the last one (I hope). My vote on this is they wont today and I have positioned my stock portfolio hopefully to take advantage of that, buying alot of VGR.

Answer 6

I hope not. I have a bunch of mutual funds that will bounce nicely if they pause.

Answer 7

No this wedgy ride has gone on long enough.

Answer 8

No

Answer 9

YES