Can someone explain to me...

Discussion in 'Economics' started by dafong, Sep 21, 2007.

  1. dafong


    the relationships between interest rates, the dollar, inflation, and the debt? I understand that cutting interest rates would lower the value of the dollar and increase inflation, but what would that mean for debt?
  2. dafong


    how do bonds play into this? and the implications for the stock market?
  3. Fed buys bonds to flood market with liquidities; increase money flow.

    Fed sells bonds to soak the liquidities from market; decrease money flow.

    Fed increases the target rate; increase the money cost; make money expensive; make people feel the money in short supply.

    Fed decreases the target rate; decrease the money cost; make money cheap; make people feel the money is plenty.

    Fed uses both money supply and target rate as tool to maintain stability of market. Rigged; Manipulated as other called.

    And Fed is not the only player in the markets; most time Fed have to take look and co-operated with other central banks.
  4. If fed keeps buying bonds; bond rate drops; and bond price rise; fewer of people will likely to purchase bond; cause other asset will likely increase value faster than bond dose; aka inflation.

    if fed keeps selling bonds; bonds rate increases; and bond price drop; more people will go buy bonds; money is in short supply and other asset drops value faster than bond; because it also provides more cash follow in future.

    These are very rudimentary concept of bond market. And some other varies make it harder to control.
  5. You are witnessing mass enslavement via debt. There a major conflict of interest in credit business. Credit card companies hate it when you pay on time. They lose money when you pay on time, on cost of paper and postage. They are banking on the hope that you won't be able to pay off your debt and then will feed off you on inexorbitantly high interest rates. They profit via your debt. They are vested to suck you dry. They hate savings, they hate fiscal responsibility. Those things imply no profits to them. Moral hazard died years ago. They tempt you with teaser loans, intro rates, baiting you into purchasing things that you cant' afford. Do they care about you, no. Do they care what happens to you later? No. Do they care about society? No. Nothing good can come from the temptation of forbidden fruit by the serpent.

    It's not much different from the street whore they import from foreign nations, promising green cards. Unfortunately these girls need to pay back 25-50 thousand dollars before they are set "free". Most never get there. This, my friends.. is slavery. You are witnessing the gradual enslavement of the nation. You just don't see it cos it's all smoke and mirrors with the luxuries they garnish your lives with, like homes, tv's, cars. It's too bad 8MM families will lose their homes in the next 3 years. You'll see rise of forced cheap labor in America as families will have to work 60-80 hour weeks just to bring bread to the table. When it's time, the fed turns on the inflation switch and says we have inflation. They will raise rates up the wazoo. We will have 15% rates one day. This is how they will keep you down.

    Anyone else realize what's going on?

  6. me want TV, me want Hummer, me want mansion,

    bailout ben give me it.......ben give me happy
  7. yearning or dreaming for material is more powerful than actual ownership. look at mariah carey and her 500 pairs of dolce gabbanas, the unhappiest woman on planet.

    once u own it, the buzz wears out real fast. and ur stuck with debt.

    btw, finances is the biggest reason for family breakdown and spousal violence.

    love leaves the door when money problems enter. without love, what is there. The Junited Snakes of Amerikwaanza.

    uh, wake up people.

  8. [​IMG]

    ...right on top of the USD.
  9. Nice post Tracy. They send me offers all the time. Quite often I will borrow a few thousand at 0% for six months. I always pay them off before expiration but they dont give up.