The Fed can't cut

Discussion in 'Economics' started by Daal, Apr 6, 2007.

  1. there were plenty of chances along the way to regulate and keep the lending reasonable. this has been an all out fiat frenzy
     
    #11     Apr 17, 2007
  2. dtan1e

    dtan1e

    is it possible for the fed to raise all they want, while the gov't keep printing endless supply of greens?
     
    #12     Apr 17, 2007
  3. Bongo972

    Bongo972

    The government borrows and the fed prints (bonds actually).

    The problem being if they raise rates the government (us) pays more in interest or they just borrow more to pay the interest so the deficit gets mega big.

    This is what happens when you borrow endlessly. So you let inflation run rampant to keep borrowing costs low.

    Pretty sweet eh?
     
    #13     Apr 17, 2007
  4. and pretend its not...
     
    #14     Apr 17, 2007
  5. Bongo972

    Bongo972

    Are you kidding me? There's no inflation. :D
     
    #15     Apr 17, 2007