Real0ne -> RE: Teabaggers trying to insure a new feeble minded crop of youth (5/25/2013 7:07:53 PM)
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ORIGINAL: njlauren quote:
ORIGINAL: Real0ne quote:
ORIGINAL: DesideriScuri quote:
ORIGINAL: mnottertail yeah? why? what are the chances of interest rates declining? got stats? cuz they are going up. This is a corporate welfare grab by the craven servile corpitulators. http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield Currently, 10-year T-notes are running at 2.02%. Adding 2.5% to that, you get 4.52%. Gradplus would be 6.52%. Current fixed rate is 6.8% and 7.9% for Gradplus. Rates will go up, and can also come down. Rates have not always been this low, have they? every time interest rates go down the other side to that equation forces an increase in inflation. Only if there is demand. We have had record low interest rates, the federal overnight rate was at 0% up until not long ago, and yet we have had no significant inflation caused by the low interest rates. Food prices have gone up because of global demand for food, but it would happen if the overnight rate was 5%, instead of near 0, oil and gas prices are going up because of global demand, health care prices are going up because of an aging population and an inefficient system, but little of it is due to interest rates. I doubt they are going to go lower. The 30 year T note rate is the basis for figuring out other rates, the yield on those notes is determined by what the notes trade at; as the price goes up, because of demand, the yield drops, if the demand drops the price drops and the yield goes up. That rate won't go much lower, for the fact that there isn't demand to buy the notes to bring the yields lower. If the economy picks up real steam, then rates will be going up, even if the fed doesn't jump the overnight rates and such. no demand is not required, only liquidity. that is the problem in a nutshell. if you produce a trillion bills and 1/2 a trillion leaves the country for instance you cant just say oh well no biggie and forget them. or if you need liquidity you need to pump more bills into the system so commerce does not grind to a halt. so they went to this elastic monetary system and of course its being abused like everything else da gub gets their greedy fucking hands on. The popular claim is that going off the gold standard would solve this and depressions and nothing could be farther from the truth. We still have huge spokes and huge dips, just they run it through a 100ma and it appears nice and pretty. [image]http://i123.photobucket.com/albums/o296/nine_one_one/fed%20reserve/inflation-1872-present-1.gif[/image] Likewise with the stoc. Nice and pretty 3% nothing to be concerned about. when I talk about inflation its in regard to the big picture inflation not microscoping anything and everything saleble. welcome to the desert of the real [image]http://i123.photobucket.com/albums/o296/nine_one_one/fed%20reserve/USDollarTitanicdollar.jpg[/image] thats what our nice looking nothing to be concerned about little 3% inflation looks like compounded.
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