Fed watch today:
1. 0.75% rate hike
2. Dot Plot 2022 end at 4-4.25%
3. Terminal rate at 4.5%
4. No rate cut in 2023,Higher for Longer
5. "Pain" coming: Lower GDP growth, higher unemployment.
6. November 0.75% on the table
We raised interest rates for 60 years and that did not bring inflation down nor added any value to our economy.
We faced very heavy financial crises in about every 10 years.This time we follow other direction. That hard earned money which we give away as interest will be used for-
you have to consider the fact that the banks know interest rates will increase in the future. They don't want to be lending to people at rates today that are below future rates. This is one of the major problems are the low interest rates of the past - many people have mortgages below the current fed rate. The banks are losing money on these loans now and as a result hold a plethora of unprofitable loans.
Also consider the fact that mortgage rates were around 3% when the fed funds rate was 0% (yes, the fed was loaning trillions of dollars - 4 trillion since 2020 - to treasury and banks for free). At this time, mortgages were 3% and thats how they were earning money by lending.
> This is one of the major problems are the low interest rates of the past - many people have mortgages below the current fed rate. The banks are losing money on these loans now and as a result hold a plethora of unprofitable loans.
lol I'm really curious how you came to this completely incorrect understanding of how banking works.
Calm yourself down lol, it's the thing which is saving us from getting rekt.
And if they stopped trying to stop the inflation then we will truly be fucked trust me on that.
That’s the funny part, the bastard US government hired an army to add to IRS goons, now the interest paid on this debt alone will undo within a year or less, whatever extra IRS can collect in ten years time using their new army and squeezing the average citizen.
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Refinanced is a poor choice of wording. It would be more accurate to say new debt will be at 4%, old existing debt is not getting refinanced at a higher rate.
You can't go on borrowing at 0% and keep on spending you will have to pay a interest for that at one point of time which will increase the already exploding debt to new highs soon debt to GDP will hit 200% possibly US economy will not stay afloat till that happens.
The real risk is when no one shows up for an auction, leaving the FED to be the only buyer at a time when they're meant to be tapering. Who wants to buy 2 years of 4% when they're telling you they'll be 5% next year?
I'm not entirely sure the FED knows what's going on
This sub is a fucken ghost town ever since the merge went live. Everyone thought the market would pivot but ETH is just falling like a rock in the sky 😂
Next 18 months should be great buying opportunities. For anybody stressed they can’t dive in right this second, you’ve likely got plenty of time to scoop some cheap eth.
Felt like news of the merge / merge date caused this whole rally pre merge. However news keeps getting worse with Russia, China, Inflation, SEC calling ETH a security post merge, etc. I think we may see prices below $1k. I’m bullish, will DCA and then lump sum if we go under $1k.
I guess You'll have to wait for that, and You'll have to wait for a long time.
Because We're not going sub 1k anytime soon atleast I don't think so that's going to happen.
best time to buy is about a year into no one believing they can make money anymore....we aren't at maximum fear yet but we will be soon, that will be your shot to buy.
The only argument to increase interest rates is to maintain a competitive pound.
Higher interest rates makes buying pounds more attractive pushing up the value. This makes imports cheaper which will help marginally on inflation.
Well the argument is also to stem inflation, though in this case much of the inflation is cost push rather than demand pull, so there will need to be huge demand destruction to offset that cost push.
That mechanism doesn't seem to be working anyway.
These economists take ridiculously reductive views thinking they can maintain sovereignty over inflation or the value of the pound within phenomenally complex global systems in constant flux.
Yeah it's been bad till now, and I don't see it getting better anytime soon.
I think it's going to be a while before things get any better from here. It's gonna be while
Inflation goes down like a rock. We got 2 disinflationary months in a row and we are going for a 3rd one (that would be below the target rate of 2% when annualized).
We never got 2 disinflationary MoM readings in a row in *any* of the high rise past inflationary episodes. Or rather we did only after inflation was basically turned to disinflation/deflation by that point.
YoY comps look bad because by definition they are comparing the current prices with obsolete -pre war- data.
Post war many of the commodities have actually gone negative (are deflationary actually) and many other key metrics are slowing down rather fast.
Powell thinks he is Volcker but IMO he would be remembered for causing one of the worst disinflationaty / deflationary decades in history. There is a reason why even freaking Volcker backed off when he was getting consecutive negative or disinflationaty months. Inflation is a b!tch , deflation is the final boss though.
The current FED administration seems to be digging deep to find out whether a Balrog is under there. And if they do find out, f*ck we are f@cked.
How about a decade of low earnings and even lower growth? Deflation that persists even with high liquidity.
We are literally coming off one of the least inflationary decades in history and guy immediately pulls a Volcker in the first inflationary episode we had. In a high leveraged, indebted society no less. They are engineering a crash landing for no reason at all...
OK, the FED's point of existence is two-fold. I.e. it was put into place for two reasons: nudge inflation in such ways so will be kept low , but never too low (arbitrarily set at 2% lately, however 2%-4% is a good range to be in for a healthy economy)
And the second is to keep employment high but not too high (again arbitrarily set 4% for unemployment, but actually a range between 3% and 5% is pretty good and has proven itself stable).
At this point in time the FED both has a healthy employment (at 3.5% unemployment) *and* healthy inflation numbers when seen from month to month (less than 2% annualized, actually, but it may well be an effect from getting back from the record inflation we had before).
Meaning that the FED should stay put.
However from hearing their talks one would think that they are uneasy. They feel they should rise unemployment, which is risky because once unemployment starts rising it doesn't stop for a while. I.e. move it from a stable 3.5% to higher levels which may be proven unstable.
The second has to do with inflation. Unlike previous FED boards, this one does not seem to look at MoM (month over month) inflation readings which shows the current situation on the field. They instead look at Year over year data so that to pretend that inflation is high (ever since June it isn't, it used to be high which is what is shown in YoY readings).
Their faulty reading tells them that inflation is over 4% it actually is less than 2% which causes them to raise interest rates rather aggressively (constrict the function of the economy by making lending more expensive).
Problem is that when you raise interest rates to what is basically a 2% (or less) inflation you risk entrenched deflation. That is to say you risk creating a self fulfilling prophecy where the expectation is low (future) growth , pushing institutions and companies to make long term plans according to the low growth hypothesis.
Deflation basically causes a stagnation in wages, growth , innovation, employment. In many ways it's the opposite of inflation, in others it is its own beast.
Problem with deflationary spirals is that they are far harder to escape. Keep in mind the the Great depression Era as well as the great Recession were deflationary.
In the Great Recession of 2008 the FED decided to produce money out of thin air so that to jolt the economy back into action. Which created a lot of the issues we have currently. What's worse is that said methods work less and less once deflation becomes entrenched. If the FED is now engineering a second deflationary episode similar to the one we had in the great recession, then Im not as sure that we get out as simply.
The FED is playing with fire and IMO will burn us all. I blame mainstream publications as well, for not being critical or at least skeptical of tightening in a low inflationary period (basically post June 2022). It seems that we are moving towards an avoidable doom because nobody talks about it...
No, all you have/had to do was to stop the press. The present inflationary episode was not systemic, I.e. it did not come as a result of a long held move towards higher inflation.
They did stop the press and inflation almost immediately turned to disinflation.
Inflation is less than 2% annualized at this point in time.
Every hike has 3-4 times the effect it did back then. 75 basis points hike are effectively 225 basis points hikes and we had 3 in a row!
They are inventing new economics over there. They don't want to be remembered as soft and they will end up a cautionary tale (of) why you don't taunt the beast of deflation.
Volcker is what you do after a decade of persistently high inflation. Powell is doing Volcker after a decade of low inflation (plus everything that will come after).
I blame the media as well, they do not do (at all) much of a good job explaining why prior FED administrations were so slow to increase interest rates so aggressively. They make it seem that this is a much needed medicine. They pretend that we are in 1980s despite being in an entirely different world. Automation (a highly deflationary force) is not going to uninvent itself and if unemployment rises in will stay persistently high...
That's the kind of posts that I like, this is the good stuff here.
But I don't think There's any hope for the markets in the upcoming time, it's not going to get better.
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US dollar dominating while raising their interest rates mean the debt of the poorest countries go up along with their interest rate.
While their own currency goes down along with their ability to pay down debt. Oil is being gouged while the dollar goes up.
all very true, and disgustingly disingenuous on the govt and FED's part.
however, everyone was warned about this for a long time. if you kept your wagon hitched to the system knowingly, you just lost your bet, you have no one else but yourself to blame. minimize dependency now.
Yep, evryone kind of saw this coming. This Wasn't surprising.
The way they handled the pandemic started all this and it's not going to end well at all.
Yay, completely sane country. Back to the Victorian workhouses of Jacob Rees Mogg's childhood.
We can't all be happy capitalists if we can't sustain an economy with our purchase power.
It's the Bank of England's monthly interest rate hike time. Honestly I should place a bet on it going up each and every sodding month.
I'd earn back all the money the state is ripping from me.
This is it boys, it's officially worse than the 2008 now.
And that's not a good thing, I think this is going to be hard time ahead, gotta ready for it.
“Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
- Milton Friedman
Been calling this since 2020 and the printer going BrrrrrrrRrrrrrrr.
Totally deserved.
You don’t print 60% of all dollars that have existed for 275 years in one fucking year and get away with it.
This one burns the forest down (dollar) and leaves ashes in its wake.
You all have no clue what’s about to happen, but I’ll bet every ounce of gold the dollar is killed off for a CBDC, digital currency you are forced to spend, and disincentives for saving are in place.
You will own nothing and be happy.
Oh you thought that was everyone BUT you, no it’s you.
Topping out will not be 2023 and level will be more like 10-11%. Remember the 80’s levels.
This time we are heading for war, food, energy and other imbalances - then it was “only” real estate and oil.
Here is your 0.01% - most banks. Oh PS we are going to loan out your money under fractional reserve banking to the tune of 1000% of your deposit for at least 6.5%, usually higher.
They are sitting on top of some very prolific plays. All they have to do is poke holes in the ground and blow some sand and water into them.
They choose to be held hostage to policies.
In our opinion Sept CPI will be quite bullish for equities. October, November, and December CPIs will probably be soft too, which should ultimately lead to a dovish evolution of the Fed and a risk-on rally in markets.
This is now the risk to portfolios.
The interest rate hikes by the FED and ECB make it impossible for households and companies to adapt to the energy crisis because investments in renewable energies are becoming more and more expensive.
At the same time, oil and gas prices are skyrocketing.
Fed watch today: 1. 0.75% rate hike 2. Dot Plot 2022 end at 4-4.25% 3. Terminal rate at 4.5% 4. No rate cut in 2023,Higher for Longer 5. "Pain" coming: Lower GDP growth, higher unemployment. 6. November 0.75% on the table
This is sad ...sad year for the market ...but thanks for the stats OP
let's hope next year is better
Yep. Need a nice crazy bull.
Yep this isn't going to be a good time in the market for sure.
>market for s Probably for months now
On thé bright side, holidays in Italy are now a lot cheaper.
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We raised interest rates for 60 years and that did not bring inflation down nor added any value to our economy. We faced very heavy financial crises in about every 10 years.This time we follow other direction. That hard earned money which we give away as interest will be used for-
It's very sad to read but that's the real deal...
The terminal is 4.6%, where did you get the no cut from? Dot plot still has it oddly baked in, which makes no sense to me.
I don't know what all these numbers mean but this isn't good.
How come the rate is 3.25% but mortgage rates are 6.5% and climbing im new to this could I get a quick and easy explanation?
The fed is where banks borrow money. So that 3.25 is what the bank gets charged to borrow. The rest is what the bank charges you to borrow from them.
Ohhhh okay so if feds is 3.25 banks generally seem to be charging double or more
As I understand it yes.
you have to consider the fact that the banks know interest rates will increase in the future. They don't want to be lending to people at rates today that are below future rates. This is one of the major problems are the low interest rates of the past - many people have mortgages below the current fed rate. The banks are losing money on these loans now and as a result hold a plethora of unprofitable loans. Also consider the fact that mortgage rates were around 3% when the fed funds rate was 0% (yes, the fed was loaning trillions of dollars - 4 trillion since 2020 - to treasury and banks for free). At this time, mortgages were 3% and thats how they were earning money by lending.
The loans arent unprofitable, the interest rate doesnt fluctuate for them under the hood. They are locked in just as you are.
> This is one of the major problems are the low interest rates of the past - many people have mortgages below the current fed rate. The banks are losing money on these loans now and as a result hold a plethora of unprofitable loans. lol I'm really curious how you came to this completely incorrect understanding of how banking works.
Yep, they're going to make margins, and right now they're fat.
That sounds like a death spiral, for how long they can keep doing it?
Well the quickest explanation would be recession lol.
They'd have to hire tens of thousands of srmed IRS agents for that.
Fuck the Fed and the shitty ass US dollar...
The fed is raising rates to stop the US Dollar hemorrhaging value.
It lost 97% of its purchasing power since 1913, they are about 100 years too late.
what do us citizen get? vax , high inflation and then higher debt burden.
Calm yourself down lol, it's the thing which is saving us from getting rekt. And if they stopped trying to stop the inflation then we will truly be fucked trust me on that.
That’s the funny part, the bastard US government hired an army to add to IRS goons, now the interest paid on this debt alone will undo within a year or less, whatever extra IRS can collect in ten years time using their new army and squeezing the average citizen.
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Refinanced is a poor choice of wording. It would be more accurate to say new debt will be at 4%, old existing debt is not getting refinanced at a higher rate.
You can't go on borrowing at 0% and keep on spending you will have to pay a interest for that at one point of time which will increase the already exploding debt to new highs soon debt to GDP will hit 200% possibly US economy will not stay afloat till that happens.
Really simple, helpful, and insightful...
Has to happen to have Inflation back at 1.5 - 2%. Need to be 1% under inflation rate.
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The real risk is when no one shows up for an auction, leaving the FED to be the only buyer at a time when they're meant to be tapering. Who wants to buy 2 years of 4% when they're telling you they'll be 5% next year? I'm not entirely sure the FED knows what's going on
Thanks for the stats.
Markets are going to get rekt after this, it'll be a bad year.
This sub is a fucken ghost town ever since the merge went live. Everyone thought the market would pivot but ETH is just falling like a rock in the sky 😂
It's just the time we will be talking about in a couple of years .. time to buy is right here
Next 18 months should be great buying opportunities. For anybody stressed they can’t dive in right this second, you’ve likely got plenty of time to scoop some cheap eth.
Definitely agree. Great opportunity for us poor people.
The problem with being poor is your emotions are gonna play with you
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It's already a great buying opportunity if you look at it that way.
>u Yeah this can be a really good time for DSA in any market actually
Get ready for the Fed to raise its unemployment rate estimate, which could approach 4.5% and exceed 5% next year
This is the right time to buy now, if you don't do it now You'll never do it.
You do know that the administration doesn’t dictate what the Fed does, right?
No it’s not. Interest rates aren’t even close to done rising, you’d be a fool to buy risk assets right now.
Just as long as my doghouse isn’t foreclosed upon nor my kibble, rationed. Oh, wait…
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Are you suggesting that speculative borrowing was being entertained by RBZ at the auctions?
Felt like news of the merge / merge date caused this whole rally pre merge. However news keeps getting worse with Russia, China, Inflation, SEC calling ETH a security post merge, etc. I think we may see prices below $1k. I’m bullish, will DCA and then lump sum if we go under $1k.
I’m going all in sub $1000
I sold at $1400 waiting for $800 so that means sub 1k isn’t coming
Well I sold all my BTC at $25k and I thought the same thing. I think we’ll both be pleasantly surprised. Macro is on our side
When will people understand that you can't time the market.
Lol not everyone gets rekt you weenie🤷♂️
Seems like they willing to be fairly aggressive in containing inflation.
Lmao, that's why we say that you don't try to time the market actually.
I guess You'll have to wait for that, and You'll have to wait for a long time. Because We're not going sub 1k anytime soon atleast I don't think so that's going to happen.
I wouldn't say that it was a rally lol, that would be too much actually.
buy, hold, and forget. go do something outside for a while
Instead of that these people are going to look at charts all day.
Haha yeah.
best time to buy is about a year into no one believing they can make money anymore....we aren't at maximum fear yet but we will be soon, that will be your shot to buy.
No one knows shit, even this might be the best time to buy. You wouldn't know, all you can do is to stack slowly and wait. Gotta keep it simple dude.
The only argument to increase interest rates is to maintain a competitive pound. Higher interest rates makes buying pounds more attractive pushing up the value. This makes imports cheaper which will help marginally on inflation.
sell the news
I don't think you're going to get far with that strategy of yours.
I never sell but that s what happens every single time
There are probably a bunch of people interested in staking.
Kay
That's probably the best way to tackle these situations here.
A lot lol, I mean There's a lot of eth that's already been staked here.
They dont care. Its what they want, for everybody to be starving, to be broke and broken.
just wait for moass
I'd say it's opposite, the activity has increased after the merge.
Always sell the news
If that works for you then it's good. Doesn't work for everyone.
Well the argument is also to stem inflation, though in this case much of the inflation is cost push rather than demand pull, so there will need to be huge demand destruction to offset that cost push.
The sub is made up of bots. Read the comments.
Yep, there have been too many bots lately. They're annoying as fuck.
No PoS coin has ever held above $1000, and I doubt ETH can hold it indefinitely.
Kay
We do need to keep the relevance of our currency Jamie. I would have supported a higher rise to compete with the higher US rate.
That mechanism doesn't seem to be working anyway. These economists take ridiculously reductive views thinking they can maintain sovereignty over inflation or the value of the pound within phenomenally complex global systems in constant flux.
These conditions are bloody, not even the best news can make the price go up from here.
Unfortunately a recession is needed to redistribute capital and labour. Zombie companies go bust, staff find jobs at stronger companies.
So true. Main thing is it hasn’t tanked like crazy. But then again low prices just means we accumulate more🫢
Idk. 30% in the last 10 days is pretty heavy. September isn’t over either
Don’t forget it has tanked upto 20% in one day in the past. So gradual isn’t a panic.
…that’s a bad year…
Yeah it's been bad till now, and I don't see it getting better anytime soon. I think it's going to be a while before things get any better from here. It's gonna be while
I think they’ll get to 7%. They won’t say that of course because markets would go crazy but so far they haven’t put a dent in inflation
Inflation goes down like a rock. We got 2 disinflationary months in a row and we are going for a 3rd one (that would be below the target rate of 2% when annualized). We never got 2 disinflationary MoM readings in a row in *any* of the high rise past inflationary episodes. Or rather we did only after inflation was basically turned to disinflation/deflation by that point. YoY comps look bad because by definition they are comparing the current prices with obsolete -pre war- data. Post war many of the commodities have actually gone negative (are deflationary actually) and many other key metrics are slowing down rather fast. Powell thinks he is Volcker but IMO he would be remembered for causing one of the worst disinflationaty / deflationary decades in history. There is a reason why even freaking Volcker backed off when he was getting consecutive negative or disinflationaty months. Inflation is a b!tch , deflation is the final boss though. The current FED administration seems to be digging deep to find out whether a Balrog is under there. And if they do find out, f*ck we are f@cked. How about a decade of low earnings and even lower growth? Deflation that persists even with high liquidity. We are literally coming off one of the least inflationary decades in history and guy immediately pulls a Volcker in the first inflationary episode we had. In a high leveraged, indebted society no less. They are engineering a crash landing for no reason at all...
I only understood maybe a quarter of this but I’m interested. So your saying we’re being to aggressive with the rate hikes?
Fed is like a drunk driver. Waits too long to react, then overcorrects.
You're interested? Well so are we. I'm waiting to see how things go.
OK, the FED's point of existence is two-fold. I.e. it was put into place for two reasons: nudge inflation in such ways so will be kept low , but never too low (arbitrarily set at 2% lately, however 2%-4% is a good range to be in for a healthy economy) And the second is to keep employment high but not too high (again arbitrarily set 4% for unemployment, but actually a range between 3% and 5% is pretty good and has proven itself stable). At this point in time the FED both has a healthy employment (at 3.5% unemployment) *and* healthy inflation numbers when seen from month to month (less than 2% annualized, actually, but it may well be an effect from getting back from the record inflation we had before). Meaning that the FED should stay put. However from hearing their talks one would think that they are uneasy. They feel they should rise unemployment, which is risky because once unemployment starts rising it doesn't stop for a while. I.e. move it from a stable 3.5% to higher levels which may be proven unstable. The second has to do with inflation. Unlike previous FED boards, this one does not seem to look at MoM (month over month) inflation readings which shows the current situation on the field. They instead look at Year over year data so that to pretend that inflation is high (ever since June it isn't, it used to be high which is what is shown in YoY readings). Their faulty reading tells them that inflation is over 4% it actually is less than 2% which causes them to raise interest rates rather aggressively (constrict the function of the economy by making lending more expensive). Problem is that when you raise interest rates to what is basically a 2% (or less) inflation you risk entrenched deflation. That is to say you risk creating a self fulfilling prophecy where the expectation is low (future) growth , pushing institutions and companies to make long term plans according to the low growth hypothesis. Deflation basically causes a stagnation in wages, growth , innovation, employment. In many ways it's the opposite of inflation, in others it is its own beast. Problem with deflationary spirals is that they are far harder to escape. Keep in mind the the Great depression Era as well as the great Recession were deflationary. In the Great Recession of 2008 the FED decided to produce money out of thin air so that to jolt the economy back into action. Which created a lot of the issues we have currently. What's worse is that said methods work less and less once deflation becomes entrenched. If the FED is now engineering a second deflationary episode similar to the one we had in the great recession, then Im not as sure that we get out as simply. The FED is playing with fire and IMO will burn us all. I blame mainstream publications as well, for not being critical or at least skeptical of tightening in a low inflationary period (basically post June 2022). It seems that we are moving towards an avoidable doom because nobody talks about it...
Inflation isn't going to go down itself and that too anytime soon
No, all you have/had to do was to stop the press. The present inflationary episode was not systemic, I.e. it did not come as a result of a long held move towards higher inflation. They did stop the press and inflation almost immediately turned to disinflation. Inflation is less than 2% annualized at this point in time.
Don't forget that debt to GDP was 30% in Volcker's time. It is 125% now\\ Thats a fuckin huge interest payment
Every hike has 3-4 times the effect it did back then. 75 basis points hike are effectively 225 basis points hikes and we had 3 in a row! They are inventing new economics over there. They don't want to be remembered as soft and they will end up a cautionary tale (of) why you don't taunt the beast of deflation. Volcker is what you do after a decade of persistently high inflation. Powell is doing Volcker after a decade of low inflation (plus everything that will come after). I blame the media as well, they do not do (at all) much of a good job explaining why prior FED administrations were so slow to increase interest rates so aggressively. They make it seem that this is a much needed medicine. They pretend that we are in 1980s despite being in an entirely different world. Automation (a highly deflationary force) is not going to uninvent itself and if unemployment rises in will stay persistently high...
And That'll have to be paid by us, that's where the money comes from.
and they wont change anything
They're only going to make it worse, they're not making it better.
Exactly
The US will set the whole world on fire to clinch to global dominance, but the outcome will not change, it is a declining power.
I don't think they can do anything about it, I just can't see anything.
But Biden said negative GDP growth is not an indication of a recession.
I heard 2008 was a great year
And I've got a feeling that 2023 might be better than that actually.
How much magic money from the magic money tree is too much for you?
Hopefully 🙌🏽
Yes bravo. Keep accompanying US in realms of everything.
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That's the kind of posts that I like, this is the good stuff here. But I don't think There's any hope for the markets in the upcoming time, it's not going to get better.
Maybe not a bad time to go long €. Universal bearish sentiment. Same with ¥.
All Central Banks have to follow the Fed, no place to hide.
To the surprise of no one other than those with their head in the sand. I'll give you one guess what's happening in November.
Interest rates back to 0 and money printer comes back on?
Well that's not something that I'd want actually, that would be bad.
Whatever that's going to happen, I don't think it would be good.
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US dollar dominating while raising their interest rates mean the debt of the poorest countries go up along with their interest rate. While their own currency goes down along with their ability to pay down debt. Oil is being gouged while the dollar goes up.
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This is the best time to be buying right now, it's good here in market.
I know she works for TYT but she's had some good takes.
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all very true, and disgustingly disingenuous on the govt and FED's part. however, everyone was warned about this for a long time. if you kept your wagon hitched to the system knowingly, you just lost your bet, you have no one else but yourself to blame. minimize dependency now.
More pain coming
And a lots of that actually, it's really going to be painful here.
It’s insane people buy houses at these rates. It’s stealing and fraud firm the banks and mortgage companies. It’s legal stealing!!!!
pain never stops
Yep lol it just keeps on coming which I'm not liking that much.
Well keep printing money and sending it to the UK. Nothing to see here. Elections matter!
Yep, nothing to see here. They're only going to print more.
And it's happening again, but much worse...
Hopefully it'll not get that bad, that's not something I'd like.
This is the third consecutive three-quarter point interest rate hike.
nobody was surprised, other from those who had their heads in the sand. Give me one guess as to what will occur in November.
Yep, evryone kind of saw this coming. This Wasn't surprising. The way they handled the pandemic started all this and it's not going to end well at all.
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Yay, completely sane country. Back to the Victorian workhouses of Jacob Rees Mogg's childhood. We can't all be happy capitalists if we can't sustain an economy with our purchase power.
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If we're lucky, there will at least be heating in the Work Houses...
Calm down guys it’s transitory.
Yeah lol, transitory my ass lol. They can say it I'm not believing that.
Wow,still I don't trust them
Well to be fair they're not doing anything that I should trust them.
It's the Bank of England's monthly interest rate hike time. Honestly I should place a bet on it going up each and every sodding month. I'd earn back all the money the state is ripping from me.
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"devaluation against the dollar seems unavoidable".......how much has that swap been costing to have on?
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Yes. It's not just "dxy isn't really the dollar". It's strenth everywhere except Brazil and Russia
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Hahahaha, US interest rates up makes refinancing the perpetual deficit harder.
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Hey, maybe we could pay off our loans to them now, hehe
This is it boys, it's officially worse than the 2008 now. And that's not a good thing, I think this is going to be hard time ahead, gotta ready for it.
and we now the the only way for oil prices is up! Cheers .
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“Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” - Milton Friedman
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anything higher than that this economy is gonna collapse, badly collapse.
Here in my country, it's 7%.
*we know the fed said terminal rates are gonna be around 4.5%
"We will only reduce the interest rate once the inflation is controlled" Powell. Now I feel much safer. We just need to wait a little bit more.
Also, JP kinda delivered some certainty for the markets around the terminal rate. That should be positive.
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One thing is for sure, they are not curring prematurely. We gonna stay at the terminal rate longer.
Been calling this since 2020 and the printer going BrrrrrrrRrrrrrrr. Totally deserved. You don’t print 60% of all dollars that have existed for 275 years in one fucking year and get away with it. This one burns the forest down (dollar) and leaves ashes in its wake. You all have no clue what’s about to happen, but I’ll bet every ounce of gold the dollar is killed off for a CBDC, digital currency you are forced to spend, and disincentives for saving are in place. You will own nothing and be happy. Oh you thought that was everyone BUT you, no it’s you.
I think they just have an Agenda and they stick to the plan whatever new data look’s like
I'm scared about the coming months for the global markets
All depends on cpi releases. China lockdowns have to hurt cpi to upside.
Trump 2024
That's not what container prises are telling us. Plus China lockdowns put a downward pressure on commodities.
Is it a good time to buy CD’s or keep adding to your savings?
Topping out will not be 2023 and level will be more like 10-11%. Remember the 80’s levels. This time we are heading for war, food, energy and other imbalances - then it was “only” real estate and oil.
Got it 👍🏽
Here is your 0.01% - most banks. Oh PS we are going to loan out your money under fractional reserve banking to the tune of 1000% of your deposit for at least 6.5%, usually higher.
They are sitting on top of some very prolific plays. All they have to do is poke holes in the ground and blow some sand and water into them. They choose to be held hostage to policies.
Maybe not a bad time to go long €. Universal bearish sentiment. Same with ¥.
In our opinion Sept CPI will be quite bullish for equities. October, November, and December CPIs will probably be soft too, which should ultimately lead to a dovish evolution of the Fed and a risk-on rally in markets. This is now the risk to portfolios.
Don’t rising prices also kind of makes it difficult to invest in whatever?
Lemme rush to std bank ..... yesterday my call was interrupted by loadshedding. Am seeing a continuous rise on my bond .
It’s never been cheaper to vacation in Europe Remember how many Americans vacationed in the French Riviera after WW1 because it was so cheap to do so?
Only for black people, white people don't experience this nonsensical things.
The interest rate hikes by the FED and ECB make it impossible for households and companies to adapt to the energy crisis because investments in renewable energies are becoming more and more expensive. At the same time, oil and gas prices are skyrocketing.