Money – The Federal Reserve has cut a key interest rate by a quarter-point, a smaller move than the aggressive easing it undertook earlier this year.
What's gonna happen when diesel costs seven bucks a gallon.
"What's gonna happen when diesel costs seven bucks a gallon."
Just ask the Europeans about that.
Glad you mentioned it. There's another story on the home page today.
"For Europe's Middle-Class, Stagnant Wages Stunt Lifestyle
LES ULIS, France รข;; When their local bakery in this town south of Paris raised the price of a baguette for the third time in six months, Anne-Laure Renard and Guy Talpot bought a bread maker. When gasoline became their biggest single expense, they sold one of their two cars."
I might have to start investing in another currency. Actually, I have waited too long.
The Mexican Peso, or are we already using it here, I forget?
I am not sure that would be a way to solve the immigration problem. The mexican peso has slid with the dollar. Now the euro, canadian dollar, australian dollar, and the english pound have done very well against our currency.
http://www.bankofcanada.ca/en/rates/exchform.html
You can play with exchange rates over the last 10 years here.
I don't get the "disappointment" that the Fuds might stop lowering rates. How much lower than 2 FREAKING PERCENT does anyone think is reasonable? You want to make a REAL impact? Force the banks to lower their CREDIT CARD rates to 4 or 5%. THEN you will see them making more sensible decisions about WHO they offer credit - and damn quick.
"Force the banks to lower their CREDIT CARD rates to 4 or 5%. THEN you will see them making more sensible decisions about WHO they offer credit - and damn quick."
How about CONSUMERS making more sensible decisions by paying off their debt and exercising restraint with their credit cards?
Nah. That would require personal responsibility and common sense - two things that have gone the way of the dodo.
"How about CONSUMERS making more sensible decisions by paying off their debt and exercising restraint with their credit cards?" - certainly a good idea. Unfortunately, we can tell that (so far) it doesn't seem to be happening. And, people who need to make a car payment or two using a damn credit card because gas and food suddenly shot up, well, maybe they CAN'T just go ahead and pay off that card. Everyone seems very willing to suggest that OTHER people simply "pay off" their debt, without the slightest consideration as to their ABILITY to do so. Don't you think - seriously now - that anyone who COULD pay off their debt WOULD? I think a lot more people are in financial difficulty than you suspect. And although no one should, perhaps, INCUR any debt in the first place - SOMETIMES it's a choice between using a damn credit card and not paying the mortgage, or the car payment, or eating. Sh!t happens to people, except, apparently, YOU.
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Hmm. Rates lowered, gas goes up. Rates lowered, food goes up. I see a pattern here.
Is lowering rates encouraging new bubbles?
Yep. It's called inflation but they don't care.
I've begun to wonder if destroy our currency isn't paving the way for the AMERO, Nah. The Fed wouldn't be that stupid, or would they? They'd have a revolution on their hands. Must be something else going on.
Oh they care, this is part of their problem solution cycle.
Ron Paul is the only candidate talking about getting rid of these thugs at the fed.
You are right this is paving the way for the new world order.
They have blackwater storm troops all trained and ready for population control, over here.
Sorry to be so negative but with all the changes bush has made to the constitution it looks like something is coming.
Some people are still living in a bubble, that this is just a cycle and if we could beat terrorism, we'd be all set.
The Fed isn't the problem, just the chairman, who appears to be bowing to political pressure to goose the economy. The problem is that altering monetary policy with short-term goals has long-term consequences. Greenspan made eliminating inflation and the uncertainty it creates in the business climate his #1 priority. Paul's argument is that the Fed isn't democratic. Opening monetary policy to political influence creates pro-cyclical policies.
Lord, why is it that the common people understand economics better than the policy-makers?
DropkickaLib- Maybe the reason we as (common) people understand economics better that policy makers is when we make a mistake with our finances we usually feel the pain. As for your statemant below about Inflation spelling relief, My dad was really deep in debt in the late 60's because he really expanded and then came the 70's and inflation helped to make the debt managable, so if that is what you are talking about I will agree.
Inflation is always bad for national economies and the uncertainty it brings to the business climate.
Stagflation (what we are experiencing as a result of idiotic political policy) is even worse.
But hey, I'm just common folk.
Let's let the 'experts' & policy makers drive our currency to its grave.
If we continue to print worthless money, itll be like the peso of the 80s.
How about $15.00 per gallon of gas?
I remember stagflation under Carter
When they start calculating the Misery Index it will be like old times
"How about $15.00 per gallon of gas?"
Well, we STILL wouldn't have the world's most expensive gas. That title goes to Sierra Leone, at $18.42 a gallon.
On a list of 155 countries, the U.S. ranked 111 in terms of most expensive gas, at a paltry $3.45 average per gallon rate. Check it out:
http://money.cnn.com/2008/05/01/news/internatio...
My advice to you is to quit complaining, get down on your knees and thank your lucky stars you live in the U.S., where the price of gas is near the lowest on Earth.
The problem is people like YOU, GWHaypuke. Chicken Littles who run around whining and crying and predicting the end of the world as we know it, while not doing a damn thing about it. Fortunately, most of the rest of us see beyond our nose (or in your case, your beak), and realize that rising prices are just another factor in an ever-changing economy that will eventually correct itself. Or not. But why bithc and carry on about it?
"...rising prices are just another factor in an ever-changing economy that will eventually correct itself."
The era of cheap gas is over and done with. The price may move downwards a speck, but I bet it's $5 a gallon before the end of the year and doubles within five years.
You don't have any idea the effect that it will have not only on our economy, but on our very way of life. You're incapable of imagining it.
Well, I guess we'll just all have to get out of our cars and use public transportation.
Oh wait - - I already did that nearly ten years ago.....
Well, I guess the rest of you will just have to get out of your cars and use public transportation.
You are indeed a pillar of society, if you dont say so yourself.
Thank You!
Now, while we're on the subject, what is it that YOU'RE doing to help relieve our dependency on oil (besides whining, griping, complaining, blaming the Bush administration and getting all hotter than a pistol about every little thing, that is)?
What's that, Haypuke? Nothing? You mean to tell me that filing grievance after grievance and predicting gloom and doom qualifies you as someone who cares?
Huh. You MUST be a Liberal....
Do you buy or sell anything shipped by rail, truck, ship or plane or depend on others that buy or sell anything shipped by rail, truck, ship or plane?
Yes, I do.
What's your point? How is NOT getting out of your car and taking advantage of public transportation helping rail lines, truck shipments, ship cargo or plane deliveries?
Because the fact that you do the admirable thing and take public transportation has no impact on the cost to get goods to the marketplace.
Unless you are truly independent and grow your own food, weave your own fabric, sew your own clothes, have no need of electricity then you will be effected. Your employees, vendors and customers are all going to be impacted.
"Because the fact that you do the admirable thing and take public transportation has no impact on the cost to get goods to the marketplace."
Should I get back in my car and add to the problem?
If even one million other people would follow my example, there would be a slight dent made. Two million people, a bigger dent. 36 million people would be making the price of gas deflate overnight.
Unfortunately, the flaw in this solution is the American public. It's like this, waldrip: When a business begins to not bring in as much money, they cut back. They cut costs, look to see where they can save money, and limit new spending - SMART. When your typical American moron is faced with higher prices, they do the opposite. They whine and complain first. When that doesn't do anything, they go back to their same habits (because God forbid they have to change their lives), then they start buying on credit - STUPID.
Do you see yourself in this equation, waldrip?
CONT.
Because I've been commuting for years, I barely even notice higher prices at the pump. Higher prices for goods? Maybe, but I ain't paying for them. I purchase things on sale or not at all. Don't pay the high prices and you'll see them come down real quick.
Come on, waldrip. You seem like you have half a brain and one eye open.... is any of this I'm saying new or reveletory to you?
"You seem like you have half a brain and one eye open"
Ahhh, shucks stinky. That's the nicest thing you've ever said to anyone. I didn't know that you cared.
You amuse yourself by imagining what other people think, huh Frenchie?
Pointing out the reality of yet another failed Dumby policy, (giving away money to 'stimyah-late a slowing economy') will do NOTHING but have a negative effect on spending power.
Failed military poilcy...
Failed foreign policy...why NOT add
Failed economic policy for good measure, right Frenchie?
But I suppose the sunglass hut kiosk at the mall will feel a minimal effect, so you shouldnt feel any pain.
Sunglasses must be an economic indicator that give you the expertise to expound on yet another failed policy.
Everything's OK until we're at the BOTTOM of any list, right Francine?
Until then, SOMEONE else is worse off so quit complaining and accept the miserable fate Dumby & the administration of incompetents incapable of success dole out.
Remember !!Mushun Ackomplushid!!
Hmmmm.... My "fate" isn't anywhere NEAR "miserable". I don't know what YOUR problem is.....
High stress? Bad attitude? Loser at everything you've ever tried? Oh well. I don't care. You're not MY problem.
You're so right CR. Actually, it is easier on government because they get to replace old debt with inflated new debt.
Kinda like borrowing from Peter to pay Paul, then borrowing back from Paul at reduced cost to pay Peter.
Inflation helps those with manageable debt.
How do you spell relief? I-N-F-L-A-T-I-O-N
Well it at least theoretically makes my student loans less expensive.
If your income is raising at a rate above inflation.
The Fed lowers interest rates by exchanging newly printed money for Treasury notes.
The newly printed money that is injected into the economy decreased the value of existing dollars.
Of course, other factors also contribute to the rising cost of fuel and food. One is crude oil price.
Oil prices were stable for about 20 years until 2004. What major destabilizing event took place in the middle east took shortly before 2004? hmmmm. Thanks once again, Mr. Bush.