Fed holds rate at 5.25%

[moonman]

Apparently unmoved by CNBC's Jim Cramer that we are facing financial armegeddon the FRB announced this mornign that inflation remains its primary concern and announced no change in the overnight rate.

The result of the Fed holding firm will be increased unemployment and continued pressure on the dollar. The Fed estimates that growth will come in around 2.5% this year. I think they're dreamin'.

As I've posted, the issue is the dollar and everything else is a symptom. We don't have enuf' dollars to pay our 9+ trillion dollar debt. The Fed will soon be forced into one of two policies;

1.) Lower rates and inflate our way out of debt. This is called monetization of the debt. A country repays its debt ever devalued dollars. For this to work though the Fed needs a complimentary fiscal policy with the Treasury. Yes, it's smart for the Treasury to borrow when rates are low but it is stupid to spend that money on consumables. Consumables are things like war and tax breaks. Borrow and spend on infrastructure and R&D is fiscally wise policy.

2.) Increase rates to protect the dollar. The problem with saving the dollar is that it makes exports more expensive and imports less expensive. We export mostly food, technology and capital now, very little in actual manufactured goods. We don't make things anymore.

So that children is the rock and the hard place we are in. It's a choice among inflation, lower dolar, deflation higher dollar and stagflation which is the most likely result of the Fed holding firm and waiting for a miracle.

My prediction is that we are gong to have a two-tiered currency. A new dollar that will trade internationally and replace the greenback, or whatever color it is this week. Our customary legal tender will become a domestic currency not good or accepted outside the USA.

The international USD will be relatively stable while the dollars in our pockets will fluctuate like you've never seen. This will allow us to remain the holder of the world's reserve currency while we at home pay the tab for 25 years of Reaganomics also quickly becoming known as the 2nd Gilded Age.

[kres24GT]

Paying off the debt is easy.

1. Eliminate all social programs. Any program that gives money to someone for anything other than a true government function is abolished.
2. Slash the military budget, except for the Marines.
3. Raises taxes on every American citizen.
4. Eliminate the IRS and replace the current tax code with a flat tax.
5. Eliminate Dept. of Education, Dept. of Homeland Security, and a handful of other unnecessary and unconstitutional federal departments.
6. End corporate welfare and subsidized. Sorry Ted Turner, the government shouldn't be paying you town land in MT.
7. End the drug war, an absolute waste of money.
8. End the FDA and other ridiculous regulatory programs that could be better run by the private sector.

That's just for starters and don't have to be done in any specific order. Keep the tax rate high until the debt is paid off the lower taxes across the board.

[Moby]

We do need to generate enough revenue to pay off the national debt at some point but we seem to be happy with our President when he just starts borrowing less.

Society has an obligation to provide for some social programs, military, education and a variety of other things that keep us from falling back into the dark ages so we can't just cut them all.

Sooner or later, tax revenue has to surpass what we spend so that we can pay down the debt and that's going to be very painful.

[kres24GT]

We do need to generate enough revenue to pay off the national debt at some point but we seem to be happy with our President when he just starts borrowing less.

Society has an obligation to provide for some social programs, military, education and a variety of other things that keep us from falling back into the dark ages so we can't just cut them all.

Sooner or later, tax revenue has to surpass what we spend so that we can pay down the debt and that's going to be very painful.


These types of things can be accomplished without wasteful inefficient government. Spending must be cut, drastically. Right now both parties only seek to increase spending and the power of the federal government.

[moonman]

Paying off the debt is easy.

1. Eliminate all social programs. Any program that gives money to someone for anything other than a true government function is abolished.
2. Slash the military budget, except for the Marines.
3. Raises taxes on every American citizen.
4. Eliminate the IRS and replace the current tax code with a flat tax.
5. Eliminate Dept. of Education, Dept. of Homeland Security, and a handful of other unnecessary and unconstitutional federal departments.
6. End corporate welfare and subsidized. Sorry Ted Turner, the government shouldn't be paying you town land in MT.
7. End the drug war, an absolute waste of money.
8. End the FDA and other ridiculous regulatory programs that could be better run by the private sector.

That's just for starters and don't have to be done in any specific order. Keep the tax rate high until the debt is paid off the lower taxes across the board.

And when you elliminate the IRS who or what will collect the flat tax, duh.

We agree on 7, that's about it.

[kres24GT]

And when you elliminate the IRS who or what will collect the flat tax, duh.

We agree on 7, that's about it.


A cheaper more efficient agency.


You love big government I take it?

[moonman]

A cheaper more efficient agency.


You love big government I take it?

A cheaper more efficient agency? You think non-judicial property confiscation that we currently have under the IRS can be made even more efficient? What other constitutional rights of the People are willing to set aside while you advocate restoring our constitution?

I love necessary gubment. Over 70 million people currently receive a monthly check from the SSA. Perhaps you might consider the consequences of removing that money from the system.

With regard to a social safety net, I'm still partial to the Moynihan/Nixon Guarenteed Minimum Income & Benefit Plan. I like to call it Gimme. The idea and still doable is to provide every citizen a means tested guarenteed income above the regional poverty line and health benefit plan.

[kres24GT]

A cheaper more efficient agency? You think non-judicial property confiscation that we currently have under the IRS can be made even more efficient? What other constitutional rights of the People are willing to set aside while you advocate restoring our constitution?

I love necessary gubment. Over 70 million people currently receive a monthly check from the SSA. Perhaps you might consider the consequences of removing that money from the system.

With regard to a social safety net, I'm still partial to the Moynihan/Nixon Guarenteed Minimum Income & Benefit Plan. I like to call it Gimme. The idea and still doable is to provide every citizen a means tested guarenteed income above the regional poverty line and health benefit plan.


Social Security is a perfect example of why government shouldn't get involved in these things. If I invested the 3-4k I pay in SS tax every year I would get a nice return and have a much better retirement package for myself. Instead government seizes it from me and forces me to put into their corrupt plan where if I live long enough I might come out ahead. I'd rather have this responsibility myself.

Anyway Social Security will end soon enough, might as well do it now. Old people are too old to rob anyone, they'll simply get jobs or die off if they didn't properly save for retirement.


I prefer only the most basic functions of government, otherwise you get abortions like the SSA you mentioned. One of the best example of the why the government which governs best, governs least.


not to mention the whole program is unconstitutional.

[moonman]

That is bunch of laughable crap kres24GT. The paper money boys always coo about the stock market. Fact is, when you factor in real inflation and dollar devaluation the market hasn't gone up at all.

By every measure we are not better off today than we were from 1955-65. It was indeed our Golden Economic Age. What produced it? The very anethema to what you advocate. Collective bargaining was embraced by over 30% of the workforce. Eisenhower balanced the budget and proved Keynes right by building our highway system. Kennedy invested in R&D, most notably NASA.

I make 6 figures, take two vacations a year and about 25% of my work is pro bono. Since yer whining about a few measely grand a year it's obvious you got nuthin' because you've done nuthin' but whine.

Quit worryin' about what the gubment is taking and think what a great bargain our gubment actually is and one day you just might make somethin' out of your sorry a$$ self. D#mn I hate neocon whiners.

[kres24GT]

That is bunch of laughable crap kres24GT. The paper money boys always coo about the stock market. Fact is, when you factor in real inflation and dollar devaluation the market hasn't gone up at all.

By every measure we are not better off today than we were from 1955-65. It was indeed our Golden Economic Age. What produced it? The very anethema to what you advocate. Collective bargaining was embraced by over 30% of the workforce. Eisenhower balanced the budget and proved Keynes right by building our highway system. Kennedy invested in R&D, most notably NASA.

I make 6 figures, take two vacations a year and about 25% of my work is pro bono. Since yer whining about a few measely grand a year it's obvious you got nuthin' because you've done nuthin' but whine.

Quit worryin' about what the gubment is taking and think what a great bargain our gubment actually is and one day you just might make somethin' out of your sorry a$$ self. D#mn I hate neocon whiners.
There is so much wrong with this post I don't know where to begin.


1. Calling me a neocon is hilarious.
2. I am not sure what gubment is.
3. Congrats on all your success.
4. Social Security is still a failure.
5. You will get more out of your money by investing it than you will paying into Social Security. Not to mention the money belongs to you, not to the government who will only give it back under their own set of rules.
6. I don't care if we are better off or not, I am not willing to trade freedom for comfort.
7. You call me a whiner. What would you call your posts here?
8. Your faith in government is why we get people like George Bush as president.

[moonman]

7. You call me a whiner. What would you call your posts here?


Enlightening for non I.Q. Challenged persons.

[kres24GT]

Enlightening for non I.Q. Challenged persons.

Sometimes I wish I could be as delusional as some of you other posters. What's it like?

[moonman]

Yer typical of the legend in yer own mind type. You advocate for something more efficient than the IRS and when yer asked what could be more efficient than non-judicial property confiscation you ignore it. Yer a typical neocon-Nazi speaking of freedom with no understanding that freedom means personal responsiblity, you have none.

Yer nothing more or less than a corpratist in Mussolini mold. Socialize the risk while privatize the gain. You and your ilk are as un-American as un-American can be.

[kres24GT]

Yer typical of the legend in yer own mind type. You advocate for something more efficient than the IRS and when yer asked what could be more efficient than non-judicial property confiscation you ignore it. Yer a typical neocon-Nazi speaking of freedom with no understanding that freedom means personal responsiblity, you have none.

Yer nothing more or less than a corpratist in Mussolini mold. Socialize the risk while privatize the gain. You and your ilk are as un-American as un-American can be.


Not understanding freedom means person responsibility???? I am pretty sure I have said this many times. Neocons do not support freedom, they love big government, once again showing you do not know what a neocon is.


What risk do I want socialized?


Sound liek a lot of rhetoric and assumptions, not a whole lot of substance.