Interest Rates :



limerickman

Well-Known Member
Jan 5, 2004
16,130
220
63
The US Interest Rate in April 2007 was 5.25%.

Today, one year later the US rate is 2.25%.
The only other major trading currency which has a lower interest rate is the YEN.

European Interest Rates have remained unchanged at 4.00, while Britains rate has moved on one quarter of a percentage point since last year, for the same time period.

Very interesting times.
 

limerickman

Well-Known Member
Jan 5, 2004
16,130
220
63
Inflation fears keep ECB rates on hold
By Ralph Atkins in Frankfurt

Published: April 10 2008 12:45 | Last updated: April 10 2008 12:45

Eurozone interest rates have been left unchanged at 4 per cent by the European Central Bank – a clear sign that its fears about inflation continue to outweigh worries about economic growth in the 15-country region.

The move had been widely expected and means ECB interest rates have been left unchanged since June – despite steep cuts in borrowing costs by the US Federal Reserve.
At his press conference later on Thursday, Jean-Claude Trichet, ECB president, is expected to stress the upside risks to inflation, which at 3.5 per cent in March, is at the highest level for almost 16 years.
The ECB aims to keep inflation “below but close” to 2 per cent.
 

limerickman

Well-Known Member
Jan 5, 2004
16,130
220
63
Euro shows signs of end to bull run
By Peter Garnham in London


Published: May 1 2008 20:43 | Last updated: May 1 2008 20:43

Speculation that the euro’s seven-year bull run was coming to an end intensified on Thursday as the single currency fell to five-week lows against the dollar and the pound.

Many economists are reaching the view that eurozone growth has slowed to the point where the European Central Bank will have to cut interest rates or risk stunting economic growth.

Recent eurozone data have been disappointing, with German business sentiment, measured by the Ifo institute, in April recording its biggest monthly fall since September 2001, while eurozone purchasing managers’ indexes have also fallen.

The European Central Bank has so far maintained a hawkish stance on interest rates.

As the Federal Reserve has slashed its main interest rate by 3.25 percentage points to 2 per cent since the start of the market turmoil last summer, and the Bank of England cut its main lending rate by 0.75 per cent to 5 per cent, the ECB has kept its official interest rate on hold at 4 per cent.

The diverging interest rate paths between the three central banks have given investors a reason to keep buying the euro, pushing it nearly 70 per cent higher against the dollar since 2001 and up almost 30 per cent against the pound.

Last month the euro reached an all-time high of $1.6018 against the dollar and a record high of £0.8097 against the pound. But it has since fallen 3.6 per cent, on Wednesday hitting $1.5438 against the dollar and £0.7802 against the pound, its weakest level since March 25.
 

stilesiii

New Member
Aug 31, 2005
165
0
0
50
limerickman said:
Oil prices 2006 - 2008
Its my belief that oil, gold and all other commodity prices have sky rocketed due to an attempt by many investors to protect their assets against the falling dollar.

Here in America, the answer to every problem is to print more currency to "stimulate" the economy. This is done through Feds manipulation of interest rates which cause our uncontrollable consumers to borrow even more and idoitic tax rebates.

The current "mortgage" crisis is the result. The answer? You guessed it. Print more money.

We cannot go on much longer this way. Worldwide depression pending, caused by the idiots in Washington D.C. who only care about re-election.

Recipe for disaster:
1) Cut taxes;
2) Spend money like drunk sailors, and
3) Print money uncontrollably.
 

ClemmonsHoo

New Member
May 6, 2004
30
0
0
And...

4) Lie about the unemployment and inflation rates for years.

It's a fact that about every 10 years or so the Feds change the formulas used to calculate the unemployment and inflation rates. In both cases it seems to be to make the economy and our screwed up monetary policy politically look better. And in the case of the inflation rate, it also seems to be to intentionally drive down the rates of return on traditional saving mechanisms in order to force us to put our nest eggs in the stock market (which I am quite ****** about). This has the added consequence of making recessions even worse because we all have to retreat as we watch the market suck the life out of our retirement accounts.

Using the 1980 formulas for instance, current unemployment would be 7% now and inflation would be over 12%. Using the 1992 formula, inflation would be 8% right now. These people lie and their operation needs to be shutdown.

They're constantly removing important consumables from the CPI in order to drive down the reported inflation rate, and it's now to the point that virtually nothing that we buy to support our daily lives is included. If the economy gets bad I can hold off on getting a new TV or car or whatever, but I have to eat and use energy in order to survive. But of course they do not include those in the CPI anymore because then we'd know how bad off we really are and we consumers would stop filling the pockets of Wall Street.

WS, the banks, and the Feds just screwed us. Over the last year, between the white collar criminals and the devaluation of the dollar, the average American has lost about half of what they had planned on come retirement. That money is not coming back. But how ironic that the people who did this to us, the ones who screamed for govt to get out of their way, now want massive bailouts from the taxpayers.

<sigh>
 

stilesiii

New Member
Aug 31, 2005
165
0
0
50
ClemmonsHoo said:
. But how ironic that the people who did this to us, the ones who screamed for govt to get out of their way, now want massive bailouts from the taxpayers.

<sigh>
And who makes the monetary policy in the U.S.?

Freddie Mac/Fannie Mae, who's creation?

Not allowing the creation of 1 refinery in the past 30 years, not one nuclear power plant in the same time, drop in domestic oil production by 50%, Zero real conservation incentives, who's policies.

I just love how the government creates disasters, then some politician comes riding in on a white horse promising to save us all.

Totally self inflicted wounds, now the same people that created the problem are suggesting more idiotic solutions.
 

ClemmonsHoo

New Member
May 6, 2004
30
0
0
Our monetary policy is basically set by the Fed Reserve. They are not the govt. They are a private institution, although they go to great pains to make sure most people forget that fact.

The reason we haven't built any new refineries is because there is a monetary incentive NOT to do so. It's not the federal govt who builds the refineries, and it's not really our oil. Once permits/leases are issued to the oil companies (a private industry) the oil is basically theirs to do with as they please, which is to sell it on the global market. And in fact, the shortage of refineries has resulted in windfall profits for them. Why would they want to kill the proverbial golden egg laying goose? Environmentalists and Democrats make good scapegoats at the moment tho.

Oh, and all the talk about drilling is a ruse being cooked up by the industry and the politicians who are beholden to them. The reason the oil companies want to open up offshore and more Alaskan drilling is because they want the permits. Once they have the permits then they can say they're sitting on top of massive amounts of oil reserves (even if they're actually not) which is what their stock prices are based on. They actually have no idea even how much is down there, but just saying there's so many billions of barrels waiting to be tapped will land them a mint on Wall Street once those permits are issued. They're one of the biggest lobbying groups prowling the halls of the capital building - do not ever forget that.

We inflict the wounds on ourselves by continuing to vote for corporate shills and moral retards.
 

stilesiii

New Member
Aug 31, 2005
165
0
0
50
ClemmonsHoo said:
Our monetary policy is basically set by the Fed Reserve. They are not the govt. They are a private institution, although they go to great pains to make sure most people forget that fact.

The reason we haven't built any new refineries is because there is a monetary incentive NOT to do so. It's not the federal govt who builds the refineries, and it's not really our oil. Once permits/leases are issued to the oil companies (a private industry) the oil is basically theirs to do with as they please, which is to sell it on the global market. And in fact, the shortage of refineries has resulted in windfall profits for them. Why would they want to kill the proverbial golden egg laying goose? Environmentalists and Democrats make good scapegoats at the moment tho.

Oh, and all the talk about drilling is a ruse being cooked up by the industry and the politicians who are beholden to them. The reason the oil companies want to open up offshore and more Alaskan drilling is because they want the permits. Once they have the permits then they can say they're sitting on top of massive amounts of oil reserves (even if they're actually not) which is what their stock prices are based on. They actually have no idea even how much is down there, but just saying there's so many billions of barrels waiting to be tapped will land them a mint on Wall Street once those permits are issued. They're one of the biggest lobbying groups prowling the halls of the capital building - do not ever forget that.

We inflict the wounds on ourselves by continuing to vote for corporate shills and moral retards.
Why no nuclear power? No refineries because Gov't refused permits. Come on, you know that Fed is controlled by appointees and is a quasi-gov't entity. What about Fannie Mae and Freddie Mac?

How can sending billions overseas for oil be good for America? Brutal for trade deficit.

How can all these third world countries oil production methods have less environmental impact? You think Mexico and Venezuela can produce oil with less environmental impact than U.S.? You think fossil fuel economy will end in 5 years? We will need oil forever, plastics, synthetics, not just energy.

There is a correlation between productivity and energy cost. You cannot be in control of your economy if you are not in control of the energy which powers it, don't expect economic success and a job if you have don't have affordable energy.

By not being able to create our own source of energy, we have given control of our economy and our destiny as a nation to foriegn entities who do not share our interest. This is a recipe for disaster.

BTW, who do you get a paycheck from. A corporation?