Recent Event Highlights: ECB eyed for signs of growing rate hike caution - Reuters, Mortgage Update 2/08/11 Interest Rates have risen!, Reserve Bank puts interest rates on hold despite price-inflation risks - The Australian, Why you shouldn't fix your interest rates - yourMortgage.com.au, Amid Debt-Ceiling Drama, Interest Rates Have Hardly Followed the Script, Debt deal makes bond market happy - savers might not be - USA Today, and 114 more...
Created by dipity on Sep 21, 2010
Last updated: 08/24/11 at 12:26 PM
Interest Rates has no followers yet. Be the first one to follow.
ReutersECB eyed for signs of growing rate hike cautionReutersThe bank, which sets interest rates for the 17 countries that use the euro, is almost certain to keep them on hold this month after raising them to 1.5 percent in July. While August is usually the bank's quietest meeting of the year, ...ECB Should Signal Rate Climb-DownWall Street JournalEurope on the Verge of Becoming a Transfer UnionSpiegel Onlineall 123 news articles »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNH8oZFDx9UjlexrBtTyBSm5_JyXrA&url=http://www.reuters.com/article/2011/08/02/us-ecb-preview-idUSTRE7710Y220110802
As of tomorrow, the first of the banks have increased their fixed interest rates by 0.10-0.15%. The increase is from peoples expectations on where they think floating interest rates are going. Floating rates have not increased however - great, if you do not want to fix, but bad, if you were thinking of fixing but have not done so.
International Business Times3-month T-bills at highest since Feb.Boston GlobeBy AP WASHINGTON - Interest rates on short-term Treasury bills rose in yesterday's auction, with rates on three-month bills rising to their highest level since February. The Treasury Department auctioned $27 billion in three-month bills at a discount ...Money market edgy as Washington votes on debt capReutersDebt ceiling cost to taxpayers: $1.7 billionCNNMoneyDebt-ceiling dilemma: the foul choice facing investorsIBTimesall 86 news articles »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHGbh0KKP4iL796UtpY0UvJ4838Iw&url=http://www.boston.com/business/articles/2011/08/02/3_month_t_bills_at_highest_since_feb/
AFPReserve Bank puts interest rates on hold despite price-inflation risksThe AustralianAmid the move to keep rates on hold, Glenn Stevens said "the pace of growth (in the global economy) slowed in the June quarter". Source: AFP THE Reserve Bank of Australia contemplated raising interest rates today, but held off because of political and ...Aussie Gains Versus Yen on Prospects RBA May Signal Higher Interest RatesBloombergRBA leaves interest rates on holdStock and LandIt's D-Day for the RBA on interest ratesSydney Morning HeraldABC Online -CNBC.com -Business Spectatorall 1,004 news articles »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHciMz6q3hXCbXTQFLk4HW34aydrQ&url=http://www.theaustralian.com.au/business/interest-rates/reserve-bank-keeps-interest-rates-on-hold-at-475pc/story-fn91wad8-1226106775976
Remortgage NewsWhy you shouldn't fix your interest ratesyourMortgage.com.auWith growing speculation that interest rates are set to come down, should borrowers ignore low fixed rate offers and keep their mortgage on a variable interest rate? In recent weeks, the finance industry has gone from predicting several interest rate ...Compare Mortgage Interest Rates Today – Fixed Bank of America and Chase FHA ...Subprime Blogger (blog)Lowest Fixed Rate Interest RatesMortgage NewsAs rates fall, is now the time to fix your mortgage?WalletPop UKHeadlines News -Mortgage Rates & Trends (blog)all 35 news articles »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHQE_C7gjIYcIU_2NmO6cFlSHdJXQ&url=http://www.yourmortgage.com.au/article/why-you-shouldnt-fix-your-interest-rates-116817.aspx
On Wall Street, stocks initially rallied Monday on the news of a debt-ceiling deal, but a weak report on manufacturing killed the surge. Economics correspondent Paul Solman reports on the financial world's reactions to the drama over a debt deal as part of his series on Making Sen$e of financial news.
USA TodayDebt deal makes bond market happy - savers might not beUSA TodayYields on Treasury securities, which determine interest rates on a broad array of consumer loans and savings accounts, have plunged on fears of a weaker economy. By Danny Johnston, AP A pending sale sign is displayed in ...and more »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFQMOoPL_xhLi6NX3r2Ae8IodrgJg&url=http://www.usatoday.com/money/markets/2011-08-01-bond-yields-interest-rates_n.htm
MassLive.comConsumers get scant relief from debt dealThe Associated PressThe stock market shouldn't crash and interest rates won't start skyrocketing. But even before a vote took place, it was clear the deal carries implications for Americans' borrowing, spending and investments. By slashing government spending more than $2 ...Consumers face minor changes from debt dealFort Worth Star TelegramConsumers get scant reliefFlorida TodayMore Headwinds for the Housing Market?U.S. News & World ReportLoanSafeall 112 news articles »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNE-ofzDhU8RaUhpCzR02LV4GkjGMw&url=http://www.google.com/hostednews/ap/article/ALeqM5gLdBdwiOV4CwS1TPrYxVYyK0LleA?docId%3Dde5ebd35143f48009cdb6a67ec3ec525
Thank you, Mr. Speaker, After months' long standoff over raising the debt ceiling, Congress is now forced to take action on a bill that by all accounts is deeply flawed. I think everybody today has agreed with that. Why are we doing a flawed bill? Because we waited until the last minute. Instead of reducing the nation's debt by closing tax loopholes for oil companies and private jet owners, today's bill instead creates a Super Committee that will decide how to take over $1 trillion in cuts. This Super Committee will serve as a mock congress, leading 523 Members of Congress sitting on the sidelines while a group of 12 decide the shape of the country for a decade to come. Paying our debts should be a no-brainer. Indeed the debt ceiling itself is an antiquated solution to a problem we no longer face and should be eliminated. It was originally created to pay for World War I, to provide our country with economic stability while at war. Today we're again in the midst of war but instead of protecting the stability of our economy, some in Congress have decided to question the necessity of paying our bills. As we all know by now, they've taken our economy hostage and demanded draconian cuts in exchange for not leading our nation into default. The actions have caused real and significant damage. Roll Call reports that because of the prolonged debt ceiling crisis, the interest rate the United States government must pay has already increased, which means the interest rates for car ...
Visit us online at www.rayauto.com 803.451.8880
Fox NewsCalifornia Gets Advanced Loan Just in Case Interest Rates Spike Over Debt DealFox NewsThe state got a low rate: 0.237 percent from Wells Fargo, Citigroup and several other financial institutions. "It means when we pay it back its in November, it could be sooner, it's a few million dollars in interest -- which for $5.4 billion, ...and more »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHEWh0BwG8HSMi84hNxsA9_5aQwxg&url=http://www.foxnews.com/politics/2011/08/01/california-gets-advanced-loan-just-in-case-interest-rates-spike-over-debt-deal/
Deal or no deal. Economy still stinks.CNNMoneyHigher rates are often are a sign of a strong economy. Click chart for more on bonds. NEW YORK (CNNMoney) -- Hooray! It looks like the United States is not going to default on its financial obligations. I think. Interest rates won't skyrocket after all ...and more »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGxr35CCbB6C5S-_E9kUzfiE5AHQg&url=http://money.cnn.com/2011/08/01/markets/thebuzz/
U.S. Insurers Weigh Impact on Portfolios, Interest Rates and Equity Markets as ...MarketWatch (press release)2 deadline, US insurers cited concerns over their companies' portfolios, short- and long-term interest rates and a decline in equity markets, according to a survey from global professional services company Towers Watson (NYSE, NASDAQ: TW). ...and more »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHdjlwYYKlku3NBitmmYmVcJKYhYQ&url=http://www.marketwatch.com/story/us-insurers-weigh-impact-on-portfolios-interest-rates-and-equity-markets-as-debt-deal-awaits-final-approval-finds-towers-watson-survey-2011-08-01?reflink%3DMW_news_stmp
Mortgage market and interest rate update by Bruce Brown, CMPS with Prime Lending and host of Dollars and Homes on KCMO Talk Radio 710 in Kansas City.
UPATE 1-Brazil economists see 2012 interest rates lowerReutersSAO PAULO, Aug 1 (Reuters) - Economists lowered their views for Brazilian interest rates at the end of next year, although they held their view for another hike before the end of 2011, according to a weekly central bank survey published on Monday. ...Brazil Currency Market Weaker As Concerns About Growth ReturnWall Street Journalall 7 news articles »
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNEMWNuZQdDfW2mTj4hC8GYrUKI4EA&url=http://www.reuters.com/article/2011/08/01/brazil-economy-survey-idUSN1E77003F20110801
Businesses and homeowners are pleading with the Reserve Bank to leave interest rates on hold tomorrow. See more at www.tennews.com.au
You want to avoid being upside-down on a car loan. In this video we'll give you some reasons to consider GAP insurance
www.ihatemycreditcardcompany.com. What do I need to get started lowering my credit card interest rates? Inside this video I discuss the proper steps to take to obtain a lower credit card interest rate. All the tips are actually quite straight forward, and once you start implementing them, you should definitely start seeing how you will be able to lower your credit card interest rates. leave a comment below will ya?
www.ihatemycreditcardcompany.com. What should be my credit goals? Inside this video I discuss the proper steps to take to obtain a lower credit card interest rate. All the tips are actually quite straight forward, and once you start implementing them, you should definitely start seeing how you will be able to lower your credit card interest rates. leave a comment below will ya?
Several hundred teachers from across the US have rallied near the White House to call for radical changes to what they see as a flawed US educational system. The gathering on Saturday came as US congressional leaders met to discuss ways to avert a potentially damaging debt default. Since the recession, spending on education has suffered as state and local governments cut costs to compensate for reduced revenue and balance their budgets. "It has affected education for years and years, having our allocations cut for years, decades already, and if you think about running your own household, like that, there's only so much cutting you can do," said Monica Severa, a teacher. Teachers are being especially hit hard in their pocketbooks, and with congress threatening major spending cuts in any debt ceiling plan, educators fear it will only get worse. Some teachers are demanding that the government get rid of tax breaks for big companies and devote more funding to public education. But even if a default is avoided, there is the danger that one of the credit agencies will downgrade the US debt. That will mean that state and local governments will have to pay higher interest rates to borrow money to fund their school systems. Higher interest rates could mean further cutbacks. Al Jazeera's Roger Wilkison reports from Washington.
www.ihatemycreditcardcompany.com. What happens if it doesn't work? Inside this video I discuss the proper steps to take to obtain a lower credit card interest rate. All the tips are actually quite straight forward, and once you start implementing them, you should definitely start seeing how you will be able to lower your credit card interest rates. leave a comment below will ya?
www.ihatemycreditcardcompany.com. How is that legal? Higher rates after just one day late? Inside this video I discuss the proper steps to take to obtain a lower credit card interest rate. All the tips are actually quite straight forward, and once you start implementing them, you should definitely start seeing how you will be able to lower your credit card interest rates. leave a comment below will ya?
nma.tv Since coming to Washington, the 'Young Guns' of the Tea Party have caused nothing but havoc. House Speaker John Boehner has told Republicans to 'get their asses in line' behind his budget proposal. But some in the Tea Party remain insolent. The Tea Party's refusal to cooperate means Congress could miss its best chance of reaching a budget ceiling compromise by the August 2 deadline. Fears the US may miss the deadline have already spooked financial markets, prompting a global equities sell-off and higher interest rates on US bonds. Doubts about where interest rates are heading have frozen activity in the credit markets. Long-term, higher borrowing costs for the government and consumers could wreck the American economy. Even if John Boehner can win support from a few 'Young Guns', he must still deal with opposition from the Democrats in the Senate. Isn't the political immaturity of the 'Young Guns' just setting up the Democrats nicely for 2012? What will happen next?
nma.tv Since coming to Washington, the 'Young Guns' of the Tea Party have caused nothing but havoc. House Speaker John Boehner has told Republicans to 'get their asses in line' behind his budget proposal. But some in the Tea Party remain insolent. The Tea Party's refusal to cooperate means Congress could miss its best chance of reaching a budget ceiling compromise by the August 2 deadline. Fears the US may miss the deadline have already spooked financial markets, prompting a global equities sell-off and higher interest rates on US bonds. Doubts about where interest rates are heading have frozen activity in the credit markets. Long-term, higher borrowing costs for the government and consumers could wreck the American economy. Even if John Boehner can win support from a few 'Young Guns', he must still deal with opposition from the Democrats in the Senate. Isn't the political immaturity of the 'Young Guns' just setting up the Democrats nicely for 2012? What will happen next?
Jason from Salt Lake City, Utah: I think it probably takes a lot of liquidity creation to maintain 0 percent interest rates. Is it possible to keep monetization going through a scheme whereby the bigger banks have access to very cheap money and they use that to invest in Treasuries at a higher rate? If this could happen, I think the Fed could direct QE3 without having to announce anything. Submit your webcast questions here: schiffradio.com
Excerpt
...budget deficits, increases in interest rates are a real possibility. Increasing rates are exactly what we don’t need. As interest rates go up, both consumers and businesses tend to spend less. People already in debt must divert money budgeted for other tasks...
Source Info
American Express Open Forum
http://www.openforum.com/idea-hub/topics/money/article/are-interest-rates-heading-up
Excerpt
... This is due to the fact that interest rates play an important role in the performance of the stock markets. Higher interest rates imply that companies must pay more on their borrowings for capital investments. This naturally impacts their margins negatively,...
Source Info
Economic Times
http://economictimes.indiatimes.com/features/financial-times/review-your-investment-strategy-as-interest-rates-peak/articleshow/9254719.cms
Excerpt
...for more productive uses like hiring and investing. If they increase suddenly, it may even lead to business failure. Interest rates are not set by the laws of supply and demand. Each bank that has money to lend doesn’t independently set rates based on what...
Source Info
American Express Open Forum
http://www.openforum.com/idea-hub/topics/money/article/how-the-federal-reserve-sets-interest-rates
Excerpt
...S = I. Savings equal Investment Therefore if you want to invest you need to have the savings to do so before hand. High Interest rates disincentives investment as they make it expensive to borrow, but incentivises saving as it gives a good return. So what...
Source Info
UK Poli Blogs
http://feedproxy.google.com/~r/conservativeblog/~3/MiAtPdNMuZI/why-interest-rates-matter
Excerpt
...recession, interest rates throughout the world were lowered even further to keep the economies afloat. Some may recall the interest rates of the early 1980s when an investment in a 10year Government of Canada bond would yield as much as 16 per cent. However,...
Source Info
Montreal Gazette
http://www.montrealgazette.com/business/Interest+rates+have+been+kept+stave+recession/5081786/story.html
Excerpt
...Barclays, HSBC, Standard Chartered and Citibank are among many lenders that charge interest rates as high as 30-50%, mainly on consumer loans, akin to microfinance lenders that face a possible cap on lending rates. Although all banks have a base rate, or benchmark...
Source Info
Economic Times
http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/citibank-hsbc-charging-upto-50-pc-interest-rates/articleshow/9143186.cms
Michael from Chicago, IL: For those of us new to interest rates, can you please provide some currency valuation of other countries? For instance, I noticed that Australia's interest rate is above 4%, while Italy has a negative interest rate? What does this trend mean to the global economy?
Claus Vogt (www.sicheres-geld.de talks to James Turk, of the GoldMoney Foundation, about the global financial situation, especially the dangers of the global debt trap. Claus explains that there is no easy way out of overwhelming debt and that once the burden becomes unbearable and impossible to repay there are no easy ways out. Inflation hurts the poor the most and redistributes wealth from savers and the middle class to those close to the source of new money, while default and bankruptcy also causes severe hardships. They talk about the inflationary endgame and the grave consequences of reaching the point of no return and sliding into what Ludwig von Mises called "the crack-up boom", with hyperinflation, currency destruction and a flight into real goods. Claus explains that the whole US Treasury Bond confidence game will come tumbling down, creating a funding crisis, rapidly rising interest rates and accelerating inflation. Claus sees stocks overvalued and technically near a top and expects them to head down in the following months. He also expects commodities to correct, within the longer term uptrend. He explains that emergent markets are acting as leading indicators and have already started to correct, while US stocks topped out. Claus Vogt sees the rising interest rate scenario, the end of QE and surging inflation as the catalyst for a new recession. Claus Vogt and James Turk explain that the only way out of a debt trap is to liquidate said debt. Liquidation means ...
Presented at the Ludwig von Mises Institute in Auburn, Alabama, on 24 June 2011.
Overview of the main types of mortgages and rates
See the full course at 599CD.com This is lesson 7 from my Microsoft Excel 2010 Expert Level 6 course. This course covers financial functions in Excel including PMT, PV, FV, RATE, NPER, IMPT, PPMT, and more. You will learn about interest rates, loan amortization, and lots more.
Dick discusses the global repudiation of debt and the likelihood of big increases in interest rates now that the Fed has stopped QE2 -- its program of printing money and borrowing it back. He warns that the disease now gripping Greece will come around to us.
For the latest Marc Faber, go to MarcFaberBlog.com - Marc Faber says that Ben Bernanke is a murderer of the middle class. Anyone who had a pension plan, a retirement plan, or any kind of savings, got wiped out by the low interest rates. If you print money, everything will go up. It doesn't go into housing, because we have an over supply of housing. Instead, it goes into equities, and unfortunately for Mr. Bernanke, it goes into commodities. This is lifting the cost of living for the median household and the typical household in the United States. Mr. Bernanke is murdering the working class and the middle class. It's a sad joke because the reason for the money printing was to re-inflate the housing bubble. But instead, we are seeing bubbles in food and energy. Their houses are going into negative equity, and they are paying more for food and energy. Bernanke is a fool. In the absence of a gold standard, inflation is a means for the confiscation of wealth. Deficit spending is simply a scheme to confiscate wealth. All of this is sold as a charitable act to help the working class, but instead it is murdering them financially. Greenspan said that we could create a Dollar standard to replace the gold standard that is as good as gold. But that is false. There is nothing as good as gold except for gold. When you give people like Greenspan or Bernanke the ability to loan money into existence, then they are nothing but counterfeiters.
This is the VOA Special English Economics Report, from voaspecialenglish.com | http Central bankers have to choose their words carefully. So they often say little in public -- or little that makes sense. But the United States central bank says it is trying to be more clear and timely in communicating its policies. The latest example: a press conference by Chairman Ben Bernanke. The April twenty-seventh event was the first of its kind in the ninety-eight-year history of the Federal Reserve. In his opening comments, Mister Bernanke explained a decision by the Federal Open Market Committee to leave its main short-term interest rate near zero. The committee had just completed a two-day meeting. Mister Bernanke said: "The committee continues to anticipate that the economic conditions -- including low rates of resource utilization, subdued inflation trends and stable inflation expectations -- are likely to warrant exceptionally low levels for the federal funds rate for an extended period."In other words, the economy is not growing fast enough to worry about inflation. A reporter asked what an "extended period" means to the Fed. Mister Bernanke said it suggests "a couple of meetings probably" but it all depends on the economy. He said it is very hard to blame the American public for being impatient with the speed of the recovery. But he pointed out that unemployment is still high. Oil and gasoline prices are high. And the housing market remains very weak.The committee said it ...
James Grant of Grant's Interest Rate Observer (www.grantspub.com and James Turk of the GoldMoney Foundation discuss the history and mission of the Fed, how mission creep has taken it wildly beyond its initial purpose into the territory of QE, ZIRP and other fiat currency experiments. They talk about who benefit from zero interest rates and how savers are penalized by this easy money policy. They explain that the US have been off the gold standard since 1913, Bretton Woods being only a shadow of the classical gold standard. In the last 40 years low interest rates have encouraged leverage and speculation, which have reached incredible levels. They discuss the fiscal profligacy of the US government. A solution to debt levels could still be found if the political will existed. US strengths and positive momentum could still be harnessed to save the dollar if people's eyes could be opened. However they conclude that every paper currency in history has eventually gone to zero. James and Jim also talk about ZIRP and the absence of the bond vigilantes after over 30 years of bull market in bonds. How traders no longer care about fundamentals, like balance sheets, but rather focus on very short time horizons and the spreads between funding costs and yields. How this situation is unsustainable. They see gold still as a very under-owned, misunderstood and marginal asset still shunned by institutional investors, with a few notable exceptions which indicate that the tide could be ...
Watch the full 29-minute interview at www.goldmoney.com In this video, renowned Wall Street trader and financial commentator Victor Sperandeo and James Turk, Director of the GoldMoney Foundation, discuss the recent movements in the silver price, and whether or not the recent Comex margin hikes were justified. Trader Vic also comments that given central banks efforts to debase paper currencies and keep real interest rates negative, investors should buy tangible inflation-proof assets such as precious metals and commodities.
The Federal Reserve last month debated whether it should start reversing policies to prevent inflation from taking off and some members said the Fed might need to start boosting interest rates this year. Some members thought the Fed would need to start signaling that record-low interest rates would need to rise. A few members believed the Fed might need to boost its key interest rate or start to sell some of the assets in its portfolio later this year. Either move would lead to tighter credit and higher rates on consumer loans. Many economists are saying, however, that the worst is over for gas prices and other commodities. Market analyst and venture capitalist Peter Cohan tells Scott Drake...so far the signs are good.
Greece Link www.independent.ie Portugal Forbes Link blogs.forbes.com Credit cards interest rates www.guardian.co.uk Lloyds bank in the RED Link www.dailyrecord.co.uk UK GDP WARNING LINk www.talktalk.co.uk India Silver link in.reuters.com Pal Talk Link www.globalpreneurs.com
www.realistnews.net From Jason Hommel Silver dipped below $36/oz. this morning, down about 8% from yesterday, and down about 27% from the high last week of about $49.50/ per troy ounce. (A Troy oz. is about 10% heavier than a the more common international avoirdupois ounce.) Some people are saying "this is like 1980 all over again" and that silver will now crash. Nothing could be further than the truth. The truth is that the amount of money they have printed up since 1980 is ten times higher, so if you adjust for inflation, the peak price from 1980 should be more like $500/oz. in today's dollars. The next key difference is that in 1980, interest rates, the amount paid on bonds, rose to over 20% per year. Today, interest rates are close to zero. Interest rates make holding bonds more attractive. The next thing is that the US government money printing driven inflation is just beginning, it's not remotely close to ending. The US annual budget is about $3.8 trillion, and the government collects about $2.2 trillion, leaving a gap of about $1.6 trillion that is met by money printing, which makes the value of the dollar go down. (tinyurl.com (April 7th news item)) $1.6 trillion of new money can also expressed as $1600 billion, or $1600000 million. For comparison's sake, new investment demand for physical silver last year was only 250 million ounces, at, let's say an average of $35/oz., was just under $9 billion, or only $9000 million. Silver is not in a bubble in terms of prices ...
My response to the Federal Reserve's decision to continue their stimulus program with almost zero percent interest rates. I also talk about the purpose of the channel. Fed Members Agree to Keep Stimulus Plan, Low Rates www.cnbc.com
Bond ratings affect the interest rates a country pays and access to the credit markets. The lower the credit rating, it is believed, the higher the chances are for a country to default on its debt obligations. So what would it mean for the US economy if it lost its prestigious AAA bond rating? Ratings agencies warn that may be possibility.
Poll after poll reveals that debt and deficits have become defining issues in American politics. But while these issues are indeed important and the American people are justifiably concerned about the level of debt our nation is racking up, they are only symptoms of the real problem: overspending. America is living beyond its means and is projected to continue doing so into the foreseeable future. In her weekly appearance on Bloomberg TV, Reason columnist and Mercatus Center economist Veronique de Rugy explains the truth about deficits and the debt. Myth 1: Debt and deficits are a disease that can only be cured by raising taxes. Fact 1: Debt and deficits are only a symptom. The disease is overspending. And tax increases are no cure. Besides, even if we could balance the budget by raising taxes it wouldn't stay balanced so long as programs like Social Security, Medicare, and Medicaid remain unreformed. Myth 2: There is no relationship between high interest rates and deficits. And even if there was, interest rates remain at all-time lows. Fact 2: That may have been true once, but the data now shows that investors anticipate an increase in both interest rates and deficits. Myth 3: Debt and deficits may be a problem, but we don't have to fix it now. Fact 3: Debt and deficits are having an immediate negative impact on the economy. For additional information, see de Rugy's article "The Truth About Deficits and the Debt." reason.com
Pressure is mounting on the Bank of England to raise interest rates after inflation soared to its highest level for more than two years. Watch more videos like this at www.birminghampost.net
For the latest Marc Faber, go to MarcFaberBlog.com - The S&P 500 hit the lowest it will ever go in 2009. Since then, so much money has flooded into the system, that it is nearly impossible for them to go lower than that. If the economy continues to be weak, the Federal Reserve will just print more money, which actually will help keep the stock market propped up. It is much more likely that the United States will hyperinflate rather than to default on their debt. They will never raise interest rates. Their policy is to keep the interest rate below the rate of inflation in order to stimulate consumption. It is an incorrect and flawed policy, but that it their policy nonetheless.
For the latest Marc Faber, go to MarcFaberBlog.com - In a recovery like we have now, risk appetite is coming back. Because of that, silver may outperform gold for a while. If you want to store your own monetary metal, gold is more compact and easier to store. The Chinese have very large reserves, and when they look at Bernanke they don't want to do business with him. For this reason, they are buying things like gold and copper. Resources for them are a top geopolitical priority because they are naturally poor in those resources. They don't trust the dollar anymore, and rightfully so. The Chinese recently announced that it had acquired more than 400 tons of gold, and once the market was made aware of this news, the price rose sharply. Once the government debt is sufficiently large, the government bond market will break. The temptation will be to keep interest rates artificially low. Some Harvard grads have proposed that there be a negative interest rate in order to stimulate the economy. It is mind-boggling what kind of nonsense these people think. But this is exactly the same state of mind at the Federal Reserve. Without inflation, the entire system would have completely collapsed. They are postponing the true solution. The United States government currently has a AAA credit rating, but there is no way that they deserve that rating. They will keep lending money to banks for free, and this will lead to more unintended consequences.
Update Sources