👹💰📈 JUST IN: Federal Reserve Raises Interest Rates by Another 75 Basis Points to Fight Bidenflation 👹💰📈
(www.thegatewaypundit.com)
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They will keep raising them until the US can't service their debt and goes into default.
The cabal banksters should be rounded up and hung when this is over. They are nothing more than the cabal's theft machine.
Please explain to a retard how raising rates fights inflation.
Firstly, I am no expert on this.
If I were to wing it on the written portion of the exam I didn't study for I would say this.
Inflation is what happens when a money supply is increased by printing too much money. With every dollar printed, the money becomes worth less and less. This is due to an increased supply of money to be shared around.
When more dollars are created (by simply printing them) those dollars become less valuable due to the increased supply. When inflation occurs, and the value of the dollar decreases due to this, you need to spend more dollars to pay for the same goods.
As an example, if you normally buy milk for $2.00/gallon, but now your dollars are worth half as much, due to inflation, you would now need to spend twice as much, or $4.00/gallon, to purchase the same gallon of milk.
When the Fed increases the interest rate, this makes it cost more to borrow money, because the interest rate on that loan is higher. This increase in cost of the money makes the money worth more, because it costs more to get via higher loan rates.
When you increase the cost of money, and thus increase the value of the money, this counteracts the inflation, because rather than money going down in value due to inflation only, the money retains its value due to its higher cost.
If inflation gets out of control all hell breaks loose because people's money becomes basically worthless. Argentina is going through this right now. Germany went through it before the Great War. It's a horrible thing.
Raising rates is an effort by the Fed to keep inflation in check.
The problem with raising rates, and thus the cost of money, is it slows economies down. Because money costs more, due to higher lending rates, businesses stop expanding, stop building, stop hiring, etc. These sorts of things lead to recessions. Recessions lead to lost jobs, lost income, etc.
That's the best I have for now. I look forward to any economists chiming in and poking holes in my exam answer.
Praying for an A, but I'll take a C to move on. I never really enjoyed economics classes.
I would only make insert how raising interest rates pulls money out of circulation by making it more expensive to borrow. This slows down the fractional reserve lending money press, since it is by lending money they don't have that banks create money from thin air. And as you correctly point out, it is that increase in the money supply that is inflationary.
For the record C's will still get you the credit. Not only that, it allows you to explain things in simple terms to retards like me. Thanks for the thorough, yet understandable explanation.
You are welcome u/Nitrojunkie72 👈🏻 I did my best for you and I see u/corrbrick added some good additional insights as well. Hopefully, that not only helped you, but also helped anyone else that wasn't brave enough to say they needed an explanation. Thanks for asking a great question. And thanks for adding to the discussion corrbrick.
Like you MAGA, mostly stuff I've picked up from GAW, or from links posted here. We really are a bit of a Chautauqua assembly in this space.
It would be a great idea to bring these events back into style. We kind of have them now with various events we can attend, and in online discussion groups, etc. But the way they did it in the old days sounds like so much fun!
Assholes.
And somehow the indexes are green. What a farce.
They will raise them again by the same amount in December.
The beatings will continue until morale improves.