Economy 53,076 Posted October 31, 2015 Share Posted October 31, 2015 http://www.bloomberg.com/news/articles/2015-10-30/fed-s-updated-model-of-economy-suggests-it-s-time-to-raise-rates Though they cant say it with certainty yet, the Central Bank of America (Federal Reserve) plans to start raising interest rates starting in december Interest rates have been at 0% since 2008 and have not been raised since 2006 The reason for this raise is because the US economy is reaching maximum capacity for these rates and further growth without rate hikes may result in high inflation or over-heating creating unsustainable inbalances It suggested it would raise rates by 0.25% each meeting or 1% per year. This will gradually affect bond yields and gradually raise credit costs on everything from mortgages, car loans, Corporate debt and even the cost at which Government borrows money Link to post Share on other sites More sharing options...
PartySick 174,211 Posted October 31, 2015 Share Posted October 31, 2015 I don't understand how the U.S is ALWAYS out of money, then does something else to make it even less out of money ("even the cost at which Government borrows money").Then again, I also don't understand how a few hundred people own half the wealth in a country with nearly 400 million people in it. 'Murica. Whimsical bitch Link to post Share on other sites More sharing options...
Economy 53,076 Posted November 1, 2015 Author Share Posted November 1, 2015 I don't understand how the U.S is ALWAYS out of money, then does something else to make it even less out of money ("even the cost at which Government borrows money"). Then again, I also don't understand how a few hundred people own half the wealth in a country with nearly 400 million people in it. 'Murica. ummm most Countries are broke tho. Just about every Country has a Government bond market that sustain the broke Government with money. America by no means is unique in that sense Also Americas deficits are currently about 3% of GDP. Nothing out of the ordinary by world standards Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted November 1, 2015 Share Posted November 1, 2015 Mostly its like this...Gov gets about a gazillion samolians from taxes...then, they spend about a gazillion x100 samolians on stuff... like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 53,076 Posted November 1, 2015 Author Share Posted November 1, 2015 Mostly its like this...Gov gets about a gazillion samolians from taxes...then, they spend about a gazillion x100 samolians on stuff...ah come on... The % of US GDP that comes from Government spending aint that high. Its higher in Europe actually spending as a % of GDP its about the same as Canada. The only difference is where its allocated with healthcare taking up almost 50% of Canadas budget and only 4% going to military while in the US its 17% of budget for military which is almost 1/5 of budget going to pure waste from an economic standpoint Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted November 1, 2015 Share Posted November 1, 2015 k... my number are off a bit... but the princpal applies like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
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