OG: Trump asked Powell to drop rates to negative.
#11
11-9-2019 9:14 PM
sogo said:
Can usd enjoy being reserve currency with negative rates?

US had not experienced the US$ being dumped. When that happens the Fed will have no choice but to increase rates to support the US$.
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#12
Laughing
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#13
11-9-2019 9:39 PM
Alice Alicia said:
Laughing

33 trillions by 2028.
[Image: 216998.png]

Should be raisng even faster, cause Trump stop cheap labour from Mexico. So cost going to increase , us workers needs to pay more for doing more. Since us dollar is so strong. Else gdp will shrink when debt increase. Corporates profit already slowed , though spending trillons dollars buybacks and more corporate bonds. Spending more in bonds will surely reduce the capital spending

The result is.
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#14
11-9-2019 9:23 PM
Webinarian said:
https://www.reuters.com/article/us-usa-t...SKCN1VW1CW

Trump urges zero or negative interest rates to tackle U.S. debt

3 Min Read

WASHINGTON (Reuters) - U.S. President Donald Trump called on the Federal Reserve to push down interest rates into negative territory, a move reluctantly used by other world central banks to battle weak economic growth as it punishes savers and banks’ earnings in the process.
FILE PHOTO: U.S. President Donald Trump arrives to address the 2019 National Historically Black Colleges and Universities (HBCU) week conference in Washington, U.S., September 10, 2019. REUTERS/Leah Millis

Trump, in a pair of Twitter posts, said that would save the government money on its debt. He did not address the risks or financial market tensions that central banks in Europe and Japan confront as a result of their negative rate policy, or the larger issue that negative rates have not done much to boost growth or raise inflation as intended.

“We have the great currency, power, and balance sheet... The USA should always be paying the ... lowest rate. No Inflation!” Trump tweeted.

“It is only the naïveté of (Fed Chairman) Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing,” added Trump, who has repeatedly noted that rates are negative in Germany, Europe’s trading powerhouse.

The Republican president has long called for lower interest rates and blasted Powell and the Fed for not quickly and drastically cutting them, which he sees as necessary to boost U.S. economic growth as he eyes re-election next year.

Last month, however, Trump told reporters at the White House that he did not want to see negative rates in the United States.

On Friday, Powell said the Fed would act appropriately to help maintain the U.S. economic expansion and that political factors played no role in the central bank’s decision-making process.

Representatives for the White House did not immediately respond to a request for comment on Trump’s tweets.

The Washington Post, citing public filings and financial experts, reported last month that Trump, a real estate developer, could also personally save millions of dollars a year in interest if the Fed lowers rates, given the outstanding loans on his hotels and resorts.

Trump also kept up his attack on Powell and the Fed in his tweets on Wednesday: “A once in a lifetime opportunity that we are missing because of ‘Boneheads.’”

Despite Trump’s name-calling, U.S. Treasury Secretary Steve Mnuchin told reporters at the White House on Monday he expected Powell’s job was safe, in the wake of months of speculation the president could seek to oust him.

Reporting by Susan Heavey; Additional reporting by Howard Schneider; Editing by Catherine Evans and Bernadette Baum

Low interest rate gets the world into this mess by spending future money that is so easy to get. What would happen if banks pay you to spend money that you do not have. Would you be able to pay back the borrowed money with a scheme like that?

What the Americans must do is to recognize they can no longer print money as they like. They must be prepared to work harder, save more and spend less. The rich must also be prepared to help out their huge public debt.
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#15
11-9-2019 9:44 PM
jahtl said:
US had not experienced the US$ being dumped. When that happens the Fed will have no choice but to increase rates to support the US$.

Trump is only thinking about himself.
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#16
11-9-2019 9:14 PM
sogo said:
Can usd enjoy being reserve currency with negative rates?

Let Buffett explain to you. thumbs up
Nobody knows what will happen. Rolling on the flor laughing



笨拙的人讲道理,聪明的人说故事。
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#17
IMHO, when Fiat currency becomes negative interest.
Only fools still hold USD Rolling on the flor laughing
Trump is playing with fire.
笨拙的人讲道理,聪明的人说故事。
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#18
11-9-2019 9:33 PM
Alice Alicia said:
Japan and the EU have negative rates.
Are they doing any better than before?

nope.

Problem is USD if wanna remain as reserve can drop meh rates meh? U cannot have everything.
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#19
11-9-2019 10:05 PM
QE3 said:
Let Buffett explains to you. thumbs up
Nobody knows what will happen. Rolling on the flor laughing




Like that who wanna hold USD? Negative rates.
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#20
11-9-2019 10:11 PM
sogo said:
Like that who wanna hold USD? Negative rates.
Trump is nut. Rolling on the flor laughing
笨拙的人讲道理,聪明的人说故事。
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