Imports?

Don’t forget what that would do to housing and or CRE or the banks!!!

The gig is up.

If the US were to raise interest rates it would put upward pressure on the dollar. Imports would stay cheap and our exports would stay expensive overseas. So, instead of exporting goods we would continue to export jobs and wealth. The bottom line is that we would continue to destroy our economy.

http://www.zerohedge.com/article/feds-nemesis-exters-2-quadrillion-liquidity

I haven’t dug into how the Treasury formed it’s table of 600trillion but I know the BEA and BLS cook GDP, CPI, and Unemployment like Enron baked it’s book. Example, you own a home – they add what you would but don’t pay in rent to GDP. They back out Gas and food from Inflation – no consumer can do that.

Instead of the phrase, “raising the other countries standards,” suggest — enriching the oligarchy — might be more accurate.

Summers, Geithner, Greenspan, Bernanke, Rubin are all absolue m*r*ns.

Let’s see … the American derivative market grew $1.5 trillion in the second quarter, TBTF banks are getting bigger, no real political will to regulate Wall Street … foolish would be an understatement.

Also referred to on Jim Puplava’s fine Financial Sense News Hour Oct 24 3A. A must listen! Select an Audio Format – Part 3
http://www.netcastdaily.com/broadcast/fsn2009-1024-3a.asx
RealPlayer | WinAmp | Windows Media | Mp3
~ SPECIAL EDITION ~
Warning: The Next Crisis

I agree about workers making more! “The Lexis and the Olive Tree” by Friedman, Thomas will no longer work with peak population stressing peak every resource. Sadly the US went insolvent raising the other countries standards as we stripped the world of every resource.

Future generations will look back at us like we look back at cave men.

Much of this is worthless paper now. They should have paid more to workers in the developing world.

I don’t think it would have stopped the asset bubble – as the class that was primarily impacted was that of real estate. Fraud is a big part of this bubble. Fraud with the lenders income and with the rating agencies ratings.

But you are right, the money needed to come from somewhere. Someone was buying the tranches of sliced and diced toxicity.

The problem I still see is there are 600 trillion of these these things in the shadow banking system, 200 trillion are in the US.

This will NOT end well and end it will.

Perhaps you can help me here. It has occurred to me because labour was so cheap in the developing world, the BRIC countries, huge profits were reaped. So in away the crash of the asset bubble had a logic. There was simply too much money on “one side” in search of a “safe haven” (the AAA-rated bonds). If they had paid more to the workers in the BRIC countries their standard of living would have risen. And perhaps the world financial system would be more stable. What do you think?

Game over.

Canada (and I take it some EU countries) have had periods of high interest rates and high unemployment. Painful and unpopular. But we did it Canada to bring down our debt and ended up for the better as the world entered this financial crisis.

As you know, when interest rates tanked, some people were holding bonds bearing double-digit interest rates and they did very well.

What would be possible scenarios if the US raised its interest rates?

So they print, the fancy name for it is Quantitative Easing. The bond sales are a bit complicated, but recently they have had the primary dealers buy bonds and then the “Fed” (a private bank) stepped in and bought them back.

Unless the market tanks, I don’t see enough demand for securities. Frankly, at 0% the only demand is that of investors borrowing here and investing else where, what they call the “carry trade.”

The last thing anyone wants to put there money in is an insolvent currency and one that is yielding 0% interest. a at al are morons who have and are bankrupting this country.