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Strategies & Market Trends : Currents of Currency

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From: Ahda8/20/2015 6:11:06 PM
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As the FED debates on what the right action to take regarding interest rate is I ponder on the simplicity of counting fingers to the present counting on clouds. The Fed uses figures to try to establish exactly what direction the economy is going the figures are delayed so it is not easy to do. Fed stated no inflation, super market here states there is inflation in non seasonal items. In Calif you cannot raise rates to halt the possible increases in produce price because of lack of water and you can't increase the water supply fast enough to solve the problem. This all adds up to the fact that FED could be all wet in their rate decision but they do the best they can do.There is no sink in their business but swim swim swim or you can drown.

Years ago one deposited their monies in the bank received be it a small but decent return that increased their savings so they could put down a payment on a new house or car. Over the years in an attempt to steer the direction of economies we now use interest rates to both aid and slow growth. Interest rates at banking institutions are nil in many cases so you have to pay the bank to keep your checking account for you. That means you must find alternate ways to save the down payment for the house and car.
That takes us to the stock and bond market and risk that China now is trying to manage .In my opinion banks are relatively safe as the FED will increase bank loans, we have a been there done that type thing tis seems to have worked. Maybe China will try that too.

However one must ever remember there is one enormous difference between big dippers and skinny dippers who cannot afford inflation nor the stock markets risk.
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