My argument for higher interest rates:
Sure, foriegn cash is looking for a safe house. Sure domestic cash is building up.
So the big question is: What to do with the cash??? Put it in the market? Gold, tbonds, oil???? Yes, things that are detached from the global economy. (independent of international sales, import/export, etc..)
Rep. want Bill OUT so they can take advantage of this situation. Mark my words: The reps. will increase the interest rate. If the US is going to continue to be the worlds larget super economy, they will make countries PAY to use this oasis.
This is an oportunity for the US to make $$!! Do you think they're going to sit back and do a "favor!" for the world?
Get that $ OUT of Japan! (.25% interest per year! That's crazy!) Japan is doing NOTHING with their $.
LOW interest rate = countries take ADVANTAGE of the US. Capitol is LOST, economy suffers.
O.k......sure. You do sell snake oil.
1. Republicans do not set interest rate policy, the fed does. Lately, the markets have led the fed. (lower btw).
2. In April/98 certain de-regulation in Japan so investors would be able to put funds overseas, the recent interest rate in Japan was to further motivate so.
3. With this new (possible) inflow of cash, the US and bond markets, will benefit. This will cause interest rates to go lower. i.e. more demand for US Bonds/treasuries, higher price for same, hence lower rates. The fed could lower rates because there is almost NO inflation.
4. Read my prior post re: depressed commodity markets for reinforcement of the case for lower interest rates.
etc, etc, etc.......
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Thread,
Boys and Girls, I think our heroic PHD (Pendejo of the Highest Degree) obtained his degree at the University of Zambomba.
Zambomba is a tiny (and unknown) tropical island in the South Sea of Atlantis, their main export (and source of hard currency), is GUANO.
Recently, the Minister of the Economy, (himself a PHD graduate of the illustrious University in question), declared that the revenue from the granting of such University Degrees surpassed the GUANO exports.
People contended that the Degrees were a mere sub-classification of the GUANO exports. Such sub-classification was created so local bureaucrats would have "something to do".
Z.
p.s. I assume that the reasons above for Mr. Franks argument took him one hour to type...... imagine if it only took him ten minutes, the one hour thesis would seem to increase the Guano production quite rapidly.... |
