SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: GST who wrote (50968)1/23/2006 2:49:54 PM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
A Fed funds rate at 20% would likely trigger a complete meltdown of the US economy

Correct
But I think you mean the WORLD economy.

No I see you do not mean world economy because this is silly
I doubt that would send people rushing to buy dollars.

20% interest rates in a world economy gone to hell and people will not rush into dollars?

Don't be ridiculous.
Of course it can not be proven since interest rates are not headed to 20%

That said, I have to thank you for proving to the board just how extremely irrational you are towards the US dollar given that a FED rise to 4.25% sent the US dollar soaring vs the Yen, Euro, and pound.

Mish



To: GST who wrote (50968)1/23/2006 3:16:46 PM
From: bond_bubble  Read Replies (1) | Respond to of 110194
 
GST, My point was not that fed is going to raise interest rates to 20%. My point was just to prove to you that You are contradicting your own argument. I want to stop this argument. By that I mean, I dont expect or rather I do NOT want a response from you.



To: GST who wrote (50968)1/23/2006 3:36:07 PM
From: GraceZ  Read Replies (3) | Respond to of 110194
 
A Fed funds rate at 20% would likely trigger a complete meltdown of the US economy -- I doubt that would send people rushing to buy dollars.



The Fed never set 20% but they have had FF up to 19.10 back in 1981. What is funny is that it didn't bring about world wide collapse, it occurred at the beginning of a 20 year disinflationary trend. The dollar then resumed it's rise against other currencies, after faltering during the 1970s.