Pondering thoughts – why is the Fed is raising interest rates?

Posted by jack1776 3 days, 17 hours ago to Politics
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Was thinking about this and wondered why no one else is stating this? Simply, raising rates help fight economic inflation caused by too much money in the systems. What we have is supply side shortages causing inflation, what the Fed has just done is to give it’s patent the wrong drug. These people have to know this… Its not my job and I know this…. This is why I keep saying this is all intentional and they are trying to crash the economy.

We could put an end to the blockage in the strait of Hormuz, my god, our military could dominate the cost and inland of the cost by 100 miles and open the strait? We don’t need Iran to agree, we just do it… Since Saudi Arabia sells oil in US dollars, they are involved too, we used to have an agreement to protect Saudi Arabia for selling oil in US dollars, which just expired. I don’t know if this is the only reason why but they asked for help from the US to protect their East/West pipeline and we said no.

All of this seem to make matters worst for the dollar, I think the government knows the dollar is toast. Enter stable coin, this is digital money that can be controlled… Remember the $5000.00 Trump promised if the Republicans win the midterm, the caveat, it must be spent in the US. How the hell is he going to do that without giving everyone $5 in the new digital dollar? Oh wait, what?

I think all roads lead to a new dollar…


All Comments

  • Posted by 18 hours, 13 minutes ago in reply to this comment.
    Oil supply shortage → oil price increase → oil is a used in almost everything → prices rise on everything?

    I don't understand your positioning, can you elaborate? I know money supply causes it as well but both are root causes. "Too much money chasing too few goods". We are speaking about the too few goods; the average house hold doesn't have too much money. Rising interest rates doesn't fix this problem, IMHO. Every time a bank makes a loan, it creates money out of thin air. They then charge you for the privilege of using this money. This increases the supply of money in the economy but your saying that if it wasn't for the money supply the prices couldn't rise? This concept is called demand destruction and its horrible. I do think we are on the doorstep of demand destruction, just like what happened right before the housing crises. Oil spiked then collapsed to record lows; this is because no one had money to pay the prices. This is a failed economy.
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  • Posted by Dobrien 1 day, 4 hours ago in reply to this comment.
    Thanks for the home vs gold ozs ratios. Worth your weight in gold 1972 200lbs @ $32 per oz = $112,000 today worth $12,880,000.00
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  • Posted by CaptainKirk 1 day, 12 hours ago in reply to this comment.
    Rockefeller... He built the early versions of everything that is bad.
    At one point, the story goes, he found out that if he controlled the editors of the major newspapers (the big ones), he could control the narrative. So, he did.

    I think it became the CFR. And their goal was to make sure they NEVER covered what they were doing.

    I know this indirectly. We had the case of a Dr. who was injecting himself with HIV+ blood.
    To make the point that this is not what is killing these people.

    It was NOT ALLOWED to make the news or the front page of any newspaper.
    Not too long, he had a "heart attack" and died. He mad the news in other countries.
    Just not ours.

    Modern Version: Who is showing you that STATINS can lead to dementia?
    In fact, there is a study of Seniors who developed dementia. Take them off the statins for like 2 months, and like 80% are no longer diagnosed with dementia. Put them back on, and in 2 months or so, they register as having dementia.

    BTW, WTF is a SENIOR taking a statin for? To prevent a heart-attack (supposedly caused by plaque build up that the statin prevents... Which is not even true, because they don't measure it, and statins tend to increase plaque over time... LOL)...

    My aunt just had this happen to her, WE detected the issues, asked if they put her on a statin. At 86, they had doubled her dose. WTF? She is thin and healthy/active. But now suffering brain fog, forgetting things. I told her it is likely the statin, she might want to try the old dose (she has NEVER had a heart attack)... she did that. And within 2 weeks felt so much better, she stopped taking the statin completely. And she said "I thought I was just losing it because I was getting old!"

    But NOBODY shall know anything that they don't want you to know. That doesn't PUSH you in the direction they need you to be pushed. It's all lies. Fauci ran the HIV=AIDS fraud. I believe it has NEVER been proven that HIV causes AIDS. They changed the definition of AIDS to "require HIV+ result". Kary Mullis (PCR inventor) pointed this out, and was quickly ex-communicated.
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  • Posted by 1 day, 16 hours ago
    Historical Home Prices in Ounces of Gold

    • 1963: A median new U.S. house cost about 505 to 509 ounces of gold (when gold was fixed/low around $35/oz and median home prices were under $18,000).
    • 1970: A typical home cost roughly 714 ounces of gold ($25,000 home price at $35/oz).
    • 1980 (First Low Peak): Following the 1970s inflation wave, the cost to buy a house bottomed out at around 80 to 100 ounces of gold.
    • 2000–2001 (Peak Ratio / Most Expensive for Gold): Because gold languished in a bear market while real estate boomed, a home peaked at roughly 450 to 545 ounces of gold (gold traded near $279/oz).
    • 2011: A median home required about 105 ounces of gold.
    • 2016 (Q1): A median home required about 260 ounces of gold (gold at ~$1,201/oz).
    • 2022: As nominal home prices surged post-pandemic, the ratio reached roughly 171 to 227 ounces of gold before gold prices accelerated.
    • 2025–2026 (Current Trend): Rapid gold price appreciation (surpassing $4,000+ per ounce) pushed the ratio down to a range of 86 to 142 ounces of gold, marking one of the cheapest historical eras to buy a house using gold.

    means our money is becoming worthless
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  • Posted by chad 1 day, 16 hours ago in reply to this comment.
    What a rigged game. You technically earned nothing on increased value of property because of decreased value of currency and have to pay the con artists ensuring a dead loss.
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  • Posted by mccannon01 1 day, 19 hours ago in reply to this comment.
    Good question, but it seems to be an ongoing problem. Today's America is saddled with the IRS and the Fed and various other government programs and entities because too many people found it difficult to "see". Hard to believe people still vote D (commie), too.
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  • Posted by mccannon01 1 day, 19 hours ago in reply to this comment.
    HAD to + all of that! Same goes for the record highs on the Dow - as the dollar is worth less and less it takes more of them to buy the same share of stock and, as you pointed out, the tax man has his hand out when you sell. Smoke and mirrors.
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  • Posted by CaptainKirk 2 days, 1 hour ago in reply to this comment.
    Don't forget the great financial crisis.

    CitiBank had a 42 Lever Ratio.
    They borrowed against their "assets" (or loaned out the same money), 42 times.

    So, when they make 10% on loans, but have a 42 Lever. The were making 420% PER YEAR.

    Problem when housing prices dropped 5% (times 42), they lost 210% of the original money.

    And that's when/why bailouts had to happen.
    Leverage Cuts both ways. 10x was the old norm, so you made a 3% spread x 10 = 30% on your capital.

    But greed takes over!
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  • Posted by CaptainKirk 2 days, 1 hour ago in reply to this comment.
    Case in Point.
    How is it possible my 32 yr old house (I bought new)... I worth 4 TIMES what I paid for it???

    It's not. The dollar in 1994 was simply worth 4 times more than it is now.

    Here: A Burger King Whopper meal cost $3.49 in the mid-1990s and costs $11.49 today. A gallon of gas averaged $1.11 in 1994 and averages $4.48 today

    it looks pretty consistent... Doesn't it!

    And get this. You owe taxes on your capital gains CAUSED by inflation. What a friggin' scam!
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  • Posted by Dobrien 2 days, 1 hour ago in reply to this comment.
    The FED is the enemy of the people. The Warburgs from Prussia were the architects of the debt based system, early 1900’s designed to control USA and hold it back. Our money says it all ‘Federal reserve Note”
    A note is a written, legally binding debt instrument in which a borrower makes an unconditional promise to pay a fixed or variable sum of money to a lender either on demand or on a specified future date.
    We pay 6% per annum for all outstanding “notes”.
    The system is designed to fail. Trump is creating an income based system to replace the debt system that has enslaved the people. Recent appointee to assist the Treasury Sec Bessent is Judy Shelton she has a plan to restore sound money….hint Gold.
    Dec 12, 2018 6:57:57 PM EST
    Anonymous ID: 376ff2 No. 4280876
    >>4280189
    Q: Do we have the GOLD?
    >>4280876
    Yes.
    GOLD shall destroy FED.
    Q
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  • Posted by Dobrien 2 days, 2 hours ago
    Supply shortages do not cause inflation. Inflation has one cause and it is printing of fiat currency.
    Look at the M1 money supply chart. It’s parabolic and it mirrors the devaluation of the dollar.
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  • Posted by $ Abaco 2 days, 6 hours ago
    America has painted itself into a corner. I've thought for a long time that interest rates need to come up, that they've been manipulated down. High inflation is a result of the cheap money. Savers have been punished for decades now. Debt is an an all-time high across the board from what I understand. It looks like the Feds are just going to try to inflate our way out of the debt (doesn't work). At this point austerity will be implemented or America will just default. Either one will be horrible and I don't think there's any other way out. These are just my take.

    If your money is in a savings account I'd guess your yield is probably about 5% what inflation is, 1/20th. This HAMMERS the working middle class.
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