U.S. Fed Rate Hike Today . . . .

[errolanderson]

rockpile . . . 1/4% sounds like nothing. But when your country has a $20 trillion debt plus consumer spending is holding your economy together, it is significant. In my view, a total of 3/4% hike in rates would be enough to send the U.S. into a serious recession. This will be Yellen's 2nd hike totalling 1/2%.

The clock is ticking (IMO) . . . .

[dmlfarmer]

Errol: I am wondering what you think the US should have done differently since 2008? You were opposed to the QE and now to interest rate increases. Given hindsight is always clearer, what should the US have done instead of dropping interest rates as low as they did and increase the money supply to get out of the recession. And what do you think they should do now?

[errolanderson]

Errol: I am wondering what you think the US should have done differently since 2008? You were opposed to the QE and now to interest rate increases. Given hindsight is always clearer, what should the US have done instead of dropping interest rates as low as they did and increase the money supply to get out of the recession. And what do you think they should do now?

dml . . . I am opposed to QE central bank intervention as the writing was on-the-wall that Keynesian economics of money printing would only 'kick the can' down the road and actually contribute to a much worse debt crisis, which we are witnessing right now. Government debt is now far too deep for QE to work and now it has turned into a global currency war.

Pick your poison . . . Pay now and pay for a much problem later, but that is now water under-the-bridge. Asset classes including stock markets, art, classic car, luxury real estate are overvalued (IMO). Realize low interest rate policy contributed to these bubbles, but QE money printing was the key force.

So what advantage did you get right now with all this central bank intervention supporting markets artificially? The debt problem is now far worse. If you believe that was a great move and the only move, then enjoy what lies ahead.

dml . . . to answer your question, yes I would have done a lot of things differently. It would have been painful, but there may be a chance of a true market recovery by now . . . .

[sumdumguy]

If Trump turns off the outflow of money that funds the climate change hoax, he will save billions. more than covers the extra service of debt.

[Oliver88]

If Trump turns off the outflow of money that funds the climate change hoax, he will save billions. more than covers the extra service of debt.

Agree 100%

Hopefully this change in direction in the US will help bring some common sense to north of the border as we are now seeing carbon tax/cap and trade wealth redistribution experiments in several provinces.

[dmlfarmer]

[dml . . . to answer your question, yes I would have done a lot of things differently. It would have been painful, but there may be a chance of a true market recovery by now . . . .[/QUOTE]

Errol, I am not supporting the QE and what was done, I am asking what you would have done instead. What were the alternative actions that you feel would have been preferable?