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Comments on: In The News https://whynow.dumka.us/2015/12/16/in-the-news-8/ On-line Opinion Magazine...OK, it's a blog Fri, 18 Dec 2015 04:08:18 +0000 hourly 1 https://wordpress.org/?v=6.4.3 By: Bryan https://whynow.dumka.us/2015/12/16/in-the-news-8/comment-page-1/#comment-80655 Fri, 18 Dec 2015 04:08:18 +0000 http://whynow.dumka.us/?p=36269#comment-80655 Canada is getting mugged: major reduction in tax revenue, falling loonie, and an unemployment rate above 7% – all as the result of falling oil prices.

Not to be suspicious but the only thing that is showing real improvement are wages 👿

]]> By: Badtux https://whynow.dumka.us/2015/12/16/in-the-news-8/comment-page-1/#comment-80651 Thu, 17 Dec 2015 07:06:31 +0000 http://whynow.dumka.us/?p=36269#comment-80651 The prime rate at 1/4% is not going to do a whole lot. What it mostly signals is that the Fed wants to get back to regulating the money supply via manipulating interest rates, which became impossible once interest rates hit zero. Since then they’ve regulated the money supply via buying and selling bonds, but that makes them very nervous because that’s not how a central bank is “supposed” to work according to the Gospel of Alan Greenspan. Jerk hasn’t been Fed chairman for almost ten years now yet his malevolent influence is *still* making itself felt at the Federal Reserve….

The real issue is going to be what the Fed does with their bond transactions. If they buy more bonds to keep the money supply afloat despite their prime rate hike, it will basically offset the prime rate hike while keeping real interest rates low. If on the other hand they sell bonds to raise real interest rates, that will have the effect of multiplying the effect on the money supply. At this point in time I have no idea how any of this is going to work out, but I will state that current issues in the oil marketplace etc. have nothing (nada) to do with the Fed’s interest rate hike, and everything to do with too much oil on the market.

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