Welcome to Maxi-Pedia Forum. Maxi-Pedia discussion forum is a free community inviting you to express your ideas and discuss various topics with other contributors.

November 30, 2021, 08:05:11 am *
Welcome, Guest. Please login or register.
Did you miss your activation email?

Login with username, password and session length
 
   Home   Help Search Login Register  
Most Recent Posts:
Pages: [1]
  Print  
Author
Topic: 

Low interest rates = hyper inflation?!

 (Read 8632 times)
porsche
Full Member
***
Posts: 203


« on: December 16, 2008, 01:55:58 pm »

I have read this today

Quote
As unemployment rises painfully higher and nest eggs are shattered, the Federal Reserve is prepared to slash a key interest rate -- perhaps to an all-time low -- in a desperate bid to stem the country's economic slide.

We have seen that slashing the interest rates does not really help much. And, in addition to that, we are in recession now because of too much money in the market. So, isn't throwing more money to the market like healing a sick guy with a stick?
Logged
Maxi-Pedia Forum
« on: December 16, 2008, 01:55:58 pm »

 Logged
yaris
Jr. Member
**
Posts: 94


« Reply #1 on: December 19, 2008, 10:19:27 am »

Yes, it is. FED is getting into quite a trouble. The Money Supply has grown dramatically over the past months. Take a look at FED's ballance sheet, it has doubled.

It is not going to take very long before companies and people start spending again (you simply can't wait for ever with the purchase of your new wash machine that you need to replace your old one), and when that happens, there will be excess of money in the market. I do not think FED will be able to get all the hot money back. (How would the market react if they raised interest rates to 5% over night?) So, inevitably this must lead to hyper inflation.
Logged
sunset
Semi-Newbie
*
Posts: 31


« Reply #2 on: December 22, 2008, 06:26:28 pm »

I think times are starting to change. I have noticed quite a few ads for credit cards. And I have received a letter that they have increased my credit line on my credit card. It seems like liquidity is starting to come back to the markets.
Logged
porsche
Full Member
***
Posts: 203


« Reply #3 on: April 30, 2009, 11:00:11 am »

The Post-WWII hyperinflation of Hungary held the record for the most extreme monthly inflation rate ever — 41,900,000,000,000,000% (July 1946)
Prices were doubling every thirteen and half hours.

Zimbabwe's annual inflation rate was in November 2008 at 89.7 sextillion percent.

These hyperinflations were caused by massive amounts of money printed by the government (or central banks) flooding these economies. Exactly the same situation like now in the USA!
Logged
Maxi-Pedia Forum
   

 Logged
Pages: [1]
  Print  
 
Jump to:  

Page created in 0.648 seconds with 22 queries. (Pretty URLs adds 0s, 0q)