The Economic Impact: Four Ways Raising Interest Rates Could Affect Our Money and How to Manage Our Finances: This is the beginning of the year. I am sharing some examples how to manage...

Radiance3

This is the beginning of the year. I am sharing some examples how to manage our money specially those retired and or nearing retirement.

Jerome Powell keep on raising interest rates to curb inflation.
Latest he raised was 0.05%. And more is coming.

4 Ways the Fed Rate Increase Affect Our Money
Every aspect of your finances is subject to the Fed’s influence. If we are wondering how exactly, affect our savings and debt to buying power and job security if still working.

1. Borrowing Money Is More Expensive
When the Fed increases interest rates, it becomes more expensive to borrow money. It means higher rates for credit cards, auto loans, and any industry that relies on financing. That’s painful for consumers, especially those relying more heavily on credit cards or loans.

Households are less willing to spend as a result, and businesses don’t have as much access to capital to grow or expand their businesses. What’s worse, businesses typically pass on those extra costs, making it a “double-edged sword” for consumers.

“The average consumer doesn’t realize that there is an impact on their everyday spending, When our dollar doesn’t go as far, we may not realize it until we get to the cash register.”

With interest rates rising, you'll want to try to borrow less and work on paying off any debt as fast as you can. I think it is important to prioritize paying high-interest debt, like credit cards, since they come with double-digit interest rates. One solution is balance t***sfer credit card to get an interest-free, as long as you have a plan in place to pay off your balance in full by the end of the introductory period.

2.Mortgage rates are changing
The Federal Reserve just increased interest rates. That might cause shifts in mortgage rates. Shop around and find a rate you can afford now. For home buyers. But I think, most of us are retired, most of us have homes already.

This may not affect us. Since retired don't have mortgages anymore or they have fully paid their homes or moved to retirement homes.

In the market for a car, if we purchase one we may be paying higher rates if bought on credit.

3. Bigger Earnings for Savers
For savings account, choose a savings account with higher rates. these are found on long term CD's in local Credit Union Banks.

Interest rates on savings and CD accounts are rising because of the Fed’s rate hikes, which means greater earnings on your savings balances and a few more dollars back into your pocket.

Diversify your you savings. Put some to ready access for emergencies. Put the rest to a higher interest longer term savings account to allow to grow and offset or reduce inflation factor. These are mostly found on local stable credit unions.

Or, you should also be strategic about where you keep those savings. High-yield savings accounts offer solid returns on your savings and allow you to easily pull that money out for emergencies. Online-only banks, neo-banks, or divisions of regional banks tend to offer more competitive savings rates because they don’t have to factor in the costs of physical branches.

Shop around for rates and consider other important factors like fees, minimum deposit and balance requirements, and withdrawal options when choosing a savings account. I shop for CD's with higher yields for at least 3 to 5 years. Right now CD's yield is around 4.3% to 4.5%.

Those with high tax bracket, invest on Municipal Bonds that are tax free.. These funds are good for children if there are children and or grandchildren to inherit. Interest yield about 4.5% to 4.6% at present.

Higher in interest rates charge by Powell could Trigger a Recession and a Rise in Unemployment. While the Fed has been pursuing a higher rate to lowering inflation, but it triggers a recession many worry a recession is on the way.

It is predicted that interest rate hike may continue till inflation is under control.

The risks are high, and timing is everything. If the Fed raises rates too high and too quickly, it could cool demand so much that the economy tips into a recession. Higher interest rates make debt costlier and borrowing harder — for both consumers and businesses.

Raising rates could have so many negative effects on the economy.
That could lead to pressure on the stock market, and financial distress for millions of Americans. Fact is many of us already feel like the U.S. is in a recession, even if it’s not official and are in its route for the worst.

Another negative effect to raising interest rates.
The job market could be negatively impacted. Raising rates most firms or companies spend more for borrowing costs of the capital. To off set the cost, they raise price of commodities they sell and or labor services they provide, or reduce employment. Like constructions.

4.Increased Volatility in the Stock Market
Investors tend to panic when the Fed takes drastic action, and that t***slates to more volatility in the markets. There will likely be more downward pressure on the stock market in the coming weeks and months, but the Fed’s decision to raise interest rates shouldn’t steer your long-term investments off course.

If you’re close to retirement, you may want to begin your t***sition to more conservative investments and determine the best time to access the funds in each account or plan. Stick to the 4% rule, which suggests withdrawing only 4% of your retirement savings during your first year and then adjusting for inflation in the following years.

Prioritize low-cost, broad-market index funds as they are the most effective way to build wealth over time and always maintain a long-term mind.

For those still employed, those are some of the options. We know that the 401K's are so much battered right now perhaps we lost at least 30% of the value year-to date. Plus inflation that devalues the overall investment that we have.

I have experienced that 30% of my stocks and work retirement 403B have lost at least 30%, not including the inflation factor.

Real estate however did not depreciate but had risen at least 500% since 1975. But as interest rises further, real estate may slow down a little, but not much. it still come back due to demands of the increasing population. Real estate investments are for the younger people who have long term goals.

I think President Biden's economic approach is dumb and negative. Likewise his economist Powell and Janet Yellen have similar approach to negative effects.

Unless this administration changes, I think the hard working Americans will have to work harder. . The handouts are better off.

Good luck to all, and God bless! We are all in the same boat. We sail under the guidance of our Divine Providence.

Radiance3

Radiance3 wrote:

This is the beginning of the year. I am sharing some examples how to manage our money specially those retired and or nearing retirement.

Jerome Powell keep on raising interest rates to curb inflation.
Latest he raised was 0.5%. And more is coming.

4 Ways the Fed Rate Increase Affect Our Money
Every aspect of your finances is subject to the Fed’s influence. If we are wondering how exactly, affect our savings and debt to buying power and job security if still working.

1. Borrowing Money Is More Expensive
When the Fed increases interest rates, it becomes more expensive to borrow money. It means higher rates for credit cards, auto loans, and any industry that relies on financing. That’s painful for consumers, especially those relying more heavily on credit cards or loans.

Households are less willing to spend as a result, and businesses don’t have as much access to capital to grow or expand their businesses. What’s worse, businesses typically pass on those extra costs, making it a “double-edged sword” for consumers.

“The average consumer doesn’t realize that there is an impact on their everyday spending, When our dollar doesn’t go as far, we may not realize it until we get to the cash register.”

With interest rates rising, you'll want to try to borrow less and work on paying off any debt as fast as you can. I think it is important to prioritize paying high-interest debt, like credit cards, since they come with double-digit interest rates. One solution is balance t***sfer credit card to get an interest-free, as long as you have a plan in place to pay off your balance in full by the end of the introductory period.

2.Mortgage rates are changing
The Federal Reserve just increased interest rates. That might cause shifts in mortgage rates. Shop around and find a rate you can afford now. For home buyers. But I think, most of us are retired, most of us have homes already.

This may not affect us. Since retired don't have mortgages anymore or they have fully paid their homes or moved to retirement homes.

In the market for a car, if we purchase one we may be paying higher rates if bought on credit.

3. Bigger Earnings for Savers
For savings account, choose a savings account with higher rates. these are found on long term CD's in local Credit Union Banks.

Interest rates on savings and CD accounts are rising because of the Fed’s rate hikes, which means greater earnings on your savings balances and a few more dollars back into your pocket.

Diversify your you savings. Put some to ready access for emergencies. Put the rest to a higher interest longer term savings account to allow to grow and offset or reduce inflation factor. These are mostly found on local stable credit unions.

Or, you should also be strategic about where you keep those savings. High-yield savings accounts offer solid returns on your savings and allow you to easily pull that money out for emergencies. Online-only banks, neo-banks, or divisions of regional banks tend to offer more competitive savings rates because they don’t have to factor in the costs of physical branches.

Shop around for rates and consider other important factors like fees, minimum deposit and balance requirements, and withdrawal options when choosing a savings account. I shop for CD's with higher yields for at least 3 to 5 years. Right now CD's yield is around 4.3% to 4.5%.

Those with high tax bracket, invest on Municipal Bonds that are tax free.. These funds are good for children if there are children and or grandchildren to inherit. Interest yield about 4.5% to 4.6% at present.

Higher in interest rates charge by Powell could Trigger a Recession and a Rise in Unemployment. While the Fed has been pursuing a higher rate to lowering inflation, but it triggers a recession many worry a recession is on the way.

It is predicted that interest rate hike may continue till inflation is under control.

The risks are high, and timing is everything. If the Fed raises rates too high and too quickly, it could cool demand so much that the economy tips into a recession. Higher interest rates make debt costlier and borrowing harder — for both consumers and businesses.

Raising rates could have so many negative effects on the economy.
That could lead to pressure on the stock market, and financial distress for millions of Americans. Fact is many of us already feel like the U.S. is in a recession, even if it’s not official and are in its route for the worst.

Another negative effect to raising interest rates.
The job market could be negatively impacted. Raising rates most firms or companies spend more for borrowing costs of the capital. To off set the cost, they raise price of commodities they sell and or labor services they provide, or reduce employment. Like constructions.

4.Increased Volatility in the Stock Market
Investors tend to panic when the Fed takes drastic action, and that t***slates to more volatility in the markets. There will likely be more downward pressure on the stock market in the coming weeks and months, but the Fed’s decision to raise interest rates shouldn’t steer your long-term investments off course.

If you’re close to retirement, you may want to begin your t***sition to more conservative investments and determine the best time to access the funds in each account or plan. Stick to the 4% rule, which suggests withdrawing only 4% of your retirement savings during your first year and then adjusting for inflation in the following years.

Prioritize low-cost, broad-market index funds as they are the most effective way to build wealth over time and always maintain a long-term mind.

For those still employed, those are some of the options. We know that the 401K's are so much battered right now perhaps we lost at least 30% of the value year-to date. Plus inflation that devalues the overall investment that we have.

I have experienced that 30% of my stocks and work retirement 403B have lost at least 30%, not including the inflation factor.

Real estate however did not depreciate but had risen at least 500% since 1975. But as interest rises further, real estate may slow down a little, but not much. it still come back due to demands of the increasing population. Real estate investments are for the younger people who have long term goals.

I think President Biden's economic approach is dumb and negative. Likewise his economist Powell and Janet Yellen have similar approach to negative effects.

Unless this administration changes, I think the hard working Americans will have to work harder. . The handouts are better off.

Good luck to all, and God bless! We are all in the same boat. We sail under the guidance of our Divine Providence.

i This is the beginning of the year. I am shari... (show quote)

Edited!

permafrost Loc: Minnesota

Radiance3 wrote:

This is the beginning of the year. I am sharing some examples how to manage our money specially those retired and or nearing retirement.

Jerome Powell keep on raising interest rates to curb inflation.
Latest he raised was 0.05%. And more is coming.

4 Ways the Fed Rate Increase Affect Our Money
Every aspect of your finances is subject to the Fed’s influence. If we are wondering how exactly, affect our savings and debt to buying power and job security if still working.

1. Borrowing Money Is More Expensive
When the Fed increases interest rates, it becomes more expensive to borrow money. It means higher rates for credit cards, auto loans, and any industry that relies on financing. That’s painful for consumers, especially those relying more heavily on credit cards or loans.

Households are less willing to spend as a result, and businesses don’t have as much access to capital to grow or expand their businesses. What’s worse, businesses typically pass on those extra costs, making it a “double-edged sword” for consumers.

“The average consumer doesn’t realize that there is an impact on their everyday spending, When our dollar doesn’t go as far, we may not realize it until we get to the cash register.”

With interest rates rising, you'll want to try to borrow less and work on paying off any debt as fast as you can. I think it is important to prioritize paying high-interest debt, like credit cards, since they come with double-digit interest rates. One solution is balance t***sfer credit card to get an interest-free, as long as you have a plan in place to pay off your balance in full by the end of the introductory period.

2.Mortgage rates are changing
The Federal Reserve just increased interest rates. That might cause shifts in mortgage rates. Shop around and find a rate you can afford now. For home buyers. But I think, most of us are retired, most of us have homes already.

This may not affect us. Since retired don't have mortgages anymore or they have fully paid their homes or moved to retirement homes.

In the market for a car, if we purchase one we may be paying higher rates if bought on credit.

3. Bigger Earnings for Savers
For savings account, choose a savings account with higher rates. these are found on long term CD's in local Credit Union Banks.

Interest rates on savings and CD accounts are rising because of the Fed’s rate hikes, which means greater earnings on your savings balances and a few more dollars back into your pocket.

Diversify your you savings. Put some to ready access for emergencies. Put the rest to a higher interest longer term savings account to allow to grow and offset or reduce inflation factor. These are mostly found on local stable credit unions.

Or, you should also be strategic about where you keep those savings. High-yield savings accounts offer solid returns on your savings and allow you to easily pull that money out for emergencies. Online-only banks, neo-banks, or divisions of regional banks tend to offer more competitive savings rates because they don’t have to factor in the costs of physical branches.

Shop around for rates and consider other important factors like fees, minimum deposit and balance requirements, and withdrawal options when choosing a savings account. I shop for CD's with higher yields for at least 3 to 5 years. Right now CD's yield is around 4.3% to 4.5%.

Those with high tax bracket, invest on Municipal Bonds that are tax free.. These funds are good for children if there are children and or grandchildren to inherit. Interest yield about 4.5% to 4.6% at present.

Higher in interest rates charge by Powell could Trigger a Recession and a Rise in Unemployment. While the Fed has been pursuing a higher rate to lowering inflation, but it triggers a recession many worry a recession is on the way.

It is predicted that interest rate hike may continue till inflation is under control.

The risks are high, and timing is everything. If the Fed raises rates too high and too quickly, it could cool demand so much that the economy tips into a recession. Higher interest rates make debt costlier and borrowing harder — for both consumers and businesses.

Raising rates could have so many negative effects on the economy.
That could lead to pressure on the stock market, and financial distress for millions of Americans. Fact is many of us already feel like the U.S. is in a recession, even if it’s not official and are in its route for the worst.

Another negative effect to raising interest rates.
The job market could be negatively impacted. Raising rates most firms or companies spend more for borrowing costs of the capital. To off set the cost, they raise price of commodities they sell and or labor services they provide, or reduce employment. Like constructions.

4.Increased Volatility in the Stock Market
Investors tend to panic when the Fed takes drastic action, and that t***slates to more volatility in the markets. There will likely be more downward pressure on the stock market in the coming weeks and months, but the Fed’s decision to raise interest rates shouldn’t steer your long-term investments off course.

If you’re close to retirement, you may want to begin your t***sition to more conservative investments and determine the best time to access the funds in each account or plan. Stick to the 4% rule, which suggests withdrawing only 4% of your retirement savings during your first year and then adjusting for inflation in the following years.

Prioritize low-cost, broad-market index funds as they are the most effective way to build wealth over time and always maintain a long-term mind.

For those still employed, those are some of the options. We know that the 401K's are so much battered right now perhaps we lost at least 30% of the value year-to date. Plus inflation that devalues the overall investment that we have.

I have experienced that 30% of my stocks and work retirement 403B have lost at least 30%, not including the inflation factor.

Real estate however did not depreciate but had risen at least 500% since 1975. But as interest rises further, real estate may slow down a little, but not much. it still come back due to demands of the increasing population. Real estate investments are for the younger people who have long term goals.

I think President Biden's economic approach is dumb and negative. Likewise his economist Powell and Janet Yellen have similar approach to negative effects.

Unless this administration changes, I think the hard working Americans will have to work harder. . The handouts are better off.

Good luck to all, and God bless! We are all in the same boat. We sail under the guidance of our Divine Providence.

i This is the beginning of the year. I am shari... (show quote)

Good post Rad.. good information.. thanks..

PeterS

Radiance3 wrote:

This is the beginning of the year. I am sharing some examples how to manage our money specially those retired and or nearing retirement.

Jerome Powell keep on raising interest rates to curb inflation.
Latest he raised was 0.05%. And more is coming.

4 Ways the Fed Rate Increase Affect Our Money
Every aspect of your finances is subject to the Fed’s influence. If we are wondering how exactly, affect our savings and debt to buying power and job security if still working.

1. Borrowing Money Is More Expensive
When the Fed increases interest rates, it becomes more expensive to borrow money. It means higher rates for credit cards, auto loans, and any industry that relies on financing. That’s painful for consumers, especially those relying more heavily on credit cards or loans.

Households are less willing to spend as a result, and businesses don’t have as much access to capital to grow or expand their businesses. What’s worse, businesses typically pass on those extra costs, making it a “double-edged sword” for consumers.

“The average consumer doesn’t realize that there is an impact on their everyday spending, When our dollar doesn’t go as far, we may not realize it until we get to the cash register.”

With interest rates rising, you'll want to try to borrow less and work on paying off any debt as fast as you can. I think it is important to prioritize paying high-interest debt, like credit cards, since they come with double-digit interest rates. One solution is balance t***sfer credit card to get an interest-free, as long as you have a plan in place to pay off your balance in full by the end of the introductory period.

2.Mortgage rates are changing
The Federal Reserve just increased interest rates. That might cause shifts in mortgage rates. Shop around and find a rate you can afford now. For home buyers. But I think, most of us are retired, most of us have homes already.

This may not affect us. Since retired don't have mortgages anymore or they have fully paid their homes or moved to retirement homes.

In the market for a car, if we purchase one we may be paying higher rates if bought on credit.

3. Bigger Earnings for Savers
For savings account, choose a savings account with higher rates. these are found on long term CD's in local Credit Union Banks.

Interest rates on savings and CD accounts are rising because of the Fed’s rate hikes, which means greater earnings on your savings balances and a few more dollars back into your pocket.

Diversify your you savings. Put some to ready access for emergencies. Put the rest to a higher interest longer term savings account to allow to grow and offset or reduce inflation factor. These are mostly found on local stable credit unions.

Or, you should also be strategic about where you keep those savings. High-yield savings accounts offer solid returns on your savings and allow you to easily pull that money out for emergencies. Online-only banks, neo-banks, or divisions of regional banks tend to offer more competitive savings rates because they don’t have to factor in the costs of physical branches.

Shop around for rates and consider other important factors like fees, minimum deposit and balance requirements, and withdrawal options when choosing a savings account. I shop for CD's with higher yields for at least 3 to 5 years. Right now CD's yield is around 4.3% to 4.5%.

Those with high tax bracket, invest on Municipal Bonds that are tax free.. These funds are good for children if there are children and or grandchildren to inherit. Interest yield about 4.5% to 4.6% at present.

Higher in interest rates charge by Powell could Trigger a Recession and a Rise in Unemployment. While the Fed has been pursuing a higher rate to lowering inflation, but it triggers a recession many worry a recession is on the way.

It is predicted that interest rate hike may continue till inflation is under control.

The risks are high, and timing is everything. If the Fed raises rates too high and too quickly, it could cool demand so much that the economy tips into a recession. Higher interest rates make debt costlier and borrowing harder — for both consumers and businesses.

Raising rates could have so many negative effects on the economy.
That could lead to pressure on the stock market, and financial distress for millions of Americans. Fact is many of us already feel like the U.S. is in a recession, even if it’s not official and are in its route for the worst.

Another negative effect to raising interest rates.
The job market could be negatively impacted. Raising rates most firms or companies spend more for borrowing costs of the capital. To off set the cost, they raise price of commodities they sell and or labor services they provide, or reduce employment. Like constructions.

4.Increased Volatility in the Stock Market
Investors tend to panic when the Fed takes drastic action, and that t***slates to more volatility in the markets. There will likely be more downward pressure on the stock market in the coming weeks and months, but the Fed’s decision to raise interest rates shouldn’t steer your long-term investments off course.

If you’re close to retirement, you may want to begin your t***sition to more conservative investments and determine the best time to access the funds in each account or plan. Stick to the 4% rule, which suggests withdrawing only 4% of your retirement savings during your first year and then adjusting for inflation in the following years.

Prioritize low-cost, broad-market index funds as they are the most effective way to build wealth over time and always maintain a long-term mind.

For those still employed, those are some of the options. We know that the 401K's are so much battered right now perhaps we lost at least 30% of the value year-to date. Plus inflation that devalues the overall investment that we have.

I have experienced that 30% of my stocks and work retirement 403B have lost at least 30%, not including the inflation factor.

Real estate however did not depreciate but had risen at least 500% since 1975. But as interest rises further, real estate may slow down a little, but not much. it still come back due to demands of the increasing population. Real estate investments are for the younger people who have long term goals.

I think President Biden's economic approach is dumb and negative. Likewise his economist Powell and Janet Yellen have similar approach to negative effects.

Unless this administration changes, I think the hard working Americans will have to work harder. . The handouts are better off.

Good luck to all, and God bless! We are all in the same boat. We sail under the guidance of our Divine Providence.

i This is the beginning of the year. I am shari... (show quote)

And higher inflation doesn't impact households and consumers? With higher interest rates we have a choice in what we buy. With our basic household spending there is no choice and the middle, lower middle, and poor are impacted the worst. You don't have to buy a new car, you don't have to buy a new house...both of which are impacted by inflation BTW...and you can pay off your credit cards so no interest will be charged allowing you to use them and not be impacted by high-interest rates. And yes, it will slow down the economy which is exactly what the fed is trying to do!

My point is, we have to pick our poison. For me, it's a no-brainer. Inflation gets everyone while high-interest rates don't.

Radiance3

PeterS wrote:

And higher inflation doesn't impact households and... (show quote)

===================
Pete, higher interest rate raises inflation. Most businesses depend on barrowing, and cost of the interest they pay gets higher. The effect to offset the cost and to break even or make a little profit they raise the price of their products or services. . Raising rates affect our stock investments downward. Why? Because stock are always connected to business operations which means lower profits and or even measurement of your year-end statement or periodic finance operations go downward.

Higher interest rates increase our National Debts. Right now it is almost $31 trillion.
Higher interest rates raise the federal government's borrowing costs and future interest payments on the national debt. That cost is accrued and every year it raises further our National Debts.

If you have lots of money, and at higher tax brackets, you can invest to the Federal government. Invest in US Treasury that gives you higher interest rates. Similarly Municipal Bond are also good. These are all tax free. Right now it is 4.5% or a little higher.

PeterS

Radiance3 wrote:

=================== br i b Pete, higher interest... (show quote)

So I take it that you are arguing that inflation is better even though 80% of our population is middle-income or lower and currently being eaten up by it? As for your investment strategy at its maximum, it's half of the inflation rate so you are guaranteed to lose money...especially if you lock in the long term. Wouldn't someone with money be smarter to invest in real estate where leases are pegged to the current inflation rate?

Radiance3

PeterS wrote:

So I take it that you are arguing that inflation is better even though 80% of our population is middle-income or lower and currently being eaten up by it? As for your investment strategy at its maximum, it's half of the inflation rate so you are guaranteed to lose money...especially if you lock in the long term. Wouldn't someone with money be smarter to invest in real estate where leases are pegged to the current inflation rate?

==================
No, my argument presents that raising interest rates by Powell will raise inflation instead. I explained that why the higher cost of borrowing will go up, and businesses mostly depend on barrowing to finance their operations. Therefore, when interest rates go up there overhead cost go up as well. And therefore to recover the cost, their option is raising the products they sell both merchandise, labor and services.

I also addressed that raising rates will increase our National Debts of currently $31 trillion. That's lots of money to financial when the interest cost of Treasury Bills paid to lenders are higher. Annually the costs being accrued are added to the Debts that we owe.

Then the stocks go down in value. At present, year-to date losses on the stocks have average of 30%. Why? When companies lower profits due to high operating costs, stocks they sell to the market are not very attracted to buyer, and therefore stocks go down in price.

I warn buyers those who wanted to buy stocks, please always check the company's balance sheet, and the P/E ratio, insuring the assets far, far, exceed liabilities, and profitability is solid. This ensures the stability of the company.

Even real estate markets are affected when raising rates. First are construction companies like apartment complexes incur higher costs of borrowing to finance their operations.

Fortunately demands for real estate are not much affected due to population increases. Fixed assets in real estate always increase in value, and very seldom lose. Unless you bought, or built the property in some depressed location. That is why investing in real estate, these 3 factors are most important. Location, location, and location.

The very poor locations are very negative ways to real estate investments.

Radiance3

PeterS wrote:

So I take it that you are arguing that inflation is better even though 80% of our population is middle-income or lower and currently being eaten up by it? As for your investment strategy at its maximum, it's half of the inflation rate so you are guaranteed to lose money...especially if you lock in the long term. Wouldn't someone with money be smarter to invest in real estate where leases are pegged to the current inflation rate?

===============
I did not say that inflation is better. I said that raising interest rates add to inflation. There is nothing good with inflation. We know the various negative causes of inflation.
1. The reversal by President Biden the Policies of President Trump. One of the worst was closing US oil gas explorations and the XL Pipeline.
2. Biden's massive spending.
3. Biden's massive money printing.
4. Biden's open borders that allow several millions of invaders to the US.
5. Biden's closures of all the economic policies of president Trump.
6. And now of course the raising of interest rates, with the knowledge that it will curve inflation.
No, raising rates affect so many segment of our economy and won't control inflation. In fact, effects will add raising inflation, as I have explained earlier.

Jan 20, 2021 inflation was at 1.4% when Biden took over. Now it is presently 7.1%, though it went down from 9.1 % percent in 2021.

Current unemployment rate is deceptively low at 3.5% But it is wrong. Why? The BLS calculation of unemployment rate is like this to obtain the unemployment rate. The number of people looking for jobs divided by the number of people employed.

There are few people looking for jobs. Why because Biden feeds them. Too much money and benefits given to those who don't look for jobs. And the reason for C***d19, allow them not to work. There are currently 5.m million unemployed. There are currently 10.46 jobs available in the market.

Biden is spending too much money and our Treasury is bankrupt. Resulting to higher inflation and our National Debts grow higher. Solution of power to curb inflation is raising borrowing cost, which is wrong, cause the effects are negatives. The people in the lower scale of income suffer further,

Perhaps you'd be happy that the SS and SSI had increased 7.1% for 2023. But we must realize that the SS is in deep deep bankrupt.

Please be aware it was predicted that SS will run out by 2035.
And Medicare by 2026.

The Biden administration are so deceptive, reporting so many unreliable and misleading data.

Radiance3

Radiance3 wrote:

===============
I did not say that inflation is better. I said that raising interest rates add to inflation. There is nothing good with inflation. We know the various negative causes of inflation.
1. The reversal by President Biden the Policies of President Trump. One of the worst was closing US oil gas explorations and the XL Pipeline.
2. Biden's massive spending.
3. Biden's massive money printing.
4. Biden's open borders that allow several millions of invaders to the US.
5. Biden's closures of all the economic policies of president Trump.
6. And now of course the raising of interest rates, with the knowledge that it will curve inflation.
No, raising rates affect so many segment of our economy and won't control inflation. In fact, effects will add raising inflation, as I have explained earlier.

Jan 20, 2021 inflation was at 1.4% when Biden took over. Now it is presently 7.1%, though it went down from 9.1 % percent in 2021.

Current unemployment rate is deceptively low at 3.5% But it is wrong. Why? The BLS calculation of unemployment rate is like this to obtain the unemployment rate. The number of people looking for jobs divided by the number of people employed.

There are few people looking for jobs. Why because Biden feeds them. Too much money and benefits given to those who don't look for jobs. And the reason for C***d19, allow them not to work. There are currently 5.m million unemployed. There are currently 10.46 jobs available in the market.

Biden is spending too much money and our Treasury is bankrupt. Resulting to higher inflation and our National Debts grow higher. Solution of power to curb inflation is raising borrowing cost, which is wrong, cause the effects are negatives. The people in the lower scale of income suffer further,

Perhaps you'd be happy that the SS and SSI had increased 7.1% for 2023. But we must realize that the SS is in deep deep bankrupt.

Please be aware it was predicted that SS will run out by 2035.
And Medicare by 2026.

The Biden administration are so deceptive, reporting so many unreliable and misleading data.

=============== br i I did not say that inflati... (show quote)

==============
Correction: 10.46 million jobs currently available.

Radiance3

Radiance3 wrote:

==============
Correction: 10.46 million jobs currently available.

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A continuation on our country's economic policies. .
This messages I write is for information only how to achieve a successful economy thru capitalism. I am trying to challenge this economic philosophy of the Biden administration which has rapidly destroyed our economic stability via socialistic ventures. I can see that majority of the people suffer, largely due to the disastrous policies that Biden had undertaken. He is bankrupting this country, and putting under other nations control.
https://scalise.house.gov/media/press-releases/biden-s-presidency-filled-failure-weakness-and-chaos

We are definitely in a wrong direction.
Taking the power from the ingenuity of the people. The people are the most important assets and sources of wealth and prosperity of any country. That is why Capitalism is the most successful means to freedom of advancing wealth and strength of every country.

Economy under the government control is wrong. It suppresses the various ways how people become productive. The Biden administration have gone to the extent where they require to dumb their own kids using various kinds of dumbing means like CRT, and the WOKE system. These kids raised under these systems will grow up useless, unproductive, and become social problems.

The people are the wealth of any nation. Allowing them to grow and develop their wisdom, they become innovative, desire for advancement, and produce with unlimited resources.

When people grow in business, they pay more taxes. When taxes are lowered against people and businesses, they expand and produce more income, therefore revenue production grow further, more taxes are paid to the government. In addition, employment increases. And these people become taxpayers instead of government dependents.

When more people work more taxes are paid to the IRS , the Social Security, and the Medicare will expand. That's the beauty of capitalism and the lowering of taxes.

This country was under Capitalism for 246 years, and had advanced among all nations in the world. I believe a combination of high technology, and Capitalism is the engine of great economic success.

But now, it worries me that under the Socialistic ventures of the Biden administration, America is routing to a 3rd world country, now populated by tens of millions of unproductive and uneducated people to consume. More consumption and less production, that is where we are now.
Highest inflation and the most who suffer are the lower segment of the population. We reduce our strength. It weakens our defenses, and the nations ability to stand against other countries aggressions.

Radiance3

permafrost wrote:

Good post Rad.. good information.. thanks..

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I am a conservative investor.

Good luck! For retired folks, short term investment on stocks is not an option, specially in this volatile economy, cause when it loses, time is running out to rec**p the losses.

But to ensure stable monetary supply, choose on-line CD's among banks that credits higher rates. 4.5% is a good rate at present when rates are running mostly less than 1% in commercial banks. Local credit unions banks, have also that type of savings account that offer higher rates.

To reduce my taxable income, I put lots into a tax free Municipal bonds at a rate of 4.5% to 5%. It has maturity dates between 15 to 20 years. . Perhaps I am no longer around by then, but those will be gifted anyways.

If you have children or grandchildren, tax free Municipal Bonds that generate higher yield, will be a good investment to leave for them. God bless.

permafrost Loc: Minnesota

Radiance3 wrote:

================ br i I am a conservative inves... (show quote)

Thank you again Rad.. it is always good to hear good advise and you clearly know what you are talking about..

Have a great day..