"Where is the Dollar Going To Be, When the Rate Goes to 2.5 Percent ?"
DriftingByTheStorm
Posts: 8,684
This was the question just posed at 6:25am on CNBC "Squawk Box" to the investment sector guest, by host Joe Kernen.
If anyone here watches CNBC, you know Joe is a very mild mannered guy. He doesn't go on rants like Cramer, and he isn't some obsessive anti-fed "fearmonger" like Rick Santelli (whom i heart, btw) ... he is just a straight shooter who generaly cares about keeping an even keel in morning discussions with guests. And he likes to get techinical with them on some points.
Anyhow, he was letting the guest (whose name i did not catch) talk about what he sees as the market possibilities (investment opportunities) available currently.
They also talked a bit about the Feds meeting and the upcoming Wednesday announcement (rate cut) and they got around to the guests opinion that the Fed Funds rate (the rate banks get on the funny money) would drop to 2.5% ... the guest said, "and thats a LOT of juice! Especialy in an election year." (this is a not so vague reference to just how much inflation is caused by the market being attracted to and therefore demanding the printing of many billions of new dollars in response to the fact that the price of those dollars -- the interest charged on them -- is only 2.5% ... this is a setup for another huge bust basicaly)
ANYHOW...
Then Joe asked a question about whether the guest considers gold at this point. The gentleman responds with a smug laugh and says, "Well i'm not a Gold Bug, Joe." ...
Joes says, "Well ... i know your not a Gold Bug but, I mean ... at this point ... if the Funds rate goes to 2.5% a you and some others here are suggesting, WHERE IS THE DOLLAR GOING TO BE, WHEN THE RATE GOES TO TWO AND A HALF PERCENT?"
Just some food for thought.
This isn't conspiracy, folks.
This is something that is VERY out in the open ... in SOME circles ... you just have to listen.
Well. Just thought i'd throw out another pointless thread on something that no one here seems to want to acknowledge or talk about. :(
If anyone here watches CNBC, you know Joe is a very mild mannered guy. He doesn't go on rants like Cramer, and he isn't some obsessive anti-fed "fearmonger" like Rick Santelli (whom i heart, btw) ... he is just a straight shooter who generaly cares about keeping an even keel in morning discussions with guests. And he likes to get techinical with them on some points.
Anyhow, he was letting the guest (whose name i did not catch) talk about what he sees as the market possibilities (investment opportunities) available currently.
They also talked a bit about the Feds meeting and the upcoming Wednesday announcement (rate cut) and they got around to the guests opinion that the Fed Funds rate (the rate banks get on the funny money) would drop to 2.5% ... the guest said, "and thats a LOT of juice! Especialy in an election year." (this is a not so vague reference to just how much inflation is caused by the market being attracted to and therefore demanding the printing of many billions of new dollars in response to the fact that the price of those dollars -- the interest charged on them -- is only 2.5% ... this is a setup for another huge bust basicaly)
ANYHOW...
Then Joe asked a question about whether the guest considers gold at this point. The gentleman responds with a smug laugh and says, "Well i'm not a Gold Bug, Joe." ...
Joes says, "Well ... i know your not a Gold Bug but, I mean ... at this point ... if the Funds rate goes to 2.5% a you and some others here are suggesting, WHERE IS THE DOLLAR GOING TO BE, WHEN THE RATE GOES TO TWO AND A HALF PERCENT?"
Just some food for thought.
This isn't conspiracy, folks.
This is something that is VERY out in the open ... in SOME circles ... you just have to listen.
Well. Just thought i'd throw out another pointless thread on something that no one here seems to want to acknowledge or talk about. :(
If I was to smile and I held out my hand
If I opened it now would you not understand?
If I opened it now would you not understand?
Post edited by Unknown User on
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Peace
Dan
"Every judgment teeters on the brink of error. To claim absolute knowledge is to become monstrous. Knowledge is an unending adventure at the edge of uncertainty." - Frank Herbert, Dune, 1965
http://www.myspace.com/brain_of_c
I think in typical "polite" economic discussion, the question quickly dissolved in to an answer like, "well ... it certainly puts the dollar in a new position" ... probably an even more oblique comment ... "well, thats a question a lot of people are paying attention to." ... i don't know ... it was a non answer, followed by a quick chuckle, and a change of subject. Maybe a "thanks for being on the show today."
... it was very near the end of their conversaiton, sadly.
But it is a sentiment i'm hearing in a whole host of ways expressed on CNBC daily ... i cannot in repeated examples convey just how much BLATANT and LATENT negativity comes up ... laced in to nearly every other conversation these days.
Just this last hour i've heard things like, "since people like Soros are saying this isn't business cycle, this is truly the end of an era ... we're seeing a dark new era..." and "if the Fed doesn't give at least .25 pts tomorrow, is it financial armagedon? is it blood on the streets?" ... the very conservative banker guest, rolling his eyes, holding his breath, "its blood on the streets. yes." ....
anyway.
it is rampant.
If I opened it now would you not understand?
Market poised for a banger of a good day here.
Numbers for durable goods orders came in way over expectations ... we probably gonna test the top of the several month long ceiling here today ... that means probably 150 points up on the Dow ... and maybe 20+ on S&P futures.
But i'm still a bear.
If I opened it now would you not understand?