February 25, 2015
What rising interest rates mean for the rest of us
One takeaway from Federal Reserve Chairwoman Janet Yellen’s recent testimony before Congress is that she and her colleagues are feeling pretty good about the direction of the economy – good enough to “at some point” consider increasing interest rates.
That's funny because I was just about to write a post titled, "What My Olympic Gold Victory in Stair Climbing Would Mean for the Rest of You."
I'm feeling pretty good about the direction of my stair climbing (only seem to climb up so far) - good enough to "at some point" consider looking into some sort of "Special" Olympics for stair climbing. That's at some point. I might consider it. Maybe. Who knows?
And since I might consider it at some point, I just wanted to make sure the rest of you were setting aside some time to watch me compete and win. Once again, feeling pretty good about my chances at some point, all things considered.
I'm also looking into the possibility of tracking down and capturing a Sasquatch at some point. It's something I may consider once I have attained the Olympic Gold. First things first though.
In all seriousness, at some point Yellen might consider raising interest rates? Wow. That's quite the lock on the rising interest rate environment. Forgive me for not holding my breath in anxious anticipation. As Japan is well aware, ZIRP is apparently the gift that just keeps on giving.
This is like the commentary in the MSM that "at some point" oil prices will rise. Maybe 2 months, maybe 2 years, maybe 2 decades. At some point - they will rise.
ReplyDeleteAnd I bestow upon you all the prophecy, there will be wars and rumors of wars and earthquakes and famines. And there will be calamities visited upon us which we had no inkling of.
ReplyDeleteLuke The Debtor,
ReplyDeleteAt some point a great many things may happen. Maybe.
Karlo,
ReplyDeleteInterest rate hikes and/or rumors of interest rate hikes will consume our minds like a plague of locusts, for we all know that long-term interest rates can only go higher from here, unless perchance, they were to go lower. Behold the power of the prophecy.
I have been buying long-term bonds since 2000 and have yet to read a mainstream news article telling us how to prepare for falling interest rates. As a saver using the power of hindsight, that is nearly infinitely amusing to me. The biggest threat to savers over the long-term is falling rates, not rising ones. So why is/was that risk rarely mentioned?
When wiill it change? At some point no doubt, perhaps even in my lifetime. Just can't count on it, any more than I would count on a horoscope.
War and rumors of war on savers will continue until morale improves, which could be just short of never, in theory. There's certainly ample money trying to earn interest. Perhaps too much.
What do rising interest rates mean for the rest of us?
ReplyDeleteWhat does rising income inequality mean for the rest of us?
What does a permanent state of war mean for the rest of us?
What does an infinite amount of sovereign debt mean for the rest of us?
What does a small cadre of people who create infinite amounts of currency mean for the rest of us?
What does a surveillance and police state mean for the rest of us?
What does 1/6 of the US population in poverty mean for the rest of us?
What do bullshit headlines mean for the rest of us?
Mr Slippery,
ReplyDeleteThe answer to all your questions can be found here.
King Lear: "No, you unnatural hags,
ReplyDeleteI will have such revenges on you both,
That all the world shall--I will do such things,--
What they are, yet I know not: but they shall be
The terrors of the earth."
That's alright then.
The history of humanity is the smart-n-savvy people (perhaps the "Kanamit") eating the dumb-n-clueless.
ReplyDeleteUnfortunately for some people, they are aware of being eaten or - I think worse - aware of others being eaten.
Then, the most unfortunate of all people, are those who are aware of the eaters and have morality OCD and constantly think about it.
begob,
ReplyDeleteI like to think that all our politicians have a bit of King Lear in them, so we've got that going for us, which is nice, lol. Sigh.
Anonymous,
ReplyDeleteI have some morailty OCD in me and am an insomniac. Probably mot a coincidence. Sigh.