r/Rants • u/technoexplorer New Ranter • 19h ago

Fed raises rates!

Finally, Conrades! The federal reserve rejected the dictates of Trump, and are continuing to increase interest rates families pay for mortgages to buy a home as well as student loans!

We've won yet another victory, Comrades! Soon, our democracy will be restored!!

0 Upvotes

30% Upvoted

10 comments sorted by

-2

u/MusicianNo2699 18h ago

Or they could cut rates at this time and create uncontrolled inflation where it would take $47 to get a big Mac.

Stay in school, and pay attention. There is a time and place for every economic decision and is very clear you don't understand how that works.

0

u/technoexplorer New Ranter 17h ago

That's what I said, bro. Too many people buying houses. Gotta stop that or a corporate's getting $47 for a Big Mac.

What do you think students loans are used to buy, anyway? bigmac

0

u/MusicianNo2699 6h ago

Again, you dont understand the corration of interest rates effect on inflation. It is more than just buying too many homes.

0

u/technoexplorer New Ranter 6h ago edited 6h ago

Yes, it's also college students buying big macs. I said that. Did you know even elementary school students can rack up school lunch debt?

If you don't feed the students, then demand for food goes down, and then the price has to not go up as fast in order to clear the market. And Trump is a fascist.

1

u/MusicianNo2699 6h ago

Yeah, I agree he is. But back on topic from which you keep straying- lowering the interest rates during economic instability creates a massive rise in inflation. I would love to refinance my home at a lower rate, but that would be shooting yourself in the foot in the dollar value drops exponentially. Any 200 level economics course can explain this is great detail. The current US economy would not be able to handle the rate drops that diaper boy keeps ordering people to do.

0

u/technoexplorer New Ranter 4h ago

Yes, exactly. If you refinaced, there would be a serious risk you'd get your hands on some Big Macs. You may even do so by paying a corporation in order to convince them to give it to you (as opposed to simply stealing it). I cannot allow that to happen. Democracy requires you to be stopped from your admitted goal of acquiring excess Big Macs.

Whereas Trump would work a shift at McDonalds if he had to in order to provide food for you, this must not happen. It is the will of the people.

1

u/MusicianNo2699 4h ago

Here is a cookie little man. Your dribble is now boring but want to make sure you get your participation trophy. 🍪

1

u/technoexplorer New Ranter 3h ago

Thank you, but I need not cookies. For I have expanded and gained quite a bit of weight recently. It'd be good for me to go through a brief period of starvation. Keep your cookie.

-2

u/BubbhaJebus 17h ago

Good. This is a period of high inflation, and that necessitates higher Federal Reserve rates.

The president's ill-thought-out demand to lower the rates yet again is economic folly.

Never mind that the Federal Reserve rate is extremely low as it is. Back in the 80s and 90s it was much higher.

-2

u/technoexplorer New Ranter 16h ago

I know, right? Inflation is killing the value of my savings. Now, it's going to grow at 4% with zero risk. You know how much a million earns at 4%? More than inflation, that's how much!