What happens when the FED raises interest rates?

[Aaron]

So... with unemployment rising (even while stimulus money is being pumped into the economy)... and people have no money due to insanely high taxes/medical bills.... What happens once the FED raises interest rates to make things even more expensive?

They must raise interest rates to combat inflation.... if they do it now... its even MORE unemployment... if they dont it WILL cause inflation making the middle class tax payer suffer dearly...

what will happen i wonder?


Ron Paul 2012!!!@###!@#

[imback_missme]

Indeed Ron Paul........ I have already given up my retirement, lost my 401, and I refuse to pay any more taxes so personally I am getting prepared for the worst. My family has food ,ammo and supplies for 2 years, hopefully by then Obama will be out of office and people will wake up and stop supporting idiots of either party into office. I feel it will take responsible people to get us back on track, some will survive, most will not because they are counting on government handouts.

[LordpercywoosterXXV]

your premise is faulty compared to the developed world , the taxes are low

sorry to ruin your day with facts


but hay your a ron paul follower you don't operate in reality

[picador]

Interest rates have been most abnormally low for about 10 years. This has has put downward pressure on the US dollar which increases the cost of imports such as oil, so low interest rates can cause inflation as well as higher rates. Low interests rates encourage borrowing and discourage saving. More borrowers chasing fewer dollars also means credit becoming increasingly scarce. We are still seeing that. America a debtor nation. It depends upon borrowing from other countries - notably China. Who is going to lend America money at an interest rate that barely matches their own inflation rate? The only reason that they have done so to date is the storied strength of the US dollar. Well, that strength is being eroded by the day.

America, like most of the Western world over the past 20 years, has lived well beyond its means. The day of reckoning is at hand, and one of its first signs is going to be higher interest rates - like it or not.

[§§pecialUnicorn™]

What will happen is we will all suffer greatly for the massive debt that this government has heaped upon us. No way out.

[InDefenseofmMarxism]

Uh, we die?

[MysteryMan]

I wish they would, the interest on my bank account sucks!