/biz/ - Business & Finance

[Anonymous No.55930409]

>tfw you realize hiking the interest rates is what's causing the inflation

[Anonymous No.55930454]

Its money supply

How is this a debate? They taught us that in elementary school

[Anonymous No.55930473]

>>55930409
You are quite possibly the stupidest person I have ever encountered. Do not procreate

[Anonymous No.55930514]

>>55930409
>lower interest rates
>everyone borrows money
>the amount of money in existence explodes
>raise interest rates so people stop borrowing money to buy Airbnb homes pregnantbutt tokens
>inflation is because interest rates went up guys
this board knows less about finance than /ck/ knows about cooking

[Anonymous No.55930747]

>>55930514
except no one stopped borrowing when the rates were raised, couple that with the breakdown of the way the banking system is supposed to work, talking about no reserve requirement...means that printing is ramping up to an all time high even with high interest rates...OP is definitely correct, they need to turn the reserve requirements back on along with their rate raises or it doesnt work. You can see that this is the case when you take a look at credit utilization and how much its skyrocketing in the past year or so.

[Anonymous No.55930774]

>>55930514
What if we just don't borrow money? Just use money you have, or work more if you don't have enough. Hasn't every financial crisis been because of borrowing?

[Anonymous No.55930809]

>>55930774
kek anon. Super kek. So its like...the grocery store you buy your food at uses those loans, so due to the increase of interest rate, they pay more on them, which means you pay more on your groceries. But your job doesnt pay more, so while you may be able to weather things for a while, eventually you run into a place where your wage wont cover cost of living, so in order to afford your lunch AND your rent, you decide to pull out your credit card, which has a jacked up APY....No matter how you spin things, the things that are in your life that provide you the goods you need are dependent on the credit system. Youre paying one way or the other, while most americans are paying every which way they can

[Anonymous No.55930811]

>>55930409
the bulk of this inflation is greedflation.
>T-THAT'S NOT REAL!!! MY JEWISH ECONOMIST PROFESSOR SAYS...
listen to earning calls. they openly discuss gouging and refer to it as pricing strategy. pepsico is a recent example. google for more.

[Anonymous No.55930825]

>>55930809
I'm pretty sure grocers have been around longer than the jewish debt ponzi

[Anonymous No.55930869]

>>55930747
>no one stopped borrowing
this is blatantly wrong. maybe the government didn’t stop borrowing, and the government is being forced to pay old low interest debt with new high interest loans which will cause massive problems, but besides that the consumer has absolutely stopped borrowing money in many large ways. they might be putting more on their credit cards than ever before, but that’s because they can’t afford to eat. no one is getting mortgages or car loans. many people can’t afford the ones they have now because they had variable rate interest. Here in canada you can only really get a fixed loan for 5 years anyway so one day everyone needs to roll their mortgage over at much higher rates. zombie companies that survived off borrowing money are dying, brick and mortar stores are shutting down because people can’t afford to shop at them and theft is insane these days and insurance rates are though the roof. you are either intentionally dishonest or blind to reality.
>>55930774
a financial crisis is a feature of the system, not a flaw. if you gather physical supplies early, it’s quite easy to ignore much of what happens in a financial crisis, yes. problem is too many people like the idea of something for nothing and they will always take getting something for nothing over an honest days pay for an honest days work

[Anonymous No.55930883]

>>55930809
>prices are going up because interest rates on the loans grocery stores have is going up
wow

[Anonymous No.55930890]

>>55930869
ok moshe, no one is going to believe your jew lies.
https://www.newyorkfed.org/microeconomics/hhdc

[Anonymous No.55930893]

>>55930774
not gonna work, lending creates a lot of opportunities that are otherwise unreachable for businesses

[Anonymous No.55930915]

>>55930890
>inflation is caused by interest rates
>it is not caused by an increase in the money supply without an equal increase in the goods and services available to purchase
>anyone who says otherwise is jewish
you know what? I don’t even think you’re a lying jew. I think you’re a retard who thinks he’s a genius. you are a retard tho.

[Anonymous No.55930947]

>>55930915
the fact that you are trying to add to my argument, and then disprove it due to those additions is all that we need to see.

[Anonymous No.55930960]

>>55930893
jeff bezos borrowed $300k from his parents and friends to start amazon. the fact that lending institutions stripped the wealth away from the citizens to the point that no one has savings to loan does not mean they have been beneficial to us.

[Anonymous No.55930974]

>>55930409
>increase cost of capital
>increase cost of production
>reduce supply
>many people are using savings and 0% credit cards to live
higher interest rates can cause inflation for a while, yes. anon is not that retarded.

[Anonymous No.55930982]

>>55930947
>add to my argument
>I have to be entirely right or entirely wrong
I bet your smoke alarm chirps

[Anonymous No.55930987]

>>55930982
ok moshe, ad hominem next? Do you jews ever learn new tricks?

[Anonymous No.55930990]

>>55930473
>hike interest rates
>businesses can't borrow to increase production or fix failing supply chains
>shortages ensue
>prices go up

[Anonymous No.55930992]

>>55930454
>YOU VILL NOT ENTERTAIN BASIC MONETARY POLICY, ANON

[Anonymous No.55930998]

>>55930409
Ah yes the Erdogan school of economic thinking

[Anonymous No.55931007]

>>55930987
maybe you are actually jewish

[Anonymous No.55931011]

>>55930774
if nobody borrowed there would not be any currency. federal reserve notes themselves are debt, hence the term note or more colloquially bill. they are the debt with the least duration, constant maturity zero coupon notes

[Anonymous No.55931026]

>>55930987
I denounce the Talmud and accept Jesus Christ as my lord and saviour.
your turn

[Anonymous No.55931027]

>>55931007
holy shit, you are a new initiate in the JDIF online force arent you? After ad hominem you start to accuse me of what you are doing...my god its ripped straight out of your jew playbook, at least disguise these attempts as something else.

[Anonymous No.55931028]

>>55930809
Actually kind of makes sense

[Anonymous No.55931052]

>low interest rate environment persists for 20 years
>businesses are expected to give up on making a profit and just focus on scaling, grabbing share, and accumulating debt to buy all of their competitors instead
>interest rates finally go up
>businesses are now expected to make a profit to survive
>not a problem because markets are now highly concentrated and controlled by oligopolies that are able to push for massive price increases with no loss of demand

[Anonymous No.55931056]

>>55931011
only true in a debt-based fiat currency system, which is blatant theft of the populace

[Anonymous No.55931070]

>>55931027
look how angry you are because I’m saying inflation is caused by money printing. it’s hilarious

[Anonymous No.55931129]

>>55931052
get the fuck out of /biz/, collegeboy

[Anonymous No.55931199]

>>55930987
>ok moshe, ad hominem next?
The irony.

[Anonymous No.55931471]

>>55930409
Correct. Glad you caught up.

>>55930454
It's not. It's the productive money supply. a dollar simply existing isn't inflationary. A dollar in the economy is. As more money is pulled into money market accounts it's not in the economy buying things or chasing returns. This is one reason why the FED raises rates. As the interest expense explodes, the treasury is forced to print more money to pay the interest, forcing the fed to issue more debt, forcing them to issue more debt at a higher rate to entice the market to buy it. This is a debt - death spiral.

>>55930774
The government doesn't have any money. They don't produce anything they only steal from us. We don't have any money anymore so everyone is broke and in debt, government included.

[Anonymous No.55931940]

>>55930811
This too

[Anonymous No.55931972]

>>55930409
yeah, nothing to do with the trillions of fake money they issued during cohen-19

[Anonymous No.55931987]

>>55930774
because real money doesn't exist. Every money is borrowed money.
Money was supposed to be a temporary mean of exchange, but people want to accumulate it on their bank accounts (instead of accumulating gold or real things), hence inevitable inflation

[Anonymous No.55931992]

>>55930409
srezly bro are you retard?

[Anonymous No.55932015]

>>55930774
>What if we just don't borrow money? Just use money you have, or work more if you don't have enough
cool it with the anti-semitic remarks

>>55931011
>if nobody borrowed there would not be any currency
there would be no PAPER currency

[Anonymous No.55932111]

Ok ill bite. So the grocery store has higher interest payments to make up for. The answer is easy to explain. The consumer who gets the credit card out to purchase groceries can only do this a finite amount of times before they need to make cost cutting choices because they're living beyond their means. This effect you can see at the macys stock, foot locker stock and so forth. It eventually dove tails and limits a consumers spending. Part 2. The grocery stores see a lower demand for food items and begin to cut jobs and items that aren't moving to continue to pay the interest payments. Now you have an economy with many unemployed who are willing to do work for a dollar less to get hired. There you go.

[Anonymous No.55932200]

>>55930960
>just be rich, gaiz
Fuck off, retard.