Do you actually think the Federal Reserve is going to lower interest rates at the end of July 2019!? - Auto-Trend Repairs and Service Information Forums

SELLC · CERTIFIED POST WHORE

Do you actually think the Federal Reserve is going to lower interest rates at the end of July 2019!?

SELLC · CERTIFIED POST WHORE

And I have to be honest, I am not even sure what a basis point is, but it seems like another fractional expression if you ask me..

In the industry they speak of interest in percentage points, this scale is usually 0-100, so when they say 25 bps and 50 bps, does that mean .25 and .50 percentage of a percent respectivelty?

Rastus · UNSTOPPABLE!

Here you go mate...

financial-dictionary.thefreedictionary.com/BPS

Financial institutions are all about making more money, not losing it, as you know.

Nb. 1 x BSP = 0.01%...Or if you rather, 1.0% = 100 BSP's.

-- Edited by Rastus on Saturday 20th of July 2019 10:39:33 PM

SELLC · CERTIFIED POST WHORE

And so it begins...

https://www.yahoo.com/news/trump-says-not-u-debt-170246394.html

SELLC · CERTIFIED POST WHORE

And sooner than we thought,

"A deal has not been reached on raising the debt ceiling, and the government once again risks a shutdown if an agreement isn't reached before July 26."

SELLC · CERTIFIED POST WHORE

Um... Today is July 21st...

That is less than a week away!

What do you think they will do? A short term spending bill, a temporary resolution? Or do you think they will have to start raiding other coffers like Obama did when Republicans closed the purse?

Oh it should be most interesting... I think I'm going to the lake, fuck all this bullshit! LOL

Rastus · UNSTOPPABLE!

Check-this-out before you go....

www.abc.net.au/news/2019-07-21/manufacturing-retreats-threatening-to-take-global-economy-down/11325860

Nuffan · No longer a user - left on their own accord.

Rastus wrote:
Check-this-out before you go....

www.abc.net.au/news/2019-07-21/manufacturing-retreats-threatening-to-take-global-economy-down/11325860

All the more reason to protect American manufacturing...Which President Trump is doing...

Nuffan · No longer a user - left on their own accord.

I do not think they will lower interest rates...

I also think they will not raise them anymore at this time...

personally I am in favor of raising interest rates...

it is a bitter pill to swallow, but we as a country have to start reversing the last 50 years of bad policy under both parties...

we have removed the incentive to save and increased the incentive to borrow....and in long term that is not good for the overall health of our economy..

-- Edited by Nuffan on Sunday 21st of July 2019 07:31:57 AM

SELLC · CERTIFIED POST WHORE

I don't think they are going to lower rates either, but if they do it could only prove there is trouble ahead... in that respect it's bad news either way - if they lower rates people will see that as proof things are slowing down - if they don't lower rates then all the banks and lenders are going to have a fit and tighten the credit market even more.

As someone who still has quite a few decades left to work, I could really use a good low interest re-finance! Not because I need it, but rather because of the "game" that lenders, credit reporting companies and the Government like to play.

Currently credit reporting companies do an awful job of quantifying risk, and it's all done in cohorts with the banks and government! It needs to STOP!

For me it's a matter of re-structuring, as I have enough money and credit to carry on just fine - HOWEVER, credit reporting companies do not like how I have my credit structured - and they don't take into account my equity in my home or my assets that far exceed my debt by 100's of thousands of dollars! The credit reporting companies want to see my debt stuctured into my home, rather than on my revolving credit - and being a small business owner means that I have many times where I have to buy stock and carry a balance for a few months - maybe longer depending on what we are working on.

Currently I have NEVER missed a payment, have $120k equity in my home and $40k debt - none of which are personal loans or auto loans... Just one mortgage, a line and several credit cards - ALL OF THEM PAID ON TIME - EVERY TIME!

Yet my credit score is in the toilet, not because I don't pay my bills on time, but because the credit reporting companies want my debt structured differently and this is what I find criminal! If I got a good rate in a re-fi and some of this debt was rolled into a mortgage my credit score would increase to over 800 rather than the low 600's its at right now - and that doesn't mean that I have any less debt, just that it is structured different - and that to me is absolute BULLSHIT! I like my line of credit, plus my cards because they are revolving - so when they are paid off I have access to that money for other projects or business ventures! With a mortgage it's a flat payment - but it's the same damn thing!

I think it is CRIMINAL what these credit reporting companies, banks and lenders are doing! The government is in on it too because it works to all of their advantages to keep peoples scores low and push them into mortgages because lets be honest, if someone who is never late making a payment didn't have to worry about the credit scoring models they may never seek out a re-finance because they would be completely fine - but the amount of money the banks and government make on closing cost and PMI is massive and they depend on credit reporting companies to give people incentive to re-finance, and that incentive is boosting your credit score! Now days everything is tied into these credit scoring models! From insurance to interest rates these credit reporting companies are the REAL problem, but they work for the banks and government to ensure they have the ability to manipulate the market and charge the highest interest rates that they can!

I plan on suing a few lenders, all three credit reporting companies along with the Government, they have got me that pissed off! As someone who pays ALL of my credit card, insurance and loan payments on time - every time - I expect much better! Use to be someone who paid their bills on time had good credit, but not now days... now days it's just a big scam where a few credit scoring companies and their countless models can manipulate your score to whatever they want - and trust me when I say they want it as low as they can get it! The fact that they can get away with this is criminal and needs to be addressed!

And now these same greedy and crooked banks are demanding a cut in interest rates!? On the eve of the debt ceiling being breached and the government running out of money!? Naw, they can all get bent!

-- Edited by SELLC on Sunday 21st of July 2019 08:12:42 PM

SELLC · CERTIFIED POST WHORE

Has anyone noticed how quiet the media has been about the upcoming debt ceiling issue?

Word on the street is Munchkin and Pelosi have been meeting and talking on the phone a whole lot lately, so I really don't understand why the media has been so mum about it...

The 26th us thus week Friday! The Fed will meet on the 30-31st of July...

Should be very interesting to say the least, of course I'll be on a beach not giving a fuck...

SELLC · CERTIFIED POST WHORE

Wow!

Democrats clear Trump backed budget package and debt ceiling increase only to have 132 Republicans vote against it!?

WTF!? confuse

https://www.foxnews.com/politics/house-budget-debt-limit-trump-republicans

And now the Republican senate is going to take up the bill next week!? Last I checked the 26th was tomorrow!?

WTF-WTF-WTF!?

Most people with a payment due date, or maxed out credit line (like the Government), would not wait past the deadline to do such things at their leisure!

Not sure WTF is going on, but it will be interesting to see how the Government wiggles out of the July 26th deadline for the debt ceiling.

I'd think Republicans would move quick and get this baby put to bed tomorrow! But I guess that is just too much work.

Nuffan · No longer a user - left on their own accord.

The Fed just lowered rates by quarter point....25 basis points

SELLC · CERTIFIED POST WHORE

Just seen that! Crazy! lol

By just doing 25 basis points you know the banks are going to be looking for that other 25 basis points later down the road...

It is good to see they are working with the President and at least meeting him half-way... and we are in the middle of a trade war with China so we need more liquidity in the market as our manufacturing sector builds out.

Honestly I didn't think the Fed would do it, but they did!

To me, the 25 basis point drop is a good sign the Fed and the Executive branch are working together and trying to make the little changes that will improve the economy.

And while I didn't feel a rate cut was necessary, I don't know what the Fed and the Executive branch know - and I sure as hell am not advocating for paying more in interest! So the rate cut is welcome, along with any others they make.

SELLC · CERTIFIED POST WHORE

Also, we are well past the 26th and 30th... So I assume the debt ceiling and budget must also be taken care of?

Or will we be hit with the bad news that interest rates went down 25 basis points, but now the Government is broke?

I am anxious to hear that the budget and debt ceiling issues are resolved, that will also be a nice boon for the market and everyone else for that matter! Any word on that?

SELLC · CERTIFIED POST WHORE

Just seen the market took a 333 point hit today, apparently Wall Street smells smoke... and where there is smoke...

Anyway, could just be a fluke... We will see tomorrow I guess.

PowerStroker · UNSTOPPABLE!

One thing that worries me, is that eventually another recession will happen. If interest rates are already low when that happens, just how much farther can the Fed cut them to help us get out of said recession?

Things are all fine and dandy right now in terms of the economy, but things can change very quickly, and the Fed may be creating a situation where they are favoring short term economic gains that aren't currently necessary, over the ability to stimulate the economy when it may very well become necessary.

Playing the short game with macro economics is a recipe to fuck everybody.

SELLC · CERTIFIED POST WHORE

These are all very valid points PowerStroker, but we still have 2+ full points to go!

Currently European and Asian markets are in the NEGATIVE interest rates! Not sure how that works? Do they pay you to borrow money? LOL

It is this kind of global pressure that the Fed is trying to offset, if only to keep it competitive for American companies.

Many would say an interest rate cut is a worrisome indicator of bad times to come, but trying to be proactive about it makes more sense than the Fed cutting off it's nose to spite its face!

Just feel bad for all the people who recently re-financed thinking they got the best rates, as clearly they will eventually be .5% lower in the not so distant future and that is a lot on a 30 year fixed.

The way banks see it, a .5% drop in rates gives them the wiggle room to convince people that a $6k refinance is worth it over the long 30 year haul and thus keep people re-financing. Sad but true.

SELLC · CERTIFIED POST WHORE

Well it would seem the big banks are after not only one, or two - but THREE interest rate cuts! That is what I am hearing anyway!

Meanwhile people like myself are getting screwed left and right trying to get a mortgage despite not having ever missed a payment and having almost $150k equity in my home! The problem isnt with the interest rates! The problem is the banks and companies that are selling government loans! Who in their right mind is going to seek out a mortgage or refinance knowing interest rates could drop close to another full point!?

I think Im going to have to sue these companies who so wrongly denied me along with the Federal Government since all the re-sellers of Government loans are blaming regulations in the lending market. Get all of them including the credit reporting companies in front of a Federal Judge and see what they think about the fact that the banks and lending companies have created this mess in the name of the Government. They could have been collecting interest at higher rates right now, but banks are purposely creating this mess so they can borrow money at a lower rate!

Nuffan · No longer a user - left on their own accord.

If China continues to devalue the Yuan the Fed may have to consider another reduction 25 basis points...

It sucks...but a trade war is not without pain...but this is VERY necessary pain for the long term...

Farmers can easily recover, there are other crops beyond soybeans...and the soybeans they are going to get from south america are not near the quality...

While it does create some pain back here in America...the real pain is being felt by the Chinese Economy...this is a potentially LETHAL blow to them...and they know it...

SELLC · CERTIFIED POST WHORE

I think this has less to do with China and more to do with the banks wanting cheaper borrowing cost - period!

If banks and lenders arent lending at the higher interest rates today they will only clam up more as the interest rates are lowered. Im really pissed off that Im busting my ass to be debt free while the government continues its practice of borrowing more in my name and my not having anything to show for it!

When China starts selling US treasuries youll soon see what what a lethal blow really is! Yet the government continues to borrow at record levels, throwing it on the bank of China credit card. When China runs out of money, they will sell the treasuries, that is a fact that you can take to the bank!

-- Edited by SELLC on Wednesday 7th of August 2019 02:04:36 PM

Nuffan · No longer a user - left on their own accord.

SELLC wrote:
I think this has less to do with China and more to do with the banks wanting cheaper borrowing cost - period!
If banks and lenders arent lending at the higher interest rates today they will only clam up more as the interest rates are lowered. Im really pissed off that Im busting my ass to be debt free while the government continues its practice of borrowing more in my name and my not having anything to show for it!
When China starts selling US treasuries youll soon see what what a lethal blow really is! Yet the government continues to borrow at record levels, throwing it on the bank of China credit card. When China runs out of money, they will sell the treasuries, that is a fact that you can take to the bank!

-- Edited by SELLC on Wednesday 7th of August 2019 02:04:36 PM

Any bonds the Chinese hold will be bought by the Federal Reserve just like every other bond since 1913.

and it has everything to do with China, if not for what has gone on the Fed would have never lowered it.

SELLC · CERTIFIED POST WHORE

You just going to omit what happens if they do?

Nuffan · No longer a user - left on their own accord.

SELLC wrote:
You just going to omit what happens if they do?

Nothing will happen the debt will get transferred to the Federal Reserve....

The United States has never EVER paid one cent in principal toward our debt...

The Federal Reserve which was originally prohibited from owning any Federal Debt has been making good on principal since 1923.

It is not like the US Budget has to make good on the money...the US has never made good on any matured bonds...

Nuffan · No longer a user - left on their own accord.

You should understand the 22 trillion dollars...

Is owed to three BUCKETS...

1) Current Bond holders (this is always the largest bucket)

2) The Federal Reserve

3) FICA (ALL the surplus that congress spent from FICA) currently about 2.9 trillion dollars

-- Edited by Nuffan on Wednesday 7th of August 2019 05:14:44 PM

SELLC · CERTIFIED POST WHORE

So you basically have the same mentality as PowerStroker who thinks the Treasury can just mint a $2 trillion dollar coin at any time and deposit it!?

lol - okay... sure.. I'd like to see that coin!

It does not work that way, in fact China has been holding $1.7 trillion dollars in treasury bonds over the last few years and HAS collected BILLIONS of interest payments on them!

Also you should know if China dumps it's $1.7 trillion in treasury bonds the dollar WOULD FALL in value, causing other countries to follow suit. Furthermore, such a problem would cause a rout in the bond market and dissuade new bond sales!

And, if you really want me to help remove your head from your ass - such a scenario could lead to other countries to reject the dollar, as it would be considered worthless fiat currency that no one would accept! Why? Because some jackass thought it didn't matter and people like me got sick of your BS and called your hand! A lot of people are under the assumption that debt doesn't matter - until it does! It is not until you come up short that you really understand that debt DOES MATTER!

Given what you said above, and your cavalier attitude I am having serious doubts that you are wealthy. If you were, you would understand that everything you "think" you have is also worthless!

Your property? You claim it's all paid for - but guess what? It wouldn't be worth SHIT!

Your stocks, bonds, 401k (tied to the market) and any savings would also be SHIT!

Your cash stockpile? You might as well wallpaper the walls of the homes on your worthless shit properties with it because, yep - you guessed it, not worth SHIT!

So I suppose this is the time when you tell us all you're diversified with a strong Gold bullion and precious metal horde.. LOL, sure...

SELLC · CERTIFIED POST WHORE

You are correct about one thing though Nuffan, there is a culture of debt that the United States and every country since the dawn of time has been pushing. If there were no debt, there would be no control.

It is why Government keeps on borrowing instead of paying down debt!

Even if you are debt free and sitting on a bunch of money it won't change the fact that you have a negative number on your head, to the tune of $187,786! Yes, that is the debt owed "per-taxpayer". To put it an even more twisted way, if you just fell out of your mommas vagina today, you would already be in debt $68,262 before you took your first breath of oxygen!

https://www.usdebtclock.org

You might think you have $187,786 in assets - savings or what have you but that number only takes into account that EVERYONE ELSE DOES TOO! Since 96% of the population DOES NOT, well then I am afraid you would be going down with the ship like the rest of us!

Most "logical" people would say that having a surplus is the only LOGICAL way to go because it would be better if you fell out of the Vagina worth +$68,262!

That is why I say you're absolutely correct about this culture of debt.. Kids born today are in debt the moment they are born!

When lenders refuse to lend at a high rate because they want to force the Government to lower their borrowing rate that's a SERIOUS RED FLAG! But the banks and lenders are not worried about any consequences because they are too big to fail, and that is exactly what the government has shown them time and time again.

SELLC · CERTIFIED POST WHORE

In fact, at the beginning of 2019 the Federal Reserve actually thought it was going to be able to RAISE interest rates FOUR TIMES this year... It is now August and they have lowered them 25 basis points with the banks still screaming they want three more rate cuts in 2019!

Some are even suggesting that NEGATIVE interest rates are on the horizon! How the fuck does that work!? It doesn't! I think the definition of that would be socialism.

SELLC · CERTIFIED POST WHORE

And what about all these new crypto currencies popping up? Bitcoin and the likes, then we have Facebook wanting to get in on the game with their Libra!

Back in my day the only other currency accepted in the US was tokens for a video game machine at Chucky E Cheese!

Trump may be onto something with Tariffs though, it's almost as if any interest China is making on bonds is now going right back to us in the form of tariffs!

I can't imagine anyone wanting to live under communist rule, although Stockholm Syndrome is real!

I also can't imagine 99% of the population wanting to run the economy into the ground to the point where all their real estate and money was worthless... however I could see the 1% willing to take that risk because they are so rich and diversified they could weather it and make billions more! Thus this culture of debt and banks telling the Federal Reserve what to do and when to do it.

Nuffan · No longer a user - left on their own accord.

SELLC wrote:
So you basically have the same mentality as PowerStroker who thinks the Treasury can just mint a $2 trillion dollar coin at any time and deposit it!?
lol - okay... sure.. I'd like to see that coin!
It does not work that way, in fact China has been holding $1.7 trillion dollars in treasury bonds over the last few years and HAS collected BILLIONS of interest payments on them!
Also you should know if China dumps it's $1.7 trillion in treasury bonds the dollar WOULD FALL in value, causing other countries to follow suit. Furthermore, such a problem would cause a rout in the bond market and dissuade new bond sales!
And, if you really want me to help remove your head from your ass - such a scenario could lead to other countries to reject the dollar, as it would be considered worthless fiat currency that no one would accept! Why? Because some jackass thought it didn't matter and people like me got sick of your BS and called your hand! A lot of people are under the assumption that debt doesn't matter - until it does! It is not until you come up short that you really understand that debt DOES MATTER!
Given what you said above, and your cavalier attitude I am having serious doubts that you are wealthy. If you were, you would understand that everything you "think" you have is also worthless!
Your property? You claim it's all paid for - but guess what? It wouldn't be worth SHIT!
Your stocks, bonds, 401k (tied to the market) and any savings would also be SHIT!
Your cash stockpile? You might as well wallpaper the walls of the homes on your worthless shit properties with it because, yep - you guessed it, not worth SHIT!
So I suppose this is the time when you tell us all you're diversified with a strong Gold bullion and precious metal horde.. LOL, sure...

Not at all...I WAS QUITE CLEAR...

This has NOTHING to do with the Treasury....

The Federal Reserve buys the incoming bonds like that have since the creation of the Federal Reserve...

When it was created it was prohibited from holding US treasury notes (DEBT)...

WW1 quickly made them aware that the budget would never be able to keep the government running and repay the actual principal to the debt...

So while the Federal Reserve is not allowed to buy debt directly from the US Treasury it can buy it on the open market....it in FACT HAS to to keep the US from defaulting on it's debt obligations...

most of our debt is spread across 20-30 years bonds...yes the Federal Reserve will make good on principal and interest for 30 year bonds sold in 1999 at some point this year.

That debt is then transferred to the Federal Reserve...THIS is how the Federal Reserve monetizes our debt.

the discretionary budget makes appropriations for interest on the debt...but never the principal...

not once in 106 years has the congress appropriated one cent to the principal of our national debt.

This is WHY the principal currently sits at almost 22 trillion dollars...

FICA hold a over 2.5 trillion...The Federal Reserve holds over 2.5 Trillion current bond holders hold the remaining 17 trillion...

When the TREASURY PRINTS MONEY and injects it into the economy that is quantitative easing....

When the Federal Reserve buys bonds that is transferring US Debt to the principal owners of the Federal Reserve.

and THAT is monetizing our debt...we just keep doing it...the problem is we are about to be in a place where we can not even make the interest payments as the principal only GROWS....

The Federal Reserve holds $2.5 trillion of U.S.Treasuries, which is roughly one-sixth of U.S. debt held by the public and one-eighth of the gross debt. The rest of the Federal Reserve's balance sheet contains other bonds and mortgage-backed securities bought as part of quantitative easing.

Nuffan · No longer a user - left on their own accord.

I have known for years that FIAT money is essentially worthless...

but as long as there is confidence in our markets and economy it does have intrinsic value...

You mean you are just now grasping that the only value to anything we have is intrinsic?

I am not wealthy not by a LONG shot....not even close...

I am simply debt free...

Which makes me better off than most...

Nuffan · No longer a user - left on their own accord.

BY the way we past the point of no return LONG ago...

The only way for the US to ever get out from under the debt is to dump the Federal Reserve...

WE DO NOT DO THIS...because once we do we will then have to make good on the principal of over 17 trillion dollars over the next 30 years...

basically we are fucked...and it is not going to end pretty regardless of what we do...

surely you were already aware of this....

Nuffan · No longer a user - left on their own accord.

SELLC wrote:
And what about all these new crypto currencies popping up? Bitcoin and the likes, then we have Facebook wanting to get in on the game with their Libra!
Back in my day the only other currency accepted in the US was tokens for a video game machine at Chucky E Cheese!
Trump may be onto something with Tariffs though, it's almost as if any interest China is making on bonds is now going right back to us in the form of tariffs!
I can't imagine anyone wanting to live under communist rule, although Stockholm Syndrome is real!
I also can't imagine 99% of the population wanting to run the economy into the ground to the point where all their real estate and money was worthless... however I could see the 1% willing to take that risk because they are so rich and diversified they could weather it and make billions more! Thus this culture of debt and banks telling the Federal Reserve what to do and when to do it.

Crypto currency is just a private currency...

I think they are a fools game...

if you are afraid of an economic crash best go with gold and silver...

when the dust settles that is all that will have REAL value...

SELLC · CERTIFIED POST WHORE

Nuffan wrote:

Crypto currency is just a private currency...

I think they are a fools game...

if you are afraid of an economic crash best go with gold and silver...

when the dust settles that is all that will have REAL value...

I would agree with that too, however as crypto currency catches on and more people accept it as legal tender in transactions then it could be used to usurp traditional currency and it would also offer benefits should major financial systems collapse.

Here is the amazing part, crypto was trading at ratio of 9647 to 1 back in 2013, today it's trading at a ratio of 48.72 to 1 !!! That is in just six years!!!!! Think about that!

Of course crypto is highly volatile, but so can traditional currency when there is turbulence.

It is actually quite scary...

SELLC · CERTIFIED POST WHORE

Read that at 49 to 1 if we are rounding because the decimal point was NOT by mistake!

Nuffan · No longer a user - left on their own accord.

SELLC wrote:
Nuffan wrote:

Crypto currency is just a private currency...

I think they are a fools game...

if you are afraid of an economic crash best go with gold and silver...

when the dust settles that is all that will have REAL value...

I would agree with that too, however as crypto currency catches on and more people accept it as legal tender in transactions then it could be used to usurp traditional currency and it would also offer benefits should major financial systems collapse.
Here is the amazing part, crypto was trading at ratio of 9647 to 1 back in 2013, today it's trading at a ratio of 48.72 to 1 !!! That is in just six years!!!!! Think about that!
Of course crypto is highly volatile, but so can traditional currency when there is turbulence.
It is actually quite scary...

there is one other MAJOR difference...

one is FDIC insured by we the people...the other is not...

SELLC · CERTIFIED POST WHORE

Nuffan wrote:
there is one other MAJOR difference...

one is FDIC insured by we the people...the other is not...

And that is why I said that I agree...

CASH IS KING! But precious metals are ACE.

I am pretty sure if the dollar took a hit, crypto would follow. I just don't like how the ratio is playing out, but apparently a lot of rich people are tiered of the restrictions that come along with legal tender. They are like Tesla, they want to skirt the rules and run in the gray shadows and that is what we call "risk".

SELLC · CERTIFIED POST WHORE

Can you just imagine if you had minded 200 bitcoin back in the day when it was super easy and very fast?

If you held them bitcoin until today it would probably have been the best investment ever! Of course that is just the market...

You got to know when to hold em', know when to fold em', know when to walk away and know when to run! lol

Nuffan · No longer a user - left on their own accord.

SELLC wrote:
Can you just imagine if you had minded 200 bitcoin back in the day when it was super easy and very fast?
If you held them bitcoin until today it would probably have been the best investment ever! Of course that is just the market...
You got to know when to hold em', know when to fold em', know when to walk away and know when to run! lol

Just ask the Winklevoss twins...

They took all that money they got from the Zuckerberg facebook settlement and plunged it into bitcoins...

SELLC · CERTIFIED POST WHORE

It would be like buying gold in 1913 at $29.03 an ounce except 100 years faster turn around! LOL

Nuffan · No longer a user - left on their own accord.

Kennedy had the right idea, in 1963 he signed an executive order to eliminate the Federal Reserve.

He then began to create Silver Certificates (to be based on the value of silver) which was to replace Federal Reserve Notes...less than six months later he was shot in the head...

Lincoln was the last president to try and shut down the scam of central banking with the greenback...less than six months later he too was shot in the head...

There is a reason we stay under the thumb of the principal owners of the Federal Reserve Banks...it has more to do with Presidents not wanting to be shot in the head than anything else....lol

There were two problems one Kennedy understood how the Federal Reserve was monetizing our debt and two a gold standard would not allow the economy to expand at the rate it was it needed to be moved to silver...

Nixon just took us off gold and offered no solution, while it did allow the economy to expand more rapidly it also allowed Reagan and a democratic congress to move us into a debt spiral we will never recover from...

SELLC · CERTIFIED POST WHORE

Currently the USA hold the largest gold reserves in the world...

And you know the golden rule!

Nuffan · No longer a user - left on their own accord.

SELLC wrote:
Currently the USA hold the largest gold reserves in the world...
And you know the golden rule!

It should still be done with silver...gold has too many other uses particularly in electronics...

but make no mistake we are eventually going to exhaust our ability to meet interest on the debt...

the bulk of the bonds during Obama terms will not start coming due until 2038-2046. (30 year bonds)

and that will be very painful, particularly those in deep personal debt.

it will be painful to all...

it will likely not get to that point until we are either so old it does not matter much or we will be dead and gone already...

-- Edited by Nuffan on Thursday 8th of August 2019 08:47:32 PM

SELLC · CERTIFIED POST WHORE

In 2038-2046 I'll be in my 60's and early 70's! It will matter!

Nice to know there is no guilt from my elders who are living it up on social security that will long since be depleted by the time I am of retirement age!

In fact, I have no plans to retire for this reason! My goals are to have a few business locations to keep money coming in, however I don't look forward to having to employ/rely on people for obvious reasons.

That is why I plan to buy the buildings my companies are working out of, so that I have something to pass on or sell when I get to retirement age, which I imagine will be up to 80+ years. It's already increased to 72!

All that being said, in 2038 I'll have to bump this thread and thank you for the mess - although you might not be around to respond.. So, let me just say Thank you in advance! evileye

Nuffan · No longer a user - left on their own accord.

SELLC wrote:
In 2038-2046 I'll be in my 60's and early 70's! It will matter!
Nice to know there is no guilt from my elders who are living it up on social security that will long since be depleted by the time I am of retirement age!
In fact, I have no plans to retire for this reason! My goals are to have a few business locations to keep money coming in, however I don't look forward to having to employ/rely on people for obvious reasons.
That is why I plan to buy the buildings my companies are working out of, so that I have something to pass on or sell when I get to retirement age, which I imagine will be up to 80+ years. It's already increased to 72!
All that being said, in 2038 I'll have to bump this thread and thank you for the mess - although you might not be around to respond.. So, let me just say Thank you in advance!

Do not thank me....I spent 40 years paying MAX into FICA each year...for something I will never see...

I can not even start drawing Social Security for another 10 years...

but I can start drawing my pension anytime I like...

SELLC · CERTIFIED POST WHORE

All that being said, it's crystal clear that the whole idea behind running a debt is to keep people indebted - as a whole...

This idea that it's better to be indebted than to have a surplus is just crazy, but that is just the way they are doing things! Like it or not!

They say a depression happens once a generation, maybe you will be lucky enough to miss it like Epstein.

Nuffan · No longer a user - left on their own accord.

SELLC wrote:
All that being said, it's crystal clear that the whole idea behind running a debt is to keep people indebted - as a whole...
This idea that it's better to be indebted than to have a surplus is just crazy, but that is just the way they are doing things! Like it or not!
They say a depression happens once a generation, maybe you will be lucky enough to miss it like Epstein.

We used to have an incentive to save money...

Slowly that has changed to now the incentive is actually to borrow money...and the incentive to save is completely gone...

I can take a first position HELOC on my home...for about $195K draw $70K cash and have a monthly payment of about $325...

with an interest rate under 5% on a HELOC...

I could get right about 3.1 fixed on 15 years, but then my monthly would be higher and it would be front loaded with interest payment where as a HELOC you can pound away on the principal each month...

again all the incentives are to BORROW....and no incentive to save....abysmal interest rate on 100K balance...

SELLC · CERTIFIED POST WHORE

Yes, HELOC's are pretty much the best rates you are going to get but only because they are variable rate and usually only have a draw period between five to ten years. Outside of smaller 15 year and lower term mortgages, they have the best rates but like you said - massive payments as they are basically sort term loans.

With the outlook of several rate cuts that is good news for people with HELOC's! I have a small one as 2nd that comes in handy from time to time but I am seeing a little higher than 5% but should the Fed keep whacking rates I might actually see 5%!

Nice thing about my HELOC is that it's a low interest rate and has longer than a five year draw, it also converts into a loan at the end if there is any balance which I found rather nice, better than a ballon payment anyway.

It really chaps my ass that I should be in the low 800's on my credit score, but because credit scoring companies do not like how it's structured they just pummel my credit score! It should be illegal because honestly if I got a new mortgage today nothing would change in terms of my financial position except to say that I dipped into equity. I would still owe the EXACT same as I owe now, but my score would be an 800+ because I paid the bankers $6k in closing cost, and in their opinion the structure of my debt was more appealing! Never mind the fact that in reality I took debt that would be paid off in two or three years and turned it into a amortized 30 year mortgage! It is wrong what they are doing! I am of the mindset now where I honestly want to just pay the shit off myself and sue them ALL for the money! Even if it takes two or three years!

What would the legal term or statutes / laws be for me to look into? I am really serious about suing them all! My current bank, my current mortgage company, all three of the big credit bureaus and of course the Government - probably HUD.

What would you call that?

-- Edited by SELLC on Saturday 10th of August 2019 08:05:45 PM

SELLC · CERTIFIED POST WHORE

Here is another thing...

Being a small business owner I have an AMEX Platinum charge card with an unlimited balance (well, I proved it wasn't exactly unlimited) but that has to be paid in full at the end of the month. It runs entirely in the business's name and does not show on my credit report. I also have a small loan in the business name from my card merchant (currently about $2000).

Now on the personal side I also carry some business expenses, not to mention equipment purchases and other such business necessities on my personal cards, these payments are serviced by some of the money that I write off every year - yet the banks are unwilling to take these business expenses into consideration and only want to count the money I claim "after deductions" to determine income. Obviously I write off quite a bit every year being a small business person, and this year was the first year you could deduct 100% of an equipment purchase in a single year, rather than depreciating it a small amount each year. This alone helped a lot because we made some pretty large equipment purchases last year, which I am still paying for on a personal side with business money... but they won't unlock that money or even acknowledge it! Why? I don't know... Could be laziness. could be greed, could be both! The idea that all I need to do is pay a mortgage company $6k and extend my two year loans out to 30 years to improve my credit score feels a lot like extortion and loan sharking!

SELLC · CERTIFIED POST WHORE

Then you have the crooked mortgage companies and the games they like to play.. Obviously if you have a lot of equity in your home you would do a mortgage for the most possible, right!? Wrong, lenders will try and give you just 60% of your homes value to keep you coming back for another mortgage. They will even try to add on PMI which is expensive insurance for people who are usually borrowing more than 80% of their homes LTV. Some people can walk in and borrow 120+% of their homes value! Usually these people will almost always be connected to the lender in some way, usually a President, CEO or someone who is a really good customer deeply invested into the institution.

It does not even make any sense to pay PMI unless you are getting at least 100% LTV! You might as well either borrow 75% LTV (to avoid the PMI) or go the full 100%+ if you're going to have to pay that PMI (but normal people will NEVER get over 100% LTV from a bank or the Government)! Currently I don't have PMI, but I have a shit-ton of equity not being utilized. Paying taxes on equity the lenders have me locked out of! Yet the lenders are blaming the Government and credit reporting companies... I want to get them all in front of a Federal Judge and see what is what, too much finger pointing going on.