Make a prediction (economy)

[Judicial review]

What happens to economy when the printing of money stops when they say in will in a matter not weeks? Will the market respond negatively? How about the next step which is raising interest rates?

 

[Freemason9]

If the money supply stops growing, so will the economy. If the money supply contracts (through surpluses), so will the economy.

Not rocket science.

 

[jwoodie]

Initial euphoria over a GOP Senate would temporarily mitigate this effect.

 

[Zander]

What measures will you use? GDP? Labor participation rate? Unemployment rates? Stock market prices?

 

[SteadyMercury]

Be useful to include some expected timeframes too.

There are people who have been saying hyper inflation and stock market collapse are around the corner for at least four years, they keep saying it but won't admit they were wrong since they maintain an open-ended time to prognostication.

 

[Judicial review]

Be useful to include some expected timeframes too.

There are people who have been saying hyper inflation and stock market collapse are around the corner for at least four years, they keep saying it but won't admit they were wrong since they maintain an open-ended time to prognostication.

It won't take long after the printing stops to see the after effects. A matter of days. The Market will reflect it. Same with interest rates.

 

[Judicial review]

What measures will you use? GDP? Labor participation rate? Unemployment rates? Stock market prices?

Labor participation rate isn't a good measure since most of those are abnormally part time. You can't go off of the Federal gov unemployment rate since those are fudged by the feds. GDP after interest rates increase is a good measure. So are stock prices. Though high stock prices aren't really a good things because the rich are the only ones in the market.

 

[EdwardBaiamonte]

What happens to economy when the printing of money stops when they say in will in a matter not weeks? Will the market respond negatively? How about the next step which is raising interest rates?

Econ 101: Printing trillions means little if the money is not circulating which is the case. They have no plans to start or stop but rather to keep inflation at around 2%.

 

[Judicial review]

What happens to economy when the printing of money stops when they say in will in a matter not weeks? Will the market respond negatively? How about the next step which is raising interest rates?

Econ 101: Printing trillions means little if the money is not circulating which is the case. They have no plans to start or stop but rather to keep inflation at around 2%.

Just heard on foxbusiness that they were going to stop printing to means test this economy.

 

[EdwardBaiamonte]

What happens to economy when the printing of money stops when they say in will in a matter not weeks? Will the market respond negatively? How about the next step which is raising interest rates?

Econ 101: Printing trillions means little if the money is not circulating which is the case. They have no plans to start or stop but rather to keep inflation at around 2%.

Just heard on foxbusiness that they were going to stop printing to means test this economy.

Printing is never used literally in regard to the Fed. It simple means they are going to back off a little and let interest rates rise a little to see if the economy can handle it. This will be done gradually. The announcement is just a way of letting the markets know we are definitely heading in that direction if the economy keeps moving forward.

 

[Judicial review]

What happens to economy when the printing of money stops when they say in will in a matter not weeks? Will the market respond negatively? How about the next step which is raising interest rates?

Econ 101: Printing trillions means little if the money is not circulating which is the case. They have no plans to start or stop but rather to keep inflation at around 2%.

Just heard on foxbusiness that they were going to stop printing to means test this economy.

Printing is never used literally in regard to the Fed. It simple means they are going to back off a little and let interest rates rise a little to see if the economy can handle it. This will be done gradually. The announcement is just a way of letting the markets know we are heading in the direction if the economy keeps moving forward.

Agreed. Pay attention. If the economy doesn't take it well then this recovery is fake.

 

[EdwardBaiamonte]

What happens to economy when the printing of money stops when they say in will in a matter not weeks? Will the market respond negatively? How about the next step which is raising interest rates?

Econ 101: Printing trillions means little if the money is not circulating which is the case. They have no plans to start or stop but rather to keep inflation at around 2%.

Just heard on foxbusiness that they were going to stop printing to means test this economy.

Printing is never used literally in regard to the Fed. It simple means they are going to back off a little and let interest rates rise a little to see if the economy can handle it. This will be done gradually. The announcement is just a way of letting the markets know we are heading in the direction if the economy keeps moving forward.

Agreed. Pay attention. If the economy doesn't take it well then this recovery is fake.

well the two quarters of big GDP growth we've just had may mean the economy is over heating and the fed will have to move quickly with higher interest rates to cool it off. The recovery does seem fake given real unemployment is still around 12% (u6) and income down by 5%. We will see soon enough.

 

[SteadyMercury]

It won't take long after the printing stops to see the after effects. A matter of days. The Market will reflect it. Same with interest rates.

Okay, so to be clear you mean since QE just ended so we should see after effects in a few days? Like November 5th? Can you define after effects?

 

[Judicial review]

What happens to economy when the printing of money stops when they say in will in a matter not weeks? Will the market respond negatively? How about the next step which is raising interest rates?

Econ 101: Printing trillions means little if the money is not circulating which is the case. They have no plans to start or stop but rather to keep inflation at around 2%.

Just heard on foxbusiness that they were going to stop printing to means test this economy.

Printing is never used literally in regard to the Fed. It simple means they are going to back off a little and let interest rates rise a little to see if the economy can handle it. This will be done gradually. The announcement is just a way of letting the markets know we are heading in the direction if the economy keeps moving forward.

Agreed. Pay attention. If the economy doesn't take it well then this recovery is fake.

well the two quarters of big GDP growth we've just had may mean the economy is over heating and the fed will have to move quickly with higher interest rates to cool it off. The recovery does seem fake given real unemployment is still around 12% (u6) and income down by 5%. We will see soon enough.

Exactly.

 

[SteadyMercury]

Though high stock prices aren't really a good things because the rich are the only ones in the market.

All the people in these forums who talk about how their 401ks have done are rich?

Actually I guess that makes me rich too... nice. I think I'll go buy some caviar.

 

[Judicial review]

Though high stock prices aren't really a good things because the rich are the only ones in the market.

All the people in these forums who talk about how their 401ks have done are rich?

Actually I guess that makes me rich too... nice. I think I'll go buy some caviar.

Only 36% of the nation is in the market.

 

[Toro]

GDP will continue to grow at 2%-3% a year for the foreseeable future.

Also, the "market" is not the "economy."

 

[Toro]

Just heard on foxbusiness that they were going to stop printing to means test this economy.

That's why you shouldn't watch Fox Business.

In fact, that's the first time I've ever heard of someone who did!

 

[Judicial review]

Just heard on foxbusiness that they were going to stop printing to means test this economy.

That's why you shouldn't watch Fox Business.

In fact, that's the first time I've ever heard of someone who did!

First time you heard of foxbusiness? Interesting.. Great news station. Better than foxnews. I also like the OAN network.

 

[Judicial review]

GDP will continue to grow at 2%-3% a year for the foreseeable future.

Also, the "market" is not the "economy."

Yup, thanks for sharing.