Dana7360
Diamond Member
- Aug 6, 2014
- 15,147
- 13,596
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The fed cut interest rates again in another effort to ward off a trump recession.
My education and degree is in accounting and finance. I had to take those economic courses to get my degree but I'm by no means an expert in the subject.
While I'm not an expert I do know the simple laws of supply and demand.
Cutting interest rates will only cause inflation because it's not demand that is causing the economic problems. It's supply. Creating more of a demand of goods that aren't in supply will cause what's left in supply to cost much more.
Big business foolishly sent our jobs to Asia or business too heavily depends on parts being made in Asia.
Now that the supply line has been disrupted by a virus, the supply isn't there. Which will cause inflation for what is left because there still is a demand.
As the virus works it's way through the world, demand will fall. Which will further harm the economy.
All the rate cut will do is make borrowing cheaper for the rich. Further widening the income gap.
DOW quote and summary -- MSN Money
My education and degree is in accounting and finance. I had to take those economic courses to get my degree but I'm by no means an expert in the subject.
While I'm not an expert I do know the simple laws of supply and demand.
Cutting interest rates will only cause inflation because it's not demand that is causing the economic problems. It's supply. Creating more of a demand of goods that aren't in supply will cause what's left in supply to cost much more.
Big business foolishly sent our jobs to Asia or business too heavily depends on parts being made in Asia.
Now that the supply line has been disrupted by a virus, the supply isn't there. Which will cause inflation for what is left because there still is a demand.
As the virus works it's way through the world, demand will fall. Which will further harm the economy.
All the rate cut will do is make borrowing cheaper for the rich. Further widening the income gap.
DOW quote and summary -- MSN Money