Free Republic
Browse · Search

Bloggers & Personal
Topics · Post Article

The Real Interest Rate Earned Is The
Less Money Available Real Interest Rate Equation
Real Interest Rate Formula

Real Interest Rates Lowest Since 1975 (Back To Gerald Ford And 'Whip Inflation NOW!') NEGATIVE REAL RATES!

People will want to hold less money, so the interest rate falls. Other things the same, when the price level falls, interest rates fall, which means consumers will want to spend more on homebuilding. Decreases the interest rate and increases aggregate demand. The purpose of expansionary monetary policy is to increase. The inflation rate. If the Fed buys government securities from commercial banks in the open market. Interest Rate Calculator. The Interest Rate Calculator determines real interest rates on loans with fixed terms and monthly payments. For example, it can calculate interest rates in situations where car dealers only provide monthly payment information and total price without including the actual rate.

A central bank can also directly influence the supply of money available for credit by increasing or decreasing the money supply. The graph below is a supply and demand graph, where four percent is the equilibrium real interest rate and $100 billion equals the loanable funds made available at four percent.

Confounded Interest ^ | 06/252021 | Anthony B. Sanders

Posted on 06/25/2021 8:36:27 AM PDT by Browns Ultra Fan

To quote Dean Martin, “Ain’t that a kick in the head.”

Real interest rates (nominal interest rates less the inflation rate) are more negative than anytime since 1975.

The REAL effective Fed Funds rate (on the short end) is the lowest since 1975.

The real 10-year Treasury Note yield is also the lowest since 1975.

1975 is notable for a high inflation rate and President Gerald Ford’s infamous song (penned by The Music Man’s Meredith Wilson) “Whip inflation now!”

Win! Win! Win!

We’ll win together,

https://yooclever.amebaownd.com/posts/20600705. If you are a developer, you can earn money by either putting up a paid app or insisting on getting a subscription for your app, either monthly or yearly. Apps like Netflix make their significant earnings through this method. Capital One Shopping. Disclosure – Capital One Shopping compensates us when you get the Capital. LoadTeam is a Windows app that helps you make money by harvesting your computer’s idle power. The app runs quietly on the background, processing jobs one by one. When a job is completed, your computer sends the result to LoadTeam and you get paid for the job.

Win together, That’s, the true American way, today.

Who needs inflation?

Not this nation.

Who’s going to pass it by?

You are, and so am I

Win together.

Lose? Never!

If you can win, so can I.

It is no longer on the internet, but there used to be a video of Meredith Willson plunking this tune on a piano. A truly embarrassing moment.

Share this:

(Excerpt) Read more at confoundedinterest.net ..

TOPICS:Business/Economy; Government; Politics
KEYWORDS:cpi; inflation; interestratesNavigation: use the links below to view more comments.
first1-20, 21-34nextlast

Negative real interest rates. Thanks Fed! Lowest since RINO President Gerald Ford. What a mess Biden and The Fed are making.

1posted on 06/25/2021 8:36:27 AM PDTby Browns Ultra Fan

To: Browns Ultra Fan

We need a Volcker clone back at the Fed.. a no-nonsense business guy who isn’t afraid to raise rates to where they need to be squeeze inflation out of the economy. Unfortunately, we don’t have that guy and won’t be getting him anytime soon. Watch your money burn, kids.

2posted on 06/25/2021 8:41:26 AM PDTby irishjuggler

[Post Reply | Private Reply | To 1 | View Replies]

I don’t borrow money, I save it. Low interest rates have cost me thousands. Wish they would go back up.

3posted on 06/25/2021 8:43:57 AM PDTby CodeJockey(Dum Spiro, Pugno)

[Post Reply | Private Reply | To 1 | View Replies]

I don’t borrow money, I save it. Low interest rates have cost me thousands. Wish they would go back up.

4posted on 06/25/2021 8:43:57 AM PDTby CodeJockey(Dum Spiro, Pugno)

[Post Reply | Private Reply | To 1 | View Replies]

If negative real interest rates aren’t boosting the economy then maybe it is time to admit that out problems are not financial but rather regulatory and social. (Work? Who needs it when I get my gubbmint check for even more)

5posted on 06/25/2021 8:44:33 AM PDTby KarlInOhio(Police should refuse duty at NBA venues. Let them wallow in their desired chaos without police.)

[Post Reply | Private Reply | To 1 | View Replies]

We need a Volcker clone back at the Fed.. a no-nonsense business guy who isn’t afraid to raise rates to where they need to be squeeze inflation out of the economy.
That can't work now, because we are spending so much more than we are taking in that interest on new debt would be even more unaffordable. And no, we can't reduce spending to make up the difference because too much of the spending is mandated by law. That means massive tax increases or more inflation.

6posted on 06/25/2021 8:48:18 AM PDTby Dr. Sivana(“At first you go bankrupt slowly, then all at once.” -- Hemingway)

[Post Reply | Private Reply | To 2 | View Replies]

It’s rare that the returns on savings are higher than the inflation rate. A “savings account” will lose you 2% of your money every single year.

7posted on 06/25/2021 8:52:26 AM PDTby ProtectOurFreedom('Pour les vaincre il faut de l'audace, encore de l'audace, toujours de l'audace')

[Post Reply | Private Reply | To 3 | View Replies]

Interest rates high, people have a fit.

Interest rates low, people have a fit.

8posted on 06/25/2021 8:52:27 AM PDTby SaxxonWoods( comment might be sarcasm, or not. It depends. Often I'm not sure either.)

[Post Reply | Private Reply | To 1 | View Replies]

Bank interest rates ARE rising. My checking account saw a 100% increase over last month. The interest they paid me increased from $0.02 in mid-May to $0.04 in mid-June for basically the same balance.

I pine for the days of .. 4%??????

[Post Reply | Private Reply | To 1 | View Replies]

“We need a Volcker clone back at the Fed.”

The guy that raised rates it 21% and threw the country into recession? NO THANKS!

10posted on 06/25/2021 9:00:50 AM PDTby TexasGator(UF)

[Post Reply | Private Reply | To 2 | View Replies]

Hey, those rates sank the Carter administration, so don’t knock it until you try it.

11posted on 06/25/2021 9:05:11 AM PDTby irishjuggler

[Post Reply | Private Reply | To 10 | View Replies]

We are heading to a cliff, and you don’t want to stop the car?

Higher interest rates will destroy the economy, because we can’t service the debt at the lower rates today.

Which means we are screwed anyway.

12posted on 06/25/2021 9:08:40 AM PDTby redgolum(If this is civilization, I will be the barbarian. )

[Post Reply | Private Reply | To 10 | View Replies]

“I pine for the days of .. 4%??????”

My stock account is paying almost 3% in dividends.

That is on today’s stock prices. Much higher if you consider the

Less Money Available Real Interest Rate