Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • COVID-19
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Your Health
  • Ron Paul
  • Bank Credit & Money
  • Dick Young’s Safe America
  • Your Survival Guy’s Super States
  • Critical Race Theory
  • NNT & Cholesterol
  • Work to Make Money/Invest to Save Money

The Federal Reserve Should Raise Rates Immediately

December 10, 2013 By Richard C. Young

I agree with Cato’s Mark Calabria on the need for the Fed to raise interest rates. Here Mr. Calabria lays out the rationale for an increase.

To help the economy, the Federal Reserve should begin raising rates immediately and bring its preferred policy rate, the federal funds, to a more neutral stance. The Fed’s current rate policies have not delivered economic growth or employment and should be abandoned in favor of policies that would.

The theory behind the Fed’s current rate policy is that lower rates increase the demand for borrowing, which should fuel both credit-driven spending and investment. This however, only examines one side of the market: demand. For credit to expand, lenders must be willing to lend at those rates as well, but current rates barely cover a lender’s inflation risk without also covering the risk of not being repaid.

Read more here.

Related video:

If you’re willing to fight for Main Street America, click here to sign up for my free weekly email.

Related Posts

  • VIDEO: The Federal Reserve Explained
  • Audit the Federal Reserve: HR 1207 and S 604
  • A Federal Pay Raise – a Terrible Idea
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Latest posts by Richard C. Young (see all)
  • Dollar Strengthens as “Least Bad” Currency Today - July 6, 2022
  • BANKRUPTCY: Airline Restructures as Exhausted Pilots Demand Relief - July 6, 2022
  • BIDEN OUT OF TOUCH: Will America See Recession, or Worse? - July 5, 2022

Dick Young’s Must Reads

  • The Masters of the Universe Align Themselves with CHINA Using YOUR Money?
  • Conflict Between Democratic Sovereignty and Transnational Progressivism (Globalism)
  • You May Be Surprised by America’s “Least Woke City”
  • Warning! Your Survival Guy’s on a Boil Water Advisory
  • Your Odds with Statins: 500 to 1?
  • Stunned Democrats Against “Defund Police”
  • FARM AMERICA: New York City’s Finest Cheesemongers
  • Victor Davis Hanson: How to Bust DC’s Stronghold
  • Marry Compound Interest, Divorce Market Timing
  • What a Way to Make a Living: New Hampshire #1

Disclosure

RSS Youngresearch.com

  • Red States Churning Out Jobs While Blue States Lag Behind
  • Avoid This Serious Tax Mistake in Retirement
  • “Talk to Me, Goose!” Time Flies in Top Gun: Maverick
  • Could Car Dealers Get Flooded with Cars Mid-Recession?
  • Happy Independence Day
  • Even Without Food and Gas, Inflation is Soaring
  • Despite Inflation, Best Year Ever for Vacation Demand
  • Time to Save, Troubles Dining Out, and Intelligence on Yellowstone
  • Purchases of Gaming Chips for Crypto Mining Tailing Off
  • RURAL RENAISSANCE: America Finds the Country Again

Dollar Strengthens as “Least Bad” Currency Today

Biden’s Economic Illiteracy and Shameless Demagoguery

“Shooter! Run!”

FOOD SHORTAGE: Drought in Italy Leaves Farmers High and Dry

BANKRUPTCY: Airline Restructures as Exhausted Pilots Demand Relief

BIDEN OUT OF TOUCH: Will America See Recession, or Worse?

Copyright © 2022 | Terms & Conditions | About Us | Dick Young | Archives