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Author Topic: Something to think about in regards to inflation and high interest rate  (Read 393 times)

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Offline DuMa

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History may need to repeat itself. 

If we think back in the old days, the days when we were still refugee, what happened to the interest rates of America in the early 1980s?  People were buying houses at 20% interest rate and they were not complaining as how we are right now.  They were only making $3 an hour or something like that but yet, they were able to afford a house because housing was cheap.  Even if they make $3 an hour, if they save up 5 years worth, they can cash out on a house.  These days, you make more money but you have to go long term like 25 years to pay off your house.  Some people can afford $2,500 rent but yet the bank does not qualify them for a $1,700 mortgage.  Does this make any sense to you? 

Now lets talk more about interest rate.   What happened when interest rate is high back in the early days of our parents and the wave of refugees?  The doors of America opens up and immigrants like your parents be coming on over.  They worked odd jobs which creates more goods and with more goods and demands, things became cheaper to buy.  With more people in America, more demand for goods and lower prices so the economy be thriving at the right pace.   Interest rates fell and inflation is on a steady. 

You know that if it was up to the Democrat, more refugee will come into the America right now to help out with the job market and to help lower the interest rate.  More people working = booming economy.  However, the people or shall I say, the Republicans are not having it.  These days, they put a cap on how many immigrants can come to the usa and you see that war in Ukraine?  There goes the democrat answer for new immigrants to help his agenda.  You want lower interest rate and a booming economy?  Bring more immigrants so they can work the jobs of them privilege Americans that doesn't want to work.  The great Resignation anyone? 

Something to think about  O0



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Offline hmgROCK

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If you have $10,000 and locked in that 20% interest for 30 years
You will have $2.3 million

 ;D ;D ;D

Our parents didn’t take advantage
Lack of $$$$ education



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Offline Hung_Low

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If you have $10,000 and locked in that 20% interest for 30 years
You will have $2.3 million

 ;D ;D ;D

Our parents didn’t take advantage
Lack of $$$$ education

That interest rate of 20% he was talking about is borrowing, not saving...

History may need to repeat itself. 

If we think back in the old days, the days when we were still refugee, what happened to the interest rates of America in the early 1980s?  People were buying houses at 20% interest rate and they were not complaining as how we are right now.  They were only making $3 an hour or something like that but yet, they were able to afford a house because housing was cheap.  Even if they make $3 an hour, if they save up 5 years worth, they can cash out on a house.  These days, you make more money but you have to go long term like 25 years to pay off your house.  Some people can afford $2,500 rent but yet the bank does not qualify them for a $1,700 mortgage.  Does this make any sense to you? 

Now lets talk more about interest rate.   What happened when interest rate is high back in the early days of our parents and the wave of refugees?  The doors of America opens up and immigrants like your parents be coming on over.  They worked odd jobs which creates more goods and with more goods and demands, things became cheaper to buy.  With more people in America, more demand for goods and lower prices so the economy be thriving at the right pace.   Interest rates fell and inflation is on a steady. 

You know that if it was up to the Democrat, more refugee will come into the America right now to help out with the job market and to help lower the interest rate.  More people working = booming economy.  However, the people or shall I say, the Republicans are not having it.  These days, they put a cap on how many immigrants can come to the usa and you see that war in Ukraine?  There goes the democrat answer for new immigrants to help his agenda.  You want lower interest rate and a booming economy?  Bring more immigrants so they can work the jobs of them privilege Americans that doesn't want to work.  The great Resignation anyone? 

Something to think about  O0

Getting flooded with illegals/immigrants will not lower interest rates or inflation... it will cost more because these newly arrive people will need healthcare, welfare, etc etc
And they will drive wages down because they will be willing to work for much much less... just to get by.
If what you say is true than Southern states flooded with illegals, migrants would be in great shape and growing economically. NY, CA, IL and other Dem control states would welcome these new comers with open arm. But they're not, they're crying to the gov't to stop the influx...

Today's business environment is also different... back then manufacturing jobs were mostly in the US because they didn't have NAFTA. Even with cheap labor, majority of manufacturers are not going to bring back these jobs.

Now, let's talk about your mama and papa and the great migration of our Southeast people. We did not come in by the thousands daily and we all came in legally...


« Last Edit: March 30, 2023, 02:44:15 PM by Hung_Low »

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Offline DuMa

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And they will drive wages down because they will be willing to work for much much less... just to get by.

You said it best.  Drive wages down and with that, everything else will follows.  Perhaps this is what your government is planning to do with interest rates being elevated.  To stop people from spending and go into a recession to reset things again. 

It happens before in the 70s and see how they fixed it.

"In the late 1970s, in America, prices were rising fast. In other words, inflation was running rampant, usually thought to be the result of the oil crisis of that era, government overspending, and the self-fulfilling prophecy of higher prices leading to higher wages leading to higher prices. The Fed was resolved to stop inflation. So, Chairman Paul Volcker (who is pictured above) kept raising rates in 1980 and ’81, eventually bringing both the economy and inflation to a standstill. "
https://www.pbs.org/newshour/economy/what-led-to-the-high-interest



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Offline hmgROCK

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That interest rate of 20% he was talking about is borrowing, not saving...

Getting flooded with illegals/immigrants will not lower interest rates or inflation... it will cost more because these newly arrive people will need healthcare, welfare, etc etc
And they will drive wages down because they will be willing to work for much much less... just to get by.
If what you say is true than Southern states flooded with illegals, migrants would be in great shape and growing economically. NY, CA, IL and other Dem control states would welcome these new comers with open arm. But they're not, they're crying to the gov't to stop the influx...

Today's business environment is also different... back then manufacturing jobs were mostly in the US because they didn't have NAFTA. Even with cheap labor, majority of manufacturers are not going to bring back these jobs.

Now, let's talk about your mama and papa and the great migration of our Southeast people. We did not come in by the thousands daily and we all came in legally...

Wth

Are you talking about
Saving rate and borrowing interest mirrors each other
Minus the bank fee and etc…

Right now with the high interest borrow rate
You can lock in some good rates
I was making 11% risk free bond last year

 ;D ;D



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