"the fed"

got a friend that works at walmart and he told me he has been asked to work overtime to change prices. Seems they had some meeting and cause the fed did something with bonds or something everything that is a consumable is going up by like ten percent. I heard they were going to print some money but im not sure what its all about. I think it has something to do with a false inflation thing. They are going to print money and pump it into the market til gas goes up to 5 and stop then. just wondering whats going on this is going to hurt my wallet if my groceries go up 10% !

Re: "the fed"

Gossip, drewmitch.

Check it out at snopes.

Re: "the fed"

Even though monies are or will be put into the system and deflates the dollar making the dollar worth less, you also have at the same time commodities going up in price. There are two types of commodities, soft and hard. Hard is extracted through mining and soft are goods that are grown or made. Wholesalers can only hold their prices for so long before passing it on to the consumer. You are now or will be shortly feeling the increases at the super market soon, cererals, meats, poultry etc: Average increase in price will be 7-9 percent. Lets take cereral a box now cost 3.59 plus 8 percent increase next month that same product will cost you 28 cents more, 3.87 and that is on one item. In reality you can be adding 20 bucks to your groceries. One way to help beat it is with coupons.

Re: "the fed"

I hope your friend can use the OT since so many don't even have a job.

Re: "the fed"

Yes, they are going to print more money (again) to help out banks lend more money to people on the fence credit wise. When they do it brings us closer to super inflation. Then to reign in the inflation(bring all of that printed money back in) and make our dollar worth more they have to raise interest rates. Notice a couple of countries have tried to do super inflation to pay off their debt and help citizens. It has never worked in history all of the other countries had to change their monitary system.

Re: "the fed"

Not that I agree with the move but the purpose is to make money cheaper to borrow. The hope is that lower interst rates help businesses expand(more hiring) as well as lower interst rates for consumers. The risk is inflation but since we are at a point of almost deflation, that is not the immediate worry.

http://articles.latimes.com/2010/nov/04/business/la-fi-fed-stimulus-20101104

There are tons of articles on the net. Just google "600 billion bonds" and the results will keep you busy for awhile.

Re: "the fed"

What is flawed is the banks have tons of money to lend, yet make it near impossible for investors to borrow money to buy up the inventory glut of houses out there.
Most investors I know and deal with use creative financing and lend cash amongst ourselves to get deals done.

Lending institutions are flush, but seem to be waiting for rates to go back up before loosening restrictions.

Re: "the fed"

Isn't this on the boarder line of being political.

Just asking.

Re: "the fed"

Summer Fun said:

Isn't this on the boarder line of being political.

Just asking.

Click to expand...

No, it is over the border as well as being full of alarmist gossip.