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The Fed is your friend?
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<blockquote data-quote="Commercial Inside Release" data-source="post: 5346070" data-attributes="member: 93336"><p>The FED rate hike does more than stifle home, vehicle and other big ticket purchases and of course any borrowing money... It has an unadvertised aspect of forcing job cuts, which in turn forces a contraction of consumer spending (since unemployment puts people on a strict budget.) This in turn tightens the money supply, to cause inflation to go down. Sadly, it is the disposable workers that are financially ruined in the process. It had devastating effects during the Carter administration, and again in the early 80s.</p><p></p><p>This is why I've been tracking the job listings between these two rate hikes. They are the canary in the coal mine - the first to get cut. Job listings don't count (unless someone is hired,) and companies can cancel the listings without any bad publicity or anyone even noticing. </p><p></p><p>Job listings are important. There are probably 200,000 new workers entering the workforce every year. No job listings, and 200,000 have been disposed of, without ever even being on the books. Eventually, if things get worse, one by one they come for YOU!</p><p></p><p>Can't say it is actually happening yet, but it is important to keep an eye on it.</p></blockquote><p></p>
[QUOTE="Commercial Inside Release, post: 5346070, member: 93336"] The FED rate hike does more than stifle home, vehicle and other big ticket purchases and of course any borrowing money... It has an unadvertised aspect of forcing job cuts, which in turn forces a contraction of consumer spending (since unemployment puts people on a strict budget.) This in turn tightens the money supply, to cause inflation to go down. Sadly, it is the disposable workers that are financially ruined in the process. It had devastating effects during the Carter administration, and again in the early 80s. This is why I've been tracking the job listings between these two rate hikes. They are the canary in the coal mine - the first to get cut. Job listings don't count (unless someone is hired,) and companies can cancel the listings without any bad publicity or anyone even noticing. Job listings are important. There are probably 200,000 new workers entering the workforce every year. No job listings, and 200,000 have been disposed of, without ever even being on the books. Eventually, if things get worse, one by one they come for YOU! Can't say it is actually happening yet, but it is important to keep an eye on it. [/QUOTE]
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