{"id":15516,"date":"2015-12-21T13:07:06","date_gmt":"2015-12-21T18:07:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15516"},"modified":"2015-12-21T13:07:06","modified_gmt":"2015-12-21T18:07:06","slug":"dan-amerman-financial-repression-the-new-interest-rate-hike","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15516","title":{"rendered":"Dan Amerman: Financial Repression & The New Interest Rate Hike"},"content":{"rendered":"

Dan Amerman: Financial Repression & The New Interest Rate Hike<\/a><\/h3>\n
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You have to understand one to make sense of the other<\/div>\n<\/div>\n
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Financial repression authority Daniel Amerman\u00a0returns this week to discuss the ramifications of the Federal Reserve’s first interest rate hike in nearly a decade:<\/p>\n

The key to understand the situation here is that this is not normalizing, and we don\u2019t have a precedent. We really don\u2019t. We\u2019re kind of all being soothed and reassured by the\u00a0Wall Street Journal\u00a0<\/em>and Bloomberg and the financial authorities that we\u2019ve been down this path before, we\u2019ve been down it many times, more often than not we\u2019ve had rising markets as a result and, really, there\u2019s nothing to worry about. The issue with that is there are many things this time that are entirely different, and what is presented as ‘normalizing’, for instance, is going back to say a projected interest rate cycle like we saw in the 2000\u2019s or the 1990\u2019s. What\u2019s completely different, among many other things, is that we\u2019ve never had rates forced so low before, and they\u2019ve never been so low for so long. So, if you look, say at a long-term graph since 1954, what\u2019s been going on with the Fed funds rates, we\u2019ve had plenty of reversals in interest rate direction, but they\u2019ve been these brief little dips that look nothing whatsoever like this.<\/p>\n

The other big issue, and this goes back to our prior conversation on financial repression, is that I don\u2019t think you can take any interest rate increases from the 2000\u2019s, 1990\u2019s, 1980\u2019s, 1970\u2019s as being comparable. Because, we have the greatest degree of national debt outstanding that we\u2019ve had since the 1940\u2019s and the 1950\u2019s. So, you have to go much further back in time to see how a rate increase works when you have a country that\u2019s just absolutely massively in debt. And, it\u2019s a very different process than these recent historicals they\u2019re talking about.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Dan Amerman: Financial Repression & The New Interest Rate Hike You have to understand one to make sense of the other Financial repression authority Daniel Amerman\u00a0returns this week to discuss the ramifications of the Federal Reserve’s first interest rate hike in nearly a decade: The key to understand the situation here is that this is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11168,195,303,4468,305,315,431,534,2218],"class_list":["post-15516","post","type-post","status-publish","format-standard","hentry","category-economics","tag-dan-amerman","tag-debt","tag-fed","tag-fed-funds-rate","tag-federal-reserve","tag-financial-repression","tag-interest-rates","tag-monetary-policy","tag-peak-prosperity"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15516"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15516\/revisions"}],"predecessor-version":[{"id":15517,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15516\/revisions\/15517"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}