• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!
  • Welcome to our archives. No new posts are allowed here.

Pocket Watch - Interest Rates!!!


Well-known member
Feb 19, 2005
Reaction score
in the middle of America
Political Leaning
You don't have to worry about inflation rearing it's ugly head in the future. It already has. Some will benefit (maybe) and some will not:

Consumer prices rose 1.2% last month (14.4% if consistent over 12 months) due to high energy and commodity prices which include materials that are needed for the rebuilding of the gulf coast.

The inflation rate for the last 12 months was 4.7% with this extra increase in energy and materials making this the highest inflation rate in the last 25 years.

One problem is that treasury rates are currently 4.6% while 25 years ago they were at 8.2%. I think that shows clearly that Alan Greenspan and the Fed have not been doing their job of raising rates to control coming inflation. Now, that will have to change. If not????????

If you are on COLA (Cost of Living Adjustment) through your wages or benefits such as Social Security you are looking at a 4.1% increase for the coming year.

If you are on any kind of an adjustable interest rate you are in for a ride. Adjustable interest rates are going up and up and up. Do yourself a favor and either lock in a fixed rate NOW or take a fixed rate loan NOW and pay off any adjustable rate loans you may have NOW.

Higher interest rates mean slower housing sales. Since we have had a wonderful "housing bubble" there is a huge inventory of both new and used homes on the market with thousands upon thousands of others being built and planned as we speak. Home builder insiders have been selling the stock of their own companies since summer at an accelerated rate. They own the company and are selling their own stock? Better take notice.

As of Friday, October 14th at 4:00 pm, the courthouse stopped accepting bankruptcy filings under the old rules. You can still file electronically over this weekend but then as of Monday morning, that's it. The new rules won't let you write off your debts like the old did. Filers will have to take mandatory credit counseling and go on a payment schedule and pay back those creditors. That, by the way, will save us all money in the future since we can expect payback for business getting this plum.

A majority of the Federal Reserve members are already on record in the last month saying things that reinforce the coming inflation; the inevitable inflation. They have had their heads in the sand for years not allowing things such as housing prices in the Consumer Price Index. Housing prices go up 15% per year but what about your wages and then you try to buy a house. Thanks Alan, the smartest Greenspan we have, right?

Just be aware, if you are financially tied to bonds, SELL NOW. Get that fixed rate NOW. Move to protect your cash assets to protect principle NOW. Do something about your energy consumption (drive slower and lower the thermostat) NOW.

My neighbor converted an unused bedroom into the warm room. Here they have comfortable seating, entertainment center and a quartz electric space heater ($38.88 currently at Wal-Mart). The rest of the house is set at 60 degrees and they are enjoying "O'Reilly" or "Olberman" at 76. They will save considerably. One hour before going to bed they turn another space heater on low in the bedroom.

Oh and don't blame the Republicans or Democrats for this one except on the fringe such as not requiring a lower speed limit and things related to that type of action. This is Alan Greenspan and his guys. They could have been raising rates more agressively and curbing the coming inflation but, they didn't. Their deceptive way of administering the Consumer Price Index is criminal. And, Alan is gone next year so he can say, "Wow. Look what happened after I left!"

Good luck everyone.
:duel :cool:
Top Bottom