interest-rates

How Savings and Investment Increase an Economy’s Output

Filed in BP, Debt, deflation, economy, interest-rates, Lear, o, silver, Spot Gold, target, US Dollar by on February 14, 2011 0 Comments

Everyone who has held a job and a bank account understands the potential benefit of postponing consumption today in order to enjoy greater consumption in the future. However, many people — if pressed — would explain this increase in saver’s income by an offsetting reduction in the income of a borrower in the economy. This is certainly a possibility. For example, if Bill (the borrower) forgets his lunch money on Monday, he might ask his coworker Sally (the saver), “Can you lend me $10 and I’ll pay you back $11 tomorrow?”  If Sally agrees, then it is clear that her $1 in interest on the personal loan was paid out of Bill’s reduced income for that month. In other words, if Bill’s take-home pay that month were $5,000, then he would actually only have $4,999 to work with, because of his $1 expenditure in “buying a loan” from Sally. At the same time, if Sally’s normal paycheck were also $5,000, then this particular month she would actually have $5,001 to work with, after earning $1 in providing “lending services” to Bill. In the scenario above, what basically happened is that Bill financed his consumption with an “advance” made by Sally. On the Monday morning is question, …

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Picture du Jour: U.S. at risk of losing its AAA status?

While the debate about the U.S. debt ceiling is taking place, Société Générale is of the opinion that a downgrading of the country’s sovereign debt is just a matter of when and how fast interest rates on its borrowings rise.

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Fed Members Differ on Economic Outlook

Fed Members Differ on Economic Outlook

Filed under: Economic Data , Federal Reserve , Recession The Federal Reserve has embarked on a controversial new program of buying $600 billion of U.S. Treasuries to keep interest rates low and spur the economy. There is some disagreement among some members of the Fed concerning the risks of this new program. Some fear that the economy is growing too rapidly, fueling unwanted levels of inflation, as reported by CNNMoney . Continue reading Fed Members Differ on Economic Outlook Fed Members Differ on Economic Outlook originally appeared on BloggingStocks on Wed, 05 Jan 2011 12:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Quantitative Easing Program Confirmed by Federal Reserve

Filed in Federal Reserve, Gold Investing, interest-rates by on October 27, 2010 0 Comments

by guest author David urban http://dcurb.wordpress.com Not content on waiting to reveal to the markets after the conclusion of the November 3rd Federal Reserve meeting, the St. Louis Fed just published an article in the latest Monetary Trends entitled ‘Is More QE in Sight?’ http://research.stlouisfed.org/publications/mt/20101101/mtpub.pdf A short summary of the article extols the virtues of

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Citigroup (NYSE:C) Raises Gold Estimate to $1,450

Citing expected quantitative easing, which is another word for inflation, to be instituted by the Federal Reserve, Citigroup (NYSE:C) sees gold prices over the near and medium term to rise to $1,450 an ounce. That is based on the accurate assumption the value of the U.S. dollar and other currencies will fall against gold as they continue to be debased from the faulty policies of their central

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Why Would Any Country Buy U.S. Treasuries?

Why Would Any Country Buy U.S. Treasuries?

Filed under: Market Matters , Economic Data , Federal Reserve The world of international finance is a complex web. The U.S. is still the powerhouse when it comes to gross domestic product. Yet, while perched on top of the heap, the U.S. faces major problems with high-level debt and unemployment. The U.S. Federal Reserve is faced with having to issue massive amounts of debt just to keep pace with the growing deficits. Now the Fed is planning another round of stimulus by buying more treasuries, dubbed QE2. Continue reading Why Would Any Country Buy U.S. Treasuries? Why Would Any Country Buy U.S. Treasuries? originally appeared on BloggingStocks on Sun, 03 Oct 2010 11:40:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Gold Prices Shine for Eighth Straight Quarter

For the eighth quarter in a row gold prices have ended in positive territory, as everything which supports gold remains in place. Adding to the recent push is the realization we’re still in a recession, and a long way from emerging from it. That means the inevitable interference of the government via quantitative easing, where they waste money by attempting to throw it at the problem again, even

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Barclays (NYSE:BCS) Sees Gold Remaining Strong in Fourth Quarter

With fundamentals expected to remain in place, Barclays (NYSE:BCS) believes gold will continue to perform strongly in the fourth quarter. Barclays said “we maintain our view for the fourth quarter of this year to be the strongest quarter on record yet for gold prices, with downside corrections finding support from the seasonally strong period for fabrication demand with the forthcoming wedding

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Secrets to Getting the Best Mortgage Refinance Deal

Filed in ceo, Debt, dividend, Gold Investment, interest-rates by on September 10, 2010 0 Comments

Falling interest rates are a hot topic these days, and contacting your mortgage lender about refinancing to a lower rate could be a great idea to save you tons of money. Before you make the call, though, you’ll need to put together some details to share with the phone representative. First of all, you’ll need to make sure you’ve been paying your mortgage on time. Stress that fact to your lender — harp upon it several times to make sure they know you’re a responsible borrower. Next, you’ll want to highlight your positive credit history. Your lender is going to check your credit, so do whatever you can beforehand to make sure your credit history is solid. Then, make sure to organize your income tax documents so you can verify your current financial situation. Now, if you’ve recently lost your job or have less-than-stellar credit, you’ll need to disclose that information to your lender. It will almost certainly negatively impact your potential rate savings, but it’s best to lay everything on the table up front. Everyone appreciates honesty! Another big factor in refinancing is the home appraisal. Your home needs to be appraised to make sure you qualify for a better rate, and also to ensure it compares well with recent sales in your area. With home values having gone down nationwide, you need to be sure your debt-to-income ratio also falls favorably. If you take care of these factors first, you’ll be well on your way to working a better interest rate for your mortgage! A final option to consider is perhaps reducing the length of your current mortgage, instead of refinancing back to a 30-year program. This option is particularly attractive if you plan on staying in your home for several years. You’ll undoubtedly be offered a better rate on a 20-year mortgage, for example, than a 30-year — just be sure you can afford the monthly payment. Paul Rubillo is the founder and CEO of Dividend.com. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Credit Card Debt Continues to Fall

Filed in Debt, interest-rates, recession, South African Gold by on September 9, 2010 0 Comments
Credit Card Debt Continues to Fall

Filed under: Consumer Experience , Personal Finance , Headline News , Recession How much do you owe on your credit card? If you owe $4,951 your debit balance is average. This is down from 13% from $5,719, according to Trans Union and The Associated Press. The credit reporting agency said that this was the first time since 2002 that balances fell below $5,000. Late payments fell to less than 1%, down from 1.17% last year. Continue reading Credit Card Debt Continues to Fall Credit Card Debt Continues to Fall originally appeared on BloggingStocks on Thu, 09 Sep 2010 17:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Banks Profit From Near-Zero Interest Rates: Another Reason for States to Own Their Own Banks

Filed in economy, gld, Gold, interest-rates by on June 6, 2010 0 Comments

…but the purpose of the near-zero interest rates was supposed to be to get the banks to lend again. Instead, they are investing this virtually interest-free money in risk-free government bonds, on which we the taxpayers are paying 2.5% interest; or are using the money to engage in the same sort of unregulated speculation that nearly brought down the economy in 2008, or to buy up smaller local banks, or to pay “outrageous bonuses to their top executives.” …Owning their own banks can allow local governments to tap into the very low interest rates available to private banks, by giving them the same authority to create “bank credit” on their books that private banks have. Interest (undeservedly collected by private banks) is the root of our excessive tax problem. WRH permalink

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Canada Is the First G8 Member to Raise Interest Rates

Filed in interest-rates, New Gold, recession by on June 2, 2010 0 Comments
Canada Is the First G8 Member to Raise Interest Rates

Filed under: Market Matters , Economic Data , Housing , Currency Canada became the first G8 member to raise interest rates . The rate was increased a quarter point to 0.5%. Since the recession began, only a few countries have raised rates, among them Australia, Brazil and India. The Bank of Canada issued the following statement explaining the rate change: “Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighted against domestic and global economic developments.” Continue reading Canada Is the First G8 Member to Raise Interest Rates Canada Is the First G8 Member to Raise Interest Rates originally appeared on BloggingStocks on Wed, 02 Jun 2010 12:40:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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