ZIP 5.88% $2.70 zip co limited..

Chart - Z1P, page-10523

  1. 4,535 Posts.
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    We've been through this AJ and you came out looking a fool.

    You said the feds only option now was to increase interest rates. Both TimTamTom and I told you that isn't the only option and what they're doing right now (changing nothing basically), is the better option.

    Economic recovery is the path to take because currently the supply of goods and services cannot match the demand of the reinvigorated global spending mentality post Covid. Simply because the businesses that were shut down during Covid do not exist anymore and need time to be rebuilt. Plus the shift back to global travel and luxury type expenditure, which will eventually cause a decrease in the demand for material goods. i.e. Lumber for construction.

    On top of thay there has been obvious supply issues for materials. A lot of it stemming from what I mentioned above as well.

    But yeah, if you want another hard method the fed can us to curb inflation, then increasing the bank reserve requirements is another tool. Technically they can control wages, although that's unlikely atm.

    They can also alter their current monetary policy, specifically through foreign debt. Although the US is in a tricky spot there, so that's also unlikely. It's not out of the realm for other countries though.

    So yeah there's plenty to do before using the interest rate path.
 
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