Drudge Retort: The Other Side of the News
Thursday, September 12, 2019

President Donald Trump on Wednesday again attacked the Federal Reserve Board and demanded members drop interest rates "to ZERO, or less" a move that would benefit him personally by some $8 million a year.

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This is so stupid - Trump's 'interest savings' are minuscule compared to the capital gains increases he generates when the economy grows at 3%. The Dems are so caught up with TDS that they are hoping to bring on a recession. That is ridiculous. The Fed is looking out for the elites and screwing over working class Americans and the deranged Dems are cheering them on. How stupid are you fools?

#1 | Posted by iragoldberg at 2019-09-11 10:27 PM | Reply | Newsworthy 1

How is this 'cheering on the' fed? With Trump's attention span of a Gold Fish, I'm sure that all he sees is how this puts money on his pocket.

OCU

#2 | Posted by OCUser at 2019-09-12 01:50 AM | Reply

Well there you see the ONLY reason he pines for the fed to cut the rates to "zero or below".

Once again, it is all about what he can get for himself.

#3 | Posted by Nixon at 2019-09-12 07:23 AM | Reply

"Once again, it is all about what he can get for himself.
#3 | POSTED BY NIXON "

Once again, this story is so stupid that it is hard to believe that it is a real thing. Quick question for you, does Trump benefit more from:

A.) Economy grows at 3% and real estate gains 10% (which would be the case as we have the highest rate of any industrial country currently), or
B.) Trump gains $850K from a 25bp drop in the fed rate?

Serious question. Now, I know most of you are poor and have a limited understanding of the economy outside of whatever nonsense MSNBC is spouting - but the answer is obvious.

I should also note that the ECB - that is the European version of the FED for your unwashed Dem voters - is basically holding rates at 0% which is driving interest rates negative. For Trump, he is doing the smart thing. With $20T in debt at a 2.5% (2018), that is $500B in each year just wasted on interest. If Trump were to get the FED to buy back the outstanding debt yielding 2.5% (pay market price and not call the debt), then re-issue long-dated bonds at 1% for 10 or 20 years, he would save $300B/year - that can buy a lot of free stuff the Dems love.

But, it seems like you would rather pay that $300B/year to the elites buying the Gov. debt (Goldman Sachs, Blackrock, etc) rather than actually have that money to spend on actual programs.

Again, your TDS is to the point that you are just embarrassing yourselves.

#4 | Posted by iragoldberg at 2019-09-12 08:07 AM | Reply

^#4 - Just curious, but you phrase your question as if A and B above are mutually exclusive. If the FED drops rates, does Trump not gain in both ways - lower interest payments and higher asset values driven by growth and easier credit?

Maybe I've missed something, but if Trump benefits from both scenarios, how does this negate the allegation that he is acting out of self-interest?

#5 | Posted by Foreigner at 2019-09-12 09:05 AM | Reply | Newsworthy 2

#5 | POSTED BY FOREIGNER

Because B is so small that is is irrelevant to someone with the wealth of Trump. A - on the other hand - benefits Trump 1000x more AND it benefits ALL other US citizens as well. Maybe you missed it, but Europe is in a recession (Italy first to admit it) and China is imploding. The US is the last developed country actually growing at the moment. If the FED takes too long to act, we will be brought down into the global recession. However, if they act quickly and decisively - the US booms and we might be able to save the world, AGAIN.

I will remind you - the reason why the FED has been upping the rate since the Obama stain was removed was because they fear WAGE GROWTH - which is why every average American should want but is loathed by the global elites. Again, those wanting the FED to move slowly are cutting their own throats.

#6 | Posted by iragoldberg at 2019-09-12 09:29 AM | Reply

So, say we head into a recession and need to stimulate the economy? But the Fed already lowered interest rates to zero. Why do you want to take away the tools they use to affect the economy when it's necessary? Trump just want interest rates lowered so he can continue to campaign on growth which is really imaginary.

#7 | Posted by danni at 2019-09-12 09:40 AM | Reply

"Because B is so small that is is irrelevant to someone with the wealth of Trump. A - on the other hand - benefits Trump 1000x more AND it benefits ALL other US citizens as well."

That is totally b.s. Income for average Americans hasn't grown since 1999.

#8 | Posted by danni at 2019-09-12 09:41 AM | Reply

"That is totally b.s. Income for average Americans hasn't grown since 1999.
#8 | POSTED BY DANNI"

Wages under Trump are surpassing inflation - and you want the FED to act slow and bring on a recession. Your TDS is showing.

#9 | Posted by iragoldberg at 2019-09-12 10:04 AM | Reply

Quick question for you, does Trump benefit more from:

A.) Economy grows at 3% and real estate gains 10% (which would be the case as we have the highest rate of any industrial country currently), or
B.) Trump gains $850K from a 25bp drop in the fed rate?

Economy is already growing.

Putting pressure on the fed to cut rates to 0 will increase his bottom line immediately.

It's not or.

It's AND.

#10 | Posted by Nixon at 2019-09-12 10:35 AM | Reply

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Wages under Trump are surpassing inflation

Wages after inflation are below 1974

www.factcheck.org

Last fall, newspaper headlines touted this news. At the time the 12-month percentage change in nominal average hourly earnings for all workers and the rank-and-file topped 3% in August 2018 and has remained above 3% since, according to BLS. That's the highest rate since it topped 3% in late 2008 and early 2009.

(Once adjusted for inflation, the numbers tell a different story. Real average hourly earnings hit their highest 12-month increase under Trump in February " 1.9% " but the increase was higher than that as recently as November 2015, at 2%. And it was the same or higher nearly every month that year.)

#11 | Posted by Nixon at 2019-09-12 10:39 AM | Reply | Newsworthy 2

"Putting pressure on the fed to cut rates to 0 will increase his bottom line immediately."

Trump would like the rates to go down to less than zero:

Donald J. Trump @realDonaldTrump

The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet.....

...The USA should always be paying the the lowest rate. No Inflation! It is only the navet of Jay Powell and the Federal Reserve that doesn't allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of "Boneheads."

#12 | Posted by Gal_Tuesday at 2019-09-12 10:44 AM | Reply

"Wages after inflation are below 1974
#11 | POSTED BY NIXON "

Irrelevant. What matters is are they up from 2016 - answer is clearly YES.

#13 | Posted by iragoldberg at 2019-09-12 10:44 AM | Reply

^#6 - Whether B is smaller than A is irrelevant.

If Trump benefits from lower interest rates and higher asset prices if he can pressurize the Fed into lowering rates, who knows what his motive is. I don't and you don't. Maybe he is concerned for the man in the street, maybe he is concerned for his own wealth or maybe he is concerned that a recession ( which is absolutely inevitable and probably somewhat overdue now ) should be deferred until after 2020 and his bid for a second term. Maybe all 3 in some weighted manner.

I remain a skeptic concerning Trump's motivation; clearly you are not.

#14 | Posted by Foreigner at 2019-09-12 10:46 AM | Reply

"#12 | POSTED BY GAL_TUESDAY"

There is $15T+ in sovereign debt yielding less than 0% currently. Why should the US be paying 2.5% when we are the best credit risk? 0% rates would save $500B/year - surely you can see how that would be a good thing, right?

#15 | Posted by iragoldberg at 2019-09-12 10:46 AM | Reply

Again, your TDS is to the point that you are just embarrassing yourselves.

I'd say your Trump ball cupping is embarrassing you, but you're a Trump ball cupper so we know shame isn't in your repertoire of emotions.

Trump is a greedy schitt heap, he'll take any cash he can get by whatever means necessary.

Also, what benefit does it do us when we get another short burst of 3% growth, only to have no room to move when a recession does hit?

Oh, that's right, it's short term thinking meant to keep the economy "hot" just long enough for Orange Schittheap to get reelected.

#16 | Posted by jpw at 2019-09-12 10:48 AM | Reply

"What matters is are they up from 2016 - answer is clearly YES."

By a whopping almost 1%!

Notice the relatively steady growth since 2010 after the terrible decline in 2008.

www.frbatlanta.org

#17 | Posted by danni at 2019-09-12 10:49 AM | Reply

"Why should the US be paying 2.5% when we are the best credit risk? 0% rates would save $500B/year "

And who would buy our debt if there is no incentive?

#18 | Posted by danni at 2019-09-12 10:50 AM | Reply

"when we are the best credit risk"

We aren't.

tradingeconomics.com

#19 | Posted by qcp at 2019-09-12 10:53 AM | Reply

"#18 | POSTED BY DANNI"

Who bought the $15T that is currently yielding negative rates? Probably the dumbasses in Florida mortgaged their trailers to buy in.

#20 | Posted by iragoldberg at 2019-09-12 10:54 AM | Reply

That is totally b.s. Income for average Americans hasn't grown since 1999.

Thanks illegal immigration!

#19 | POSTED BY QCP

Not exactly proving your point with that link there ...

#21 | Posted by AndreaMackris at 2019-09-12 10:56 AM | Reply

A link to backup your claim abut 15T yielding negative rates?

#22 | Posted by danni at 2019-09-12 11:01 AM | Reply

"Not exactly proving your point with that link there ..."

You should look at Australia, Canada, Denmark, Germany, Liechtenstein, Luxembourg, Netherlands, Norway, Singapore, Sweden and Switzerland again.

#23 | Posted by qcp at 2019-09-12 11:07 AM | Reply

That is totally b.s. Income for average Americans hasn't grown since 1999.

Thanks illegal immigration!

Thanks American corporations doing anything to make a buck!

That's the more accurate reply.

But you're part of that fcked up system and have profited handsomely from it, so you're never going to accurately portray reality.

#24 | Posted by jpw at 2019-09-12 11:11 AM | Reply

"A link to backup your claim abut 15T yielding negative rates?
#22 | POSTED BY DANNI"

YES. I always have links to back my statements.

www.cnbc.com

#25 | Posted by iragoldberg at 2019-09-12 11:16 AM | Reply

This article just serves to desensitize the country to real problems. If something were to completely get rid of world hunger forever but it would benefit someone in an opposite party in any way, partisan hate-filled people will make it a huge problem and not want it to happen. Many people subconsciously know this so when they see articles like this, it isn't taken with the same priority it would have been decades ago. The American people have caused that, no one else.

#26 | Posted by humtake at 2019-09-12 12:14 PM | Reply

Once again, this story is so stupid that it is hard to believe that it is a real thing. Quick question for you, does Trump benefit more from:
A.) Economy grows at 3% and real estate gains 10% (which would be the case as we have the highest rate of any industrial country currently), or
B.) Trump gains $850K from a 25bp drop in the fed rate?
Serious question. Now, I know most of you are poor and have a limited understanding of the economy outside of whatever nonsense MSNBC is spouting - but the answer is obvious.
I should also note that the ECB - that is the European version of the FED for your unwashed Dem voters - is basically holding rates at 0% which is driving interest rates negative. For Trump, he is doing the smart thing. With $20T in debt at a 2.5% (2018), that is $500B in each year just wasted on interest. If Trump were to get the FED to buy back the outstanding debt yielding 2.5% (pay market price and not call the debt), then re-issue long-dated bonds at 1% for 10 or 20 years, he would save $300B/year - that can buy a lot of free stuff the Dems love.
But, it seems like you would rather pay that $300B/year to the elites buying the Gov. debt (Goldman Sachs, Blackrock, etc) rather than actually have that money to spend on actual programs.
Again, your TDS is to the point that you are just embarrassing yourselves.
#4 | POSTED BY IRAGOLDBERG

Speaking of stupid...

"A.) Economy grows at 3% and real estate gains 10% (which would be the case as we have the highest rate of any industrial country currently), or
B.) Trump gains $850K from a 25bp drop in the fed rate?"

First, are you saying (b) means (a) can't happen? Because that's admitting Trump is an idiot and the Fed should ignore him.
Second, (b) doesn't mean (a) can't or won't happen. In fact, Trump thinks (b) will help (a) happen...even though he claims (a) will happen anyway and no recession is coming.
Third, no idea where you are getting 10% real estate gains when the average is about 3% in the US.
Fourth, GDP growth doesn't necessarily mean Trump is making more money.

I'm not poor. I'm rather rich. And you're an idiot.

BTW, the ECB's (and Japan's) use of no or negative interest rates has been universally panned now as economically backward. It actually kills the banking industry by reducing bank income (and future ability to loan by erasing bank liquidity) and forcing banks to lend recklessly (remember 2008?). It hasn't worked anywhere its been tried in fact.
The right leaning Forbes agrees:
www.forbes.com

So I have to ask, are you stupid or high?

#27 | Posted by Sycophant at 2019-09-12 12:46 PM | Reply | Newsworthy 1

- stupid or high?

Can't fix stupid.

So, yeah, stupid.

#28 | Posted by Corky at 2019-09-12 12:50 PM | Reply

--Can't fix stupid.

But you can get really high on Corkus's Homemade THC Oil (TM)

#29 | Posted by nullifidian at 2019-09-12 12:54 PM | Reply

This is so stupid - Trump's 'interest savings' are minuscule compared to the capital gains increases he generates when the economy grows at 3%. The Dems are so caught up with TDS that they are hoping to bring on a recession. That is ridiculous. The Fed is looking out for the elites and screwing over working class Americans and the deranged Dems are cheering them on. How stupid are you fools?

#1 | Posted by iragoldberg

The fed needs to be able to lower rates when trump's recession hits idiot. They can't do that if they're already at 0 percent.

Trump is trying to manipulate interest rates to help his re election chances despite the hazards it creates for the future. If obama did it you'd be losing your mind.

#30 | Posted by SpeakSoftly at 2019-09-12 07:16 PM | Reply

"YES. I always have links to back my statements.
www.cnbc.com"

Now take the next step and learn to read.

"Amount of global debt with negative yields balloons to $15 trillion"

Key word, "global." Not U.S. debt.

#31 | Posted by danni at 2019-09-13 08:44 AM | Reply

Since the fed doesn't answer to Trump, he'll be easy to ignore.

#32 | Posted by goatman at 2019-09-13 07:09 PM | Reply

"Key word, "global." Not U.S. debt.
#31 | POSTED BY DANNI "

Of course it is global, not US as our debt is indexed to the FED - that the WHOLE POINT of Trump saying we need to cut rates. With our debt at 2.5% and global at under 0%, we have a giant disadvantage. Try to keep up.

#33 | Posted by iragoldberg at 2019-09-13 07:22 PM | Reply

"The fed needs to be able to lower rates when trump's recession hits idiot. They can't do that if they're already at 0 percent.
#30 | POSTED BY SPEAKSOFTLY "

Cutting rates AFTER the country is already in recession has zero evidence of doing anything positive because consumer and business confidence is already broken at that point. You need to lower rates in anticipation of the problem - Europe is proving that to be true as we speak.

As a counter point, RAISING rates does have a negative immediate impact on the economy - which is why it is the chief tool of the elites to cool the economy whenever wages start to rise.

#34 | Posted by iragoldberg at 2019-09-13 07:26 PM | Reply

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