So we’re quibbling over 2%?
There is a significant number of Americans that will be tossed from their jobs with increased AI & automation. And a few will not be low IQ folks.
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When I pointed that out, you argued against that… Sheesh…
I said what are you going to do with them as many cannot find other work due to IQ limitations.
Yeah. The interest upon what they have to borrow to exist is less. Whoppee!
The low, ZIRP environment actually transferred more wealth to asset owners, and rich by taking it from savers and labor. If you change the share of national wealth, you will see that. While in nominal terms your interest on your credit car loan may be less, but in real terms you are further falling behind.
Unfortunately we don’t live in real world but nominal world.
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[quote=“TucsonBones, post:29, topic:119355”]
Trump’s second term has not been like the first, Trump has gone out of his way to not follow conventional
[/quote] … anything.
First term, he was scrambling.
This time he came with a plan - surround himself with “His” people, who liege to him first.
ralph
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No quibble, but a question: Why aren’t the results symmetric? There appear to be twice as many people under 70 than over 130.
DB2
Yep, lower rates will put upward pressure on asset prices (stocks, bonds). Just like we’ve seen since the 2008 financial crisis.
Including real estate, because when you lower the cost to finance something (house, car, equity future, securities on margin), that puts upward pressure on the price of that something.
For a fixed monthly payment (eg, I can afford $Y per month house/car payment), with lower financing costs more of that monthly payment can go towards the house/car price (principal), raising demand in $ terms for real estate and auto and thus putting upward pressure on prices
If rates to finance real estate decline too much, we can look forward to less affordable housing (in terms of higher real estate prices per say, not financing costs)
We can also look forward to more private equity buying housing and other assets (business like doctor’s offices, small businesses).
Private equity thrives on lower financing costs.
And I recognize that Fed policy mostly operates on the short end of the yield curve and other forces act on longer term rates used in consumer and commercial finance.
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Since there is no link from the table, it may be based on something other than the symmetric distribution that IQ charts/tables are supposed to represent.
Another look is from 2023 at IQ distribution in the United States (and more) | by Mike Sage | Medium which does show the symmetric distribution.
If we take the fact that the U.S. population is roughly 333 million Americans, we can see that the distribution breaks down as follows:
- 130–145 = 6.6 million geniuses
- 115–130 = 46.6 million gifted Americans
- 100–115 = 113 million above average folks
- 85–100 = 113 million below average folks
- 70–85 = 46.6 million challenged fellows
- 55–70 = 6.6 million slightly more challenged people
Pete
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That group did well in both the low interest environment (pre covid) and the high interest environment (post covid). Now look at the increase in real medium income during the two periods.
From 2010 to 2019 - low interest rates - the increase was 20%. In the high interest rate post-covid there was hardly any increase, just 1%. The low interest environment worked out much better for the average wage earner.
DB2
And, since USian education for the Proles has been defunded, and all the “knowledge jobs” outsourced to people in other countries, who were educated at someone else’s expense, menial jobs will be the only thing available for USian Proles.
Steve
Over the years, the OEMs have enabled ever higher prices, by offering ever longer financing periods. Remember when cars were financed for three years? Now, it’s 7-8 years.
Steve
So a 1% rate helps those already owning stocks by pushing up the value of their portfolio.
And a 1% rate helps those without a portfolio by letting them borrow more money.
I wonder how those two things affect income and wealth inequality. Would the rich get richer and the poor have more useless toys to distract from their poverty?
—Peter
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Sounds about right. Have you been to Walmart lately?
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I disagree. H 1 B visa for the professional class hires. But illegal workers for the menial jobs. You can pay them less and you can call ICE for trouble makers or if you decide to close the facility and wish to screw the illegal workers out of their last paycheck.
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That leaves 300M US citizen proles with nothing to do. They could become dangerous to the regime.
Steve
Yep. AI, robot technology and automation are advancing faster than expected.
Those in power are thinning the proles out with poor food quality & poor healthcare by concentrated business sectors interested in profit only. Accelerated by poor wages for the working class. They are mostly the ones with guns. The young working class males are kept occupied by the US foreign policy of meddling.
And lordy do not go to a retirement facility that is private equity owned. You just cut your lifespan longevity!
We are fortunate as old geezers that we won’t see the riots. Eventually world soil degradation and end of metal and raw materials will cause a human die back.
Just 2 words:Soylent Green
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How is that going to help the 30 year T-notes market? 30-year yield rose by 9 basis points over the past four days to 4.85%.
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