Cable Forum - View Single Post

BBKing · 22-01-2008, 15:36

The US Federal Reserve has cut interest rates a colossal 0.75%, biggest cut since 1982. Seriously big. One problem with this is the Monty Python Messiah Theory - if there's nothing to worry about ('I'm not the Messiah') why are you panic cutting interest rates ('Only the true Messiah denies his divinity')? Could have the opposite effect, but it will also drop the dollar right in the doo-dah, and thus reduce relative oil prices. On that note, it increases the incentive for oil nations to move to the nice, stable Euro, where you only have to deal with Sarkozy'n'Merkel, not the fag-end of the Bush disaster.

22-01-2008, 15:36	#24
BBKing R.I.P. Join Date: Jun 2003 Location: London Services: 20Mb VM CM, Virgin TV Posts: 5,983	Re: Is reccession in America about to start? The US Federal Reserve has cut interest rates a colossal 0.75%, biggest cut since 1982. Seriously big. One problem with this is the Monty Python Messiah Theory - if there's nothing to worry about ('I'm not the Messiah') why are you panic cutting interest rates ('Only the true Messiah denies his divinity')? Could have the opposite effect, but it will also drop the dollar right in the doo-dah, and thus reduce relative oil prices. On that note, it increases the incentive for oil nations to move to the nice, stable Euro, where you only have to deal with Sarkozy'n'Merkel, not the fag-end of the Bush disaster.