Tennesseefree.com

Southern Beale is smarter than she looks.

I don’t understand why the Federal Reserve continues to lower interest rates to deal with this issue. Lowering interest rates only makes things worse by devaluing the dollar, making the price of foreign made imports (*cough*cough*oil*cough*cough*) more expensive, which then makes everything else more expensive. It’s a vicious cycle.

Sounds a lot like what I wrote in this post.

Meanwhile, guess what the Fed did today.

As I said in my last post, technically this is not a recession. But I personally would not have a problem with a recession. I would rather see this economy stop growing for a little while, than create a long term problem with inflation. The price of oil is directly tied to the strength of the dollar. Pumping more money into the economy is not what we need right now. We need less money in the economy. Hopefully, this is the last Federal Funds Rate cut, before they come to their senses.