<story><title>Federal Reserve raises rates by 0.75%</title><url>https://www.usatoday.com/story/money/2022/06/15/fed-interest-rates-hike/7631195001/</url></story><parent_chain><item><author>queuebert</author><text>Is this because of the transition to a service economy?</text></item><item><author>ren_engineer</author><text>takes guts to do this and it was needed. Problem is that it will expose that most of the US economy is a sham that needed 0% interest rates to even fake growth. our &amp;quot;leaders&amp;quot; have been kicking the can down the road for a long time. US economy used to grow even with very high interest rates, now even a slight increase puts us into a recession.</text></item><item><author>mark_l_watson</author><text>You can argue either side to this, and make a good case.&lt;p&gt;My personal preference is to trigger a recession and reduce inflation. The easy cop-out solution is to say a &amp;quot;big f*ck off&amp;quot; to pensioners, lower middle class, and poor people and let inflation soar, but I believe that long term this would be more destructive to the general economy. Better take the long term view here and not kick the can down the street.</text></item></parent_chain><comment><author>lumost</author><text>There is a counter view that the US economy experienced a variation of dutch disease by being the world&amp;#x27;s reserve currency.  In this view, being the world&amp;#x27;s reserve currency forced the US to &amp;quot;export&amp;quot; dollars and &amp;quot;import&amp;quot; goods.  Making goods manufactured from USD jurisdictions irrationally non-competitive.&lt;p&gt;The reason &amp;quot;dutch disease&amp;quot; is a problem for resource producing countries is that manufacturing productivity growth is much stronger compared to commodity production.  It&amp;#x27;s better to be a manufacturing powerhouse than it is to be a commodity powerhouse.&lt;p&gt;It&amp;#x27;s entirely plausible that services are the same way, it&amp;#x27;s better to &lt;i&gt;make&lt;/i&gt; things for other people than to &lt;i&gt;do&lt;/i&gt; things for other people.</text></comment>
<story><title>Federal Reserve raises rates by 0.75%</title><url>https://www.usatoday.com/story/money/2022/06/15/fed-interest-rates-hike/7631195001/</url></story><parent_chain><item><author>queuebert</author><text>Is this because of the transition to a service economy?</text></item><item><author>ren_engineer</author><text>takes guts to do this and it was needed. Problem is that it will expose that most of the US economy is a sham that needed 0% interest rates to even fake growth. our &amp;quot;leaders&amp;quot; have been kicking the can down the road for a long time. US economy used to grow even with very high interest rates, now even a slight increase puts us into a recession.</text></item><item><author>mark_l_watson</author><text>You can argue either side to this, and make a good case.&lt;p&gt;My personal preference is to trigger a recession and reduce inflation. The easy cop-out solution is to say a &amp;quot;big f*ck off&amp;quot; to pensioners, lower middle class, and poor people and let inflation soar, but I believe that long term this would be more destructive to the general economy. Better take the long term view here and not kick the can down the street.</text></item></parent_chain><comment><author>imachine1980_</author><text>I thinks most becouse real growth only happens in Asian countries last decades, and usa and europe companies fake growth by overlabredge debt becouse of the lower inters rate, not productivity</text></comment>