photo taken from gold-eagle.com
Should the Fed keep interest rates near zero?
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Federal reserve should have been charging banks on excess reserves to create an effective negative interest rate last two years. Didn't do it. Instead they were paying for excess reserves. Which was peachy for the banks but not so much for the general economy or for the fed's stated mission of providing a stable and solid currency.
Under ordinary circumstances I'd definitely say this is bad. Under deflationary circumstances, it's far superior to use monetary inflation and/or depreciation of the currency than to throw money around through Congress as "stimulus" or to just give it to specific banking and financial institutions (even if you get most of it back very quickly).
The "Federal Reserve Note" has no solid backing as it is solely based on just the ability of the government to tax the incomes of the population of the country.
It is best described as insanity on steroids.
Just my not-so-humble opinion. B)
You missed a step here Liberty94. This thread is supposed to be about the Federal Reserve. Plutocracy is one thread down . . .
Oops. >.> New laptop, confusing.
Yup, I know the feeling . . . Where I currently am internet access is sporadic at best.
I will be back at the old homestead next month, sometime. ^_^
Sporadic internet access stinks. I know the feeling. ^.^ Now that we have taken this subject OT…