[GodGunsGuts]

I'm glad you asked, Robin. I will answer your question with another question. What do you suppose would happen if the banks were suddenly flooded and required to pay interest on billions upon billions of US dollars that had previously been kept out of circulation?

[Toddsterpatriot]

What do you suppose would happen if the banks were suddenly flooded and required to pay interest on billions upon billions of US dollars that had previously been kept out of circulation?

So you are saying banks would get the money? That Americans are not forced to pay interest on anything? Suddenly that doesn't sound so scary, does it?

[Fraxinus]

What do you suppose would happen if the banks were suddenly flooded and required to pay interest on billions upon billions of US dollars that had previously been kept out of circulation?

Offer home loans at ridiculously low rates and drop the rate for savings? Decreasing the incentive to save money, and helping to inflate a housing bubble?

[bruinbirdman]

"What do you suppose would happen if the banks were suddenly flooded and required to pay interest on billions upon billions of US dollars that had previously been kept out of circulation?"

I suppose they would thank the depositor. All the banks I know would be happy to pay the going rate of interest for any deposit including foreign currency. That is virtually the definition of a bank.

If the deposit is worth $10,000 or more and the bank is in the U.S., I suppose they might tell Uncle Sam.

yitbos