Posted on 07/23/2009 10:16:52 AM PDT by anonsquared
It's hard to imagine that the monetary policy talk can get any nuttier, but we've likely only just begun. After all, despite the Federal Reserve growing its balance sheet by 140 percent and dropping rates essentially to zero, the bankruptcies just keep on coming. Ex-Fed governor Wayne Angell told Larry Kudlow's CNBC audience, "monetary policy always works!" ~snip~ Meanwhile, Japanese authorities are toying with the idea of outlawing cash in their country.
(Excerpt) Read more at mises.org ...
Now the word is that zero-percent interest rates are just too darn high. That's why we haven't seen a reinflation of bubble America. The Financial Times reports the existence of a Federal Reserve staff memorandum that makes the case for a negative-five-percent federal-funds rate.
The government and Fed are vigorously trying to reinflate those bubbles
Oh yes you can!!!
The brilliant president, his brilliant advisors, his brilliant congress, and his brilliant constituents have proven it!!! Figures dont’t lie! Just look at the statistics!!
/S/
IMHO
Nonsense, the financial sector-banks, Wall Street-actually believed that they could engender prosperity by moving their pieces of paper from place to place-they can’t. You have to make something in order to be prosperous. We gave our prosperity away to China and India...in China sales of GM cars are up 62%. Why? They make products that people buy. The American people were sold a bill of goods by Wall Street-with the consumer, service or consumption economy-whatever you call it...it’s an abysmal failure. Until we find some way to bring back manufacturing, nothing will get better.
Right, and the banks will make out again with a favorable Fed funds rate while hard working Americans pick up the tab.
What are the odds that those same banks will not only not charge you interest for using their credit cards, but pay you 5% interest to go out and charge up a storm?
Just wondering if you have seen this? I watched the video of his speech the other night and he seems to be on the right page.
What they are doing is backwards from reality and common sense. Can you imagine punishing savings by subtracting 5% a year from accounts??
Where will these banks get the money to loan when there is nothing in their vaults?
Will we be able to refinance our mortgages where the banks pay us 5% a year for 30 years?
Although if we exported the bulk of lawyers in America to China and India, our prosperity would improve overnight while theirs would take a nosedive.
Fed will soon announce they will pay your airfare to bring your own sack and pick it up.
Not really. 5% inflation with 0% interest rates = -5% real interest rate.
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