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To: HangnJudge
Thank you for those charts. Interest rates high, money multiplier about 3.0, where it has to be for a successful economy. That's what I was taught in Economics courses in the 1960s.

The money multiplier is only .75. That means all of the bogus stuff that's being printed has no long term effect on the economy.

The fix: increase interest rates.

I am not trained in Economics. Correct me where my hypothesis makes no sense, please.

38 posted on 05/29/2015 6:19:14 AM PDT by grania
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To: grania
The fix: increase interest rates.

Can't. That would crash the economy practically overnight. We now have so much debt that we can`t even handle the slightest increase without going into recession.

49 posted on 05/29/2015 6:27:33 AM PDT by concerned about politics ("Get thee behind me, Liberal")
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To: grania

“The fix: increase interest rates.”

I believe the fix isn’t in tweaking monetary policy, but the fix is in removing government from business and peoples lives. No income taxes, no business taxes, no regulations, etc. Then watch the people thrive and their businesses. Watch the economy take off.


87 posted on 05/29/2015 8:55:29 AM PDT by ForYourChildren (Christian Education [ RomanRoadsMedia.com - Classical Christian Approach to Homeschool ])
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To: grania
The money multiplier is only .75. That means all of the bogus stuff that's being printed has no long term effect on the economy.

My understanding of some of this stuff is shaky at best, but would a multiplier under 1 mean the the multiplier effect is actually working backwards? $1 in yields .75 cents out? If so, were in a negative feedback loop. That can't be good.

109 posted on 05/30/2015 5:29:15 AM PDT by Flick Lives ("I can't believe it's not Fascism!")
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