So, the Fed is PAYING banks NOT to lend money? Is this really true? And does this make any sense whatsoever to anyone here? If so, would you please explain it to me?
The Fed is giving (our) money to the banks. Always remember that Government HAS NO MONEY. It is OUR money. Government produces NOTHING.
The banks can then loan it out to us schlubs at ZERO percent interest, OR they can turn around and buy Treasury Bonds from the Fed and the Fed (meaning You & Me!) pays them interest for buying the treasuries.
Banks are in the business of making money off of other people’s money. Now, what would you do? Make money and keep your bosses happy or not make money and get fired yourself?
THIS is why NONE of that money is flowing back into the economy in the form of capitol so small businesses can expand, create jobs and hire workers.
It IS insanity, isn’t it? It’s a total Ponzi scheme and it’s going to have dire consequences for us all.