Posted on 07/22/2019 7:01:26 AM PDT by Moonman62
With almost no inflation, our Country is needlessly being forced to pay a MUCH higher interest rate than other countries only because of a very misguided Federal Reserve. In addition, Quantitative Tightening is continuing, making it harder for our Country to compete.
As good as we have done, it could have been soooo much better. Interest rate costs should have been much lower, & GDP & our Country’s wealth accumulation much higher. Such a waste of time & money. Also, very unfair that other countries manipulate their currencies and pump money in!
It is far more costly for the Federal Reserve to cut deeper if the economy actually does, in the future, turn down! Very inexpensive, in fact productive, to move now. The Fed raised & tightened far too much & too fast. In other words, they missed it (Big!). Don’t miss it again!
The Federal Reserve is manipulating the markets.
Their short term rates are much higher than what the market would charge.
Fun way to start Monday. Nicely done. Call out these private bankers.
I wonder is an executive order re-naming them Private Bankers Who Have No Government Authority would work? Private Bankers Who Enrich only themselves and their interests.
Maybe he could name them and their countries of origin.
Bad mouthing, err, telling the truth, err, outing the Federal Reserve by a sitting US President has brought deadly consequences to some who came before Trump. History shows the world’s money changers do take their critics, especially a sitting President, very seriously!
Shut it down.
You are so right. Prayers up for our POTUS.
Inflation is low and economic growth is strong. You don’t need ultra-cheap money during a period of strong economic growth. Plus, low interest rates punish savers (of which I am one). The Fed is doing just fine after 15+ years of irresponsibly low interest rates. We need to let the dollar strengthen in order to improve real wages in this country.
Have to first balance the budget before shutting down the Fed. Bankers have a lot of power over debtors, central banks run the world now because of desire for their cheap credit. Politicians can bitch and moan, but central banks have the power. IMHO anyway.
We need to let the dollar strengthen in order to improve real wages in this country.
...
Wages are best improved by letting the economy grow, rather than the Federal Reserve manipulating the markets and causing recessions, because of their false premise that economic growth causes inflation.
The Fed Reserve sets interest rates. Who gets the interest from those rates? After the banks, what’s left over goes to the private corporation called Federal Reserve, instead of reducing the national debt with it.
Okay, thanks for the info.
#lostwitheconomics
With this Congress and this administration then I would say the Fed has nothing to worry about regarding its future.
What is kind of sad though. The bank is borrowing my money and only paying me about 10 cents per thousand per year. Then they loan it for much more.
From what I’ve read the Federal Reserve is currently paying banks a high interest rate to keep money in reserves and not do anything with it.
That’s not beneficial for our economy or our country.
Banks currently get 2.35% on their reserves at the Fed.
and not do anything with it.
Banks have no control over reserves in the system. Only the Fed and depositors have control.
Every bank could lend out every dollar of excess reserves they hold....and tomorrow all of that money would end up right back in the banking system as reserves. Still earning 2.35%.
I was thinking of this interview that Judy Shelton did with CNBC.
She mentions the Federal Reserve is paying interest rates on excess reserves as part of a system they created back in 2008.
The inflation rate is about 1.5% while the prime interest rate is about 5.5%. How is that "ultra-cheap money"?
Obviously economic growth doesn’t cause inflation....quite the opposite. But all things being equal, a strengthening dollar means that the average American’s income buys more.
The Federal Funds Rate, which is the rate that impacts the rate of all other loans is 2.5% it was near zero for decade. I’m not saying that interest rates need to go higher, but we don’t need any more easing when the economy is strong.
A strong dollar means Americans can buy more foreign goods.
They pay interest on all reserves, not just the excess.
And by definition, reserves do nothing.
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