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To: Justa
The negative GDP growth from removing QE is only the beginning. Once banks are no longer receiving Fed infusions they will need to raise interest rates to make up the loss of income.

I'm not sure you understand how these "Fed infusions" work.

If you get a chance, tell me how they give a bank income.

51 posted on 10/15/2013 7:31:27 AM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: Toddsterpatriot

“tell me how they give a bank income.”

By giving Fed banks a pretense for issuance of their fiat currency directly to the Tresury which repays them with interest when the bonds mature. The interest on the repayment guarantees the Fed banks profits, ergo it is their income.


53 posted on 10/15/2013 8:54:29 AM PDT by Justa
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