thanks for the insult since Im so stupid please explain why its the stupidest analogy ever
Fed banks get paid by banks six percent on the FRNs they laon to member banks the FRNs are created for nothing so the fed pulls six percent out of the economy for the use of FRNs
Because in Cyprus there is a 10% loss overnight to depositors as compared to in America where depositors have not lost money in a bank insolvency.
And because you imply that 6% of GDP goes to the banks, rather than a 6% return on a tiny, token volume of capital stock that would barely show up on a community bank’s balance sheet if indeed it exists at all.