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To: Tauzero
But the FED doesn't make lending and/or credit extension decisions.
2 posted on 11/26/2003 11:13:26 AM PST by anniegetyourgun
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To: anniegetyourgun
Exactly right.

The Fed can only make it easier for people to do what they want to do anyway. Which is why the fed really doesn't like deflation. Deflation sets a floor on real interest rates that the fed can't do anything about, although various unpromising schemes have been devised to try to get around that.

8 posted on 11/26/2003 11:48:24 AM PST by Tauzero (Avoid loose hair styles. When government offices burn, long hair sometimes catches on fire.)
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To: anniegetyourgun
But the FED doesn't make lending and/or credit extension decisions.

Yes. That's why the FED of the 1930's couldn't stop a deflationary debt collapse, and why today's FED would be just as helpless.

11 posted on 11/26/2003 12:15:02 PM PST by sourcery (This is your country. This is your country under socialism. Any questions? Just say no to Socialism!)
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