On Fri, 02 May 2008 11:18:20 -0700, Lantern wrote:
> On May 2, 3:47 am, "Dan in Philly" <d...@[EMAIL PROTECTED]
> wrote:
>> "Money Man" <Mo...@[EMAIL PROTECTED]
> wrote in message wrote:
>> >> Federal Reserve policymakers will discuss paying interest on
>> >> bank reserves in a closed door meeting on Wednesday.
>> > Who would be paying - or where would the interest payments come from?
>>
>> The money would come from some combination of money creation (by the
Fed)
>> and government spending (either taxes or borrowing, the latter being
>> postponed taxes).
>
> Le t me see if I understand. This rumored new law, will pay banks
> interest on their reserves. You suspect the payment would come from
> the government, the FED or gov. spending. This would be a heckuva gift
> to the banks. But you may be right.
He is correct as far as it goes. It would be better to just do away with
the reserve requirement and regulate the banks in a different way. I
loath the day when the banks can turn a profit without lending.
--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org/extend
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