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.
The Fed is desperately trying to figure out how to get more money
into circulation. This would not surprise me.
Okay, so we do things like this to enrich banks, then tax hell out of
it. What's wrong with that scenario? We mostly launder Fed money through
the general economy anyway....
I have just reinvented Harry Truman's domestic economic
policy, haven't I?
"What is time? it is a s**** which eats its own tail, like this." -
Vonnegut.
--
Les Cargill
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