Posted 10 years ago on Sept. 14, 2012, 11:54 p.m. EST by TrevorMnemonic
This content is user submitted and not an official statement
The Federal Reserve announced it will be giving 40 billion dollars to banks every month... indefinitely.
Actually more specifically the Fed wrote "the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month.... The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability"
Why are we doing this?
Why are we loaning banks trillions of dollars at interests rates as low as .01% just so they can loan people money at 5% to 29.9% ??
A people's bank would be nice. Especially considering the money is all FDIC backed in the first place. AKA tax payer dollar backed since it's our tax dollars that pay for the government that supports this system that creates the dollars we use to pay with. A lot of loans are predatory loans getting people trapped in debt because of 29.9% interest rates because they paid 1 day late.
Banks and credit rating agencies hold too much power over our country and our economic destiny. And the federal reserve continues to prop them up. To the point they're "too big to fail."
More logically we could be using monetary policy to be building roads. Railways. Farms. Schools. Hospitals. Etc... things that actually grow a community and create jobs. And we can do that without inflation.
Nothing good comes from poverty.