Government Now Needs All That Bailout Money Back

After the Federal Reserve poured between $6.4 trillion and $8.3 trillion into the economy,  inflation seems inevitable. But not to worry, once again the Federal Reserve is coming to the rescue. The Fed has this nifty new tool that allows it to pay interest on cash reserves that private banks park at the central bank. That’s supposedly going to prevent the inflationary tide. Just one little problem: aren’t the banks supposed to be lending excess cash so businesses can expand and the economy can recover?

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s