How has it been with the intention of with all the billions of dollars for every month with the intention of the Fed has injected into the money supply, how fall the country has not responded? Even though the Fed had pointed their money stimulus, the Fed’s balance sheet has increased to more than 4 trillion dollars up from a semi of a trillion lately a the minority years past. So if the Fed has supplied the country with more or less 4 trillion dollars, everywhere is the money?
Following the money trail the Fed prints the money outdated of skeletal air and therefore lends it to the U.S. Treasury. Then the U.S. Treasury equipment the banks with this money by the side of close to zilch appeal charge. So by the side of this sense the Banks boast the stimulus money. This money was leave into flow to help the country grow through lending in support of homes, dealings, and the rest. But a large amount of the homes in our day were purchased with cash. Corporations are sitting on a best amount of cash. They boast ready this since they see to not lack to send back it and remuneration the confront on it.
Loans are not being made since of lending policies. Corporations are not needing the money in support of extension. What they are borrowing money in support of is to nest egg their operations since they would instead remuneration a low-interest rate of with reference to 3% than send back the money they boast overseas and remuneration 40% in confront. So by the side of the tip of the era, the money with the intention of was printed to fuel the country has not been used in support of its intent.
The banks with the intention of boast the stimulus money boast invested it. They are paying almost nothing in appeal and in point investing it assertively. This will be hazardous in support of the taxpayer since these banks are too substantial to fail and if or whilst the provide bubble pops the U. S. Government will boast to bail them outdated to keep a banking regularity alive. However this count this bubble is so substantial with the intention of it can ruin the country as a totality and as a consequence collapse the “system” with the cash.
If the banks are not up for grabs to enjoy the money with the intention of was leave into flow in support of its intent. Then the U.S. Government has a fiduciary task to obstruct issuing bonds in support of the Fed to pay for. The regularity must realize with the intention of increasing the Fed’s balance sheet with the intention of already has more than 4 trillion dollars of reserves annotations has to obstruct. When is whilst? If the country has not been stimulated later than trillions of dollars of stimulus, more is not the solution. If the money stimulus is the answer, force the banks to contribute it or if they will not, therefore they obligation mail it back to the U.S. Government so with the intention of they can repay the federal loans.
Find outdated, later than all of the trillions of dollars of financial stimulus with the intention of the Fed has injected, the reasons why the country is still reduce speed. Start to realize with the intention of the events of the Fed has single inflated a bubble with the intention of ultimately will collapse the cash if nothing is ready.
