Federal Reserve Blames Stagnant Economy on Money “Hoarding”

Inflation is not as high as it “should” be. In spite of the fact that the Federal Reserve has pumped $4.5 trillion dollars of non-existent money into the economy and has held its interest rates at zero percent for six years, money just isn’t moving around much. And the Federal Reserve thinks it knows why: Banks have put away close to $2.8 trillion in reserves, and households are sitting on $2.15 trillion in savings—about a 50 percent increase over the past five years. “So why did the Read more […]

Don’t Raise Minimum Wage, Just Fix the Currency

With all the talk about minimum wage, most people miss the real culprit for the rising cost of living: inflation. Does it really matter if you make $20 an hour, if every dollar you earn is worth ten cents? Of course not. Recently, some minimum wage workers in Philadelphia learned about the Federal Reserve. They apparently had never thought about what is actually making it hard for them to make ends meet. They talked about corporate bank accounts and a lack of “trickle down,” as if somehow Read more […]

QE3 Won’t Work; How About QE4?

Fed chief Ben Bernanke recently announced the Fed’s policy to buy up an additional $40 billion in mortgage-backed securities every month at least until the end of this year. He said that the policy will continue until we have recovery. Some on Wall Street are already saying that QE3 will not be enough. They want more. Whenever the Fed prints money, money flows into Wall Street and pumps up the stocks and makes investors wealthy. No wonder they want more. They want the Fed to guarantee their Read more […]