1 vote

The High Cost of 0% Rate

The interminable extension by the US Federal Reserve on the 0% rate into 2014 represents history in the making. It is the adoption of pure heresy in monetary policy, making it mainstream. Worse, it forces foreign central banks to adopt the same destructive policy in the Competing Currency War. Once upon a time, the highest priests from the central bank would admit in a guiding tone that accommodation on interest rates must be temporary. Nowadays it is engrained in the market mindset and permanent in monetary policy. The chronic 0% means the entire financial and monetary system is totally irreparably broken.

http://www.24hgold.com/english/news-gold-silver-the-high-cos...



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Interesting and deep article.

They're out of tools in their bag.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

LOL 0% My Ass

It is only 0% when the they loan money to the other "connected" banks...but the real interest rate is what is passed on to the citizens in the form of inflation from them printing the money to loan to the other banks thus the FED still gets their cut just instead of getting it back from the banks they loan it to they get it back from everybody that has US currency thus robbing every nation that possesses federal reserve notes.