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The Real Significance of The Fed’s Zero-Interest-Rate

This is an excellent synopsis of the situation... posted at Dprogram.net by sakerta on December 30, 2008...The Shadow Money Lenders: The Real Significance of The Fed’s Zero-Interest-Rate Policy (ZIRP)

http://dprogram.net/2008/12/30/the-shadow-money-lenders-the-...

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I think there is a more

I think there is a more simplistic view on this topic.

1) The US Government is the sole supplier of US currency.
2) The time value (interest) of US Currency is 0%.

Therefore: US Government issued currency has no value.

--
"A centralized church is no less corrupt than a centralized government."
- Brent R

--
"A centralized government is no less corrupt than a centralized church."
- Brent R.

... a follow-up question to ponder..

If the banks can borrow money from the government for nothing; why would they want to pay interest to depositors like you and me?

I expect in the next 6 months banks will start raising fees and cutting back on services. This will happen to discourage expensive interest bearing savings and checking accounts.

But where can Joe the plumber safely store his money? In the next 2 years I think we could see banks merged into the Fed. We will all deposit our money into a Federal Bank to be overseen by the US Congress.

Now that's scary.

--
"A centralized government is no less corrupt than a centralized church."
- Brent R.

WOW - a must read!

There is some speculation here but he seems to have hit this on the head. This is the naked reality we are seeing unfold before our very eyes..

It can't be...can it?

It can't be...can it?

That was a great read

A must for all DPers.