Hunter":1m69wy85 said:
Brute, do you mind explaining why the treasury prints money if an individual takes on debt?
Maybe, I am just not following what you mean.
I do agree that when the treasury prints money it could devalue your dollar.
Better wording than I can type.
Explanation of federal funds rate decisions. When the Federal Open Market Committee wishes to reduce interest rates they will increase the supply of money by buying government securities. ... Reducing the Fed Funds Rate makes money cheaper, allowing an influx of credit into the economy through all types of loans.
Its a viscous cycle. People say that the cost of living has gone up but the pay hasn't. That is because our dollar is devalued. Our dollar is devalued because the fed has to keep interest rates low because Americans worship debt.
My problem with the mega banks is they have changed the way they do things now because they know the government will bail them out. They are making loans on vehicles, houses, etc that should not be made.
We just got out of the housing crises because they got laxed on the lending and what do they do... over extend themselves in O&G.
Our country is going down the tubes financially because people can not get their spending under control. The idea that its their money to do with what they want does not fly any more because we are having to prop them back up after their bad decisions.