Monetary policy consists of management of money supply and interest rates, aimed at achieving …

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Monetary policy helps achieve economic growth. In addition, the Fed is a privately owned corporation, and it is run by an ex-Goldman Sachs executive, so you wouldnt expect it to be doing anything other than what the Fed is supposed to be doing. So if the Fed is the only player in town, then who is there to play the role of the banker. Well, it turns out that the government is completely in the game too. The feds are the ones truly making all those free money loans for the banks to use. When asked about how the government is helping the banks, they say that they arent, yet, but they are working on it. They have been doing all this for years, but the financial industry has never been totally cooperative about it. Of course, why should they be any different now. These banks are already considered to be too big to fail and they dont really care if the government is taking care of most of their losses, now would they. They dont really care if they are going to have to share some of the losses with shareholders. They are making money hand over fist and they certainly can keep more of that money for themselves. The taxpayers are still paying for this whole mess, why should they be risking more in their insurance policies. All this money printing and the cheap money policies of the Federal Reserve are really not doing a thing to help things out. There is a lot of debt, a lot of bad debts being carried by the banks. This is not going to be fixed by easier monetary policies. This is going to get fixed by the government forcing these banks to write down bad debts and making the bad debts so big and so bad that the banks cannot pay them off. And you know what else is a big bad debt. The interest on the debt that the banks are still not writing down. We are not just talking about the Feds cheap money. We are talking about the banks interest payments on the debt they have been accumulating for years. What can the government do about the debt that the banks are not writing down. The only thing the taxpayers can do is let the banks continue as usual. Let them grow, grow their debt and increase the size of their bad debts, and fail, go under and.

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