The Federal Reserve is the US central bank, which means they own the monopoly on $ creation. The FED is made up of regional branches that service corporate banks. They’ve created a system the puts taxpayers in debt every time a $ is created. I respect their legalized racket, one that takes advantage of citizens never learning about money creation.
Pretty smart guys at the FED.
That’s why I wasn’t surprised to see them pumping banks with fears from the coronavirus. The thought process is, the 11 deaths in the US, 10 from WA state, will snowball and could negatively affect the economy? COVID-19 is deadly in 3.5% of cases which seems really high to an idiot like myself.
Is it cause for lowering interest rates though?
Maybe, depends on how the fiat is spent, would be my argument.
Who benefits from this the most?
The problem is lowering rates won’t lead to innovation or many new jobs being created. That money will hit the banks’ balance sheets and buy back stocks or increase dividends.
Is this how the fed will respond to bad news? Print $?
My father’s generation didn’t understand money creation but they still weren’t dumb enough to bail out banks. The imaginary money that we print from paper? Needs to be taken from honest, hard-workers to make up for gambler’s losses? 2008 was when I learned about who owns the FED and how they create money through debt.