Wednesday, April 29th, 2009
For further stories and commentary from this journal on the dangers of debt monetization, click here or explore the links at the bottom of this story. (For commentary on the perils of Keynesian economics, visit mises.org). The largest debt holders in the world – and not just the American banks and the IMF, but lesser known, secretive international institutions like the bank of banks, the BIS – are looting the middle class right out in the open, and blowing out the economy in order to institute a new global system. This is a coup. There should be a word for it – coups under monarchical systems are kicked off by regicide, so perhaps ‘econocide’ fits the bill.
Flashback: Bank of Canada poised to print money to buy bonds | A Bigger, Bolder Role Is Imagined For the IMF | Barclays, Lloyd’s, RBS join Goldman-Sachs in the black | IMF poised to print billions of dollars in ‘global quantitative easing’ | UK Central Bank begins using ‘new’ money | IMF may need to “print money”, act as “world’s central bank” as crisis spreads | Bilderberg Seeks Bank Centralization Agenda
Boyd Erman, Brian Milner, Globe and Mail
April 29, 2009 at 1:11 AM EDT
Can U.S. interest rates effectively fall below zero?
Economists and traders expect the Federal Reserve to signal just that on Wednesday when it makes its first policy announcement since lowering its benchmark target to between zero and 0.25 per cent, a move that left it no room to cut interest rates the conventional way.
Now, there are signs the central bank is about to become much more aggressive in its unorthodox efforts to drive rates effectively below zero.
The Fed has already been intervening in the debt market — or at least promising to do so — as part of its effort to bring down long-term rates. But economists expect even more of the kinds of measures known as quantitative easing as the Fed works to get the lending wheels turning again in the U.S. economy.
The central bank’s target rate cannot actually fall below zero. So its measures are aimed at bringing long-term rates to where they would be if short-term rates could go negative, given the traditional spread between the two.