top | item 44160457 (no title) idrathernot | 9 months ago So why doesn’t he lower the interest rates? Money is fiat and the reserve requirement is 0. discuss order hn newest tossandthrow|8 months ago You might ask why the fed does not reduce the interest rate to "save" the usd.The reason is that it makes no difference. The usd is a fiat currency and relies on trust in the institutions, in this case the fed.If they bail out the government, then other investors will loose confidence and the rate will go up, manifest as inflation.At this point the US citizens are going to pay massively for this. Either through hyper inflation or. Increased taxes to pay the debt. seanmcdirmid|9 months ago Jamie Dimon? He isn't the fed. Also, the interest rates set by the FED only apply to banks, not the yield of US treasuries, which is set by supply and demand for those treasuries.
tossandthrow|8 months ago You might ask why the fed does not reduce the interest rate to "save" the usd.The reason is that it makes no difference. The usd is a fiat currency and relies on trust in the institutions, in this case the fed.If they bail out the government, then other investors will loose confidence and the rate will go up, manifest as inflation.At this point the US citizens are going to pay massively for this. Either through hyper inflation or. Increased taxes to pay the debt.
seanmcdirmid|9 months ago Jamie Dimon? He isn't the fed. Also, the interest rates set by the FED only apply to banks, not the yield of US treasuries, which is set by supply and demand for those treasuries.
tossandthrow|8 months ago
The reason is that it makes no difference. The usd is a fiat currency and relies on trust in the institutions, in this case the fed.
If they bail out the government, then other investors will loose confidence and the rate will go up, manifest as inflation.
At this point the US citizens are going to pay massively for this. Either through hyper inflation or. Increased taxes to pay the debt.
seanmcdirmid|9 months ago