Posts Tagged ‘rate’
Federal reserve cuts rates by 0.75%
Tuesday, January 22nd, 2008“Too little too late” This is the phrase that I’ve been hearing continuously in the news both for reaction of the government to stimulate the economy with tax rebates, and today with the federal reserve decision to cut the interest rate by 0.75%.
Why does the federal reserve need to cut the rate? Our economy is based on ever increasing credit. If people don’t borrow, there will be no money i.e. DEBT=MONEY CREATED IN THE SYSTEM. The reverse is true, repayment of a debt destroys the money created, which is the same thing that happens when a mortgage goes to foreclosure - the money gets destroyed.
Rate cuts, real estate slump - how deep is that toilet
Thursday, January 10th, 2008I’ve been reading more lately about financing. I mean the core of money, where it comes from and how it gets killed, not just real estate financing. I’m surprised by a lot of what I read, and actually hope that others take the time and understand the pillars of our economy in order to know how to plan for his or her future.
I watched some videos on Google video: Money As Debt , Money banking and the federal reserve . Although sometimes those videos generalize their talk, yet after doing some research I found that a lot of it is actually true. The fact is we are dealing with non-existent money.
