2006-11-29 12:00:55 · 3 answers · asked by Midnight Ceres 2 in Social Science ➔ Economics
HaHA! Tight monetary police. What a load of... Sorry, I didn't mean to be rude. It's actually a very loose policy. You see back in the late 90's they lowered interest rates to ridiculous levels, which allowed everyone to give out loans so people could buy houses and refinance their homes and whatnot. This essentially creates money "out of thin air" and keeps our economy afloat. Without that saving grace, our economy would have been doomed. Unfortunately, it couldn't last forever and now we are facing a massive inflation crisis. If the Fed raises the interest rates again to try to counteract this, it will destroy us right away. They will keep the interest rates low and let us face the inflation instead, which will eventually destroy our economy anyways but better later than sooner.
2006-11-29 12:37:20 · answer #1 · answered by Atlas 6 · 0⤊ 0⤋
yet another nonsense answer from Bulabate. His purely sources are conspiracy idea nonsense and the Woodrow Wilson quote he links to is faux. a magnificent style of the quote were given right here from 2 diverse sections of Wilson's e book, "the nice and cozy Freedom" which grew to change into into printed in 1913, earlier the Federal Reserve Act.
2016-10-07 23:43:30 · answer #2 · answered by ? 4 · 0⤊ 0⤋
raises the cost of u barrowing money to be a slave to earning and barrowing more and more
2006-11-29 13:42:40 · answer #3 · answered by bev 5 · 0⤊ 0⤋