Alternative currency and balanced living system. Alternativna valuta i uravnoteženi životni sistem. Moneta alternativa e sistema di vita equilibrato.

Linija

Crom Alternative News

Investigative journalism and useful articles on various topics.
Tags » bubbles
interceptor
User Rating: / 20
PoorBest 

On January 22, 2012, French presidential candidate François Hollande shook up the banks: “It has no name, no face, no party, it will never be candidate, it will therefore never be elected, yet it governs: that enemy is the world of finance,” he said. It “freed itself from all rules” and “took control of the economy, of society, and even our lives.” He’d fight it, he said, and promised some tough reforms.

webmaster
User Rating: / 6
PoorBest 

Jul 26. 2009, Asia Times



It would appear that at last the US Congress has started to appreciate the extensive damage inflicted on the US economy by the Federal Reserve. This in large part because the Fed has a conflicting dual mandate of full employment and price stability and a structure that makes it vulnerable to the dictates of its chairman.

In pursuit of its full-employment mandate, using aggressive monetary policy since 2001, the Fed has driven nominal interest rates to record low levels, making real interest rates largely negative. Low interest rates, in turn have fueled speculation by reducing its cost, resulting in a number of assets bubbles, the most prominent in housing. This policy, in turn, has compromised the creditworthiness and soundness of the entire US banking and financial system.