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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (469737)	2/3/2012 3:25:58 PM
From: skinowski	Respond to of 794026

thus far they've been able to print with abandon because the transmission mechanism hasn't gotten the funny money into wage earners wallets It seems what's happening is the Fed is giving banks "cheap" money so that they would buy bonds. The result is that a lot of our public debt is parked in the banking system. Banks "earn" the difference in interests between the funds which they "borrow" from the Fed, and the T rates. From the profits, they were able to pay off the bailout money (what a joke!). Through government payments, it would appear that the funds do find a way into people's wallets. So far the system was able to absorb it; we borrow more money to pay more interest, and life goes on. But sooner or later people will come to the realization that this is not sustainable. Whoever will become the next President may be presiding over turbulent times.