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Originally posted by Anonymous ATS
Because of this very high risk premium banks do not lend money to each other (i.e too expensive), the rising TED spread comes from lack of trust, Banks can not tell which bank will default next, like Bear Sterns for example. After this period of stress is over, the financial system will go back to normal sans some large banks / investment banks and the FED will get its money back i.e the provided 'short term liquidity' will be withdrawn from the financial system.
Why would Japan, for example, want to inflate its Yen if they know a devalued U$ would increase their general power in the world?
Originally posted by Rockpuck
If OPEC states had any back bone.. they would create their own currency .. and it would replace the US Dollar over night..
Originally posted by anachryon
This money has to come from somewhere. It's not sitting in a vault or in Ft. Knox or somewhere; it's simply "printed" up. These charts show the incredible expansion of the amount of money created (the monetary base) and how it's sitting on the books of various banks (excess and non-borrowed reserves).
As long as the money sits there in the banks, it's not a huge deal. The instant it starts moving into the day to day economy - via loans, interest paid, hiring, building new bank branches, etc - though, the economy starts to inflate.
the majority of the wealthy are ALREADY out of the market sitting on cash.
Originally posted by Keyhole
Now they are talking about another "stimulus package" for us to help people through this hard time.
From what I'm understanding is that this stimulus package may do more harm than good?
And this would be due to the fact that the government is just going to print this money up, which will cause this hyper-inflation due to the fact that this newly printed money wil be "moving into the day to day economy"?