federal reserve

Banks don’t “lend out” excess reserves

I recently came across this S&P report by S&P’s Chief Global Economist Paul Sheard debunking common misunderstandings about the Federal Reserve, QE and excess reserves. I’m posting it here to clear up misinformation about what banks do with their excess reserves at the Fed. I’ve definitely been led astray in the past by economists regarding this […]

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Up stocks, down fixed-capital

Thad Beversdorf with a nice piece at Voices of Libertyon why the Fed is destroying the middle class. However, we have to remember that at the end of the day corporations are just money allocators like any hedge fund or mutual fund manager. CEOs are sworn to maximize shareholder funds. Understanding this we must expect corporations to invest […]

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Is the Fed Really to Blame?

This article was originally published at ValuesandCapitalism.com on August 14, 2012. With the passage of Ron Paul’s “Audit the Fed” bill in the House recently, monetary policy is once again becoming a mainstream political issue. And it’s about time. For decades, Americans have stood idly by as inflation destroys the value of their hard-earned savings […]

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