The economy has not been going downhill since September. Ron Paul just making a general statement of "the fed was propping up the economy" is not even an analysis of what was happening and why. There were plenty of quality articles written about why the fed was intervening in the repo market at the time if you care enough to read up on it.
There are many economic indicators that need to be looked at when considering the health of the overall economy, and there are much stronger indicators than the interest rate being charged in the repo market. The only reason those loans exist is because the fed requires the banks to have a certain percentage of their deposits in reserve at the end of the day. If the fed needed to "prop up the economy" they would have just changed the reserve ratio.
If we want to be pedantic, we can say “since 1913.” If we want to be technical, we can say “it never got better after 2008.” But if we’re referring to the current collapse, we can definitely say that September was a turning point. QE4 happened and they tried to cover it up.
they would have just
You realize that’s a last resort thing, right? Not a first action. Like, LITERALLY the last resort, even after lowering interest rates to nothing. It’s the sort of thing a system finds it hard to come back from. They fiddle with the interest rate, then they do some PPT scamming, then they do QE, and then they erase the pretense of value in the economy.
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WORF_MOTORBOATS_TROI ago
They wouldn't have needed them without the virus shutting the economy down. The economy is strong aside from the shutdown.
Rotteuxx ago
The economy was going downhill since September.
An article by Ron Paul:
http://www.ronpaulinstitute.org/archives/featured-articles/2020/march/30/will-coronavirus-end-the-fed/
WORF_MOTORBOATS_TROI ago
The economy has not been going downhill since September. Ron Paul just making a general statement of "the fed was propping up the economy" is not even an analysis of what was happening and why. There were plenty of quality articles written about why the fed was intervening in the repo market at the time if you care enough to read up on it.
There are many economic indicators that need to be looked at when considering the health of the overall economy, and there are much stronger indicators than the interest rate being charged in the repo market. The only reason those loans exist is because the fed requires the banks to have a certain percentage of their deposits in reserve at the end of the day. If the fed needed to "prop up the economy" they would have just changed the reserve ratio.
Tallest_Skil ago
If we want to be pedantic, we can say “since 1913.” If we want to be technical, we can say “it never got better after 2008.” But if we’re referring to the current collapse, we can definitely say that September was a turning point. QE4 happened and they tried to cover it up.
You realize that’s a last resort thing, right? Not a first action. Like, LITERALLY the last resort, even after lowering interest rates to nothing. It’s the sort of thing a system finds it hard to come back from. They fiddle with the interest rate, then they do some PPT scamming, then they do QE, and then they erase the pretense of value in the economy.