注册 登录  
 加关注
   显示下一条  |  关闭
温馨提示!由于新浪微博认证机制调整,您的新浪微博帐号绑定已过期,请重新绑定!立即重新绑定新浪微博》  |  关闭

论老子

道,领导也。领导必需要不断呼唤,教导下属以及以身作则。下属的过和错皆因领导懒惰。

 
 
 

日志

 
 

When the US FED reduces the interest rate, it is enriching the top 1% - part 2  

2011-11-20 13:04:36|  分类: Economics (Unto |  标签: |举报 |字号 订阅

  下载LOFTER 我的照片书  |

In the good old days your bank savings account earned you at least 3% annual interest, you understand the virtue of saving for the rainy days. However, when the US Fed reduces the bank savings rate and favored a gradual rise in the rate of inflation, it is telling you this message: Do not save, go spend it all. This is because money in your bank today is worth much less tomorrow. Inflation shrinks your money.

The media continue to tell you this story. Everyone in Congress wants to tell you the same story. Go spend now. Two-thirds of the American economy is driven by consumption, therefore, you must spend and spend to do your part to boost up the GDP growth. With a rising GDP growth rate, I can proudly claim to have done my part to shore up the US economy. Vote me in again.

Had you ever asked this question?

Who is shoring up the economy and for whom?

You, the 99% had been doing a great job shoring up the economy by spending today like there is no tomorrow. The top 1% just laughed to their banks with ever more profits. Why? The more you spent the more profits they take in every year.

The funny part of the equation is the rich never increased their spending. To a millionaire or a billionaire, there is a limit to what they can eat and buy. Perhaps, a couple of hundreds thousands is all they spend in a year, less the few super luxurious huge houses and yachts.

For the greater part of the last two decades, the Us Fed had hideously reduced the interest rate to shuffle ever larger amount of profits to the rich under the slogan: Lower interest rate induces the business to invest more and therefore, generates more employment opportunity.

The answer is NO.

Business decision is always based on whether a business proposal meets their financial criteria: the payback period of three years. Te lowering of interest rate only means one thing. They can borrow cheap loans to widen their profit margin and hence, the cheaper the loans the more profit they get. Well1 do they re-invest their extra wealth. Most of this extra wealth goes into the hands of the hedge fund managers and sadly, only a trickle goes into investments that create jobs.   

How do the hedge fund managers enrich the top 1%? Perhaps, to your astonishment, there is only one way. Bet that the price of everything will rise and the synchronized effort of all the hedge fund managers indeed drove up the prices of all commodities.

Please try to answer this question earnestly.

When the world oil consumption grows at a rate of less than 2% per year, why must the price of crude oil jumped from less than US$30 per barrel to more than US$100 per barrel?

The actual demand for oil consumption is not the reason for the spiral rise in the crude oil price. It is the excessive amount of money that the rich made from lower bank borrowing interest rate that was channeled to the hedge funds.

Who cause the rapid rise in the rate of inflation? The culprit is the US Federal Reserve who hideously reduced the interest rate in order to benefit two parties; namely: the top 1% who profits from the hedge fund managers’ bets on rising commodity prices and the fund managers who are important partners of Wall Street.   

  评论这张
 
阅读(204)| 评论(0)
推荐

历史上的今天

在LOFTER的更多文章

评论

<#--最新日志,群博日志--> <#--推荐日志--> <#--引用记录--> <#--博主推荐--> <#--随机阅读--> <#--首页推荐--> <#--历史上的今天--> <#--被推荐日志--> <#--上一篇,下一篇--> <#-- 热度 --> <#-- 网易新闻广告 --> <#--右边模块结构--> <#--评论模块结构--> <#--引用模块结构--> <#--博主发起的投票-->
 
 
 
 
 
 
 
 
 
 
 
 
 
 

页脚

网易公司版权所有 ©1997-2017