| Re: Financial Sector self-destructing |
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Group: sci.econ · Group Profile
Author: anonanon Date: Mar 29, 2008 10:53
"Canuck57" unixhome.net> wrote in message
news:m3uHj.4522$rd2.242@pd7urf3no...>
> "anon" privacy.net> wrote in message
> news:1PsHj.2069$yd2.532@trndny04...>>
>> "Econotron" hotmail.com> wrote in message
>> news:1OrHj.120$gS1.112@trndny07...>>> I may offer an alternative here.
>>> 1. The market sets interest rate.
>>> 2. No reserve requirements. Deposit insurance is voluntary.
>>> 3. No oversight (well, may be very limited).
>>> 4. No lender of last resort (bankruptcy, as Andy pointed out).
>>> 5. Fed chairman can lecture, but should be required to wear an orange
>>> suit.
>>> e
>>
>> 1. how does new money enter the system?
>
> In the last year, some estimate 2-3 trillion (US+Cad) . Enough for at
> least 3 years of 12-15%% inflation guaranteed. A big huge currency
> dilution
That is not the question.
Q) In a system where market determines the (overnight) interest rates, by
what mechanism does new money enter the economy?
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