The Federal Reserve uses a variety of policy tools to foster its statutory objectives of maximum employment and price stability. Its main policy tools is the target for the federal funds rate the rate that banks charge each other for short-term loansa key short-term interest rate. By adjusting the level of short-term interest rates in response to changes in the economic outlook, the Federal Reserve can influence longer-term interest rates and key asset prices. These changes in financial conditions then affect the spending decisions of households and businesses.
The writing is on the wall and can no longer be ignored. We will continue adding trillions of dollars to the national debt clock until such time that our creditors no longer lend us money. Unfortunately, the current strategy is chock full of its own pitfalls, the least of which being the real possibility of a hyperinflationary environment developing over coming months and years.
On Main Street, average Americans have seen their wealth decimated. And if recent reports are any indication, the destruction of the middle class will continue unabated for years to come. Americans no longer have money or credit to spend to prop up the economy, thus more jobs will be lost, leading to more people requiring government assistance for everything from food to shelter.
We are, on every level, facing a collapse of unprecedented scale. The number of people whose eyes have been opened seems to be growing, and many of them are asking what the collapse will look like as it unfolds.
What will the symptoms be? But the collapse of our financial system, or hyperinflation of our currency, or a meltdown in US Treasuries is only the beginning.
We know some or all of these events are all but a foregone conclusion. But, along the way, there will be numerous surprises—actions taken by governments that may be as unprecedented as they would be unlawful. Because, again, such actions are the norm when a government finds itself losing its grip over the people it perceives as its minions.
Here are a few: This has begun in a small way in both the EU and US. Later, travel restrictions will be extended within the boundaries of countries highway checkpoints, etc. The EU has instituted the confiscation of bank accounts, which can be expected to become an international form of governmental theft.
The food industry operates on very small profit margins and survives only as a result of quick payment of invoices.
With dramatic inflation, marginal businesses suppliers, wholesalers, and retailers will fall by the wayside. The percentage of failing businesses will be dependent upon the duration and severity of the inflationary trend. A dramatic increase in the number of home and business foreclosures will result in homelessness for anyone whose debt exceeds his ability to pay—even those who presently appear to be well-off.
As numbers rise significantly, a new homeless class will be created amongst the former middle class. Similar legislation may be expected in other countries that perceive martial law as a solution to civil unrest. The above list is purposely brief—a sampling of eventualities that, should they occur, will almost definitely come unannounced.
As the decline unfolds, they will surely happen with greater frequency. The fact is that the US government, for the last decade, has been moving increasingly closer to what can only be described as a police state.
With watch lists, militarized police departments, legislative actions, and executive orders the government has already set the stage for these secondary events.
When the system itself is no longer able to support the tens of millions of Americans receiving monthly government assistance, one hiccup could set the whole thing ablaze.
This includes storing essential physical goods and keeping them in your possession. Things like long-term food suppliesbarterable goodsmonetary goodsself defense armaments and having a well thought out preparedness plan will, if nothing else, provide you with the means necessary to stay out of the way it all hits the fan.
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Please contact us for permission to reproduce this content in other media formats.management to better coordinate fiscal and monetary policies. *Steven Dunaway is Deputy Director, IMF’s Asia and Pacific Department, and is also the IMF’s mission chief for China. The People’s Bank of China (PBOC), as the central bank of the People’s Republic of China, is the institution that has the power to control monetary policy and regulate financial institutions in .
13 Mins Ago. The companies signed up for $ billion in new loans, leases and lines of credit last month, up from $ billion a year earlier, the Equipment Leasing and Finance Association said.
Essay about Monetary Policy and Fiscal Policy Words | 9 Pages. Introduction The central bank is not just a lender that the government go to as a last resort, but it takes part in the stabilisation of the economy using different policy instruments.
China’s monetary and fiscal policy Li Ruogu In the past few years, the Chinese government has been pursuing an active fiscal policy to finance key. Feb 21, · A baby boom under Mao Zedong was followed by 36 years of a one-child policy that created distortions in the economy. Many poor, isolated people in .