Why do we need
?
?
For reference:
| If you have | You can spend $1/second | |
|---|---|---|
| $1 Million | for 11 days | = 11 days |
| $1 Billion | for 11,680 days | = 32 years |
| $1 Trillion | for 11,680,000 days | = 32,000 years! |
We are all at the mercy of those who have the power to decide
when to print more, and what interest rates to charge.
If the Fed raises the interest rates, then getting a loan
for a house or a car becomes suddenly more expensive, which
slows down spending, leading to stagflation
If they keep the rates artificially low, we enter a period
of depression
In addition, when they bail out banks and corporations, they
artificially prop up the economy.
It is only a matter of time before the house of cards falls.
The original argument for having a central bank was that there
needed to be a Lender of Last Resort when the economy wobbled.