While I agree that absurdly low(artificially low is how I usually refer to it) interest rates are a huge problem, as it doesn't allow for a price discovery mechanism to operate, brutally punishes savers, and rewards gamblers, this isn't the whole problem. After all the very same NON governmental "authority" setting interest rates also "prints" the nation's currency, which it then lends to congress with interest. Plainly there's no legitimate reason to do this as congress is granted the authority to print our currency directly without interest, which is why there's a US treasury(they still stamp our coins). However if you're a politician in DC and you want to spend more than you're taking in it's fantastic, as you can inflate the budget to your heart's content and saddle future generations with that debt. This wouldn't be possible with a sound currency. You cannot simply whip up an extra trillion gold certificates as someone may well try to exchange those certificates for gold you do not have.
Nah. You don't seem to understand our current monetary system. That's become clear when you wrote this old "saddle future generations with debt" manthra.
Government debt is not a burden, it's a monetary instrument for the monetary system. That's why congress doesn't simply print the currency but issues debt. If it started printing, the Fed would have to start selling
its own debt (net effect would be zero) or just let rates plunge to zero forever without the ability to raise them.
Also government debt is an asset for private sector. When government is running fiscal deficit, it isn't saddling future generations with debt, it provides current generation with an asset. Perfect credit risk free asset. Moreover only the government sector and the foreign sector are able to add
net monetary assets to the domestic private sector. Government does it through deficit spending, the foreign sector does it through current account deficit (for the foreign sector).
You ignore the fact that it's impossible (well, only possible if you're dumb) to default on your own debt in your own currency.
If you imply that Fed is ruled by banksters then you imply that all government is too. But it's not a monetary problem, but a political one.
