Comment by 6510
2 days ago
Yours is the first comment that suggests you read the article. At least kinda? Not sure anymore.
US banks create, though lending, 10.7 Trillion per year. If money creation though lending was shut down entirely it would work out to something like 3500 per person per month. You would have the same amount of money in circulation.
Rather than trickle down though clogged tubes it would stimulate spending directly. The economy would then greatly favor companies that do things that are useful to citizens.
Lowering interest rates might stimulate some part but I've never seen it affect my paycheck directly. If the measures don't influence peoples salaries their purchase power doesn't change much and the measures have little effect on that part of the economy that is relevant to citizens. You might improve the economy, if you don't improve quality of life simultaneously the economy increasingly becomes something unrelated to human life - which is bad.
> US banks create, though lending, 10.7 Trillion per year.
for which interest rate? how much was it creating when it was at its lowest rate?
Seems a great question for the author. He should put some numbers with the theory.