Increasing IOER, the interest the Fed pays the banks for their $2.7 trillion in reserve deposits at the Fed, isn't a tightening. That's because raising IOER doesn't raise the banks' cost of funds. It lowers it.
Here's Why Fed's Interest Rate Illusion Won't End Well
You need to login to view this content.
David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.