From
Michael Snyder of The Economic Collapse blog,Did you know that U.S. banks have more than 1.8 trillion dollars parked at the Federal Reserve and that the Fed is actually
paying them
not to lend that money to us? We were always told that the goal of
quantitative easing was to "help the economy", but the truth is that the
vast majority of the money that the Fed has created through
quantitative easing has not even gotten into the system. Instead, most
of it is sitting at the Fed slowly earning interest for the bankers.
Back in October 2008, just as the last financial crisis was starting,
Federal Reserve Chairman Ben Bernanke announced that the Federal Reserve
would start paying interest on the reserves that banks keep at the
Fed. This caused an absolute explosion in the size of these reserves.
Back in 2008, U.S. banks had
less than 2 billion dollars
of excess reserves parked at the Fed. Today, they have more than 1.8
trillion. In less than five years, the pile of excess reserves has
gotten
nearly 1,000 times larger. This is utter insanity, and it will have very serious consequences down the road.
Posted below is a chart that shows the explosive growth of these excess reserves in recent years...more...

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