Read more on this subject: Economy – Economics USA
News Story Source: http://www.thedailybell.com
I just read an article from what the mainstream considers a reputable source of news, the New York Times. The article talked all about monetary policy and didn't say a thing about the real world.
Because the Federal Reserve is not operating in the real world. They are operating in a world of currency manipulation that they pass off as saving the economy. They act like they are guardians of the dollar when in fact they are just bandits for the government.
What the fed does to "cure" a bad economy is cut interest rates, which continues to make borrowing money easy. The money is there, but the actual value behind those dollars is not–that's why the economy turned down in the first place. And that is what creates bubbles: when people keep spending easy-to-acquire money, even though tangible goods and services of value do not match how easy it is to get money.
So now the fed is basically stuck at a near zero interest rate when you adjust for inflation.