Federal Reserve

Photo caption: Federal Reserve, Washington D.C.

As President Trump steps up pressure on the Fed to lower interest rates in step with the European Central Bank’s negative interest rate venture, Ellen Brown warns in her latest Truthdig article:

“Negative interest rates have not been shown to stimulate the economies that have tried them, and they would wreak havoc on the U.S. economy, for reasons unique to the U.S. dollar. The ECB has not gone to negative interest rates to gain an export advantage. It is to keep the European Union from falling apart, something that could happen if the United Kingdom does indeed pull out and Italy follows suit, as it has threatened to do. If what Trump wants is cheap borrowing rates for the U.S. federal government, there is a safer and easier way to get them.”

Ellen continues:

“If the Fed were to follow [the Japanese model] and buy 50% of the U.S. government’s debt, the Treasury could swell its coffers by $11 trillion in interest-free money. And if the Fed kept rolling over the debt, Congress and the president could get this $11 trillion not only interest-free but debt-free. President Trump can’t get a better deal than that.”

[Read the full article]

2 Thoughts on “Ellen Brown: The disaster of negative interest rates”

  • Ellen, Your article on Asian banking is (I apologise for using this overworked word but it is accurate) brilliant. The research you have carried out is marvellous. You have a remarkable mind. I have used your thoughts (with acknowledgement) in ‘Agenda for the Future’ and in talks I am giving.

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