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<p>[QUOTE="fatima, post: 1251048, member: 22143"]The real reason interest rates are unrealistically low now is because the Federal Reserve has loaned out $1.5T to the largest banks in the world. If they raise rates at all, it immediately crushes these banks and they collapse. This news came out over the past week, and only after a supreme court case that forced the Federal Reserve to reveal it, and which has also been completely ignored by the mainstream media. (of course)</p><p><br /></p><p>So in one case, BofA, the Fed loaned them $100B. Using the old rule of thumbs if BofA has any chance of paying this back they would have to make $1T in loans which is a simple impossiblility in an economy that is only producing about $10T real GDP. (if that, you can't believe any statistic from the government now) An interest rate rise by the Fed simply pushes this bank off the cliff. People ought to be insanely mad about this, but it is what it is. It's the reason many are buying gold.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1251048, member: 22143"]The real reason interest rates are unrealistically low now is because the Federal Reserve has loaned out $1.5T to the largest banks in the world. If they raise rates at all, it immediately crushes these banks and they collapse. This news came out over the past week, and only after a supreme court case that forced the Federal Reserve to reveal it, and which has also been completely ignored by the mainstream media. (of course) So in one case, BofA, the Fed loaned them $100B. Using the old rule of thumbs if BofA has any chance of paying this back they would have to make $1T in loans which is a simple impossiblility in an economy that is only producing about $10T real GDP. (if that, you can't believe any statistic from the government now) An interest rate rise by the Fed simply pushes this bank off the cliff. People ought to be insanely mad about this, but it is what it is. It's the reason many are buying gold.[/QUOTE]
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