Mayor Jones welcomed Transportation Secretary Ray LaHood to Richmond today for a first-hand go through the I-95 Bridges Restoration project. Nine of eleven bridges undergoing the restoration are in the town of Richmond. Secretary LaHood, Mayor Jones, and other state officials visited employees at the site of the Lombardy Street Bridge. “Anyone who has driven the amount is well known by the Lombardy Road Bridge of work that stretches out of road has needed,” said Mayor Jones. “It really is projects like this and others all across the country that will improve our infrastructure and spur financial development,” said Secretary LaHood. “We have the best highway system in the world, and we need to keep it that way. 90 million in federal government money – is estimated to create jobs for about 130 employees. When completed, the project shall improve safety for the route’s estimated 150,000 daily motorists and extend the life expectancy of the bridges by at least 50 years.
The Fed was made to be autonomous. It has authority over itself. It could set interest rates and create money out of nothing at all, according to its own discretion. Apart from the truth that the Federal Reserve isn’t federal, it does not have any reserves also. The Fed simply creates money out of thin air and then loans it out at interest – at a level dictated by the Fed.
Setting rates of interest and regulating the money source are both functions of monetary policy, which depends upon the Fed solely. The Fed routinely increases the money supply in order to spur a minimal, stable rate of inflation. As a general rule, the Fed seeks an inflation rate of 2 percent each year. However, at that rate, the dollar would lose 20 percent of its value in the span of a decade. The Fed claims that inflation spurs financial prosperity and growth.
However, inflation devalues the purchasing power of money, which hurts everyone. Inflation is detrimental to savers, to people who work for a full-time income, and also to those on set earnings, such elderly people. Since money loses value, inflation compels visitors to spend money rather than save it. The Fed would argue that this stimulates the economy. At times when the pace of inflation is greater than rates of interest (such as now), people, and companies are encouraged to undertake more debt and spend cash before its purchasing power erodes further.
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But this just promotes personal debt bubbles, malinvestment, and imprudent spending. Then, when the overall economy consequently crashes, the Fed images even additional money as a means of resolving the problem it created in the first place by printing excess amount. Even when a company has of its capital to cover a fresh task enough, instead of borrowing from a bank or investment company, the Fed’s extraordinarily low interest rates can compel the corporation to borrow. Cheap money can be very enticing. Banks don’t like private capital formation; they would like to provide money. It’s their business after all. When it comes to lending, there’s no better customer than the federal government itself.
That’s the reason a group of ultra-powerful bankers persuaded Congress to codify their system into law; these were able to form a bank cartel that is empowered by the nationwide federal government. US law protects the banking cartel and Congress uses it for its own interests; namely, to invest in deficit spending. As history repeatedly shows, one sure-fire way to promote deficit spending is through warfare. Central bank got its start in Europe, where powerful bankers first persuaded the continent’s kings to grant them legal sanction for his or her activities.
The European central banking institutions quickly became the primary funders for the continent’s frequent and widespread wars. Warfare offers a need for tremendous borrowing and for that reason provides banking companies with huge revenue by means of interest income. It’s said that bankers are on both sides of every battle. That way, they never lose.
The government primarily raises money because of its budget through taxes. Year after year But, decade after decade, Congress spends more than it gets. So, it turns to the relationship market to raise the difference and meet its desired spending level. Individuals, finance institutions, and foreign government authorities provide money to the government by purchasing Treasury bonds, notes, and bills.