Tuesday, April 17, 2012

Just like the folks on Easy Street...

"Are you concerned about growing income inequality in America? Are you resentful of all that wealth concentrated in the 1 percent? I’ve got the perfect solution, a modest proposal that involves just a small adjustment in the Federal Reserve’s easy monetary policy. Best of all, it will mean that none of us have to work for a living anymore. 
For several years now, the Fed has been making money available to the financial sector at near-zero interest rates. Big banks and hedge funds, among others, have taken this cheap money and invested it in securities with high yields. This type of profit-making, called the “carry trade,” has been enormously profitable for them.
So why not let everyone participate? 
Under my plan, each American household could borrow $10 million from the Fed at zero interest. The more conservative among us can take that money and buy 10-year Treasury bonds. At the current 2 percent annual interest rate, we can pocket a nice $200,000 a year to live on." 
Sheila Blair of the Washington Post wrote this op-ed piece that would solve everything in the economy.  We could all be Ann Romney and do our "work" at home.  All financial problems of everyone would be solved. Our consumer driven economy would bounce back because everyone would have a lot of money to spend.  There would be no more illegal immigration problem because since no one in the US would need to work, we could easily create a guest worker program. We'd need people from outside the US to raise our kids, pick our food, work at McDonalds and other various restaurants, answer our phones for customer service, be our doctors and nurses, create new technology and businesses…wait…hold it.  I've been bamboozled…I think I missed my money!

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