Is the Fed easing to help boost the economy? That’s what Ben Bernanke says.
But here is what ace silver expert David Morgan (http://silver-investor.com – highly recommended) says:
“The primary reason is NOT to stimulate lending as advertised by the mainstream press, but to allow the federal government to continue. The lower the interest rate, the less the interest payment due by the US citizens for the spending that the District of Columbia (the federal government) did on their behalf.”
Really, who is the biggest beneficiary of the Fed easing. The federal government! Long term interest rates averaged about 2.5 times higher than they are now over the last 20 years. Interest payments on the federal debt are now over $200 billion per year. This means that they would be about $500 billion per year if interest rates go back to normal!