Alexandre Garcia: STF não está acima da Constituição, mas está acima de seus ministros

Currently there are about $1.2 trillion in “excess reserves” in the banking system, an amount held by banks above and beyond their reserve requirements (needed to “back up” their existing customer checking account balances.) Commercial banks are free to lend it out to their customers however most banks keep their excess reserves parked at the Fed, and get paid by the Fed an annual percentage rate (APR) of 0.25 percent (25 “basis points.”) This means that the banks’ excess reserve balance grows annually by 25 basis points, a convenient way for banks to earn interest by incurring no risk.

One of the ideas that have been advanced repeatedly during the recent economic crisis, recession, and prolonged stagnated recovery is the notion of “stimulus” as a way to revive the economy. This strategy is based on Keynesian economic theory, and is predicated on the notion that when an economy drops into recession, the fundamental problem is a shortage of people consuming.

What makes a corporate entity too big to fail? Corporate money and influence over legislators is the single variable that allows some businesses to be allowed to be bailed out with tax payer dollars! This is a violation of the premise of capitalism.

Not everyone sees the world economic and monetary flows as a win-win free trade and fair trade situation. However I do. Nevertheless, many countries would like to see the United States economic might pull back a few notches, giving them a new competitive edge.

“The USSR had two newspapers, Pravda and Izvestia. In the Russian language, “pravda” means truth and “izvestia” means news. The saying amongst the Russian people put the situation in a nutshell: “There’s no Pravda in Izvestia and there’s no Izvestia in Pravda”.