This is a question we’ve been asking for a long time now. The central banks of the world are slowly reducing the interest rates they charge on all currency. The Federal Reserve announced that it would raise the interest rate on several currencies: the dollar, the euro, the British pound, and the Swiss franc. When the Fed did so, it did so without warning or discussion.
The central banks of the world have been raising interest rates for years, but it was generally in response to an economic situation that had nothing to do with the Fed’s actions. Most recently, it was the effect of the 2008 financial crisis on the dollar. In other words, the Fed’s actions were a result of the collapse of the US’s largest economy.
There is no precedent set for increases to interest rates. When the Fed decided to raise rates, it did so in response to a recession that was primarily caused by the collapse of the USs largest economy. There is no indication that that caused the increase in interest rates. The Fed has always tried to move interest rates in response to changes in the macroeconomy. Most notable was the move to gold in 1934.
The big difference between the USs recession and the current one is that the USs recession was caused by the collapse of the USs largest economy. You can’t go to the Fed and demand a 30% increase in the discount rate because the Fed is limited to just one currency per country. You can’t go to the Fed and ask for a rate hike because there is no precedent for increasing the discount rate.
Now that the central bank is trying to start a recession, you can guess where all of this is going to end up. The way the central bank’s actions have been described, it seems like they are going to raise the discount rate. The central banks of China and India have been talking about this for years, but it never really seems like anyone is going to actually do it.
The central banks seem to be doing everything in their power to not set off a recession. One of the few ways they can do this is to just raise the discount rate. But that means the price of the goods that the central banks are selling to the rest of the world will go up, and that’s not a good thing. We can’t have a recession because that means that the central banks are doing everything in their power to fail, and now they are doing it with a rate hike.
this is why the central banks have so much money. As money is created, it is only a tiny portion of the money supply. In order to get the money that they need to do their jobs, the central banks have to print money. For all that the central banks have done to make money, they can do it again, and again, and again, and again.
It’s true that central banks are the ones that create money. But they are also the ones that create the money that the banks can use to create more money. At the same time, they have to keep creating money to sustain all of this monetary expansion. If they stop printing money, then inflation inevitably occurs. That’s why central banks are always having to print money, and why the recession is always coming. You can’t have a recession if you don’t have money.
So when the central bank decides to increase the discount rate, the central bank has to first decide how much they want to spend, then determine its costs, and then decide how much they will spend. Thats why central banks have endless decisions to make.
The central bank determines its costs when it goes to the bank for printing money. The money they print is then paid for by the central bank.
