Operation Twist is an idiotic name given to an idiotic idea by a group of idiotic people who are centrally preparing US economic growth. The Federal Reserve gave the name Operation Twist to its strategy to sell its short term government bond holdings, and use the proceeds from those sales to acquire long term government bonds.
The Federal Reserve hopes that by purchasing long term government bonds, it can press long term interest rates down. If high interest rates were the issue in the United States economy today, operation Twist would be a dazzling concept. As I have described lots of times because 2009, the issue in the United States economy today is that interest rates are too low.
Planned Economy Continued
Interest rates will also increase in the direction of completion of this year it has been announced by the Bank of England, so the concern is that an increase in interest rates will once again hit little companies who are fortunate enough to have industrial home mortgages, as payments will enhance.
When rate of interest is too low, the cash supply can not grow its own accord. Without money supply growth, money will continue to be too valuable for people to spend and borrow it at essential levels to produce real, meaningful economic growth.
And There’s So Much More!
I just recently wrote an article describing exactly what’s wrong with Federal Reserve Chairman Ben Bernanke. Bernanke is a prime example of why civilizations implode from within. People offer him credibility he has actually never earned in the real world since he has actually successfully browsed his way through the higher learning organizations civilizations set up.
Ben Bernanke is a good main organizer. Clueless beyond anything you can possibly imagine in the real world, however, believing he really understands what he is doing. Bernanke has actually led the Federal Reserve to lower rate of interest beyond anything that would ever have actually taken place in a free market economy. By doing this, Bernanke has centrally planned the United States economy in its present state.
Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is typically directed toward the mass production of items for sale to customers at a profit. In a collectivist economy, manufacturing is more often directed by the state to provide a centrally planned economy. In free market economies, producing happens under some degree of government regulation.
Modern production consists of all intermediate procedures required for the production and integration of an item element. Some industries, such as semiconductor and steel producers use the term fabrication instead.
Operation Twist is one more centrally planned economic program that will be counterproductive for the US economy. The old Soviet Union Politburo would have loved and fully backed Operation Twist.