re posted from LAROUCHEPAC
THE NEOLIBERAL ECONOMIC/FINANCIAL SYSTEM IS NEAR DEATH, IT’S TIME TO BURY IT!
By Harley Schlanger · March 17, 2020
The neoliberal model of economy and finance, which has increasingly dominated the world since August 15, 1971, from its centers in the City of London and Wall Street, is heading toward a nasty implosion. This is the only conclusion one can reach from reviewing the recent actions of central bankers, particularly at the U.S. Federal Reserve, which reflect heightened panic and hysteria, especially among bankers and traders. In a rare Sunday announcement on March 15, the Fed said it will purchase $500 billion in Treasury securities and $200 billion in mortgage-backed securities, following the failure by traders and banks to sell an offering of 30-year Treasuries last week, as few buyers came forward.
At the same time, the Fed announced it will lower the rate on short-term emergency loans at its discount window from 1.75% to .25%; indicated another cut in the prime interest rate will come next week, following the .5% cut last week; and will coordinate swap lines with other central banks to prevent disruptions in overseas dollar-funding markets. This latter move will cut rates on overseas dollar loans, to insure that foreign banks will have an adequate supply of dollars to loan to overseas corporations.
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