Fed Lacks The Physical Cash, Legal Authority And Computer Systems To Implement NIRP, According To The Fed
from Zero Hedge
Over the weekend, we presented a comprehensive step by step analysis laying out both the mechanics (and implications) of the Fed unleashing NIRP in the US when the time comes: a time which as JPM further defined, would be characterized by “recession-like conditions.” In other words, right about now if Yellen so chose.
Curiously, in a nostalgic deja vu to the ECB’s own monetization of debt, which was illegal according to Article 123 (and Draghi himself back in the day), until Europe’s “constitutional judges” decided that it was actually all quite legal before Draghi proceeded to announce it in late 2014, Bloomberg points us to one of the recently declassified Fed staff memos from August 2010 titled “Reducing the IOER Rate: An Analysis of Options“, which states that the Fed “may not have the legal authority to set negative interest rates in the U.S.”
Continue Reading at ZeroHedge.com…
Source: http://financialsurvivalnetwork.com/2016/02/fed-lacks-the-physical-cash-legal-authority-and-computer-systems-to-implement-nirp-according-to-the-fed/?utm_source=rss&utm_medium=rss&utm_campaign=fed-lacks-the-physical-cash-legal-authority-and-comput
