More Free Money, to everyone but the shrinking middleclass

Article sent by Ray Murphy to me, commentary on the Fed "exit strategy" for the all the money creation/injection into the system.

Banks are required to keep a certain percentage of their assets in cash at the Federal Reserve. Any cash above this required amount is "excess reserves," and the Fed is currently paying 0.25% interest on these reserves. The Fed's exit plan will call for increasing this interest rate, to encourage the banks to keep more money in excess reserves instead of lending it into to the economy and thus expanding the money supply.
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In the process of increasing interest paid on reserves, the Fed will be paying banks even more not to lend. In the process, it will be giving banks yet another way to take nearly free money from the taxpayer and give it back to the government at a higher rate--and then pocket the difference.

If the Fed does raise rates paid, it is an indication to me that all is NOT well, and this accounting trick is a way the Fed can print money and give directly to banks. I think all companies should become a bank holding company, sign over their assets to the Fed at face value in exchange for "reserves", then hold them there to get paid money on that face value.

Remember, the assets themselves, houses, etc, are still in use. So the collateral is on paper only, a pretty nifty trick. Bottom line is its raw printing of cash and handing it out. Not as bad as Zimbabwe, but a slippery slope, and in the long term will lead to currency devaluation.

Bottom line is, government unions are getting full pay without any sacrifice, millions are on multi-year unemployment, , banks getting free money any which way that can be devised, government itself is bigger than ever and spending more than ever. Why not just give every person in America 20K in free money?

I'll tell you why not, because there always has to be a loser and that is going to continue to be the middle class. Be careful for being OK with taxing the crap out of people who make more than 250K, when the currency devalues and your income rises (not fast enough to outpace costs), you will on paper be the rich person. The higher tax level will start just above the middle class, so it will be the first to get crushed when costs rise.