When gas prices go up, my favorite thing that the masses will say is this: “The oil companies are greedy.” Wrong.
The real reason for rising prices is inflation due to the Fed’s policies.
Now we have this chart above this text, which shows that as deposits increase, the amount of loans stagnate. Now it’s not rocket science by any means, I’ve previously posted about this before. When the Federal Reserve prints $85 billion a month, it doesn’t go to the unemployed or even the treasury. It goes straight to Goldman, JPMorgan and Warren Buffet.
So how can the banks earn rising incomes, rising deposits and flatlined loans?
Maybe it’s because the Fed it’s creating a disincentive to do business and grow the economy.