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• Are interest rates adjusted by the central bank the same as that of commercial banks?
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When central banks (like the Fed) adjust interest rates, are these the same rates used by Commercial Banks? Do Commercial Banks give the same interest rates as the Central Bank?
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• Can the recent injections of liquidity by central banks increase inflation in the near term?
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Too much easy money is what led to skyrocketing house prices and the current financial troubles in the economy. And this makes me wonder if the huge loans central banks gave to private banks in the last couple of days are only going to prolong this situation and perhaps make it worse in the long run?
Private banks will hide their bad loans for a while longer and perhaps even lend some more to people who can't pay. But in the end they'll have to come clean anyway?
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• Do central banks or the market win in a currency war?
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In the short term/long term, who has more power in the currency market? Theoretically, central banks can print money as much as they want to lower their currency, so how can markets win? Do reserves matter to central banks, since their balance sheet cause nothing to them since they can just print money to start a new balance sheet?
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• Now that the Central Banks are in Haiti will our widgets start being made there more?
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Will China get mad now that the Central Banks have flown in their loans to Haiti. Labor is a-little more in Haiti but easier for the ships. Or maybe they can ship the goods from Haiti to Mexico and then truck the goods up on the Nafta highway.
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• Are central banks in the public or private sector?
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If central banks are not owned or managed by their governments, does that make them in the private sector?
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• How much influence should Central Banks have over our Countries economy?
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Central Banks use interest rates to control inflation, in the U.S. the Federal Reserve prints your money and controls how much U.S. money is out there. This gives the bank control over the money supply and power over the economic well being of the country. The Reserve is run by bankers, and, the Reserve prints your money and everyone has to get paid. Right?
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• Who are the major shareholders in the federal reserve or any other central banks?
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Does anyone know who they are? Are they banks themselves? and does this have any implications in the sale of mortgages by retail banks to central banks?
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• When do central banks call in their national debt?
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So we all know the national debt of most countries is way out of control and the government/people owe the central banks like the Federal Reserve and Bank of England lots of money, trillions in fact. But what I don't understand is when do these banks actually demand payment? The debt keeps going up, do they honestly want it all back to zero? Does the government even try to pay it off, if so in what way? Yearly payments?
Can't they just say no and make all debt void, or are they above the government?
Doesn't seem like a logical system to me.
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• What are the new developments in financial markets and risk management and how does this affect central banks?
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Why and how would these changes affect the way a central bank acts as lender of last resort? Can the financial markets supply all the liquidity needed by banks?
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• How many privately owned Central banks in the world is this a good thing has it caused the ressession?
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After doing a little research i found many central banks in the world are privatley owned, ran for profit how many is there is it a good thing. or has it caused the ressession we are now in
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