To: President Donald Trump, The United States House of Representatives, and The United States Senate
Stop Subsidy of U.S. Bank Hoarding
The U.S. economy would be growing 5-6% if the money supply (M2) were growing 8% which it should be given the rate of increase in money by the Fed. But, the U.S. Treasury is paying banks interest on their excess reserves motivating them to hoard
reserves. Excess reserves to deposit ratios are currently 18% compared with the 2% historical average. Petition Congress to
end this subsidy, end the hoarding and get money into the economy so the economy grows 5%, employment increases more rapidly and unemployment drops to 7%
Why is this important?
The U.S. economy would be growing 5-6% if the money supply (M2) were growing 8% which it should be given the rate of increase in money by the Fed. But, the U.S. Treasury is paying banks interest on their excess reserves motivating them to hoard
reserves. Excess reserves to deposit ratios are currently 18% compared with the 2% historical average. Petition Congress to
end this subsidy, end the hoarding and get money into the economy so the economy grows 5%, employment increases more rapidly and unemployment drops to 7%.