Senator Elizabeth Warren talks about her new bill to let people refinance their older students loans to today’s lower rates.
The Fed created trillions of dollars out of thin air to bail out the banks, and it did not cause inflation. The Fed could do the same thing for students, and there would be no need to find funding in the budget to make up for what the government will lose by lowering the student loan interest rate.
Elizabeth Warren apparently does not understand that there is no need to compensate for the money forgone by the government from the lower rates. Perhaps if enough people tell her this, she will stop looking for cuts in the budget or increased taxes to make up for something that does not need to be made up for.
And the funny thing about the Fed creating money out of thin air and its relation to inflation, the Fed would like to create a little more inflation in the economy than we have now. With all the bank bailouts and all the quantitative easing, they have been having a heck of a time creating the inflation that they are trying to create. In other words, they can’t even do it when they try.