Robert, I agree. However, I believe that the rate be .05 percent - TopicsExpress

Robert, I agree. However, I believe that the rate be .05 percent or a bit more. The additional .02+ would go to a mandatory reserve to be used as a failsafe/insurance fund. The underpinning logic is that finance by its very nature encourages taking risk. And at some point, historically, that risk taking always blows up the economy. The reserve would then be used to repair the damage caused by the risk takers.

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