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I'm originally from Dublin but now live in Edinburgh hoodia review The federal reserve basically has only 2 tools to govern the economy with: the money supply and interest rates. When the interest rate goes to zero, and the economy no longer responds, that is a condition known as the “Liquidity Trap”. We are now in the Liquidity Trap, and the Fed is basically in a position where it no longer stimulate the depressed economy. At this point, the government is supposed to step in and start building roads and infrastructure, but they don’t because present day Calvin-Coolidge/Herbert-Hoover’s (like Paul Ryan) have the idea that we should pay off the debt in the middle of a depression. That’ll surely fix the economy – NOT. And it didn’t fix it in the Coolidge/Hoover days either.