Gov’t printing money

[DWCAP]

Where do you think the Federal Reserve is getting the trillions it is spending to buy up crappy loans and Treasuries? Do you think it was just sitting on ~$1.2trillion, doing nothing with it? No, it printed it. Well, it decided that its accounts, (electronic) had an extra trillion or two, then spent it. Seeing as it controls the supply of money, it can do that. That money went to things like government bonds, which then was spent on REALLY expensive stimulus jobs or ‘infrastructure’ spending, and worked its way into the economy. Eventually it will have to be pulled out, or risk really high inflation, but that is a story for another day/year. RIght now it gives us a nice sugar high.

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/18/AR2009031802283.html

[jamsvet]

All this time I thought they were using the huge Social Security Trust Fund. I figured they just opened the lock box and borrowed a little bit.

[jamsvet]

All this time I thought they were using the huge Social Security Trust Fund. I figured they just opened the lock box and borrowed a little bit.

[jamsvet]

All this time I thought they were using the huge Social Security Trust Fund. I figured they just opened the lock box and borrowed a little bit.

[jamsvet]

All this time I thought they were using the huge Social Security Trust Fund. I figured they just opened the lock box and borrowed a little bit.

[jamsvet]

All this time I thought they were using the huge Social Security Trust Fund. I figured they just opened the lock box and borrowed a little bit.

[investor]

Follow how many T-bills the federal reserve buys. If you know how money flows in D.C., federal reserve purchases of government debt (which is what T-bills are) use new money which is inflationary. Foreign governments and private purchases use existing money, which is not infationary. The book “the creature from jekyll island” has a nice explanation of this.

[investor]

Follow how many T-bills the federal reserve buys. If you know how money flows in D.C., federal reserve purchases of government debt (which is what T-bills are) use new money which is inflationary. Foreign governments and private purchases use existing money, which is not infationary. The book “the creature from jekyll island” has a nice explanation of this.

[investor]

Follow how many T-bills the federal reserve buys. If you know how money flows in D.C., federal reserve purchases of government debt (which is what T-bills are) use new money which is inflationary. Foreign governments and private purchases use existing money, which is not infationary. The book “the creature from jekyll island” has a nice explanation of this.

[investor]

Follow how many T-bills the federal reserve buys. If you know how money flows in D.C., federal reserve purchases of government debt (which is what T-bills are) use new money which is inflationary. Foreign governments and private purchases use existing money, which is not infationary. The book “the creature from jekyll island” has a nice explanation of this.

[investor]

Follow how many T-bills the federal reserve buys. If you know how money flows in D.C., federal reserve purchases of government debt (which is what T-bills are) use new money which is inflationary. Foreign governments and private purchases use existing money, which is not infationary. The book “the creature from jekyll island” has a nice explanation of this.

[Author]

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