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1/22/2020 12:12:56 PM
Posted: 1/21/2015 1:12:37 AM EST
Not the paper and coin currency that replaces old tattered cash,

But when you hear the fed prints $80 billion each month via QE ect whatever

How is this money distributed into the economy?

or is it more of a devaluing of the dollar?
Link Posted: 1/21/2015 1:15:34 AM EST
short answer:

fed member banks buy stocks
Link Posted: 1/21/2015 1:16:48 AM EST
They use that money as toilet paper in the White House.
Link Posted: 1/21/2015 1:16:55 AM EST
Originally Posted By 55sixer:
Not the paper and coin currency that replaces old tattered cash,

But when you hear the fed prints $80 billion each month via QE ect whatever

How is this money distributed into the economy?

or is it more of a devaluing of the dollar?
View Quote



It's electronic funny money, 1's and 0's in a computer program. They wire it over to massive banks for almost zero interest rate. Those banks lend it to smaller banks and to consumers.
Link Posted: 1/21/2015 1:23:00 AM EST
[Last Edit: 1/21/2015 1:25:22 AM EST by boltcatch]
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Originally Posted By NWhiker:
short answer:

fed member banks buy stocks
View Quote


They also lend it out to banks at stupidly low rates. They fiddle with how much gets into circulation by changing bank capitalization requirements.

There are also various currency transfer shenannigans going on, usually between the US, the EU, the Swiss, etc, where various parties eat large losses for various purposes.


That 80 billion is sort of on average, it varies by month based on tax receipts. It's been well up over 200, if I recall correctly.
Link Posted: 1/21/2015 1:28:24 AM EST
Originally Posted By 55sixer:
Not the paper and coin currency that replaces old tattered cash,

But when you hear the fed prints $80 billion each month via QE ect whatever

How is this money distributed into the economy?

or is it more of a devaluing of the dollar?
View Quote


they basically lend it to financial institutions so they can either lend it again or buy stuff with it (stocks, bonds etc)

Now this begs the question, when the first 100 dollars were printed and lent out, how did those lenders expect to be paid back 105 dollars when only 100 dollars in total exists? It's all a house of cards.
Link Posted: 1/21/2015 1:37:51 AM EST
The Fed prints it then the banks "lend" it to the Government to pay for all of the under funded government programs, goodies and freebies.
Link Posted: 1/21/2015 1:42:48 AM EST
Created out of thin air - why do you think they won't allow the Fed to be audited?
Link Posted: 1/21/2015 1:48:43 AM EST
QE has been the sole support of the stock market bubble.
Link Posted: 1/21/2015 2:31:09 AM EST



Nothing is "printed." Each participating institution simply changes a number on the computer spread sheet. Imagine logging in to your checking account and adding $1000.00 every month to your balance right on the screen. Except of course, the participating institutions are adding billions.......



Link Posted: 1/21/2015 2:32:37 AM EST
Fiat currency; "It's money, and has value, because we say so."
Link Posted: 1/21/2015 2:54:20 AM EST
Simple answer is they cannot print that much currency so they "create" it. And then borrow it from the Fed.
Link Posted: 1/21/2015 4:33:12 AM EST
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Originally Posted By Udder_Catastrophe:
They use that money as toilet paper in the White House.
View Quote

WRONG! Just plain wrong!

It's the Constitution you're thinking of.
Link Posted: 1/21/2015 4:44:12 AM EST
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Originally Posted By leatherface_y2k:
Fiat currency; "It's money, and has value, because we say so."
View Quote


You're thinking of a soft currency, like the old Soviet ruble.

No, it has value because people give it value.

The Dollar is traded openly, and globally.

Link Posted: 1/21/2015 5:16:31 AM EST
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Originally Posted By FrankSymptoms:

WRONG! Just plain wrong!

It's the Constitution you're thinking of.
View Quote View All Quotes
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Discussion ForumsJump to Quoted PostQuote History
Originally Posted By FrankSymptoms:
Originally Posted By Udder_Catastrophe:
They use that money as toilet paper in the White House.

WRONG! Just plain wrong!

It's the Constitution you're thinking of.

Pretty much. I guess I am wrong. Toilet paper is always made of the least valuable form of paper.

Good point.
Link Posted: 1/21/2015 5:21:29 AM EST
[Last Edit: 1/21/2015 5:21:51 AM EST by jcarrel]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By FrankSymptoms:

WRONG! Just plain wrong!

It's the Constitution you're thinking of.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By FrankSymptoms:
Originally Posted By Udder_Catastrophe:
They use that money as toilet paper in the White House.

WRONG! Just plain wrong!

It's the Constitution you're thinking of.

Wrong again. Obama wore that out long ago. There is only so many time you can wipe with it. They use money now. However, his presidential bidet still uses the tears of the working population he fucks over every day.
Link Posted: 1/21/2015 7:35:35 AM EST
Originally Posted By 55sixer:
How is this money distributed into the economy?
View Quote


Much of the money created by the Fed remains on deposit with the Fed in the form of excess bank reserves. That is one reason that creating all those dollars has not caused a rapid increase in the general price level ("inflation").
To the extent those dollars have entered the economy it has been by means of banks lending to people buying stocks, banks buying stocks for their own account and banks purchasing government bonds to finance the government deficit.
Link Posted: 1/21/2015 7:46:40 AM EST
The federal reserve buys treasury bonds from the Treasury Department.
Link Posted: 1/21/2015 7:48:18 AM EST
Actually the government borrows the money (with interest) and then gives it back to the banks they just borrowed it
from and they redistribute it. It's called a debt based economy. Why not just print the money debt free and put it into
public works? No debt
Link Posted: 1/21/2015 7:51:28 AM EST
Imagine you wanted to buy stock in a public company but they didn't disclose how many shares had been issued and were outstanding.
Link Posted: 1/21/2015 7:52:13 AM EST
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Originally Posted By shocktrp:
Created out of thin air - why do you think they won't allow the Fed to be audited?
View Quote

Link Posted: 1/21/2015 8:02:28 AM EST
No one has said it, so I will say it.


FBHO
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