"Printed" money - AR15.COM

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Posted: 1/21/2015 2:12:37 AM EDT

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?

Posted: 1/21/2015 2:15:34 AM EDT

[#1]

short answer:

fed member banks buy stocks

Posted: 1/21/2015 2:16:48 AM EDT

[#2]

They use that money as toilet paper in the White House.

Posted: 1/21/2015 2:16:55 AM EDT

[#3]

Quoted:
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.

Posted: 1/21/2015 2:23:00 AM EDT

[#4]

Quote History

Quoted:
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.

Posted: 1/21/2015 2:28:24 AM EDT

[#5]

Quoted:
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.

Posted: 1/21/2015 2:37:51 AM EDT

[#6]

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.

Posted: 1/21/2015 2:42:48 AM EDT

[#7]

Created out of thin air - why do you think they won't allow the Fed to be audited?

Posted: 1/21/2015 2:48:43 AM EDT

[#8]

QE has been the sole support of the stock market bubble.

Posted: 1/21/2015 3:31:09 AM EDT

[#9]

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.......

Posted: 1/21/2015 3:32:37 AM EDT

[#10]

Fiat currency; "It's money, and has value, because we say so."

Posted: 1/21/2015 3:54:20 AM EDT

[#11]

Simple answer is they cannot print that much currency so they "create" it. And then borrow it from the Fed.

Posted: 1/21/2015 5:33:12 AM EDT

[#12]

Quote History

Quoted:
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.

Posted: 1/21/2015 5:44:12 AM EDT

[#13]

Quote History

Quoted:
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.

Posted: 1/21/2015 6:16:31 AM EDT

[#14]

Quote History

Quoted:

WRONG! Just plain wrong!

It's the Constitution you're thinking of.

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Quote History

Quoted:

Quoted:
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.

Posted: 1/21/2015 6:21:29 AM EDT

[#15]

Quote History

Quoted:
WRONG! Just plain wrong!

It's the Constitution you're thinking of.

View Quote View All Quotes

View All Quotes

Quote History

Quoted:

Quoted:

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.

Posted: 1/21/2015 8:35:35 AM EDT

[#16]

Quoted:
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.

Posted: 1/21/2015 8:46:40 AM EDT

[#17]

The federal reserve buys treasury bonds from the Treasury Department.

Posted: 1/21/2015 8:48:18 AM EDT

[#18]

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