The Federal Reserve doesn't 'print' too much money, since it prints nothing
Submitted by FauxCapitalist on Thu, 10/22/2009 - 09:24
in
Source: http://fauxcapitalist.com/2009/03/09...rints-nothing/
There is a lot of talk these days about all the money the Federal Reserve is allegedly ‘printing’.
From the Federal Reserve’s own words at http://federalreserve.gov/generalinfo/faq/faqcur.htm#1:
“Does the Federal Reserve produce bank notes and coins?
No, the Federal Reserve does not produce bank notes or coins. The Bureau of Engraving and Printing (BEP) produces currency and stamps, and the U.S. Mint produces our nation’s coins. The Federal Reserve issues Federal Reserve notes and places them in circulation.”
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Just a moment, are you trying to tell us that these are just
For some reason, we're expected to know every law that exists in America & in our state so we don't break it. We're supposed to know this when we're 18. There's no litmus test for them, as in the 10 commandments or rhyme or reason. C.U.R.E. Thank God
notes that we get from the Fed, like I write a note to my girlfriend at church to tell her I finally approve of her clothing? A discreet way of telling her, you know.
For some reason, we're expected to know every law that exists in America & in our state so we don't break it. We're supposed to know this when we're 18. There's no litmus test for them, as in the 10 commandments or rhyme or reason. C.U.R.E.
AND THEY REALLY AREN'T
AND THEY REALLY AREN'T MONEY, they are legal tender. The Federal Reserve's partners in crime passed legal tender laws forcing us to use frns as money, in spite of the Constitution's demand that the Congress COIN money, and regulate its value.
The Constitution also states that no state shall make anything but gold and silver coin a tender in payment, and that the Congress shall NOT issue bills of attainder. Federal Reserve notes qualify as bills of attainder. So, the Congress shirked it's duty to coin money and regulate its value, created a central bank (with no Constitutional authority), had that bank issue worthless debt notes, and forced the American people to accept these notes as "money".
This is the classic definition of conspiracy, conspiracy to defraud the citizens of this nation. Inflation is the evidence of that defrauding.
Could they even really do it?
I wonder if they could physically print out the 100's of trillions they have created on the books. How long would it take to print out in $20's?
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This is how I understand the scam works
If you look at the Feds assets, you will find that it is the single largest holder of Treasury bills. So as I understand it, how it works is this:
1) The gov't needs money. Taxing won't work (rebellion). So they take out a loan by printing Treasury bills.
2) Some of these they sell to foreign buyers. Bad for the gov-t, since they have to pay full interest. What they can't sell, they sell to the Fed.
3) The fed "buys" these Treasuries with assets (deposits) that it creates out of thin air, and puts these assets on the books of their member banks, who can now loan out this money.
4) The gov't pays the full interest to the Fed, but then it gets most of it back, since it has an agreement with the fed that the Fed gives all of its profits, minus a "convenience fee", back to the gov't. So the Fed get's a small "convenience fee" as a percent, but it's still huge, considering the volume of money involved. And the gov't can in effect "print money", since on the T-bills it sold to the Fed, it only has to pay a nominal interest on. Everybody is happy. Plus the member banks can now loan out this new money and make interest on it, stimulating the economy.
The net result is, new money is created out of thin air, because the T-bills sold to the Fed are not really T-bills, since only a small part of the interest on them is due.
At least that's the way I understand it. Please correct me if I'm wrong. It's basically a shell game, allowing the gov't to print money and dilute the value of the dollar without really printing the money.
I still wish Dr. Paul would talk more about the example of a stock split when trying to explain this. Everyone understands, that if you own 100 shares of Microsoft at $150, and the shares split, now you have twice as many shares, 200, each worth $75.00. But when the government "splits" the dollar, you still have 100 shares, not 200, but there's twice as much out there, so the value has to fall.
Thank you for this very nice
explanation.
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Lame
This is a totally lame diversion.
The manner in which the Fed creates money is convoluted. Trying to talk to the average person about Fed expansion of the money supply without some shorthand reference would be nearly impossible. That is why people who actually want to communicate often use the term "print money" even though they know full well that does not describe how the Fed expands the money supply.
Even Dr. Paul sometimes says "print money" in reference to the Fed and he clearly understands the way it actually works.
This is silly
The real issue is the Federal Reserve creates "money" out of thin air.
Make no mistake about it...
Our darling Congressmen are the real problem. They have all the power to change any undesirable government situation. Our government allowed the creation of their darling little monster, the Federal Reserve, and they just love it. They could close it down, or at least hold it accountable, if they wanted to, but why? It's their meal ticket to globe trotting, world power and pork beyond imagination, all designed for self protection of their respective seat. If you had a personal banker that made sure ALL of your checks "cleared", would you want him replaced? Of course not. All overdrafts are simply piled onto that trash heap we refer to as the "deficit". How neat! It would take real integrity to stand up to this situation, but I don't see it. Maybe the 303 that have signed on to HR 1207 will have enough guts to demand passage.
alan laney
Sounds like the "I did not have sex with that woman" argument.
Notice the deceptive use of the phrase "places them into circulation" instead of the "loans them into circulation". The truth is that fed loans these notes into existence as financial instruments; before that they are just pieces of paper with printing on them waiting to be used as circulating evidences of debt.
And the federal reserve note part of the money creation process is small potatoes compared to the electronic bookkeeping entries to create checking accounts out of thin air and loan them into existence, both by the federal reserve and the rest of the banks in the system.
This thread stinks of the same scam that is the current banking system, but when you look at the choice of the handle "FauxCapitalist" I think the point of the post is evident.
"The deepest sin against the human mind is to believe things without evidence." Thomas H. Huxley
Just a technicality. The
Just a technicality. The important thing is about who decides when new money is created, the interest rates on that money, who gets special treatment, etc, etc.
This is really no different than saying that you're going to fix your car, but paying a mechanic to do it. Your car still gets fixed. Well, to make this a more accurate example in relation to the Fed, maybe I should have said you were going to break your car... anyhow...
...
Bogus argument
by someone looking to increase their website visits.
I for one won't take the bait.
Keep going to other websites
Keep going to other websites where you'll keep getting the Fed smokescreens that they a) print any money, which they don't b) most money is printed, which it isn't.
Currently
Most "money" is simply digital or book entries. Actual physical currency is only one small piece of the broader money supply. Expanding digital money is potentially much more pernicious than even printing money, as digits can be adjusted without even having to fuel a printing press!
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its a figure of speech, used
its a figure of speech, used by every major financial news outlet.
Ventura 2012
And who are some of the big
And who are some of the big sponsors of those shows? Banks that are Federal Reserve members who receive a 6% annual dividend from the Fed, and have a stake in perpetuating the smokescreen that the Fed prints any money, as opposed to creating a portion of it, while it's the government that creates most money and lends it to the bankers at interest, with no practical reason for doing so.
Lol you are confused. No one
Lol you are confused. No one is bribing TV officials to say that the Fed prints money. The point is that they create it out of thin air.
Ventura 2012
How about expands the money supply?
The Fed may not perform the literal printing, but it causes the printing through its actions aimed at expanding the money supply.
Your semantic argument really means nil in the process.
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"Blessed are the peacemakers, they shall be called the children of God." - Matthew 5:9
My liberty-minded home base of thought:
www.ponderthis.net
_________________________________
Freedom - Peace - Prosperity
How about expands the money supply?
Point taken. Their actions indirectly result in money being printed by the government. My argument isn't about semantics, since even if the Fed directly printed money, it only accounts for about 2-5% of the entire money supply anyway.
LOL. The fed prints money to
LOL. The fed prints money to buy bonds and drive down interest rates, which effects bank creation of money through loans. They have almost total control of the supply of credit. Even if the banks dont loan, the Fed can increase the money supply through asset purchases.
Ventura 2012
No, they create money to buy
No, they create money to buy the bonds that the Treasury department prints. With the current system, they almost have total control of the supply of credit, but that could all change if the federal government asserts their constitutional authority to create interest-free money by cutting out the middle man.
The dont(didnt before the
The dont(didnt before the crisis, at least) buy bonds directly from treasury, they buy them in the secondary market. Create vs print is semantics, I was referring to your "even if they print" statement.
Ventura 2012
They set the interest rate
The money supply varies to hit whatever interest rate target the fed sets. Banksters never do the labor themselves. Printing is just manual labor to banksters.
AAAAhhhhhh....
the joys of fiat currency...
Assert Your Authority
Assert Your Authority
Well, how about that?
Now all you have to do is study for a few more years, and you actually might know what the rest of us are talking about.
What I have studied
Saying that the Fed prints money gives the misleading impression that a) they print any money, which they don't and b) that most of the money that is created by either the Fed or the government is printed money, which it isn't. Talk of the Fed 'printing' money feeds right into the Federal Reserve's various smokescreens.
You mean the one where...
people endlessly debate the commonly understood non-literal phrase "the FED is printing more money"?
Assert Your Authority
Assert Your Authority