Comment: Banks

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Banks

buy gov T-bills and money goes to government for wars, welfare, affirmative-action programs, trade union perks, subsidies, grants, etc.

FR can additionally lend money to banks so they can increase their reserve standing in a ratio of 1:9+ (for each dollar borrowed, bank can lend $9+ to business/public.)

Finally, NY FED's "discount window" outlet can give loans to prime member banks (domestic & foreign) who participate in redistributing T-bills to reluctant public via their investment portfolios.