Why does America borrow dollars that we print?

[Oddball]

New ones are never created?
Old ones are never destroyed?

To re-fi, in order to keep the 3-card Monte game a-rollin'.

 

[leftwinger]

Cannot end the Fed till we end the duopoly.

You finally willing to stop voting Repub?

It is ended (as of 2020). There is only the Uni-Party. Very few actual token American representatives up in DC.

the buffoons, babboons, criminals and you and your butt-buddies own it all you Panamanian butt munching homeO.

 

[Toddsterpatriot]

Why does America borrow dollars that we print?​

Because the entire concept of fiat currency is the impossible attempt to turn debt into wealth.

With currency of substance a "bill" is something that you can exchange for specie....Hence the nomenclature.

With the Fed fiat system, everybody is passing around IOUs (debt) as value, yet there's nothing of any inherent value to be "owed"...The Fed has no checking account with any kind of tangible funds on hand, just a big checkbook.....They issue the BigBanks the "check" (at interest, of course), the banks say "thank you, Lewis", and pass that debt on to you as "notes"....Also at an interest rate.

Nice work if you can get it.

The Fed has no checking account with any kind of tangible funds on hand, just a big checkbook.....They issue the BigBanks the "check" (at interest, of course),

The Fed typically lends the banks very little money.
Currently, about $7 billion from the Discount Window.
The Bank Term Funding Program, created during the 2023 banking failures lends about $125 billion.

 

[Oddball]

The Fed has no checking account with any kind of tangible funds on hand, just a big checkbook.....They issue the BigBanks the "check" (at interest, of course),

The Fed typically lends the banks very little money.
Currently, about $7 billion from the Discount Window.
The Bank Term Funding Program, created during the 2023 banking failures lends about $125 billion.

"Discount" on what?

 

[Toddsterpatriot]

Accurate book, that your occupation prevents you from acknowledging as true.

It's a bunch of crap.

 

[Toddsterpatriot]

To re-fi, in order to keep the 3-card Monte game a-rollin'.

Shares are used to re-fi? Tell me how that works.

 

[Oddball]

It's a bunch of crap.

The Fed scam is a bunch of crap.

We realize that you have to carry water for it, in order to rationalize the loot you make off it, but that changes nothing.

 

[Toddsterpatriot]

"Discount" on what?

The Discount Window is where banks borrow directly from the Fed.
Except in times of stress on the banking system, it is very lightly used.

 

[Toddsterpatriot]

The Fed scam is a bunch of crap.

We realize that you have to carry water for it, in order to rationalize the loot you make off it, but that changes nothing.

You may not like the Fed, but that book is still a silly piece of crap full of errors.

 

[Oddball]

The Discount Window is where banks borrow directly from the Fed.
Except in times of stress on the banking system, it is very lightly used.

Borrow what?

What are the assets on hand?

 

[Toddsterpatriot]

Borrow what?

What are the assets on hand?

Banks borrow dollars, usually using US Treasury securities as collateral.

 

[Natural Citizen]

The Fed scam is a bunch of crap.

We realize that you have to carry water for it, in order to rationalize the loot you make off it, but that changes nothing.

I'll tell you what, though, Toddster's always been a hoot to debate monetary policy with. He's grown on me over the years. Ha.

 

[Oddball]

Banks borrow dollars, usually using US Treasury securities as collateral.

Uh-huh...And the treasuries have what for collateral?

 

[Oddball]

I'll tell you what, though, Toddster's always been a hoot to debate monetary policy with. He's grown on me over the years. Ha.

I don't deny that, and I like him....But his playing pissboi for the Fed is wearisome.

 

[Toddsterpatriot]

Uh-huh...And the treasuries have what for collateral?

Full faith and credit. Kind of like most corporate debt.
AFAIK, not a lot of corporate debt has dedicated collateral.

 

[Toddsterpatriot]

I don't deny that, and I like him....But his playing pissboi for the Fed is wearisome.

Not as wearisome as the idea we should print money, instead of borrowing it.

 

[Oddball]

Not as wearisome as the idea we should print money, instead of borrowing it.

Borrow it from whom?...Who has the collateral being borrowed against?

 

[the watcher]

Debt is slavery,but you can call it something else.

 

[Oddball]

Full faith and credit. Kind of like most corporate debt.
AFAIK, not a lot of corporate debt has dedicated collateral.

Ahhhh!...The ole "full faith and credit" ring-around-the-rosey horsehit!!

What, in the name of Sam Hill, does that mean?...Where is the physical collateral, that a bank would demand from you and me, if we "borrowed"?

 

[Natural Citizen]

Uh-huh...And the treasuries have what for collateral?