The Fed

[Toddsterpatriot]

Printing too much money and dumping it into the economy will cause inflation.

Borrowing too much money and dumping it into the economy will cause inflation.

The source of that money is irrelevant.

What part of that confuses you?

Printing too much money and dumping it into the economy will cause inflation.

Exactly. If I print $10 trillion dollars, I'll cause prices to rise.
$10 trillion more dollars chasing the same amount of goods causes prices to rise.

Borrowing too much money and dumping it into the economy will cause inflation.

How? I borrowed your $10 trillion. Now I can spend it and you can't.
Same number of dollars chasing the same amount of goods.

The source of that money is irrelevant.

That's funny. And stupid.

What part of that confuses you?

None of your idiocy confuses me, it amuses me.

 

[KissMy]

Just to give an example of how deeply corrupted our system of government is, here's a question about the fed that opened my eye's several years ago.

The US constitution grants the congress the authority to create money without interest. So why does it borrow from the Federal Reserve, with interest. This was a question a 12yr old asked a politician several years ago. It's on Youtube. I've spent over and hour trying to find it. But it's either buried or they've removed it.
Update: I think this is the girl. (She's Canadian. But their system is about like ours)

The Fed is not a totally privately run banking system. The president picks the Fed Chairman, FDIC Chairman & Treasury Secretary who actually prints the money.

 

[YoursTruly]

The Fed is not a totally privately run banking system. The president picks the Fed Chairman, FDIC Chairman & Treasury Secretary who actually prints the money.

Agreed. The government and the Fed work hand in hand.

 

[YoursTruly]

Borrowing too much money and dumping it into the economy will cause inflation.

How? I borrowed your $10 trillion. Now I can spend it and you can't.
Same number of dollars chasing the same amount of goods.

You left out the "dumping it into the economy" part. Inflation is nothing more than having too much money in the economy. Regardless of how it gets there, there's still too much money in the economy.

 

[Toddsterpatriot]

You left out the "dumping it into the economy" part. Inflation is nothing more than having too much money in the economy. Regardless of how it gets there, there's still too much money in the economy.

Borrowing from one person and spending it is much different than printing and spending.

"Dumping it into the economy" doesn't mean anything.

Inflation is nothing more than having too much money in the economy.

Exactly.

Regardless of how it gets there, there's still too much money in the economy.

Saved money was already "in the economy", newly printed money wasn't.

 

[KissMy]

You left out the "dumping it into the economy" part. Inflation is nothing more than having too much money in the economy. Regardless of how it gets there, there's still too much money in the economy.

That's because Toddsterpatriot is a Trumpster Stooge who will never admit to the fact that Trump printed 5 times more money than all other presidents combined.

 

[YoursTruly]

Borrowing from one person and spending it is much different than printing and spending.

"Dumping it into the economy" doesn't mean anything.

Inflation is nothing more than having too much money in the economy.

Exactly.

Regardless of how it gets there, there's still too much money in the economy.

Saved money was already "in the economy", newly printed money wasn't.

Are you arguing just to argue? The difference in what you're saying and us isn't enough to quibble over.

 

[KissMy]

How? I borrowed your $10 trillion. Now I can spend it and you can't.
Same number of dollars chasing the same amount of goods.

That's not how our fractional reserve banking system works at all.

Banks lend money they don't have in deposits. When I deposit money, the bank lends it 10 times over. That drives prices up 10 times more than if I hide it under my mattress, spend it myself or directly lend it myself to others.

Banks create new money when they sign loans. This money only gets removed from the economy by taxes, high interest rates, repayment of loans or loan defaults, but government treasury is always there with printing press to bail out the loser banks, so those defaults never really remove the lent money from the economy.

 

[Lesh]

Printing too much money and dumping it into the economy will cause inflation.

Borrowing too much money and dumping it into the economy will cause inflation.

The source of that money is irrelevant.

What part of that confuses you?

Inflation created by borrowing is in the single digits.

Inflation created by printing money is on the thousands of per cent.

Those two things are NOT THE SAME.

Only an idiot would make that claim

 

[Lesh]

When the Fed “creates money out of thin air” they then lend it out to other banks.

When that money is paid back it goes back into the ether from whence it came.


Inflation is the interest they charged.

When the government prints money that money IN FULL…is inflation and it never gets removed from the system

 

[Toddsterpatriot]

That's because Toddsterpatriot is a Trumpster Stooge who will never admit to the fact that Trump printed 5 times more money than all other presidents combined.

Awwww, poor girl. Let it all out.

Feel better now?

 

[Toddsterpatriot]

Are you arguing just to argue? The difference in what you're saying and us isn't enough to quibble over.

I'm arguing because your claim, "Regardless of how it gets there, there's still too much money in the economy" is silly.

Between printing and borrowing is a giant difference. Huge.

 

[Toddsterpatriot]

That's not how our fractional reserve banking system works at all.

Banks lend money they don't have in deposits. When I deposit money, the bank lends it 10 times over. That drives prices up 10 times more than if I hide it under my mattress, spend it myself or directly lend it myself to others.

Banks create new money when they sign loans. This money only gets removed from the economy by taxes, high interest rates, repayment of loans or loan defaults, but government treasury is always there with printing press to bail out the loser banks, so those defaults never really remove the lent money from the economy.

Banks lend money they don't have in deposits. When I deposit money, the bank lends it 10 times over.

You're lying, or you're an idiot. Banks can't lend a single dollar over what they have in
deposits or other loans to the bank. Every loan is fully funded.

 

[WEATHER53]

While Fed focuses on punitive inflation control, direct deposits don’t work.
More government diversion from their primary purpose equals more important issues not being attended to.

 

[Toddsterpatriot]

That's not how our fractional reserve banking system works at all.

Banks lend money they don't have in deposits. When I deposit money, the bank lends it 10 times over. That drives prices up 10 times more than if I hide it under my mattress, spend it myself or directly lend it myself to others.

Banks create new money when they sign loans. This money only gets removed from the economy by taxes, high interest rates, repayment of loans or loan defaults, but government treasury is always there with printing press to bail out the loser banks, so those defaults never really remove the lent money from the economy.

Banks lend money they don't have in deposits. When I deposit money, the bank lends it 10 times over.

Cool story bro, now show your math.

I make the first deposit in a new bank, $1000.

Show me the process they use to loan out 10 times my deposit.

 

[kyzr]

A fun factoid today, Fed Chair Powell actually said "shut the mother fucking door" when questions were being shouted at him...

 

[YoursTruly]

Banks lend money they don't have in deposits. When I deposit money, the bank lends it 10 times over.

Cool story bro, now show your math.

I make the first deposit in a new bank, $1000.

Show me the process they use to loan out 10 times my deposit.

What percentage of deposits must banks keep on hand? 10%


If the reserve requirement is 10%, the deposit multiplier means that banks must keep 10% of all deposits in reserve, but they can create money and stimulate economic activity by lending out the other 90%. So, if someone deposits $100, the bank must keep $10 in reserve but can lend out $90.

 

[Toddsterpatriot]

What percentage of deposits must banks keep on hand? 10%


If the reserve requirement is 10%, the deposit multiplier means that banks must keep 10% of all deposits in reserve, but they can create money and stimulate economic activity by lending out the other 90%. So, if someone deposits $100, the bank must keep $10 in reserve but can lend out $90.

So, my $1000 deposit allows $900 in loans, not $10,000 in loans?

Don't tell KissMy , he'd feel like a bigger moron than usual.

 

[YoursTruly]

So, my $1000 deposit allows $900 in loans, not $10,000 in loans?

Don't tell KissMy , he'd feel like a bigger moron than usual.

Good point.

 

[KissMy]

Banks lend money they don't have in deposits. When I deposit money, the bank lends it 10 times over.

You're lying, or you're an idiot. Banks can't lend a single dollar over what they have in
deposits or other loans to the bank. Every loan is fully funded.

Bullshit! - About 10 banks per year fail insolvent from lack of deposits. Traditional banks had a 10% reserve while shadow banks leverage below 3% including finance companies, asset-backed commercial paper (ABCP) conduits, structured investment vehicles (SIVs), credit hedge funds, money market mutual funds, securities lenders, limited-purpose finance companies (LPFCs), and the government-sponsored enterprises (GSEs).

When a bank lends money, it becomes a deposit in another account that they lend again into another account & so on again, again & again in an endless loop.

Banks also sell or borrow against loans to create additional loans. This is why Bush had to bailout Wallstreet. Freddie Mac had a leverage ratio of about 70:1. Lehman Brothers was leverage at 44:1 before it became insolvent. Currently US Bancorp is leveraged at 15:1.