I thought the Federal Reserve issues money?

[Parker99]

I thought the Federal Reserve issues money through backed bonds or security.

Well is it 40% of the US government debt is owed to the Federal Reserve.

Other money issues is Mutual Funds.

Where Another 26-30% debt is owed to Mutual Funds (e.g Vanguard, Fidelity Investments).

If the Federal Reserve issues money through backed bonds or security why does government have to raise taxes to pay of the debt? If the person or country is buying the backed bonds or security? If it is 5 year or 10 year or 50 year backed bonds or security.

 

[The Irish Ram]

The Federal Reserve is not Federal and not a reserve. It is a European elite banking Corporation that usurped our Treasury. Their goal is to take us down, not help us out.

 

[Oddball]

I thought the Federal Reserve issues money through backed bonds or security.

Well is it 40% of the US government debt is owed to the Federal Reserve.

Other money issues is Mutual Funds.

Where Another 26-30% debt is owed to Mutual Funds (e.g Vanguard, Fidelity Investments).

If the Federal Reserve issues money through backed bonds or security why does government have to raise taxes to pay of the debt? If the person or country is buying the backed bonds or security? If it is 5 year or 10 year or 50 year backed bonds or security.

The Creature from Jekyll Island: A Second Look at the F…

Where does money come from? Where does it go? Who makes…

www.goodreads.com

 

[Dekster]

I thought the Federal Reserve issues money through backed bonds or security.

Well is it 40% of the US government debt is owed to the Federal Reserve.

Other money issues is Mutual Funds.

Where Another 26-30% debt is owed to Mutual Funds (e.g Vanguard, Fidelity Investments).

If the Federal Reserve issues money through backed bonds or security why does government have to raise taxes to pay of the debt? If the person or country is buying the backed bonds or security? If it is 5 year or 10 year or 50 year backed bonds or security.

Federal Reserve =/=US Treasury

 

[Slyhunter]

I thought the Federal Reserve issues money through backed bonds or security.

Well is it 40% of the US government debt is owed to the Federal Reserve.

Other money issues is Mutual Funds.

Where Another 26-30% debt is owed to Mutual Funds (e.g Vanguard, Fidelity Investments).

If the Federal Reserve issues money through backed bonds or security why does government have to raise taxes to pay of the debt? If the person or country is buying the backed bonds or security? If it is 5 year or 10 year or 50 year backed bonds or security.

Somebody has to pay the interest on the bonds.
I believe the Fed prints Money. So do Banks when they make loans. They have to keep enough assets to counter the loans, but they don't give that actual money to the person making a loan, they give new money.

 

[Toddsterpatriot]

I thought the Federal Reserve issues money through backed bonds or security.

Well is it 40% of the US government debt is owed to the Federal Reserve.

Other money issues is Mutual Funds.

Where Another 26-30% debt is owed to Mutual Funds (e.g Vanguard, Fidelity Investments).

If the Federal Reserve issues money through backed bonds or security why does government have to raise taxes to pay of the debt? If the person or country is buying the backed bonds or security? If it is 5 year or 10 year or 50 year backed bonds or security.

I thought the Federal Reserve issues money through backed bonds or security.

The Federal Reserve can create money. They do it when they purchase securities.

Well is it 40% of the US government debt is owed to the Federal Reserve.

The Federal Reserve currently holds almost $4.4 trillion in Treasury securities.
Out of almost $35.8 trillion in public debt outstanding. A bit over 12%.

 

[Toddsterpatriot]

So do Banks when they make loans. They have to keep enough assets to counter the loans, but they don't give that actual money to the person making a loan, they give new money.

Banks don't get to create new money to loan to people. They have to use the old money they received as deposits.

If a bank has $1000 in deposits, they can loan out, at most, $1000.

 

[Oddball]

Somebody has to pay the interest on the bonds.
I believe the Fed prints Money. So do Banks when they make loans. They have to keep enough assets to counter the loans, but they don't give that actual money to the person making a loan, they give new money.

The "assets" are the paper they're holding, which presumes the loans will be repaid.

There hasn't been any "there" there since 1913.

 

[sparky]

what's gold up to now??? ~S~

 

[Slyhunter]

Banks don't get to create new money to loan to people. They have to use the old money they received as deposits.

If a bank has $1000 in deposits, they can loan out, at most, $1000.

That is not true.
I worked in the banking industry for 20 years.

Loan-to-Deposit Ratio (LDR) Definition

The loan-to-deposit ratio (LDR) measures a bank’s liquidity and credit risk. Calculate it by dividing a bank’s total loans by its total deposits.

www.investopedia.com

While they want 80% or higher, quite frequently it is lower.

 

[Unkotare]

The actual, physical printed money is distributed to 12 regional reserve banks who then distribute it via loans to private banks in different parts of the country. These fed banks also take paper currency older than ten years, replace it to smaller banks, and destroy the older currency. If you find your regional fed bank, you can watch millions and millions of dollars being shredded.

 

[Slyhunter]

View attachment 1029628
what's gold up to now??? ~S~

They predict it will go up to 300k, I believe it's gone up 154% since Biden has taken office. I put 2k into a $GLD stock which only buys gold, so no fees to me, and I made over $54.00 per week for the last 3 weeks.

 

[Natural Citizen]

The Federal Reserve is not Federal and not a reserve. It is a European elite banking Corporation that usurped our Treasury. Their goal is to take us down, not help us out.

And also it is not ''money.''

To be ''money'' there must be a store of value.

The currency that the Fed prints is not ''money'' because it is not a store of value.

The currency it prints is nothing more that a claim check on an IOU.

Inflation is correctly defined as the expansion of the supply of currency and credit.

The Fed is the single biggest driver of inflation.

Rising prices of goods and services are merely one consequence of inflation.

Both mainstream candidates are dedicated trustees in central economic planning by a central bank and will continue the same failed monetary policies that have systematically destroyed American prosperity, regardless of which one gets selected for President.

But...you do have about 40 different flavors of donuts to choose from. So there's that...

 

[Toddsterpatriot]

That is not true.
I worked in the banking industry for 20 years.

Loan-to-Deposit Ratio (LDR) Definition

The loan-to-deposit ratio (LDR) measures a bank’s liquidity and credit risk. Calculate it by dividing a bank’s total loans by its total deposits.

www.investopedia.com

While they want 80% or higher, quite frequently it is lower.

That is not true.
I worked in the banking industry for 20 years.

It is absolutely true.

While they want 80% or higher, quite frequently it is lower.

80% loan-to-deposit ratio.

That means $80 in loans for every $100 in deposits.
Total loans are smaller than total deposits.

If loans were more than deposits, the number would be larger than 100%.

 

[Slyhunter]

That is not true.
I worked in the banking industry for 20 years.

It is absolutely true.

While they want 80% or higher, quite frequently it is lower.

80% loan-to-deposit ratio.

That means $80 in loans for every $100 in deposits.
Total loans are smaller than total deposits.

View attachment 1029676

If loans were more than deposits, the number would be larger than 100%.

Oh, damn, you're right. I was a Bank courier for over 20 years, close to 30. I was BOA Brevard County lead Driver for 20 years. I learned a thing or two just being a driver, but I got those numbers backwards. Sorry.

 

[sparky]

money and currency are in two different locations in the dictionary......~S~

 

[Toddsterpatriot]

And also it is not ''money.''

To be ''money'' there must be a store of value.

The currency that the Fed prints is not ''money'' because it is not a store of value.

The currency it prints is nothing more that a claim check on an IOU.

Inflation is correctly defined as the expansion of the supply of currency and credit.

The Fed is the single biggest driver of inflation.

Rising prices of goods and services are merely one consequence of inflation.

Both mainstream candidates are dedicated trustees in central economic planning by a central bank and will continue the same failed monetary policies that have systematically destroyed American prosperity, regardless of which one gets selected for President.

But...you do have about 40 different flavors of donuts to choose from. So there's that...

The Fed is the single biggest driver of inflation.

Rising prices of goods and services are merely one consequence of inflation.

Exactly.

 

[Toro]

The Federal Reserve is not Federal and not a reserve. It is a European elite banking Corporation that usurped our Treasury. Their goal is to take us down, not help us out.

 

[Toro]

And also it is not ''money.''

To be ''money'' there must be a store of value.

The currency that the Fed prints is not ''money'' because it is not a store of value.

The currency it prints is nothing more that a claim check on an IOU.

Inflation is correctly defined as the expansion of the supply of currency and credit.

The Fed is the single biggest driver of inflation.

Rising prices of goods and services are merely one consequence of inflation.

Both mainstream candidates are dedicated trustees in central economic planning by a central bank and will continue the same failed monetary policies that have systematically destroyed American prosperity, regardless of which one gets selected for President.

But...you do have about 40 different flavors of donuts to choose from. So there's that...

It is a store of value. What do you think you're looking at when you see your bank account?

If your argument next is "Well, inflation!" that's true. But that's true of all currencies, even gold for long periods of time. (Gold fell ~75% over two decades starting in the early 1980s while nominal GDP quadrupled.). So the inflation argument is pedantic.

As for "systematically destroying American prosperity", that's utterly false. I get the printing too much money criticism, but it is an empirical fact that total real and per capita growth since the Fed's creation has been the fastest in human history. You may or may not ascribe this to the Fed, but to say it has destroyed American prosperity is about as factually wrong as you can get.

 

[Toro]

That is not true.
I worked in the banking industry for 20 years.

It is absolutely true.

While they want 80% or higher, quite frequently it is lower.

80% loan-to-deposit ratio.

That means $80 in loans for every $100 in deposits.
Total loans are smaller than total deposits.

View attachment 1029676

If loans were more than deposits, the number would be larger than 100%.

Total loans can be higher than deposits if there are other funding sources other than deposits. But both sides of the balance sheet must be equal.