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To: RFEngineer
Lets say they print up a billion dollars for bombs, guns, drones.

Money isn't printed. It's created when a new debt is created by a banking institution.

Banks do not lend deposits. Those are liabilities on the bank's balance sheet and they are not allowed to.

It used to be there were rules about how many loans (new money) could be created based on the deposits held. That's no longer the case.

The government cannot print money. It can sell securities, with the purchase at auction of those securities creating new money - the same as a consumer taking a loan for a house or car creates new money.

Principal payments on loans reduce the money supply as the debt gets drawn down.

89 posted on 05/19/2024 8:11:04 AM PDT by politicket
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To: politicket

Good grief. “printing” is not a literal term.

There is a pile of money, all of a sudden the pile gets bigger.

Is that sufficiently obtuse for you without saying “print”?

Who is going to build weapons in a “piles of money get bigger” (hyperinflationary) environnment, and will the money pile increase build the quantity of weapons that is wanted.


91 posted on 05/19/2024 2:45:26 PM PDT by RFEngineer
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