I suppose you think you can just print money.
Do yo know how the Fed works?
They print money (reserve NOTE), from which they loan to the national banks, at the rediscount rate (close if not zero recently), after 1 year, 2 years or 3, the national bank returns the dollar, plus the rediscount rate. State and other banks borrow from the national banks. Thrifts do not on the whole participate in this system, they generate thier money to loan from deposits.
The treasure department is supposed to do the printing.
After this scheme runs for awhile, the Fed ends up owning a large portion of the economy, depending on how fast money turns.
I don’t care which pocket the accountant puts the assists in (if you took accounting you know the rules for which side of the ledger you use are sometimes arbitrary).
At any rate, despite the smoke and mirrors, the Fed ends up with a larger and larger portion of the GDP.
No, I don’t believe the Fed’s docmentation.
85 Billion x 36 months = 3 Trillion.
Yes, the Fed can create money out of thin air.
They print money (reserve NOTE), from which they loan to the national banks, at the rediscount rate (close if not zero recently), after 1 year, 2 years or 3, the national bank returns the dollar, plus the rediscount rate.
If a bank wants notes, they have to buy them.
After this scheme runs for awhile, the Fed ends up owning a large portion of the economy, depending on how fast money turns.
Before the crisis, their balance sheet was about $800 billion.
I don’t care which pocket the accountant puts the assists in (if you took accounting you know the rules for which side of the ledger you use are sometimes arbitrary).
Asset....liability....arbitrary? LOL!
85 Billion x 36 months = 3 Trillion.
Which is much less than the $14 trillion number you first mentioned.