Where does the Federal Reserve get the money to loan the federal government?

Freerepublic | 12-25-2020 | Self

[Blood of Tyrants]

Federal Reserve questions.

[RummyChick]

ChyNA

[LukeL]

The Fed buys bonds and debt related securities from banks under a secret account. They do this wish freshly created money.

[PeterPrinciple]

The problem is runaway inflation which will destroy your life;s savings unless you have it invested in hard assets like gold, real estate, brass casings and copper jacketed lead, etc.

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The jews in Germany lost their jobs, then realestate, then they put their money in art and paintings, then gold and then govt got the gold out of their teeth.

[Sirius Lee]

“Where?” It just is. Like pocket lint, or that little squiggly thing you see in your eye now and then.

[rlmorel]

Oh, God!

There’s rat in the sausage!!!!!

[TLI]

https://www.amazon.com/Debt-Virus-Compelling-Solution-Problems/dp/0944435130

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[Bonemaker]

[butlerweave]

It owns the only Money Tree

[Wilderness Conservative]

The treasury sells bonds to the world and the Fed manages the proceeds.

[Pilgrim's Progress]

The copy machine . . . though their only problem is finding enough paper to print with.

[JohnBrowdie]

they were dead by then, though. so I think they felt like their investment portfolio bottomed out way before the teeth thing.

[Magnatron]

Where does the Federal Reserve get the money to loan the federal government?

[Paladin2]

Where does Fauxcy get his Science?

[G Larry]

Xerox

[ConservativeMind]

Only the Treasury prints money; however, the FED handles bond auctions and interest rates and in recent years has been utilizing “quantitative easing,” which is basically like having the government buy its own bonds (ghost money from nowhere), which literally is like taking fractions of dollars out of every other “real” dollar ever left in circulation.

This is my humble understanding.

[dwilkins]

Ironically, the best solution would be to simply print money to pay for what they need, especially paying off debt as it comes due. The problem is borrowing the money from the banks to create currency. That creates an inflation acceleration that is terribly destructive. I’d prefer they didn’t run at a deficit, but if they’re going to do it straight printing money is the best option.

[Blood of Tyrants]

Sounds like what the left would like to do to patriots.

[rbg81]

They create it out of thin air, but I believe it requires an act of Congress for them to expand their balance sheet.

And, yeah, the whole thing is incestuous.

[LegendHasIt]

Used to be they just printed it up whenever they wanted. That was called Fiat Money. Now they don’t even bother to do that most of the time, They just create it with bits and bytes on a computer. E-Fiat, I guess.