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Where does the Federal Reserve get the money to loan the federal government?
Freerepublic | 12-25-2020 | Self

Posted on 12/25/2020 4:25:26 PM PST by Blood of Tyrants

In the past during normal times, to raise money for the federal government, the Treasury would sell government bonds. However, in recent years, they have abandoned any pretense of selling bonds and have instead just printed more money. Which raises the following question)s); 1. If the fedres is just printing money, is the US actually borrowing it? And can we just print more money to pay it back?

And the scary thing is that once the government discovers that when it needs more money it can just print it, it eventually does. 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.


TOPICS: Miscellaneous
KEYWORDS: borrow; federalreserve; fiatmoneu; ntsa; stupidvanity; vanity
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To: Bonemaker

I’ve been needing one of those for awhile!

Now if everybody had one...a loaf of bread would be $100.

Until it went to $1,000. Then, $10,000, then...


21 posted on 12/25/2020 4:37:14 PM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: Blood of Tyrants

The Creature from Jekyll Island https://www.youtube.com/watch?v=lu_VqX6J93k&list=PLBuJb6KFNTppk01v6UxN3RlQM0KEkxjMg&index=8


22 posted on 12/25/2020 4:37:30 PM PST by EvilCapitalist (We must FIGHT, I repeat it sir, we must FIGHT! -Patrick Henry)
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To: Blood of Tyrants

It is simple: They merely write a check. Honest. Professor in economics class took a whole period to explain the process. The class was furious.


23 posted on 12/25/2020 4:37:53 PM PST by odawg
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To: LegendHasIt

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.


Sort of like they do votes ...


24 posted on 12/25/2020 4:38:01 PM PST by PIF (They came for me and mine ... now its your turn)
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To: Blood of Tyrants

Their is no debt.

Its just fabricated money. We are the world reserve.

I think 1.00 generates about 1.68 in its cycle.


25 posted on 12/25/2020 4:38:21 PM PST by eyedigress (Trump is my President!)
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To: Blood of Tyrants

From their printing press


26 posted on 12/25/2020 4:38:29 PM PST by faithhopecharity (Politicians are not born, they are excreted. Marcus Tullius Cicero (106 to 43 BCE))
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To: Pilgrim's Progress

Yes but where is the physical cash? We’re going cashless. Pallets of it in warehouses?

Why don’t they just make a 1 trillion dollar bill! lol

Zimbabwe here we come!


27 posted on 12/25/2020 4:38:30 PM PST by US_MilitaryRules
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To: Blood of Tyrants

Where do Flying Monkeys get Tootsie Rolls?


28 posted on 12/25/2020 4:39:28 PM PST by Scrambler Bob (This is not /s. It is just as viable as any MSM 'information', maybe more so!)
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To: Blood of Tyrants

print shop


29 posted on 12/25/2020 4:39:43 PM PST by al baby (Hi Mom Hi Dad)
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To: Paladin2

[Where does Fauxcy get his Science?]

Makes it up as he goes along.


Government health agency official: Coronavirus ‘isn’t something the American public need to worry about’

By J. Edward Moreno - 01/26/20 07:00 AM EST


Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases (NIAID), said Sunday the American public shouldn’t worry about the coronavirus outbreak in China.

“It’s a very, very low risk to the United States,” Fauci said during an interview with radio show host John Catsimatidis.


https://thehill.com/homenews/sunday-talk-shows/479939-government-health-agency-official-corona-virus-isnt-something-the


30 posted on 12/25/2020 4:40:05 PM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: Paladin2

[Where does Fauxcy get his Science?]

Makes it up as he goes along.


Government health agency official: Coronavirus ‘isn’t something the American public need to worry about’

By J. Edward Moreno - 01/26/20 07:00 AM EST


Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases (NIAID), said Sunday the American public shouldn’t worry about the coronavirus outbreak in China.

“It’s a very, very low risk to the United States,” Fauci said during an interview with radio show host John Catsimatidis.


https://thehill.com/homenews/sunday-talk-shows/479939-government-health-agency-official-corona-virus-isnt-something-the


31 posted on 12/25/2020 4:40:05 PM PST by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: Blood of Tyrants

They literally type it into a computer. To “back” the money, they buy “things” such as $500 million for a parking lot. It is backed by not much.


32 posted on 12/25/2020 4:40:07 PM PST by CodeToad (Arm Up! They Have!)
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To: Blood of Tyrants

When the Federal Reserve “printed” money they always used to buy Treasury Paper (bonds and notes) with it. I have referred to this as exchanging I-Owe-Me’s. Now I think the Fed has also been allowed to buy Corporate Paper as an “asset” to “back” the notes they “print.” (They don’t really print much anymore. These are just numbers in a computer somewhere.)

When the Federal Reserve was created, I believe the ONLY asset they could back their notes with was GOLD.

ML/NJ


33 posted on 12/25/2020 4:40:16 PM PST by ml/nj
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To: Blood of Tyrants

I asked a financial expert this same question a few years ago.

Here is his answer:


34 posted on 12/25/2020 4:40:42 PM PST by blueunicorn6 ("A crack shot and a good dancer”)
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To: US_MilitaryRules

For the same reason 100 is the max.

Iran has our printing presses.


35 posted on 12/25/2020 4:42:16 PM PST by eyedigress (Trump is my President!)
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To: Blood of Tyrants

“Printing money out of thin air”

Yes. The USA can get away with it because the dollar is the worlds reserve currency. As soon as that is no longer the case, the US collapses. Which is why China, Russia and Iran have been trading in their own crypto-currencies (and not dollars).

The collapse is indeed coming. Now is the time to diversify ALL your assets. Even bitcoin is a good hedge, especially if Chinese Puppet Biden is installed to rule over us.


36 posted on 12/25/2020 4:42:16 PM PST by Flavious_Maximus
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To: Wilderness Conservative

“The world” not buying enough treasury bonds to keep up with recent deficit spending...the Fed now buying treasury bonds themselves with freshly created $$. (”Monetizing the Debt”). Being done thru Fed member banks who buy the treasury bonds and “sell” them to the Fed in return for a “chit/IOU”...that the banks can put on the books as “reserves”.


37 posted on 12/25/2020 4:42:51 PM PST by Drago
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Two words. BOOK ENTRY


38 posted on 12/25/2020 4:44:28 PM PST by drdirt333 (DRDIRT333 )
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To: Scrambler Bob

Ahhhhh.....

That is the question that has been keeping scientists, and Hillary Clinton, awake at night.


39 posted on 12/25/2020 4:44:51 PM PST by blueunicorn6 ("A crack shot and a good dancer”)
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To: Blood of Tyrants
Money printer go brrr...


40 posted on 12/25/2020 4:45:29 PM PST by Yo-Yo (is the /sarc tag really necessary?)
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