[expat_panama]

"...does the federal reserve create through its actions money, or doesn't it?  ...how is money created in the system to finance that debt?"

I take it those are rhetorical questions, and that you already know about the Fed, interest rates, monetary policy, and that the Fed has nothing to do with financing the debt (fiscal policy)..   Glad we're together on the Fed not printing money.

[dollarbull]

See post 93 on this thread

[AndyJackson]

I take it those are rhetorical questions, and that you already know about the Fed, interest rates, monetary policy, and that the Fed has nothing to do with financing the debt (fiscal policy).

Then why did sir Allan write an article saying that one of the roles of a fiat currency is to create money to finance the deficit? Was he wrong?