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To: Toddsterpatriot

Because, operationally it is not wrong. The treasury prints treasuries (because its tax revenue falls short of its expenditures), it sells treasuries, and to the extent this affects economic growth and monetary targets, the federal reserve offsets the effect by increasing reserves through open market operations by purchasing treasuries to increase reserves (which through fractional reserve banking increases total cash and credit in the system). In short, when the government is short of funds it prints it.


84 posted on 11/21/2007 8:58:24 AM PST by AndyJackson
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To: AndyJackson; groanup; expat_panama
In short, when the government is short of funds it prints it.

If that's what you think, I can't help you.

85 posted on 11/21/2007 9:01:07 AM PST by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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