To: montag813
“Last week, the Fed said it would lend banks $100 billion
Where does this come from exactly? The Chinese bond buyers?”
Actually I’m afraid they have started up the printing presses and are churning out the money, made-up money.
113 posted on
03/12/2008 11:01:22 PM PDT by
flaglady47
(Algore: send global warming to Chicago area; will pay any carbon tax - desperate)
To: flaglady47
No, whenever the Fed buys anything, new money is created, because money is the debt of the Fed. Printing, on the other hand, happens when and if individual despositers decide they would rather hold physical paper notes instead of bank deposits, and does not change the effective money supply. It just alters the form in which a bit of it at the margin, appears.
120 posted on
03/13/2008 6:48:29 AM PDT by
JasonC
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