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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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To: JasonC
I don't know whether you are being obtuse or condescending. When people talk about the FED printing money they don't mean just printing little pieces of paper with pictures of dead presidents, though that certainly happened (Nazi Germany, CSA, etc). They mean creation of money that did not previously exist through whatever mechanism, which today are mostly the unsafe exchange of computer bits, saving the cost of ink and paper.

You are the guy who doesn't even know that when the Fed prints (creates, get it) money beyond any expansion of the economy they just picked your pocket. Wake up, grow up and act like an adult.

122 posted on 03/13/2008 7:12:32 AM PDT by AndyJackson
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