Posted on 01/26/2009 7:09:49 PM PST by sickoflibs
Yes they do. They can also buy assets with new money, created out of thin air.
It does not have capital of 2.5+ trillion.
And it doesn't have deposited reserves of 2.5 trillion either.
You are just wrong and think they can print their way out of any problem.
Where did I ever claim that?
Sorry—I prefer to work with real money not “nominal money.” You can LOL all you want! Doesn’t help the economy.
Please define "real money" and "nominal money".
Are you just playing coy or do you not understand basic econ 101? Purchasing power vs nominal value. If $2 buys a big mac now, if the fed prints $5 trillion to plug the holes in the bank and a big mac is then valued at $10, it doesn’t mean big macs are worth 5x as much as before. Government bond rates would soar if they try the massive printing route which would kill basically every other sector off that’s just getting buy on low borrowing rates.
I don’t even know why I bother—You are just a pump cheerleader. Done wasting my time. Stay in long! We’ll see how well the Fed does with QE.
So where does the Fed's money come from, Peaches?
L
Coming from the guy who earlier thought the Fed didn't have as much money as they want to create? LOL!
Purchasing power vs nominal value.
All the money the Fed creates is real.
It's not a waste if you learn even one tiny fact. Considering your huge errors upthread, this was a great use of your time. Glad I could help.
You don’t know, sugar?
From where does the Federal Reserve Bank get it's money?
It's very simple. Either you can answer it or you can not.
If you can, do.
If you can't, say so.
Cough up a response, Princess.
L
Well, Jennifer, banks have accounts at the Fed. So pretend 1st National Bank of Hooterville has a balance of $1,000,000. Now the Fed wants to buy $10,000,000 of securities held by the 1st National Bank of Hooterville. The bank sends the securities to the Fed and the Fed adds $10,000,000 to the account of the bank. They can see it on their computer screen and the Fed will even send them a nice statement at the end of the month showing their balance held at the Fed is now $11,000,000.
If you need any more help, be sure to ask, honey.
Come on, Sugar...you can do it.
(Honestly Travis, this is just one step above fighting with a retard. Maybe not. One could actually lose a fight with a retard.)
L
Sorry—You haven’t found any errors. You just want to dance around economic definitions.
Do you even understand how wires work? The Fed doesn't send them, the Fed does them.
The Fed opens up the Excel spreadsheet that says "Bank of Hooterville" at the top. Then they change the $1,000,000 to $11,000,000.
How did you think they did it? LOL!
One could actually lose a fight with a retard.
There's no danger of me losing to the retards on the thread. LOL!
If you ever learn how wire transfers work and how checks clear, you won't sound so stupid in the future.
Where did the Fed get this 10,000,000 dollars from?
If one of my clients gave me XXX,XXX,XXX dollars and I just 'added' an additional XX,XXX,XXX dollars to their account without an accounting of where that money came from I'd be looking at a rather long prison stretch.
So come on, Bunky....tell me. I'm breathless with anticipation.
From where does the Federal Reserve conjur forth the additional 10,000,000 you mentioned?
Do tell... Enquiring minds want to know.
L
What did the Treasury create when the Fed bought all that commercial paper?
I'm sure you also know that FRNs are liabilities to the fed.
How much interest does the Fed owe every year on those FRNs?
MY GOD MAN! That's IT? Really?
Well I've got a deal for you. You send me 10,000.00 and I'll send you an Excel spreadsheet that says I've given you 15,000.00.
Just think about it...you'll be up 50%! You CAN'T lose!
I don't often do this, but in your case I'll make an exception.
You're an idiot.
Unless of course you send me that 10,000.00 US Dollars. Then you'll be an INVESTOR!.
Won't that be grand?
L
They changed a few bits on a computer spreadsheet.
If one of my clients gave me XXX,XXX,XXX dollars and I just 'added' an additional XX,XXX,XXX dollars to their account without an accounting of where that money came from I'd be looking at a rather long prison stretch.
Wow, Lunky is not the Federal Reserve.
From where does the Federal Reserve conjur forth the additional 10,000,000 you mentioned?
Look, I'm typing $1,000,000. Now I'm typing $11,000,000.
If I was the Fed, I'd have just added $10,000,000 to the money supply. Glad I could help.
Effectively Federal Reserve Notes. My point was that the Fed just can't create money--it must do so with the Treasury.
How much interest does the Fed owe every year on those FRNs?
Theoretically nothing--until people come into to demand physical currency for their electronic or deposited currency and the Fed can't give them any. Of course it use to be gold/silver till we decided to go the inflation route.
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