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To: Toddsterpatriot

“The Fed has nearly $480 billion in Treasury securities.

‘Do they realize that the Fed conjures it out of thin air?’

They could. They don’t have to.”

This is what I’ve always wondered: what does the Fed use to buy its securities? Does it use the gold it confiscated from the public way back when? If so, wouldn’t suddenly reintroducing the equivalent of some portion of that gold back into the economy through AIG lead to inflation anyway?


110 posted on 09/16/2008 6:45:15 PM PDT by Tublecane
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To: Tublecane
This is what I’ve always wondered: what does the Fed use to buy its securities?

Newly created money.

Does it use the gold it confiscated from the public way back when?

No.

119 posted on 09/16/2008 6:58:28 PM PDT by Toddsterpatriot (Let me apologize to begin with, let me apologize for what I'm about to say....)
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To: Tublecane
...what does the Fed use to buy its securities?

Federal Reserve Notes

126 posted on 09/16/2008 7:02:05 PM PDT by Petronski (Please pray for the success of McCain and Palin. Every day, whenever you pray.)
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