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The question I have is if the govt is truly printing our currency who is the govt borrowing money from. If the govt was truly making more money then it would si
by geggam 9y ago
The question I have is if the govt is truly printing our currency who is the govt borrowing money from. If the govt was truly making more money then it would simply balance the books by making enough money.
When you start talking about the Federal reserve as a non govt entity people call you crazy. Yet I have not heard why the govt borrows money from the govt.
- wavefunction 9y agoThe GOP offers tax cuts to the wealthy, inducing a higher debt-load for the US. The wealthy turn around and buy US government bonds. The rest of us pay the wealthy bond interest and pay taxes against the debt accrued by offering tax cuts to the wealthy so they could buy US bonds.
- t3soro 9y agoThe government borrows by selling treasury bonds, then the Fed buys them and keeps them on their books, and the Treasury gets US currency in exchange. The Fed can also buy other assets besides T-bills and use them to back new issuance of US currency notes. You can read the federal reserve act at Frb.gov
- jganetsk 9y agoYou are absolutely right, and you have discovered Modern Money Theory. https://www.youtube.com/watch?v=tEiNLmg2tYA https://www.youtube.com/watch?v=tEiNLmg2tYA