2 ms·
They're taken from thin air. The Fed just prints it.
by sfj 7y ago
They're taken from thin air. The Fed just prints it.
- neuronic 7y agoThereby devaluing the rest of the money. What that means should be abundantly clear.
- owenmarshall 7y agoThe dollar is the worlds reserve currency. American printing presses have more life in them than other countries. Look at the countries that have opposed that since the beginning of the millennium: Libya and Iraq saw, ahem, “kinetic interventions”, and Iran and Venezuela are still being crushed by sanctions for daring to price their oil in Euros and/or RMB.
- barrkel 7y agoMost money isn't from printing presses. Banks create money by handing out loans.
- gerikson 7y agoMost loans are against tangible, reposseable assets, or against future income streams. A bank that just handed out loans without commensurate interest rates to avoid the risk of default would quickly go out of business.
- AnimalMuppet 7y agoTake 2008, for instance. The Fed injected $4 trillion. Why? Because $4 Trillion evaporated in the crash. The result was that we didn't have a deflationary meltdown, but it didn't result in inflation.
- aguyfromnb 7y ago>Thereby devaluing the rest of the money. What that means should be abundantly clear. Have you actually looked at where the dollar has been heading, even with all of this "money printed"? Up. Way up.