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... um, taxpayers are the fed. So any time the fed takes on a debt made by a business at anything other than a discount the fed is bailing out bad business dec
by olliej 6y ago
... um, taxpayers are the fed.
So any time the fed takes on a debt made by a business at anything other than a discount the fed is bailing out bad business decisions, and that means the taxpayer is paying for it.
If the fed just “prints money” to cover those debts the real value of the USD collapses, and that hurts individual taxpayers more than the big businesses being bailed out.
- Nbox9 6y agoThe Fed provides stability around the USD market. It deploys a wide variety of polices that attempt to manage inflation, deflation, liquidity, and overall confidence in the USD. Without this stability the USD would be significantly less valuable as a medium of trade, a store of value, and as a tool for reconciling debts.
- olliej 6y agoyes, but that's why it doesn't just "print money". the fed is never going to simply print money to pay off debt because that would necessarily clobber inflation and dollar value policy. I'm not sure why people are downvoting this :-/