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> Its not handing out singles, they're using other instruments like buying paper Infact they're only buying paper. The handouts are from the federal/state gov
by mohanmcgeek 5y ago
> Its not handing out singles, they're using other instruments like buying paper
Infact they're only buying paper.
The handouts are from the federal/state governments. The reserve has to buy the paper for the government to give out these handouts.
- night862 5y agoYeah the states and local municipalities don't have the fed for handouts (whatever you mean by that exactly, I am assuming it is the unemployment benefits) State/local has to balance their budgets for the most part aside from federal redistribution to "poor" states with less tax revenue.
- mohanmcgeek 5y agoI'm not sure if state/local governments really need to balance their budgets. They can borrow just like the federal government can. > the states and local municipalities don't have the fed The federal government too doesn't "have" the fed. The federal reserve is a bank and it's independent of the government.