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This post has a lot of misinformation. For starters, fed is a bank and the bank cannot go "bankrupt" in the usual sense. The United States (government) was no
by mohanmcgeek 5y ago
This post has a lot of misinformation.
For starters, fed is a bank and the bank cannot go "bankrupt" in the usual sense.
The United States (government) was not bankrupt in 2009. If it were, it would have defaulted on their loans.
The m0 and M1 money supplies most certainly do not have any meaning in the modern world where transactions take place digitally: There's going to be no coin shortage ruining daily commerce. Not even remotely close to what's being discussed.
> The US government printed nearly 400% more money to keep the bond market from collapsing.
The fundamental misunderstanding seems to be from what you think happens when you say "print money". What you said is the equivalent of saying "The US government
borrowed more money from the federal exchange to makesure the bond market thinks the government is good for the old loans.."
- mohanmcgeek 5y agoFederal reserve*