3 ms·
> Treasury cannot print money. This is handled by the Federal Reserve (FED) Only US goverment can print dollars. Those are then sold to 'federal reserve' in bu
by landemva 4y ago
> Treasury cannot print money. This is handled by the Federal Reserve (FED)
Only US goverment can print dollars. Those are then sold to 'federal reserve' in bulk at price of pennies per sheet, without regard to face values.
https://www.bep.gov https://www.bep.gov
They will sell sheets to public at face value + markup.
https://catalog.usmint.gov/paper-currency/uncut-currency https://catalog.usmint.gov/paper-currency/uncut-currency
Observe how they call the money a 'note'. Like a house mortgage or car loan, the 'note' is a financial debt instrument.
- g42gregory 4y agoOk, this is very helpful. I would love to learn more details about the mechanics of this process. Is this process written up anywhere? Like who approves the printing, how exactly it becomes the the debt to the Government, etc...? I am mostly interested in the mechanics, who approves what and when, and not so much in monetary policy implications. Is there a book that goes over this in detail, along with M1, M2, M3 creation ...?