4 ms·
This is a great article. Lyn goes in depth, and does a pretty good job of explaining something that's fairly intricate. In short, the Fed pays its profit to th
by MR4D 4y ago
This is a great article. Lyn goes in depth, and does a pretty good job of explaining something that's fairly intricate.
In short, the Fed pays its profit to the Treasury department by law. When the Fed is making a loss instead of a profit, then things start to get weird, and all sorts of problems can arise. One side effect in an increase in the federal deficit on the order of $100 billion per year.
- landemva 4y agoThat profit is after expenses for flights, parties, conferences, consultants, etc. I'm ready for $10 and $100 coins and avoid the fed notes.
- SQueeeeeL 4y agoComplaining about the abborant behaviors of individuals belies the actual problem. Even if the FED were all on their "best behavior" we'd still be in a very bad position from the weird mixing of business and government.
- landemva 4y agoComplaining ... I offered a solution. Federal Reserve buys coins from US Mint at face value. Coins work now, and large denomination coins are a solution within existing framework.
- SQueeeeeL 4y agoI mean, not using bills isn't really a practical solution. Legally dissolving the Fed or making a committee with only the instruction to print money would be better.
- deleted 4y ago[deleted]
- JumpCrisscross 4y agoIt also drives home that financial illiteracy amongst voters regarding this “loss” is the primary threat, not the loss per se.