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The federal reserve does not print money, the Treasury does. Supposedly the debt ceiling prevents runaway spending. That already doesn't work because money is
by landemva 4y ago
The federal reserve does not print money, the Treasury does.
Supposedly the debt ceiling prevents runaway spending. That already doesn't work because money is loaned into existence in ever-increasing amounts.
- 331c8c71 4y agoOf course it is the fed who prints the money in the US and has dual inflation/unemployment targeting mandate. In other countries this role is typically performed by the central bank. https://www.federalreserve.gov/aboutthefed.htm https://www.federalreserve.gov/aboutthefed.htm
- phpisthebest 4y agoWrong.. The Treasury makes coins. Paper money is a "Federal Reserve Note". It comes from the federal reserve not the Treasury The Treasury creates coins or bonds. This is one of the reasons congress has floated the idea of the 10 trillion dollar coin. As it is within their power to order the Treasury to mont that. They can not order the federal reserve to make a 10 trillion dollar bill
- mmusson 4y agoThe debt ceiling doesn’t control spending because it is a misnomer. The money has already been spent. The debt ceiling controls whether the government will honor the obligations it has already made.