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As a straight forward statement, it’s reductive malarkey. The Fed, in no way, prints money. When people use that phrase, it’s almost always a good sign they hav

As a straight forward statement, it’s reductive malarkey. The Fed, in no way, prints money. When people use that phrase, it’s almost always a good sign they have no idea how money works.

LudwigNagasena 3y ago
Of course the Fed prints money (and no, it is not the Bureau of Engraving and Printing). It seems that it's you who is actually confused how money works.
horsawlarway 3y ago
No comment in this chain implied the fed printed money except yours. So lets cut the crap - you are engaging in reductive malarkey right now. It's a complete non-sequitur to the conversation at hand (that printing money causes inflation) and frankly, based on your comments - I'm fairly certain you have no clue what you're talking about at this point. Does the fed directly print money - no, the treasury does. Does the fed control the supply of money? Yes, yes they fucking do. The fed is the one placing orders for the money that the treasury prints, and they control how that money enters the market (honestly - not so much through physical supply anymore, it's mostly digital these days).
- the_gastropod 3y ago
  Again, you’re over-simplifying this. Money creation / destruction is not that simple. There are several ways the money supply can expand. Primarily, banks expand the money supply. The Fed (often) buys treasury bonds on an open exchange, allowing banks to make loans, expanding the money supply. Sometimes, the Fed “PRINTS MONEY!!” to decrease the money supply, by increasing the interest rate on reserve balances (IORB). The Fed, obviously plays the central role in this. But I’d estimate, thanks to the wonderful past ~decade of anti-fiat crypto enthusiasm, the vast majority of “money printer” claims like we see up thread (by a user with a cryptocurrency-inspired username mind you) think the Fed literally just prints money, and that causes inflation.
  - LudwigNagasena 3y ago
    Increasing IORB is the opposite of printing money. You essentially take the money out of the economy. It is like selling treasuries. The act of increasing IORB or selling treasuries doesn’t constitute money printing by itself. What you use to finance those interest payments is what may or may not constitute money printing.
    - the_gastropod 3y ago
      > What you use to finance those interest payments is what may or may not constitute money printing. Yes. Exactly.

As a straight forward statement, it’s reductive malarkey. The Fed, in no way, prints money. When people use that phrase, it’s almost always a good sign they have no idea how money works.

LudwigNagasena 3y ago

Of course the Fed prints money (and no, it is not the Bureau of Engraving and Printing). It seems that it's you who is actually confused how money works.

horsawlarway 3y ago

No comment in this chain implied the fed printed money except yours. So lets cut the crap - you are engaging in reductive malarkey right now. It's a complete non-sequitur to the conversation at hand (that printing money causes inflation) and frankly, based on your comments - I'm fairly certain you have no clue what you're talking about at this point. Does the fed directly print money - no, the treasury does. Does the fed control the supply of money? Yes, yes they fucking do. The fed is the one placing orders for the money that the treasury prints, and they control how that money enters the market (honestly - not so much through physical supply anymore, it's mostly digital these days).

the_gastropod 3y ago
Again, you’re over-simplifying this. Money creation / destruction is not that simple. There are several ways the money supply can expand. Primarily, banks expand the money supply. The Fed (often) buys treasury bonds on an open exchange, allowing banks to make loans, expanding the money supply. Sometimes, the Fed “PRINTS MONEY!!” to decrease the money supply, by increasing the interest rate on reserve balances (IORB). The Fed, obviously plays the central role in this. But I’d estimate, thanks to the wonderful past ~decade of anti-fiat crypto enthusiasm, the vast majority of “money printer” claims like we see up thread (by a user with a cryptocurrency-inspired username mind you) think the Fed literally just prints money, and that causes inflation.
- LudwigNagasena 3y ago
  Increasing IORB is the opposite of printing money. You essentially take the money out of the economy. It is like selling treasuries. The act of increasing IORB or selling treasuries doesn’t constitute money printing by itself. What you use to finance those interest payments is what may or may not constitute money printing.
  - the_gastropod 3y ago
    > What you use to finance those interest payments is what may or may not constitute money printing. Yes. Exactly.