Where is this money that the Feds are pumping into the economy coming from ?

uscitizen

uscitizen

Villified User
Just cursious I keep hearing about several rounds of the feds pumping money into the economy to bail out the junk loan banks.
Where is this money coming from ?
Taxes, debt bonds, just printing more ?
 
Whenever they lower interest rates, more banks borrow, and they print out more money for the banks.

I wonder, isn't this just like a massive subsidization of the banking industry? I mean, they literally get free money.
 
But, you know, it's sort of like "priming the pump". The money goes to the business, banking, and stock sector to help it grow, but it also inflates the economy. It's basically like taking money out of our hands and give it to people who play the stock market.
 
Its created out of thin air, then loaned out at interest. Its the ultimate business.
 
So it is just printing more money ?


I have read all your replys and am still confused. If I had only gotten that GED....
 
I don't think they even bother to print it. I think it is just digital magic. They loan you money based on digits in a computer, not off of actually printed cash. They've streamlined the process.
 
uscitizen said:
So it is just printing more money ?


I have read all your replys and am still confused. If I had only gotten that GED....
Click to expand...

Whenever I first heard of the federal reserve, I was like, why the hell would you do that? It's good if the economy inflates at a steady rate but there's no reason to lend it out to banks. You could simply print out enough money to make inflation grow at a steady 3%, and put that money into the gov. budget (as another form of taxation).
 
So in effect we are devalueing our own dollar by printing more of them ?

We are sure a bright country, too many MBA's at the top or something.
 
uscitizen said:
So in effect we are devalueing our own dollar by printing more of them ?

We are sure a bright country, too many MBA's at the top or something.
Click to expand...
Yes. However we are doing it to "save" people from foreclosure. (Which is not the end of the world or even of your credit.) You know, pretending that the Ds and Bush are the "party of the people". It does make foreign investments secksi though.
 
It's a wall street bank bail out pure and simple, being fleeced up America under the disguise of helping stall foreclosure.
 
uscitizen said:
So in effect we are devalueing our own dollar by printing more of them ?

We are sure a bright country, too many MBA's at the top or something.
Click to expand...

Of course, complete money stagnation without inflation isn't a good thing. We learned the in the 1870's. But I don't see any reason to send the money to banks.
 
Or is this a selling out to make us "more competitive in the world market" ?
At the expense of the working class in the USA.
 
uscitizen said:
Or is this a selling out to make us "more competitive in the world market" ?
At the expense of the working class in the USA.
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Do you mean that be devaluing the dollar we are making our goods "cheaper" thus increasing exports in order to reduce the trade defecit?

Just looking for clarification.

It seems to me that if this was the case, it sure is a fucked up way of doing it. But then again, the Federal Reserve has subverted the Constitutional directive that Congress mint the money, and its not the first time that's happened.
 
Watermark said:
Whenever they lower interest rates, more banks borrow, and they print out more money for the banks.

I wonder, isn't this just like a massive subsidization of the banking industry? I mean, they literally get free money.
Click to expand...

Yes. It's a massive nearly criminal power that automatically grants unlimited power to whatever agenda they decide to print it for. Typically they choose war and evil, and new programs to brainwash society.
 
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