Lesh
Diamond Member
- Dec 21, 2016
- 69,890
- 34,845
Let's not forget that when those bonds are paid back...as quickly as that money came into existence...it disappears.That's the kind of checking account I want.
Ha. Yeah. But we can't have one.
To steal a quote from the Boston Federal Reserve's ''Putting it Simply", they say that ''When you or I write a check, there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check, there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating ''money.”
Of course, The Federal Reserve then hands those checks to the banks and at this point ''currency'' springs into existence. The banks then take that ''currency'' and buy more bonds at the next Treasury auction. You see?
That's a crucial understand that everyone misses