What does the US government do when it has no money?

[Flopper]

When the US government does not have money and it needs to spend money it does not have and they do not want higher tax.

Does the US government borrow money from the big banks? Or does the US government print money or give out government bonds?

In effect, they create more money. That's the wonderful thing about running a government. If you run out of money, just print more. In reality, the government borrows more money; that is, they offer more treasury bills for sale. If they need a lot of money, then they may have to pay a higher rate interest to get the money they need. However, in times of crisis such as this, institutions and individuals seek a safe place for their savings and the US treasuries are a favorite place. Although the treasury can print more currency that is not usually done. Also, the federal reserve can help by buying treasuries.

 

[Natural Citizen]

First of all, Federal Reserve Notes are not money. They're currency.

Money has to be a store of value.

The very premise of the question is faulty. And any discussion that evolves from a flawed premise is just gonna distort reality even more.

But, that's the problem in America, where the biggest bubble in the history of man gets twisted and retranslated into the greatest economy in the world.

 

[Toddsterpatriot]

 

[eagle1462010]

The private banks use the powers granted to this gov't to coin money via the enter button at the Federal Reserve.

They go we'd like to withdraw trillions of dollars then like magic they loan to the gov't ....and we go why doesn't the dollar buy anything anymore...............

Wash, Rinse, Spin, dry...and repeat.........Biggest Money laundering scam in the history of the world..........

Check out 2008 and how they got the trillions for the back door while the so called bailout loaned them money.

Cool huh..........

 

[Parker99]

When the US government does not have money and it needs to spend money it does not have and they do not want higher tax.

Does the US government borrow money from the big banks? Or does the US government print money or give out government bonds?

They crank up the printing presses and tax the hell out of everyone and their children and childrens children by inflating the currency thus stealing a chunk of everything you may have now, have managed to save, plan to earn or ever will have.

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

 

[Parker99]

Theoretically, the USA has an almost endless supply of wealth including an overwhelming supply of natural resources to include property of vast forests, mining claims, farmlands, tourist properties, fishing grounds, building sites for industry and residential use, etc. We own rivers, lakes, and beaches.

And whether anyone wants to acknowledge this or not, we own debt from other countries, whose asses we saved in World War 2. Without the hundreds of thousands of lives we sacrificed/lost in the Pacific war, China would not exist today. It would have been a colony of Japan, if the Japs had not wiped them out entirely.

European countries are along the same line - England, France, Denmark, etc.

Yeah... As I understand it China actually owes more to the US than we owe to them. Which... Is weird.

China is the second largest holder of the US Debt. The highest is the US Citizens. If the Feds wanted to buy out China, they could do it. It's 1.1 Trillion.

Not sure how debt is coming about by printing money? Unless the US government is printing bonds that China is buying.

 

[Parker99]

When the US government does not have money and it needs to spend money it does not have and they do not want higher tax.

Does the US government borrow money from the big banks? Or does the US government print money or give out government bonds?

In effect, they create more money. That's the wonderful thing about running a government. If you run out of money, just print more. In reality, the government borrows more money; that is, they offer more treasury bills for sale. If they need a lot of money, then they may have to pay a higher rate interest to get the money they need. However, in times of crisis such as this, institutions and individuals seek a safe place for their savings and the US treasuries are a favorite place. Although the treasury can print more currency that is not usually done. Also, the federal reserve can help by buying treasuries.

I thought it is the Federal Reserve that prints money and it is the treasury that print treasury bonds?

 

[Toddsterpatriot]

When the US government does not have money and it needs to spend money it does not have and they do not want higher tax.

Does the US government borrow money from the big banks? Or does the US government print money or give out government bonds?

They crank up the printing presses and tax the hell out of everyone and their children and childrens children by inflating the currency thus stealing a chunk of everything you may have now, have managed to save, plan to earn or ever will have.

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

Neither.

 

[Flopper]

When the US government does not have money and it needs to spend money it does not have and they do not want higher tax.

Does the US government borrow money from the big banks? Or does the US government print money or give out government bonds?

They crank up the printing presses and tax the hell out of everyone and their children and childrens children by inflating the currency thus stealing a chunk of everything you may have now, have managed to save, plan to earn or ever will have.

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

The federal government borrow money from whoever buys treasury bills and bonds which include other countries, businesses both large and small, banks, institutions, and individuals. The treasury holds a weekly auction in which any one interested can purchase them. However, many buyers buy and sell treasuries on the open market from brokers, banks, etc.

 

[Parker99]

When the US government does not have money and it needs to spend money it does not have and they do not want higher tax.

Does the US government borrow money from the big banks? Or does the US government print money or give out government bonds?

They crank up the printing presses and tax the hell out of everyone and their children and childrens children by inflating the currency thus stealing a chunk of everything you may have now, have managed to save, plan to earn or ever will have.

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

The federal government borrow money from whoever buys treasury bills and bonds which include other countries, businesses both large and small, banks, institutions, and individuals. The treasury holds a weekly auction in which any one interested can purchase them. However, many buyers buy and sell treasuries on the open market from brokers, banks, etc.

Okay I got that.

So in other words if the government needs billion dollars thay give out those treasury bills and bonds that countries, people, banks and businesses so on than buy. And over time the US government will pay off the debt.

And if I understand some these bonds 5 years and some are 10 years.

Do we know what the debt is on these treasury bills and bonds?

 

[Parker99]

When the US government does not have money and it needs to spend money it does not have and they do not want higher tax.

Does the US government borrow money from the big banks? Or does the US government print money or give out government bonds?

They crank up the printing presses and tax the hell out of everyone and their children and childrens children by inflating the currency thus stealing a chunk of everything you may have now, have managed to save, plan to earn or ever will have.


So what is the point of the federal reserve printing money what is the point? Is it just for old torn money?

If they increase the money supply by printing more money what is the pros and cons?[/QUOTE

 

[Natural Citizen]

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

Neither.

Hi, Toddster. How's it going? Good? Good! I pm'd Parker my 'here's how it works' paper on the topic.

That is all.

 

[Parker99]

It just seems that so many Americans are really anti federal reserve and anti central bank and blame theme on economic problems.

 

[Flopper]

When the US government does not have money and it needs to spend money it does not have and they do not want higher tax.

Does the US government borrow money from the big banks? Or does the US government print money or give out government bonds?

They crank up the printing presses and tax the hell out of everyone and their children and childrens children by inflating the currency thus stealing a chunk of everything you may have now, have managed to save, plan to earn or ever will have.

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

The federal government borrow money from whoever buys treasury bills and bonds which include other countries, businesses both large and small, banks, institutions, and individuals. The treasury holds a weekly auction in which any one interested can purchase them. However, many buyers buy and sell treasuries on the open market from brokers, banks, etc.

Okay I got that.

So in other words if the government needs billion dollars thay give out those treasury bills and bonds that countries, people, banks and businesses so on than buy. And over time the US government will pay off the debt.

And if I understand some these bonds 5 years and some are 10 years.

Do we know what the debt is on these treasury bills and bonds?

Treasury bonds, Treasury bills, and Treasury notes are all debt instruments issued by the Treasury, not sure what percent of the debt are covered by these instruments. These are the ones most commonly used when the government needs to raise some money. These are other sources such as pension plans intra-agency loans, trust funds, etc.

Keep in mind the goverment never runs out of money because unlike you or me, they can create money by printing more of it or judging accounts. Since they are trustees for many accounts like social Social Security, Pension plans, etc. they just transfer funds if they really need it in exchange for debt instruments. Unlike you me, the federal reserve isn't bounce government check. In effect, the US would have unlimited overdraft protection. Logic tells us this would all have to come to an end someday. However, as long as people have faith in the government it can continue because that is what supports the whole show, faith.

 

[Toddsterpatriot]

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

Neither.

Hi, Toddster. How's it going? Good? Good! I pm'd Parker my 'here's how it works' paper on the topic.

That is all.

He's clueless.

Your error filled paper won't help him.

 

[Flopper]

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

Neither.

Hi, Toddster. How's it going? Good? Good! I pm'd Parker my 'here's how it works' paper on the topic.

That is all.

He's clueless.

Your error filled paper won't help him.

If the government needs another billion dollars, it would most likely be added to to amount of treasuries being auctioned weekly. Right now there is a big demand for treasures which always happens in times of crisis when individuals, businesses, and institutions are looking for a safe place to park their money till times look better. If the number of buyers drop out, then the government will increase the interest they are willing to pay to flush out more buyers.

The Treasury prints currency, not the federal reserve. The actions the federal reserve takes makes more money available to public by reducing the cost of borrowing and other methods to simulate the economy. In this way they create money but they don't print currency.

 

[SaxxyBlues]

When the US government does not have money and it needs to spend money it does not have and they do not want higher tax.

Does the US government borrow money from the big banks? Or does the US government print money or give out government bonds?

Put it on the tab

 

[Likkmee]

 

[Flopper]

It just seems that so many Americans are really anti federal reserve and anti central bank and blame theme on economic problems.

That's because the government gives the federal reserve the power to manage the economy. In a recession the Fed will lower interest rates, reduce financial reserves the banks have to maintain and margins investors have to pay to finance stock purchases. Thus banks can make more money at a lower interest rate available to individuals and businesses and investors can invest more money which stimulates the economy. In a rapid expanse of the economy which can results in inflation and possibly shortages, the Fed clamps down to slow the economy down to avoid runaway inflation and financial crashes.

The Fed is always blamed because they did not take appropriate action to avoid an economic slowdown or inflation. When they do the right thing at right time, no one notices.

 

[Toddsterpatriot]

Okay that say the US government needs a billion dollars do they borrow money from the big banks or do they go to the federal reserve and ask them to print billion dollars?

Neither.

Hi, Toddster. How's it going? Good? Good! I pm'd Parker my 'here's how it works' paper on the topic.

That is all.

He's clueless.

Your error filled paper won't help him.

If the government needs another billion dollars, it would most likely be added to to amount of treasuries being auctioned weekly. Right now there is a big demand for treasures which always happens in times of crisis when individuals, businesses, and institutions are looking for a safe place to park their money till times look better. If the number of buyers drop out, then the government will increase the interest they are willing to pay to flush out more buyers.

If the number of buyers drop out, then the government will increase the interest they are willing to pay to flush out more buyers.

Buyers enter bids. Fewer buyers, lower price, higher yield.