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Can /biz/ redpill me about the Federal Reserve?
So I know that they're not federally owned despite what the name implies, and I know that the U.S dollar is not actually a currency the U.S owns, but a representation of how much the U.S government owes the Federal Reserve. I also know that there's interest in every dollar printed in order to deal with inflation.
But how does that work in specific? Say for instance there exists no dollar bills in the world, and the Federal reserve prints a $1 bill with 25 cents interest on top of it. So the U.S gov. owes 1.25 dollars to the fed, but how will it ever pay that interest back if only a 1 dollar bill has ever been printed?
Wouldn't that result into an endless spiral of printing, inflation and debt?
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you'll get more replies on /pol/
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>>2222176
But will those be accurate replies though?
I have a feeling /biz/ may be able to help me better, but I'll go to /pol/ if the thread sinks with nothing helpful.
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>>2222172
>Wouldn't that result into an endless spiral of printing, inflation and debt?
yes, stop using ponzi papernotes
https://www.youtube.com/watch?v=fgq26e5HXKs
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>>2222172
A US dollar is an IOU that is backed by assets that the federal reserve owns.
Printing money is not a big deal as far as what the Fed does to affect the economy. The Fed controls inflation through a number of ways, the main way is to influence interest rates. The fed has multiple tools which it can use to accomplish this. An higher interest rate slows the economy, which decreases inflation, and a lowered interest rate stimulates the economy, generating inflation.
As far as US Government debt goes, The Fed buys US Government Bonds, which of course pay interest this is why they are valuable assets.
I'm not sure what you are on about with the $1 and 25 cent interest thing. The US Government raises funds by issuing bonds, not printing money. The government has enough revenue to pay interest on its bonds, which the holders of those bonds (called treasury bills) collect, whether they are owned by the Federal Reserve, China, or a US Citizen.
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Value is created in currencies economy everyday the sun shines and somewhat beyond.
Interest becomes ability to buy/control equivalent portion of some asset that becomes available.
(((Foreign))) owned interest bearing liabilities ==>> incremental sell out of assets to such or their nominees/agents/corps.
Compound divestment over time >>> slaves in our own lands.
Feels bad man
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watch the money masters
https://www.youtube.com/watch?v=YFDKr9SnTBg
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>>2222172
sry not quote OP in ...
>>2223076
hope exists though in creating value and keeping it within community, ie. not selling out. Scaling though is difficult though when many such/obvious means are often (((owned))), but likely necessary so as to prevent spawning (((establishment friendly/complicit))) competitors
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All you need right here. No bologna with Mike Maloney
https://www.youtube.com/watch?v=DyV0OfU3-FU&list=PLE88E9ICdipidHkTehs1VbFzgwrq1jkUJ
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The federal reserve produces bills at a rate of slight inflation in relation to population and industry growth among many other factors. There are branches dedicated to consensus on all those factors that determines the variation in inflation rate. When it goes out of sync, industries and markets may fluctuate differently as a result.
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>>2222172
I'll take fractional reserve lending for $25 Bob
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>>2222176
>/pol/
Don't expect anything other than muh joos as answer.
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>>2222172
From New York Fed Website:
Primary dealers are trading counterparties of the New York Fed in its implementation of monetary policy. They are also expected to make markets for the New York Fed on behalf of its official accountholders as needed, and to bid on a pro-rata basis in all Treasury auctions at reasonably competitive prices.
The Desk also expects primary dealers to provide ongoing insight into market developments in its daily market monitoring activities to support the formulation and implementation of monetary policy. Primary dealers are expected to submit weekly activity reports on form FR2004, and are expected to respond to periodic surveys.
Primary dealers are eligible to participate in the New York Fed’s securities lending program, which is designed to help ensure the effective conduct of open market operations.
Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman Sachs & Co. LLC
HSBC Securities (USA) Inc.
Jefferies LLC
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA LLC
Morgan Stanley & Co. LLC
Nomura Securities International, Inc.
RBC Capital Markets, LLC
RBS Securities Inc.
Societe Generale, New York Branch
TD Securities (USA) LLC
UBS Securities LLC.
Wells Fargo Securities, LLC
The gov would never just print its own money out of thin air in a straightforward process like you described, for the reasons you point out would be obvious to anyone and there wouldn't be any faith in the system.
Instead new money enters through a competitive and transparent market process as referenced above, understood only by those with advanced math degrees. It's definitely not all a complicated facade.
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