@projekt100x
No. The Federal Reserve buys assets, particularly U.S. Treasury securities, in the open market. This process is known as open market operations. When the Fed buys these securities, it credits the selling banks' reserves at the Fed, which increases the amount of money that banks have available to lend. There is no direct transfer of money to the banks to pad their balance sheets.
@SS75757575
Why does the government have debt when they can simply print money? Also why do citizens have to pay taxes if the government can print money? So what’s the answer? Does anyone know?
Maximilian ❇️Projekt: 100X
@projekt100x
Well, they don’t just print money. They issue bonds to fund government spending responsibly. When these bonds are bought by the Fed, that’s when you could call it “printing” because that money didn’t exist prior to the purchase.
@projekt100x No. The Federal Reserve buys assets, particularly U.S. Treasury securities, in the open market. This process is known as open market operations. When the Fed buys these securities, it credits the selling banks' reserves at the Fed, which increases the amount of money that banks have available to lend. There is no direct transfer of money to the banks to pad their balance sheets.
@SS75757575 Why does the government have debt when they can simply print money? Also why do citizens have to pay taxes if the government can print money? So what’s the answer? Does anyone know?
Maximilian ❇️Projekt: 100X @projekt100x Well, they don’t just print money. They issue bonds to fund government spending responsibly. When these bonds are bought by the Fed, that’s when you could call it “printing” because that money didn’t exist prior to the purchase.