Quote:
Originally Posted by icenine
I know that sounds harsh (the word stupid) but the reality is that the Fed does make loans to banks.
http://www.federalreserve.gov/moneta...scountrate.htm
Sammm when you drive do you stop at redlights and stop signs? Or are those just "fractional delusions" made of thin air?
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The Federal Reserve prints USD Fiat Currency and
all USD is on loan with interest to the US Treasury. Our government, the Tax Payer,
The US Treasury print US Bonds to pay the fed for the use of there currency the USD. The fed then sells those bonds wherever they wish. So Samm is right Bonds printed out of thin air, in exchange for a fiat currency the USD printed out of thin air. Also each and every USD is born of debt to the tax payer since we pay interest on every one of them.
The Fed then expedite the distribution of the currency for the US Treasury in the form of loans to other finical institutions.
In other words the Fed makes loans (ie: the currency) only to the US Treasury. Then expedites on behalf of the treasury loans to other finical institutions.
Thats why the tax payer bails out the banks and not the Federal Reserve.