wait hang on so to print money the fed buys "U.S Treasuries" from banks how do the banks get these treasuries?
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So the US government auctions off these treasuries, and then the Fed buys them at some later date for more than they were sold for, and the difference is the money printed?
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bro wtf also seems weird that the government doesn't just send everyone a check instead when it wants to print money economists why is this system better than just giving everyone a couple hundred quid, from a "we need more purchases being made" perspective?
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Replying to @ollyrobot
sometimes this is what happens, indirectly the fed also sometimes buys treasuries to destroy money however. good for them to be able to do both
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Replying to @eigenrobot
wait what how does buying destroy money? eigen wtf
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Replying to @ollyrobot
er sorry they *sell* to destroy money still waking up
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when the fed sells, banks give the fed money, which reduces how much money they have which reduces how much money other banks have through the multiplier effect and round and round
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Replying to @eigenrobot
hey nerds rognlie has got this: https://mattrognlie.wordpress.com/2011/10/22/money-is-debt/ …pic.twitter.com/y7NN99CQIJ
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