Naive question: If the US Treasury is 'borrowing' $3 trillion this quarter, who _exactly_ is it 'borrowing' this money from, and what collateral are they offering?https://www.cnbc.com/2020/05/04/us-treasury-seeks-to-borrow-a-record-3-trillion-this-quarter.html …
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Banks can borrow money from the Fed & loan it to the Treasury at interest. It's quite a scam.
Naive question #2: Who gave this 'Fed' thing trillions of dollars to loan?
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They fabricate it out of thin air.
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My "Mad Sweeny" reference seems even more applicable.
End of conversation
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Fiat currency. Someone at the Fed adds an extra zero into a computer and then simply hits “print” to represent the “new” money. That’s an oversimplification... but I’m not kidding.
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Which effectively is the same as an immediate tax on your savings and earnings
End of conversation
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The Federal Reserve creates it from air (prints it), & loans it (by law it cannot 'give it') to the Treasury, which is supposed to pay it back. The Fed selects the interest rate. Treasury has no authority to collateralize, only Congress. Net annual 'borrowing' = 'deficit'
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