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Old 07-16-2020, 12:04 AM
 
17,449 posts, read 7,169,383 times
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Quote:
Originally Posted by jetgraphics View Post
Curious, isn't it, that the deficit (borrowing) is larger than the interest paid?
That's what Bernie Madoff went to prison for doing in the private sector.
I sincerely doubt that creditors will ever get back their principal, based on the situation before us.
Bernie Madoff was a crook. He is also a person or business that was a sovereign currency user. The Federal gov't is the currency issuer, a whole different paradigm since we are off the gold std.

The only reason a creditor would not be paid would be if our elected officials decide that. As in war, we would not pay our enemies. Or the US is obliterated, as in a lost War.

Otherwise ANY amount of principal, interest or debt can be paid off at the federal level as long as it is denominated in USD's.
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Old 07-16-2020, 02:59 AM
 
98,755 posts, read 97,940,163 times
Reputation: 72957
Quote:
Originally Posted by jetgraphics View Post
Curious, isn't it, that the deficit (borrowing) is larger than the interest paid?
That's what Bernie Madoff went to prison for doing in the private sector.
I sincerely doubt that creditors will ever get back their principal, based on the situation before us.
bernie stole the money ....

bernie promised high returns if you invested with him


the money bernie did pay out was not from investments as claimed and there were no investments .

companies or the gov't floating debt is noooooooo where near the same thing nor is floating debt a ponzi scheme just by definition of what a ponzi scheme is .

Last edited by mathjak107; 07-16-2020 at 04:15 AM..
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Old 07-17-2020, 03:26 PM
 
784 posts, read 644,160 times
Reputation: 224
Quote:
Originally Posted by TimAZ View Post
No, they aren’t “printing” paper money, it’s mostly digital now:

https://www.brookings.edu/blog/up-fr...avirus-crisis/
Quote:
Originally Posted by The Market Maven View Post
OP, can I recommend a basic Khan Academy economics and finance course for you? I think it will really help. There is no money printing.
Quote:
Originally Posted by lieqiang View Post
This can't possibly be serious.
Quote:
Originally Posted by The Market Maven View Post
I recommended Khan Academy so they can learn how things really work.
Well I don’t want to come across rude but it seems city-data the economic section there are some members that have a snobbish attitude and well not the case of reddit, Quora and other message boards I’m on.

I don’t think anyone here thinks one will write a book or essay for every post or long paragraphs but projection of above coupled with slothful writing piece response and not even throwing a bone you can’t expect one to put any effort or motivation and treat such posters with lack of admiration.

If one cannot even write shortest explaining of Zimbabwe and Germany in WW1 money inflation.And also treasury bond vs printing and how I’m getting confused with debt vs printing and bond. And than post some YouTube videos you cannot be expected to be taken seriously here or for one here to validate your economic knowledge one seems to surely seem to like to illustrate of elite economic knowledge one seems to possess here. Where is your degree, master or PhD? Well if one is self learned by reading books and watching videos that person cannot be taken seriously to validate such knowledge and all credibility here is lost.
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Old 07-17-2020, 03:33 PM
 
263 posts, read 105,052 times
Reputation: 187
Quote:
Originally Posted by Bubble99 View Post
Well I don’t want to come across rude but it seems city-data the economic section there are some members that have a snobbish attitude and well not the case of reddit, Quora and other message boards I’m on.

I don’t think anyone here thinks one will write a book or essay for every post or long paragraphs but projection of above coupled with slothful writing piece response and not even throwing a bone you can’t expect one to put any effort or motivation and treat such posters with lack of admiration.

If one cannot even write shortest explaining of Zimbabwe and Germany in WW1 money inflation.And also treasury bond vs printing and how I’m getting confused with debt vs printing and bond. And than post some YouTube videos you cannot be expected to be taken seriously here or for one here to validate your economic knowledge one seems to surely seem to like to illustrate of elite economic knowledge one seems to possess here. Where is your degree, master or PhD? Well if one is self learned by reading books and watching videos that person cannot be taken seriously to validate such knowledge and all credibility here is lost.

Did you check out Khan Academy or at least watch some YouTube videos from some respected sources? I say this not to criticize you but to help you understand.
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Old 07-18-2020, 04:59 PM
 
Location: Myrtle Creek, Oregon
15,293 posts, read 16,462,239 times
Reputation: 25182
The Fed is in charge of the money supply, not the treasury.
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Old 07-20-2020, 09:30 PM
 
Location: 0.83 Atmospheres
11,382 posts, read 10,469,842 times
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Quote:
Originally Posted by The Market Maven View Post
OP, can I recommend a basic Khan Academy economics and finance course for you? I think it will really help. There is no money printing.
I agree.
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Old 07-30-2020, 12:14 AM
 
784 posts, read 644,160 times
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Quote:
Originally Posted by Larry Caldwell View Post
The Fed is in charge of the money supply, not the treasury.

That Is not what I read on the internet. it saying..

the Federal Reserve IS the central bank. Its job is to oversee all other banks, especially at times of banking panic.

And the government does not borrow money from it. It actually borrows from whoever will lend it money. And it does this by issuing Treasury notes, bills and bonds. Anyone can buy those and they make a safe investment.

These are issued by the Treasury, as the name says, but you can buy them from the Federal Reserve. Bills are a short-period investment often used by businesses to put money away for a short time. They are available for 1, 2, 3, 6 or 12 months. They have a face value on them, but you buy them for slightly less (how much less is determined when the Treasury sells them by auction), and the Treasury repays them on the stated date in full. So you get more back than you paid, and that's the interest you earn on them. They can also be traded if you want your money back sooner.

Notes are similar except they are available for periods between 1 and 10 years, and because that's a long time, you get regular interest payments as well as getting the full price on them back on the end date.

Bonds are the same as notes except they're issued for between 10 and 30 years

Pension funds buy a lot of Treasury paper as it's a safe investment. You put a lot of money into your pension, and you want to get what you need to live on when you retire. So it's a well known strategy that as you're coming up to retirement age, they'll move the money into investments like this and you'll be safe from stock market crashes.





different federal reserve and treasury

https://www.investopedia.com/article...ed-reserve.asp

The Department of the Treasury, established in 1789, is the oldest of the two institutions. While it's perhaps best known for its role in collect


The Federal Reserve was established in 1913. It serves as the central bank of the U.S., with a mandate to "keep our money valuable and our financial system healthy." Its primary method of accomplishing this task is through its influence on monetary policy.

This effort involves ensuring that lenders and borrowers have access to money and credit. It also involves balancing the access to money through adjustments to the discount rate and federal funds rate to keep inflation in check.

The Federal Reserve serves as the government's banker, processing transactions, such as accepting electronic payments for Social Security taxes, issuing payroll checks to government employees and clearing checks for tax payments and other government receivables.


When these entities run into financial trouble, the Federal Reserve can provide access to funds at a discounted borrowing rate, while the Department of the Treasury can increase the line of credit that it makes available to the entities, and even purchase their stock.




What happen to Zimbabwe
the whites who had been successfully farming there in favor of returning the land to native peoples. What they had not accounted on was that previous to European influence, Zimbabwe hadn't been an agricultural society. So they'd handed the land to people who had literally no idea how to cultivate it.

For a decade the nation had been incredibly successful thanks to high production of wheat and tobacco. Then, virtually overnight, that came to an end. Since they had no food and needed to buy from other nations, Zimbabwe simply printed more money to purchase with. At the same time, the government became badly corrupted, and politicians literally printed up suitcases full of cash to buy anything they wanted.

And hence the bank notes decreased in value, which caused Zimbabwe to foolishly print even more money, only fueling the fire. Finally, the only solution they could come up with was to eliminate the currency altogether in favor of embracing the US dollar as the nation's official currency.



What happen to Greece

The Greek debt crisis is the dangerous amount of sovereign debt Greece owed the European Union between 2008 and 2018. In 2010, Greece said it might default on its debt, threatening the viability of the eurozone itself.

To avoid default, the EU loaned Greece enough to continue making payments.

Since the debt crisis began in 2010, the various European authorities and private investors have loaned Greece nearly 320 billion euros.

It was the biggest financial rescue of a bankrupt country in history. As of January 2019, Greece has only repaid 41.6 billion euros. It has scheduled debt payments beyond 2060.

In return for the loan, the EU required Greece to adopt austerity measures. These reforms were intended to strengthen the Greek government and financial structures. They did that, but they also mired Greece in a recession that didn’t end until 2017.

The crisis triggered the eurozone debt crisis, creating fears that it would spread into a global financial crisis. It warned of the fate of other heavily indebted EU members. This massive crisis was triggered by a country whose economic output is no bigger than the U.S. State of Connecticut.

https://www.thebalance.com/what-is-t...crisis-3305525


What happen doing ww1

https://www.history.com/news/germany...aty-versailles

Yes this too.


https://abcnews.go.com/International...ry?id=11755920


Germany will make its last reparations payment for World War I on Oct. 3, settling its outstanding debt from the 1919 Versailles Treaty and quietly closing the final chapter of the conflict that shaped the 20th century.

Oct. 3, the 20th anniversary of German unification, will also mark the completion of the final chapter of World War I with the end of reparations payments 92 years after the country's defeat.

The German government will pay the last instalment of interest on foreign bonds it issued in 1924 and 1930 to raise cash to fulfil the enormous reparations demands the victorious Allies made after World War I.

The reparations bankrupted Germany in the 1920s and the fledgling Nazi party seized on the resulting public resentment against the terms of the Versailles Treaty.



What is inflation.

What is Inflation? Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc. Inflation measures the average price change in a basket of commodities and services over time. The opposite and rare fall in the price index of this basket of items is called ‘deflation’. Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency. This is measured in percentage.

https://www.financialexpress.com/wha...aning/1618981/


What causes inflation

There are two main causes of inflation: Demand-pull and Cost-push. Both are responsible for a general rise in prices in an economy. But they work differently. Demand-pull conditions occur when demand from consumers pulls prices up. Cost-push occurs when supply cost force prices higher.

You may find some sources that cite a third cause of inflation, expansion of the money supply. The Federal Reserve explains that it's a type of demand-pull inflation, not a separate cause of its own.

https://www.thebalance.com/causes-of...prices-3306094


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Old 07-30-2020, 12:16 AM
 
Location: San Diego CA
301 posts, read 136,906 times
Reputation: 487
Quote:
Originally Posted by mathjak107 View Post
bernie stole the money ....

bernie promised high returns if you invested with him


the money bernie did pay out was not from investments as claimed and there were no investments .

companies or the gov't floating debt is noooooooo where near the same thing nor is floating debt a ponzi scheme just by definition of what a ponzi scheme is .
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Old 07-30-2020, 12:31 AM
 
784 posts, read 644,160 times
Reputation: 224
No three people in this thread and that article said when the US government needs money it does not go to federal reserve and ask them to print money. They get the treasury by issuing Treasury notes, bills and bonds explain above. That countries, business and people buy than over time the US will pay it off plus interest.
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Old 07-30-2020, 12:36 AM
 
784 posts, read 644,160 times
Reputation: 224
Quote:
Originally Posted by rosebud49 View Post
What well for what ever reason there many people who do not like the federal reserve.
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