Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Then I'll ask you. Who exactly did the govt just borrow $6 Trillion from? Who exactly had $6 Trillion to lend? You can't have a borrower without a lender. Who is the lender?
The Fed is the lender. But we dont know who makes up the Fed. If its the banks, they lend that money. They have the right to create money out of nothing. Isnt it unfair that what it costs me 8 hours of thinking, sweat and phone calls, costs nothing for other person to produce ???
I mean all it needs is a software to change the number from 0 to 100 right.. Bingo you have 100 dollars to spend. Mostly its not cash anyway so you dont have to worry about the origin.
We didn't borrow the money for these trillion dollar stimulus bills. We printed it. And it won't cause inflation because it has not added money to the system but simply replace money that was lost. Not to mention no one I know has any plans to spend their stimulus money on anything that isn't necessary. They are too fearful over their jobs, if not already lost them. The one-time stimulus check is a pittance to a regular income.
You are flat out wrong on your first two sentences (and I don't even understand your 3rd sentence), and continuing to repeat what you THINK you know doesn't make it right. They do not print money, they borrow.
But I am not here to teach an economic lesson, here learn something:
https://www.reuters.com/article/us-h...-idUSKBN21H0Q8 "Japan will boost government bond issuance by $149 billion from July to fund a massive stimulus package aimed at combating the hit to the economy from the coronavirus pandemic"
Your last three sentences is off topic since no one here is arguing if the stimulus will achieve it's intended purpose or not - I suggest staring another topic. You obviously have another agenda in mind. I might agree with you on some points.
The Fed is the lender. But we dont know who makes up the Fed. If its the banks, they lend that money. They have the right to create money out of nothing. Isnt it unfair that what it costs me 8 hours of thinking, sweat and phone calls, costs nothing for other person to produce ???
I mean all it needs is a software to change the number from 0 to 100 right.. Bingo you have 100 dollars to spend. Mostly its not cash anyway so you dont have to worry about the origin.
Banks, insurance companies, individuals, pension programs, etc.
The fed is quasi-independent banking regulatory agency and they have alot of influence as well. They have plenty of tricks up it's sleave to massage the economy.
The trillion dollar stimulus money doesn't get printed out but mainly e- money. It artificially added to the system because the country hasn't created an equivalent of goods or getting equivalent of foreign money to balance it.
Printing out money is only okay to replace damaged, lost money when it's running on the markets with the same amount. The US gov hasn't gotten any money in since the economy freed big time, instead it has to spend huge money out. This would lead to devalue of the US dollar. The consequence is lagging behind but will come soon enough.
Wrong. The increase simply offsets the loss. The loss of trillions in the markets didn't come with a decrease in goods. We've increased the "balance" from $5T to $22T over last 15 years and that lagging consequence still hasn't arrived.
The Fed is the lender. But we dont know who makes up the Fed. If its the banks, they lend that money. They have the right to create money out of nothing. Isnt it unfair that what it costs me 8 hours of thinking, sweat and phone calls, costs nothing for other person to produce ???
I mean all it needs is a software to change the number from 0 to 100 right.. Bingo you have 100 dollars to spend. Mostly its not cash anyway so you dont have to worry about the origin.
The Fed can't be both lender and borrower. The Fed is sending the money TO the banks not getting it FROM them. How do you think the banks are processing all those PPP loans?
Tens of Billions are flowing as we speak. People have been and are receiving stimulus deposits. Small businesses ahve been and are receiving PPP loans. These funds aren't coming from some existing balance created by the sale of bonds but by arbitrarily changing software digits.
As for your fairness question, that isn't what is happening. That is why the deposits are going to everyone.
You are flat out wrong on your first two sentences (and I don't even understand your 3rd sentence), and continuing to repeat what you THINK you know doesn't make it right. They do not print money, they borrow.
But I am not here to teach an economic lesson, here learn something:
https://www.reuters.com/article/us-h...-idUSKBN21H0Q8 "Japan will boost government bond issuance by $149 billion from July to fund a massive stimulus package aimed at combating the hit to the economy from the coronavirus pandemic"
You can recycle the koolaid all you want. We did not borrow the trillions that flowing right now. All the banks and insurance companies together don't have a net worth of $2T much less $2T sitting around to invest in bonds.
Printed or digitally created, same thing. Printing is a euphism for injecting funds not meant to mean literally printing bills.
Yes, other countries are doing the same thing, further illustrating that we aren't "borrowing" by selling bonds to other countries. All of this liquidity wasn't just sitting around waiting for a crisis for the Feds to borrow from.
The U.S. government is the lender actually, specifically the U.S. treasury.
The fed is quasi-independent banking regulatory agency and they have alot of influence as well. They have plenty of tricks up it's sleave to massage the economy.
So the U.S. government is the lender and loans $2T and somehow that indebts the U.S. government an additional $2T?
That's like saying you loaned a friend $1000 and now you are in debt $1000 because of it.
I think all of this chit chat is all for nothing . I dont believe we will ever see checks in our checking account so i think you all need to quit worrying about what is not even true or real .
You can recycle the koolaid all you want. We did not borrow the trillions that flowing right now. All the banks and insurance companies together don't have a net worth of $2T much less $2T sitting around to invest in bonds.
Printed or digitally created, same thing. Printing is a euphism for injecting funds not meant to mean literally printing bills.
Yes, other countries are doing the same thing, further illustrating that we aren't "borrowing" by selling bonds to other countries. All of this liquidity wasn't just sitting around waiting for a crisis for the Feds to borrow from.
Well I gave you the links so you can read up and understand, apparently you don't care to read how things work so feel free to linger in ignorance. This is economics 101 here, it's not that complex. Back a few years ago most of the posters had some knowledge of macro-economics, it wasn't really intended for someone that spends most of there time arguing in the P&C forum.
I am going to be brutally honest with you - I don't think the economics forum is for you.
Would it be stupid to say that CHINA needs to pay it.... China created the bills did they not? Let the chinese great great grandchildren pay it and not ours..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
