Quote:
Originally Posted by Larry Caldwell
The Fed is in charge of the money supply, not the treasury.
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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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