How does "money printing" actually work?

[Anonymous No.55903405]

[Anonymous No.55903411]

>>55903405
It doesn't and that's why it's a problem

[Anonymous No.55903414]

>>55903405
government needs money. fed buys government debt. government spends it

[Anonymous No.55903427]

>>55903405
write a number like 1.5 trillion dollars and press Enter

[Anonymous No.55903431]

>>55903414
and where does the fed get the money to buy the debt from? and what does the fed get in return for buying debt?

[Anonymous No.55903441]

>>55903405
>Retard A enters a bank
Helo I like a mortgage
>Signs an mortgage
See fig 1 and 2: congratulate, money has been created out of thin air

[Anonymous No.55903471]

>>55903431
they click on a button and the money is there. they get the debt in return

[Anonymous No.55903481]

>>55903405
The fed prints money by buying assets (like US bonds) and adding them to their balance sheet, the money used to buy said assets is "printed" (digitally) out of thin air, it didn't exist before

[Anonymous No.55903510]

>>55903431
There is no actual tangible goods traded it's literally just readjusting numbers on a balance sheet and a bunch of IOUs.

[Anonymous No.55903511]

>>55903481
this is called QE, right now the FED is doing QT, by letting bonds reach their maturity date the money the fed receives is gone from the economy, effectively reducing the money supply, the M2 money supply growth has been negative for a few months now (the last time this happened was in 1928)

[Anonymous No.55903523]

>>55903481
the "assets" are also printed from thin air
bonds are a ponzi scam

[Anonymous No.55903548]

>>55903431
The treasury can issue debt bonds which are then sold either to individuals directly or investors/investment funds/other countries treasuries. The creation and successful sale of this debt is what justifies the federal reserve printing or issuing more currency. If there's no buyer then the government can buy the debt bonds issued by the treasury directly but they don't like doing that as it's the most expensive way to make money. If it's the government buying the debt to justify the creation of more money they gain from it by making more money than they spent to create it.

[Anonymous No.55903567]

>>55903510
Depends on how they're making the money. The way it's supposed to be is >>55903548 but the way it actually occurs and that pisses people off is >>55903481 and >>55903511

[Anonymous No.55903570]

>>55903511
>gone from the economy
and gone for good or gone until the fed pushes it back into the economy?

[Anonymous No.55903593]

The fed creates digital dollars out of thin air. They use these digital dollars to buy US bonds. Bonds are loans to the government that they pay back+interest. Anyone can buy a government bond(lend the US govt money) including you, or even another country.

By acting as a buyer of bonds, this intentionally lowers the interest rates offered by these bonds. If there's more supply than demand for a bond(based on growth and inflation expectations) the interest rate goes up.

If there's more demand for a bond than supply, the interest rate goes down(more people are willing to loan money, so the borrower negotiates lower interest rate payments). By acting as a consistent buyer of US Bonds, the fed has "distorted" financial conditions and caused rates to go down artificially. In addition to the government being cashed up from all of this printed money.

Quantitative easing was thought to cause inflation, but in the last 10 years of QE, inflation barely crept up. It took COVID, and lots of stimulus in the hands of regular people to cause real inflation to finally go up. It's thought that the inflation Quantitative Easing caused was primarily in financial assets, like stocks, bonds, real estate, and more newer speculative assets like NFTs and Crypto. This is why house prices went so high. Because the easy money financial conditions allowed for a distorted high risk taking environment, where money had no where to go but chase returns(asset price inflation)

[Anonymous No.55903597]

>>55903405
Think of money as a hoe. All the elite people get the hoe when she’s fresh, young, and virginal and still innocent. And they get it in abundant supply. Now by the time these hoes gets to you that bitch is worn out, aged about 50 years, ridden with STD’s and drug addicted, she also has a flat tire for a vagina, and when you fuck her cuz you’re a desperate incel it goes pssssbthththh pfffthtbthhtbhthhth, and nauseous gases start wafting out. You also hear a foghorn coming from somewhere. You might hear a “zoinks” or “hello, geee, can you help me find my car keys so I can drive out of here?”

[Anonymous No.55903643]

>>55903593
They do basically asspull digital dollars to buy bonds and either hold to expiry or sell into the market as a control on rates, but there is still a budget they have to stick to so it can't go full retard.

[Anonymous No.55903736]

>>55903597
lost it

[Anonymous No.55904575]

>>55903593
>Quantitative easing was thought to cause inflation, but in the last 10 years of QE, inflation barely crept up
That sounds kinda sus. Wouldn't it just mean they didn't correctly detect inflation, just as they haven't detected it now and thought it was transitory until they finally fixed their inflation model?

[Anonymous No.55904610]

>>55903593
This seems pretty much accurate. The 'asset inflation' of 2008-2020 was really hidden because declining or zero rates kept the monthly payments on those assets at bay.
Now it all hit the consumer at once when rates shot back up. 15 years of money printing all hit in about a year or two when they poured gasoline on the fire "due to covid" and then immediately raised rates after massively overdoing it.

[Anonymous No.55904619]

>>55903597
I suspected those wrinkled five dollar bills in my wallet weren’t as clean as I thought

[Anonymous No.55904628]

>>55904610
QE caused a lot of money to enter the system but it didn’t go anywhere. There was no money velocity. It all sat in idle cash and assets.

[Anonymous No.55904956]

>>55903405
It works like your pic, only the fed charges the govt interest on the printed money which they pass on to you as federal income tax

[Anonymous No.55905038]

>>55903405
It’s mouse click money, but it’s not actually money till the banks lend it out thru fractional reserve scams. Even if they write nonconforming shit loans that are sure to fail, they’re counted as assets on their balance sheet.

[Anonymous No.55905055]

>>55903405

[Anonymous No.55905693]

>>55903427
>>55903405
he said he prints it *digitally*

[Anonymous No.55905707]

>>55903405
there’s a multitude of ways but I think the one you’re referring to is
>gov’t issues treasury bond
>federal reserve buys bond
>new money is created by issuing debt
easy peasy

[Anonymous No.55906025]

>>55903471
Debt at interest, interest that is paid for via the labour from tax payers. Literally a scheme to siphon value from working class. Parasitism of the highest order.

[Anonymous No.55906043]

>>55903481
how do they know that they're buying the assets for the price they're supposed to be?

[Anonymous No.55906063]

>>55903405
it's a digit change in a couple databases

[Anonymous No.55906081]

You asked this same question like 2 days ago.

Money is not printed, all money is backed by debt. When a bank needs money the federal reserve credits them money in their fed account and this is now a liability to the bank that needs to be paid back with interest.

To get even more specific, this is no longer necessary at all as banks can loan you as much money as they want given that they have enough cash to meet the reserve ratio, along with some other liquidity metrics.

All money being backed by debt means that demand for a currency drives money supply growth. When demand for a currency slows or reverses, the effect of more money being loaned than exists takes over as people repay their debts, and some will go bankrupt. This allows a currency to be infinitely elastic to a population, and is what allows the fed to target inflation without having to get involved with governing the population.

>>55903481
>>55903511
This is false, this actually destroys growth in a sense, as now there is fresh cash and less assets to buy, driving up the price of said assets

The fed is essentially loaning itself money to buy bonds at 0 interest, from a balance sheet perspective