Quote:
Originally Posted by shovelquest
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Did you all know that since 2008, 25% of the US treasury bonds have been purchased by the federal reserve, through contracts?
This means that since 2008, 25% of our economy has been generated through printing money (point of purchase contracts for us treasury bonds). The Feds buy Treasury bonds by creating bank reserves, which are credited to the banks' accounts at the Fed.
This process increases the money supply because it creates additional reserve balances at the banks, which can then support more lending and economic activity.
Now before we make this a left vs right thing, lets not ignore that all of these happened during THE SAME GUY's administration. Im not blaming him.. but let's not even try to blame anyone.
Let's instead just accept the fact, that since the housing crash, we've lived in a fake economy.
Is it going to last? I don't think so.
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It all went very quiet but wasn't there a thing on America's credit rating dropping in the eyes of some economists/banking establishments? Money machine go brrrrr memes etc.