You’re stuck in the 80s dude. They’ve switched to just controlling the interest rate over fucking with the money supply since.
Well acksually it isn’t “printing money” very little money is actually printed, instead what acksually happens is that the fed sells introverted reverse buy back mortgage bonds (IRBBMB’s) that monies market investors then buy to use as collateral for their insured repo sell forward loans that are then deposited in the banking sector that act as reserves for said banks. It’s simple really.
Yes this does increase the money supply, but I don’t see what that has to do with printing money.
🙄
Well, the Fed Res has 2 main tools at their disposal .
Adjust money supply or adjust interest rates. That’s how it’s designed.
Is this not taught in school?
Fed SOP:
1) Pump assets for rich
2) If you pumped too much, proceed to step 3
3) Deflate wages for working class
6 comments
You’re stuck in the 80s dude. They’ve switched to just controlling the interest rate over fucking with the money supply since.
Well acksually it isn’t “printing money” very little money is actually printed, instead what acksually happens is that the fed sells introverted reverse buy back mortgage bonds (IRBBMB’s) that monies market investors then buy to use as collateral for their insured repo sell forward loans that are then deposited in the banking sector that act as reserves for said banks. It’s simple really.
Yes this does increase the money supply, but I don’t see what that has to do with printing money.
🙄
Well, the Fed Res has 2 main tools at their disposal .
Adjust money supply or adjust interest rates. That’s how it’s designed.
Is this not taught in school?
Fed SOP:
1) Pump assets for rich
2) If you pumped too much, proceed to step 3
3) Deflate wages for working class
Yes, it did work.