printing money

Arundhati Roy's picture

The Money Myth Exploded

I found this clever story, and know in my heart it will be appreciated by the Chris Martenson community, especially to newer members:

TG's picture

Quantitive Easing

Now that the "recovery" has stalled what is the likelihood that the US Fed will print more money?

If it is highly likely that they will, will it cause share markets to surge and how long will it take before they fall again?

investorzzo's picture

the U.S. Treasury's bond problem

There is simply no evidence that any pool of buyers exists outside of the Federal Reserve to soak up $1.6 trillion in newly issued Treasury debt this year. Yes, the Fed can "create" money and use it to buy Treasury debt via various third parties, but is that machinery up to buying endless trillions of dollars in new bonds to fund unprecedented deficits as far as the eye can see? Will there never be any consequence of that policy, or any limits imposed by the bond market?

investorzzo's picture

does it make sense to resurrect the Glass-Steagall act?

The Myth of Financial Deregulation

Prior to the financial deregulation of the 1980s, we had controlled banking. Banks' conduct was guided by the central bank. Within this type of environment, banks' profit margins were nearly predetermined, because the Fed imposed interest-rate ceilings and controlled short-term interest rates. Hence, the life of the banks was quite easy, albeit boring.

The introduction of financial deregulations and the dismantling of the Glass-Steagall Act changed all that. The deregulated environment resulted in fierce competition between banks.

SkylightMT's picture

One trillion out of thin air; Bernanke puts gun in mouth

Anyone read this recent ticker by Denninger? About printing a trillion dollars out of thin air, announced yesterday by Bernanke.

md0's picture

Paying off the Bondholders by Raising Taxes


I am under the impression that if the govt wants to spend money, the fed issues bonds and collects money, and gives it to the govt. to spend it. When the fed buys back the bonds, they do it with the tax payer money, and money is not printed.

This chapter says that money is printed in the process but says nothing about paying the bondholders with taxes raised. I am a little confused. Or is it a combination of both printing and paying off by tax payers money.

GR8TFUL's picture

The cost of printing money

Except from an article in today's New York Times:

 In the case of the Fed, the money comes from its authority to print dollars from thin air. Since late August, the Fed has expanded its balance sheet from about $900 billion to more than $2.2 trillion, creating $1.3 trillion that did not exist to replace some of the trillions wiped out by falling house prices and vengeful stock markets. The Fed has taken troublesome assets off the hands of banks and simply credited them with having reserves they previously lacked.

KKPSTEIN's picture

Milwaukee Neighbourhoods to Print Own Money ???

Milwaukee neighborhoods could print own money

2 neighborhoods consider printing own currency for exclusive use in local stores

| Tribune reporter