A question about the fed

I'm not too knowledgeable about the fed and how everything works so I have a question about it. As far as I know every time there's some kind of stimulus package, funding to send soldiers overseas and stuff like that, the fed prints money and the US government borrows it from them. In turn we've got to pay back all of that debt. If I'm wrong, please correct me.

But my question is - if we're getting money from the fed or from private banks, why are they still printing so much money for us after this long, KNOWING that we'll never be able to pay it back? That's kind of like continuously giving money to a personal friend who you know will never pay you back. My guess is to own us and have some kind of power.

I'd like to hear someone elaborate on it though.

reply to post by krull11


All I know from basic economics is that the Fed prints money and buys debt from the central banks in the country to increase cash inflow.... vice versa for the opposite. The Fed prints money at will, and all it does is decrease the value of all the currency as a whole in the country (to my knowledge). Money means nothing now days, without the gold standard, I wouldn't be surprised if money disappeared or something drastically changed within the near future.

Down with the Fed!

[edit on 23-12-2009 by xX aFTeRm4Th Xx]

reply to post by krull11


its a scam job on america. eventually we wont be able to pay it back and the private bank will literally own america...

So I guess my assumption was right. I was just trying to clarify all of the stuff I've been reading about.

Like I said there's no way someone would keep giving money to someone that they are positive won't pay them back, and I mean personally. Unless... you know that that person will pay you in another way