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originally posted by: 727Sky
The following video is about inflation and how, starting with Germany up to the present, what kind of affect it can have on a society. After skipping the commercial the video is worth a look for those who are interested . youtu.be...
originally posted by: beyondknowledge
a reply to: ChaoticOrder
Ok, but how is the digital creation of money called printing? Is it like the outdated practices of referring to video as footage and images as photographs?
originally posted by: ChaoticOrder
a reply to: beyondknowledge
Physical money represents a small fraction of the money supply and most new money is created digitally.
originally posted by: dragonridr
a reply to: 727Sky
The federal reserve creates money buying bonds. The Fed is using those newly created dollars to pay down its own debt, this time at an unprecedented scale because of the economy's massive shutdown triggered by the pandemic. Since mid-March, the Fed has bought $1.4 trillion in Treasuries – the bulk of the $1.6 trillion in total Treasuries issued during a pandemic.
In effect, one agency of the government – the Fed – is creating dollars to buy government debt in the form of securities previously issued by the U.S. Treasury. The Treasury then pays the Fed what it owes in interest on those securities. In turn, the Fed is required by law to return to the Treasury the profit it makes from the Treasury off of these securities. And the net result is the debt is lowered