We all Had to Dig a Little DEEPER! AGAIN! (569 hits)
www.finance.yahoo.com What the Fed's 600 billion plan really means: Tech ticker, yahoo! finance.com.
The attached video segment shows how our government keeps the money supply just right.. With credit tight, consumers not in a spending mood, the jobs picture not promising, all moved the Fed to 'pump' more money into the economy. The goal here, in hope of loosening credit, keeping interest rates low. But our dollar is in turn weakened, causing it to lose more value-more dollars necessary to buy what caused less a while back.
That's called inflation eventually.
However, the United States in the Federal Reserve Bank, has the power to 'create' more money by selling treasuries, bonds, securities (where have we heard that a lot, lately?). So, it 'borrowed, printed' securities from investment banks (money 'not in the account', hoping you investors put back-with interest)as you purchase these 600 billion dollar notes offered earlier this week.
In some quarters this is called monetizing the U.S. debt-borrowing 'against' our country's own debt. Or, I could put it, The Congress allocates and the Fed extrapolates, that is 'calculates' the amount of money needed to bail out the government-this time-to keep everything, 'just right.. '
As you digest that thought, we will calculate how much deeper you 'bought' into the U.S. debt tab-again-
For every man, woman, child; for all the goods and services we Americans demand from, and expect of our government every second! And also, how long before the next visit to the TILL by the Fed..
