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/biz/ - Business & Finance


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19417549 No.19417549 [Reply] [Original]

Fundamentally how does the Fed printing money? Is it literally pressing a button? What's the system infrastructure look like?

>> No.19417599

>>19417549
he was good skin but i also believe him to be satan in his mortal form. there is nothing but an appetite for destruction and a cold emptiness behind those eyes

>> No.19417627

>>19417549
They increase bankreserves with the primary dealer banks. Look up george gammon if you want good explainations.

>> No.19417715

>>19417549
They use several different tools. The main one is open market operations:
> be fed
> make money appear from nothing on screen
> use money to buy government bonds
> price of government bonds increase (and rates decrease) because of increased demand from fed buying
> the interest rates of other bonds/loans decrease as well as they are a function of the risk free rate (government bonds) + a risk premium
> money in circulation increases as people/ institutions sell their bonds to the fed and receive cash

>> No.19417839

You guys post this person so much that it has to be a tranny.

>> No.19417852
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19417852

>>19417839

>> No.19417949

>>19417839
IT is

>> No.19418048

>>19417549
you are a man
also
no is a double-entry accounting book
it's numbers
ever used excel? it's like that

>> No.19418076

>>19417549
coomer trannie-lover faggot, gtfo.

>> No.19418079

>>19417549
It looks a little something like this, anon:

>money printer starts up
>BRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR

>> No.19418081

>>19417715
This summarizes it nicely. One thing to add is that people / institutions then put this cash into risk markets, thus stimulating the economy.