Federal Reserves buy our bonds, this means the U.S. is truly printing money.(from the conspiracy of the rich)
I don't understand this, why this means the U.S. is printing money when Fed buy our bonds??
Please explain, thank you.
Federal Reserves buy our bonds, this means the U.S. is truly printing money?
2010-10-19 5:01 pm
回答 (2)
2010-10-19 5:07 pm
✔ 最佳答案
Not printing it physically, but, yes, when they buy bonds they increase the supply of money. "Printing money" is a euphemism that includes physical printing of more money and any other activity that increases the money supply.
2010-10-19 5:53 pm
The Fed buys the bond with money they create out of thin air with "Federal Reserve Notes". However, today there is no gold reserve to bak the notes.
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