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  • Can the Fed Really Just Print Money? [View article]
    AlexS,

    "So if the Treasury bails out banks by giving them credit and the banks turn around and buy Treasury bonds that have been used to generate the credit (in order to build up their capital), has anything been created or destroyed?"

    If nothing was created or destroyed, then how has capital been built up? And if this is merely just an obvious accounting trick, then is it any wonder that banks don't trust each other?

    We are running into the wall of reality: money must be based on something, otherwise it can just be created out of thin air; finally, when it is created out of thin air, even when we use clever accounting tricks, everyone knows it's not real. And since everyone knows it's not real, no one trusts anyone.

    Isn't that exactly where we are now?

    What the hell are they teaching in school nowadays?
    Oct 30 16:16 pm |Rating: 0 0
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