Yes. All you've done is make sure everyone knows how smart you must be without providing anything of actual value to the conversation. That sort of behavior is consistent with snobs and bullshite artists alike, which are you?

quote:

The Fed does not pay its liabilities with its assets ....

Federal reserve notes and deposits are liabilities of the fed. Treasuries are assets of the fed. When it sells those securities back onto the market, it is paying a liability with an asset.

I'm beginning to think you're probably more of a bullshite artist than a snob. I should have figured it out when you falsely accused me of saying that the fed "printed" the money just so you could show the world how smart you are for knowing that the treasury prints currency.

This post was edited on 8/17/10 at 5:13 pm

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Posted by LSURussian

Member since Feb 2005

127010 posts

Posted on 8/17/10 at 5:32 pm to RaysGoodLiquor

quote:
All you've done is make sure everyone knows how smart you must be

Everyone else on here already knows how smart I am.

quote:
That sort of behavior is consistent with snobs and bullshite artists alike, which are you?

Ummmmmm.....I'll have to go with 'snob' on that one.

You've obviously got your feelings hurt.

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Posted by LSURussian

Member since Feb 2005

127010 posts

Posted on 8/17/10 at 5:45 pm to RaysGoodLiquor

quote:
When it sells those securities back onto the market, it is paying a liability with an asset.

No, it isn't. The Fed does not have to sell an asset in order to pay for something. It creates "money" every time it pays for anything, including the light bill. Again, you're lost in the concept of a central bank's operations.

quote:
I'm beginning to think you're probably more of a bullshite artist than a snob.

No, I'm a snob. Just ask anyone here....

quote:
I should have figured it out when you falsely accused me of saying that the fed "printed" the money

You were using the concept of money in this manner:

quote:
If the fed doesn't issue dollars ( page 2, near the bottom of the page)

The Fed does not "issue" dollars.

It expands the money supply. It "creates" money.

The Treasury Department "issues" dollars by printing them. I don't think you understand that your your terminology is improper.