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re: There is a common misconception here about stimulus checks.
Posted on 3/26/20 at 11:17 pm to EarlyCuyler3
Posted on 3/26/20 at 11:17 pm to EarlyCuyler3
quote:
Having a college degree is nice. I'm sure you know far more details than I do. That doesn't mean I can't comprehend the big picture and realize what the result of this is going to ben. You just admitted that inflation the result. So it looks like I dont need a degree in finance.
Congratulations, you know just enough to think you know a lot and to have no earthly idea just how much other information is out there that you don't know. The most dangerous type of idiot.
You seem to struggle with the basic concept that the US treasury and the federal reserve are two completely separate, independent institutions. I don't care enough to expound from there
1
Posted on 3/26/20 at 11:37 pm to el duderino III
quote:
You seem to struggle with the basic concept that the US treasury and the federal reserve are two completely separate, independent institutions.
Don't struggle a bit with it. Thanks for not contributing though.
Posted on 3/26/20 at 11:46 pm to EarlyCuyler3
I have been waiting for this thread for a few days. I am surprised it took this long.
I don't know much about how economy works, but I vaguely remember a few things from Econ class in college years ago and the notion of just dropping a couple trillion dollars into the economy out of thin air does seem a bit scary.
I don't know much about how economy works, but I vaguely remember a few things from Econ class in college years ago and the notion of just dropping a couple trillion dollars into the economy out of thin air does seem a bit scary.
Posted on 3/27/20 at 12:14 am to LSUGrad9295
It's a great idea if you're a CEO of a corporation who will be bankrupt without it. Or if you're a billionaire who's basically unaffected by the value of the dollar. (Meaning they're so wealthy it makes no difference to them if the price of goods increase or not.)
If you're a regular Joe making under 100k a year, it's a really really bad idea.
If you're a regular Joe making under 100k a year, it's a really really bad idea.
Posted on 3/27/20 at 1:13 am to EarlyCuyler3
You do know the Fed is a private bank and is not part of the federal government, also the fed was doing QE infinity in 2011.
So to simplify, the treasury will issue bonds and the Fed (a private bank) will buy them. The Fed sets monetary policy and controls the money supply through buying or selling government bonds.
Invest the checks you receive in an asset, so while the Fed is aiming to inflate prices and lower the value of the dollar your wealth will increase.... see, not so bad :).
So to simplify, the treasury will issue bonds and the Fed (a private bank) will buy them. The Fed sets monetary policy and controls the money supply through buying or selling government bonds.
Invest the checks you receive in an asset, so while the Fed is aiming to inflate prices and lower the value of the dollar your wealth will increase.... see, not so bad :).
Posted on 3/27/20 at 1:16 am to MarineVet
I understand that. One small problem with your idea: You get one check for $1200 and the Fed gets unlimited checks. Who do you think is going to come out ahead there?
If you've got some amazing investment opportunity that is going to increase exponentially and outpace the Fed, please let me know, I want in.
If you've got some amazing investment opportunity that is going to increase exponentially and outpace the Fed, please let me know, I want in.
This post was edited on 3/27/20 at 1:17 am
Posted on 3/27/20 at 7:06 am to EarlyCuyler3
The Fed isn’t sending your check, the US Treasury is. The Fed is the bank of all the member banks. They buy the debt that the congress creates through the budget process, just like the Chinese buys our debt.
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