Elta
我不会把这种
Why doesn't the U.S. just print it's own money instead of using the Federal Reserve System?
Is it true that we out 4% interest on every dollar they print?
Is it true that we out 4% interest on every dollar they print?
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Why don't we just print out own money?
- Thread starter Elta
- Start date
Short answer: because that doesn't allow enough control over the money supply, and it's a lot more complicated than just printing bills. (Because most of our money isn't physical, anyway)
For the long answer, wait for JerichoHill.
For the long answer, wait for JerichoHill.
Elta
我不会把这种
err - I should add, why don't we own the federal banks ourselves. - Something to that effect, I don't know all of the exact terms.
Julian Delphiki
Anton's key
I experimented with printing my own money for a while, but after a few years forced "vacation" i decided to stick with factory-made 
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Zhuge_Liang
The greatest strategist
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- Sep 6, 2007
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All Of The Above! 
Masquerouge
Deity
Am I missing something here? How is the Federal Reserve System not part of the US?
JerichoHill
Bedrock of Knowledge
Elta,
That's not it entirely. Read up on the history of the Federal Reserve and why it got created. It solved a problem of state banks running wild and causing massive inflation.
The Fed is like the Post Office in how its organized. It's responsible to the US government but it doesn't report, so to speak. Before the Fed, when governments got in trouble with not having enough money, they printed money, which caused inflation to go crazy. That's why its not responsible or beholden to the US government. It has its own mandate.
And yes, there is a natural inflation rate. The economy does grow, ya know?
That's not it entirely. Read up on the history of the Federal Reserve and why it got created. It solved a problem of state banks running wild and causing massive inflation.
The Fed is like the Post Office in how its organized. It's responsible to the US government but it doesn't report, so to speak. Before the Fed, when governments got in trouble with not having enough money, they printed money, which caused inflation to go crazy. That's why its not responsible or beholden to the US government. It has its own mandate.
And yes, there is a natural inflation rate. The economy does grow, ya know?
Elta
我不会把这种
Okay - I am just trying to figure out all of that conspiracy mumbo jumbo.
Why do we pay interest on the money that gets printed?
Here is a question I am fairly sure isn't true but, I am hoping you can clear up since I keep hearing it.
Every dollar we pay in income taxes goes to pay interest on money and nothing else. - not true right?
Leonel
Breakfast Connoisseur
We'd might as well use pebbles!
Masquerouge
Deity
I wouldn't be surprised if a substantial part of the US income was used to pay the interest on the US debt, but I'm not sure if that's what you mean...
Elta
我不会把这种
the federal bank prints money - on ever dollar printed we owe the bank money. ( 4% - or so i hear ) - Jericohill already gave me the rough outline of why it exist and why we don't print our own money. Thou it is something I will need to read up on.
My questions are:
Is it true that we owe 4% on ever dollar printed ( the only way to pay them back is to print more money of course - which in turn we still owe more )
and
Is it true that all of our income taxes go entirely to pay the interest on money printed and no where else?
Integral
Can't you hear it?
I can give a partial answer to this one.
Americans paid slightly over $1 trillion in personal income taxes last year (NIPA 3.2). Most of that money went to finance federal government expenditures; there's no way we spend that much on "interest on money printed."
Rhymes
Drive 4 25 is back
Well I'm not american, but what do you mean by 4% interest? On what bills and until when?
ArneHD
Just a little bit mad
You mean the gold standard?
Fifty
!!!!!!!!!!!!!!!!!!!!!!!!!
basically so a bunch of rich unelected corporate dudes (with a thin, ineffectual veil of congressional oversight) can control the country.
Elta
我不会把这种
On ever dollar the federal reserve prints ( which is loaned technically ) the government owes the federal reserve some % of that money in interest. The money we pay them of course to cover their operating cost. My question is, is it really 4%.
Elta
我不会把这种
I can give a partial answer to this one.
Americans paid slightly over $1 trillion in personal income taxes last year (NIPA 3.2). Most of that money went to finance federal government expenditures; there's no way we spend that much on "interest on money printed."
That's a relife
Rhymes
Drive 4 25 is back
But I mean, 4% doesn't mean anything if there aren't more specifications. Is it 4% annualy? every year? for how many years? Does it expire at a given point.... and so on...
Elta
我不会把这种
Rhymes
Drive 4 25 is back
In the case this is true, the the next question is what does the federal reserve do with all the excess money they receive from interest income... I can't imagine they have that much expenses and salaries to cover.. and it's not a private business either, no shareholders, so my only guess is that the excess income would be redistributed to the USA in a way or another.
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