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Yes. They lower interest rates by buying US treasuries.
Posted on: September 20, 2024 at 14:48:05 CT
JeffB MU
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They do so at lower interest rates than the market otherwise would do. They pay for those by 'printing money', which is in fact just putting digital credits in the seller's bank accounts.
I believe that they can now even buy them directly from the treasury.
The newly "printed" money flows first to the banksters & their friends who are likely tipped off about interest rate moves before they happen.
That gradually 'trickles down' into the rest of the economy causing a boom... but it is artificial. Eventually that causes inflation at the consumer level and the value of money drops... causing the illusion of real assets becoming worth more.
The disruption causes inefficiencies, misuse of resources and in general reduces the overall wealth of the citizens, but it does benefit the uber wealthy at the top of the food chain.
It also causes the bust cycle to follow the boom cycle as misplaced investment is liquidated and the Fed's coping mechanism of feeding even more money into the system to replace one bubble economy with the next.
The end game is usually hyperinflation and the destruction of the fiat currency. That is a catastrophic development for any nation.
Edited by JeffB at 14:53:33 on 09/20/24
I believe that they can now even buy them directly from the treasury.
The newly "printed" money flows first to the banksters & their friends who are likely tipped off about interest rate moves before they happen.
That gradually 'trickles down' into the rest of the economy causing a boom... but it is artificial. Eventually that causes inflation at the consumer level and the value of money drops... causing the illusion of real assets becoming worth more.
The disruption causes inefficiencies, misuse of resources and in general reduces the overall wealth of the citizens, but it does benefit the uber wealthy at the top of the food chain.
It also causes the bust cycle to follow the boom cycle as misplaced investment is liquidated and the Fed's coping mechanism of feeding even more money into the system to replace one bubble economy with the next.
The end game is usually hyperinflation and the destruction of the fiat currency. That is a catastrophic development for any nation.
Edited by JeffB at 14:53:33 on 09/20/24
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Yes. They lower interest rates by buying US treasuries. - JeffB MU - 9/20 14:48:05