At 40 seconds into this video Brian Sack (sp?) of the New York Federal Reserve says "The way we create money is.. is by buying securities."
Well, no. You have to exchange something in order to buy something. So, the Fed must have had the money prior to the purchase even if it was just a millisecond before.
So, how does the Fed create the money? Well, about a millisecond before they hit the "BUY NOW!" button on their computer screen they TYPE THE NUMBERS IN. And those numbers are the newly created money.
Just imagine the work that went into earning that money. Millions of dollars created in an instant by the very complicated work of finger muscles coordinated with other finger muscles, and joints and bones - don't forget the bones - all somehow coming together to type - that's right "type" (I'll have to make another post explaining what "typing" is) - numbers. Wow! If you or I tried that, I'm sure we'd sprain something, accidentally smash our hands or spontaneously combust or something. I'm so glad the Fed has taken on this perilous task and they deserve every cent they type!
Well, no. You have to exchange something in order to buy something. So, the Fed must have had the money prior to the purchase even if it was just a millisecond before.
So, how does the Fed create the money? Well, about a millisecond before they hit the "BUY NOW!" button on their computer screen they TYPE THE NUMBERS IN. And those numbers are the newly created money.
Just imagine the work that went into earning that money. Millions of dollars created in an instant by the very complicated work of finger muscles coordinated with other finger muscles, and joints and bones - don't forget the bones - all somehow coming together to type - that's right "type" (I'll have to make another post explaining what "typing" is) - numbers. Wow! If you or I tried that, I'm sure we'd sprain something, accidentally smash our hands or spontaneously combust or something. I'm so glad the Fed has taken on this perilous task and they deserve every cent they type!
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