Russia's anti-dollar crusade

[tupac chopra]

Despite popular in Russia theory US is not printing money, that's a fact.

They aren't physically printing masses of money. They have been and still are creating huge amounts of money out of thin air, in order to buy toxic mortgages from banks, and to buy US treasuries. This is why Warren Buffet called the Fed the "largest hedge fund in history".
But, as he also noted, they will find that it is a lot easier to buy this crap than to sell it.

Nope, they are not creating money out of thin air. They are creating loans out of thin air.

Like I said...good luck unwinding that <cough> loan. Until that loan is unwound there is an inflated amount of money in the system.

It does not cause inflation or anything associated with uncontrolled cash printing

<cough>, of course, inflating the amount of money can't possibly cause inflation
According to your logic the US govt could borrow $100 trillion dollars from the FED, who creates it out of thin air, and spend that $100 trillion dollars and there would be no inflation. Does that really sound right to you?

 

[barbos]

Despite popular in Russia theory US is not printing money, that's a fact.

They aren't physically printing masses of money. They have been and still are creating huge amounts of money out of thin air, in order to buy toxic mortgages from banks, and to buy US treasuries. This is why Warren Buffet called the Fed the "largest hedge fund in history".
But, as he also noted, they will find that it is a lot easier to buy this crap than to sell it.

Nope, they are not creating money out of thin air. They are creating loans out of thin air.

Like I said...good luck unwinding that <cough> loan. Until that loan is unwound there is an inflated amount of money in the system.

It does not cause inflation or anything associated with uncontrolled cash printing

<cough>, of course, inflating the amount of money can't possibly cause inflation
According to your logic the US govt could borrow $100 trillion dollars from the FED, who creates it out of thin air, and spend that $100 trillion dollars and there would be no inflation. Does that really sound right to you?

You are wrong.

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Despite popular in Russia theory US is not printing money, that's a fact.

They aren't physically printing masses of money. They have been and still are creating huge amounts of money out of thin air, in order to buy toxic mortgages from banks, and to buy US treasuries. This is why Warren Buffet called the Fed the "largest hedge fund in history".
But, as he also noted, they will find that it is a lot easier to buy this crap than to sell it.

Nope, they are not creating money out of thin air. They are creating loans out of thin air.

Like I said...good luck unwinding that <cough> loan. Until that loan is unwound there is an inflated amount of money in the system.

It does not cause inflation or anything associated with uncontrolled cash printing

<cough>, of course, inflating the amount of money can't possibly cause inflation
According to your logic the US govt could borrow $100 trillion dollars from the FED, who creates it out of thin air, and spend that $100 trillion dollars and there would be no inflation. Does that really sound right to you?

You are wrong.

 

[boneyard bill]

They aren't physically printing masses of money. They have been and still are creating huge amounts of money out of thin air, in order to buy toxic mortgages from banks, and to buy US treasuries. This is why Warren Buffet called the Fed the "largest hedge fund in history".
But, as he also noted, they will find that it is a lot easier to buy this crap than to sell it.

Nope, they are not creating money out of thin air. They are creating loans out of thin air.
It does not cause inflation or anything associated with uncontrolled cash printing

OK. We all agree that the Fed is not literally printing money. That is the responsibility of the Bureau of Engraving and Printing. But they are not creating loans out of thin air either. That is the job of the banks, not the Fed. What the Fed HAS done is to increase radically, by about $3 trillion, the amount of loanable funds available. And this they have done out of thin air. Because the big banks are insolvent, they have left about half of this in excess reserves with the Fed. But they have lent out the rest. And when banks lend, money gets created. That's the way things work in a fiat money economy.

This has created inflation, but it hasn't taken the form merely of consumer price inflation. It also creates asset price inflation. That's why the bond market, the real estate market, and the stock market are up. It has also created global inflation because the dollar is the reserve currency and we are running huge foreign exchange deficits.