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To: Ilaine who wrote (15574)	2/24/2002 2:24:19 PM
From: Ilaine	Read Replies (4) \| Respond to of 74559

Greenspan to affirm recession's end: >>http://www.newsday.com/business/local/newyork/ny-bzecon242600192feb24.story<<

To: Ilaine who wrote (15574)	2/24/2002 5:45:25 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 74559

CB - The Fed doesn't print money. The Fed increases or decreases the reserves of the Federal Reserve Banks which in turn make the reserves available so that credit can be created. Credit money is created by people borrowing money from private banks. If people don't borrow, no credit money is created. The US Treasury borrows money from lenders all over the world by selling bonds. Foreign currency can be traded for dollars. If there is another way that money gets into the system, someone let me know. ... The concept of money supply is an abstraction, serving to 'explain' the fall of the purchasing power of money that generally results from an increase in the quantity of money. However, almost anything that reduces the demand to hold money in order to fund future purchases is money-like in its character, and also reduces the purchasing power of money. This would include anything that can, to one extent or another, be exchanged for money. This would clearly include stocks and bonds, the basis of the wealth effect, anything that can serve as loan collateral, such as real estate, but would also include something as subtle as increases in unused credit limits on credit cards. All of these alternatives each have their own discounts that affect their money-character, but they all reduce the purchasing power of money. Regards, Don

To: Ilaine who wrote (15574)	2/24/2002 7:23:13 PM
From: AC Flyer	Read Replies (2) \| Respond to of 74559

Hi CB: >>The Fed doesn't print money<< Yes and no. The Fed does not operate the printing presses, but the Federal Reserve Bank of New York, which conducts open market operations on behalf of the Federal Reserve System, can require the Treasury Department to have the US Mint print currency for delivery to any of the Federal Reserve member banks for the cost of printing that currency. What I find most interesting about the Federal Reserve System is that, although Congress appoints the Chairman of the Federal Reserve Board, the Fed is not a government agency. It is a private (or quasi-private) consortium of banks that was created by the Federal Reserve Act of 1913, which transferred the authority to create money from Congress to the Federal Reserve System. What a deal, eh? There are those who will say that this is the biggest scam in the known universe and that the Fed, and therefore the US, is actually run by a shadowy cabal of (insert pejorative of choice here) private bankers, who reap astronomical profits from this monopoly. For all I know this is true. However, my gut says that this is at least an exaggeration, or these guys would show up in Fortune magazine making Bill Gates look like a second-stringer.

To: Ilaine who wrote (15574)	2/25/2002 10:51:14 AM
From: LLCF	Respond to of 74559

<The Fed doesn't print money. > Doesn't matter much which department actually owns the presses: <<Monday February 25, 10:32 am Eastern Time Fed says buying TIPs to add permanent reserves NEW YORK, Feb 25 (Reuters) - The Federal Reserve said on Monday it was adding permanent reserves to the banking system by buying U.S. Treasury inflation-protected securities (TIPS) dated July 15, 2002 through April 15, 2032 on the open market.>> We can call it 'monitizing' if you like. DAK