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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: UnBelievable who wrote (1515)	5/19/2003 8:16:06 PM
From: Perspective	Read Replies (1) \| Respond to of 4907

You're missing a critical piece of the puzzle, Un. The Treasury* issues the bills, notes, and bonds. Then, the Fed has the authority to go in and buy them back. When the Fed buys a government security, it creates money out of nothing.* It's very simple - the Fed can create as much "money" as it wishes. It creates no wealth, but all the dollars AG's little heart desires. It can dilute the rest of us to whatever extent it pleases in a hidden taxation. Sorry, now you'll probably go and have bad dreams, like I've been having... BC