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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: paintbrush who wrote (42031)	10/31/2008 10:10:52 AM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 219716

The mechanism of printing money is in the hands of Congress who set the limits of Government debt. When the Treasury issues debt they remove liquidity buy buying cash and giving instead debenture notes or bonds. The Fed expands the money supply buy buying Treasury notes or bonds and paying with cash If Congress does not increase the debt limit Treasury can not issue new debt and the FED can not buy and pay in cash Hope this simplistic explanation clarified this - the ultimate expansion in the monetary base (printing money) is in the hands of the Congress – the FED only adjust the monetary base to the market needs by market intervention but can not print money onto abandon and at will