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

To: philv who wrote (109871)	1/18/2015 10:38:25 PM
From: Elroy Jetson	Respond to of 217615

The Fed can create a trillion Dollars with fewer than 60 seconds worth of typing on a computer, because they're the central bank. It's money because they say it is. The U.S. Treasury has to either collect taxes or borrow money. To counter the current economic depression, which resulted in 2008 from the collapse of the preceding credit bubble, the Fed has been purchasing Federal debt - $2.5 trillion so far - paid for with money created out of thin air because money is nothing more than a concept. This means $2.5 trillion of investor money which could have received a "risk free" return in Treasury Bonds, now has to take on riskier investments in order to obtain a return.