Posted on 05/03/2024 10:58:25 PM PDT by knighthawk
Jared Bernstein, the Chief Economist and Economic Policy Adviser to Joe Biden, has been featured in a clip in which he struggles to explain how money works.
Bernstein was being interviewed for an upcoming documentary about the economy entitled Finding The Money.
'We all use money, and yet the questions of what is money, and where does money come from remain elusive,' the film teases in a preview.
(Excerpt) Read more at dailymail.co.uk ...
“If I had asked the customers what they wanted, they would have said ‘Faster horses’” - Henry Ford
Well that clears everything up.
Probably not a good idea to do an interview after a 3 Martini lunch.
Bernstein is a social worker. Never was an economist. Perfect guy for the job.
Faster horses, younger women, stronger whiskey. Happy Derby Day.
Bernstein is an idiot. Chief Economist and Economic Policy Adviser to the President of the United States has less grasp of economics than one would expect of a high school social studies teacher.
Gee, why is that not even surprising that an incompetent person is placed in a position he knows nothing about in reality?
Money is “printed” a handful of ways:
1. The Fed buys securities from financial institutions. In this case, the FIs see their cash accounts increase as their securities portfolios decrease. That increases money supply. In accounting language, debit checking account, credit securities. The Fed doesn’t move cash from its accounts - it’s an electronic creation of money.
2. Banks make loans. In this journal entry, loans are debited and checking accounts are credited. This, too, is an electronic creation of money. There is a bit of a feedback loop on this part and #1, especially If the government changes reserve requirements to facilitate loan/money supply growth.
3. In theory, the Fed’s operating expenses of about $9bn annually are a source of “printed money.” This is a drop in the bucket.
When the Treasury sells securities for spending, the ledger entry is debit cash, credit debts payable. The govt then splurges with that cash, so on a net-net basis, M2 is flat.
The Treasury COULD opt for spending by debiting cash and crediting federal debt….THIS is the “print money” fear in most people’s minds that drove inflation in economics historically.
Dang! I post weekend cryptograms here and forgot that today is Derby Day! SMH.
Wish I knew a second language.
Money is blips on various electronic ledgers.
Reminds me of Ketanji Brown Jackson who couldn’t define what a woman was because she wasn’t a Biologist.
Basic economics is very easy to understand. When these pointy headed over educated idiots over analyze economic principles, they create the mess that we are in.
An economic advisor doesn’t know how money works? Amazing... Not surprising considering the education system in America!
This guy is the poster child for government appointees. Most are absolute arrogant nitwits. Nitwits without a clue.
I’m not surprised. At all.
Thinking that Karl Marx was an economist is the first mistake.
Who physically prints the currency is irrelevant, who authorizes the bonds is what matters.
We could create sovereign money but then the Fat Cats couldn't get rich robbing the working people that actually create wealth.
Without the FED we wouldn't need the 16th Amendment or the army of armed tax collectors.
This dumb sonofabitch couldn't handle the funds at a lemonade stand.
The gummit prints money, therefore we can't go bankrupt?
This guy is giving economic advice to slow joe?
Good Lord, save us all.
This guy is giving economic advice to slow joe and joe has no clue of what the advisor is telling him.
Dumb and really dumber.
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