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To: AndyJackson
The only way the Fed can create money is by adding securities to their balance sheet.

BFS!

I always thought the Fed bought Treasuries (usually) from a Primary Dealer and credited their account at the Fed with newly created money. I await your explanation of how it really works.

127 posted on 04/30/2008 6:08:01 AM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
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To: Toddsterpatriot

It is this little “only” thing. I realize you have been asleep for the past few months, but not to long ago the FED came up with a couple of new ways to inject liquidity in a total dosage of around $500 B -in round numbers - since the beginning of the BSC debacle which everyone besides you calls a bailout. Go to their website and you can read about it.


137 posted on 04/30/2008 8:12:55 AM PDT by AndyJackson
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