Federal Reserve Notes are loaned into existence, no debt, no money. My loan officer wife spends her day “creating” FRNs at the local branch,on her computer screen, as she loans out thousands of fractionally ginned up dollars and then exchanges them for all sorts of things of value! The interest on these notes when created and then serviced by compounding are the “check in the mail” moment there, Todd.
But you knew that, your questions are for the folks here that don’t know that, not me, right? You’re just the guy here on FR that keeps the other side of the argument going.
That's not true at all. I can buy fresh FRNs without a loan in sight.
My loan officer wife spends her day “creating” FRNs at the local branch,on her computer screen, as she loans out thousands of fractionally ginned up dollars
It's true, when you borrow money from your local bank, you've increased the money supply. Without as much as a nod from the Fed. But your wife isn't creating FRNs.