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To: ken5050

Borrowing money into existence is no more inflationary than printing it.


22 posted on 05/09/2016 6:27:19 AM PDT by freedomfiter2 (Lex rex)
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To: freedomfiter2

“Borrowing money into existence ...”

Don’t we put “created money” into circulation by lending it? To put this into financial jargon, the U.S. buys bonds, which means the borrowers get the money and the U.S. gets a promise to pay it back.

Thus, theoretically, printed money will be paid back and thus eventually be taken out of circulation?

I have no particular point here ... just wondering out loud about how this works.


93 posted on 05/09/2016 7:24:00 AM PDT by cymbeline
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