Is printing money free money or debt the government has to pay off? (buy, sell)

[Bubble99]

Originally Posted by ralfyman

If the government made the loan, then it's one dollar.

That say there is tornado it cost million dollars in damages the government has no money so they order Bureau of Engraving & Printing to print million dollars. The Bureau of Engraving & Printing says okay here is million dollars what would the debt be?

[Hoonose]

Originally Posted by Bubble99

That say there is tornado it cost million dollars in damages the government has no money so they order Bureau of Engraving & Printing to print million dollars. The Bureau of Engraving & Printing says okay here is million dollars what would the debt be?

At the federal level, if OK'd by Congress, the money would transmit electronically, and US debt rises by the same amount.

[ralfyman]

Originally Posted by Bubble99

That say there is tornado it cost million dollars in damages the government has no money so they order Bureau of Engraving & Printing to print million dollars. The Bureau of Engraving & Printing says okay here is million dollars what would the debt be?

Money isn't created through orders but are loaned into existence. In this case, if the government borrows a million dollars then it owes that.

[Bubble99]

Originally Posted by ralfyman

Money isn't created through orders but are loaned into existence. In this case, if the government borrows a million dollars then it owes that.

What do you mean by Money isn't created through orders but are loaned into existence?

[ralfyman]

Originally Posted by Bubble99

What do you mean by Money isn't created through orders but are loaned into existence?

The government doesn't order its agencies to create money. Rather, someone borrows money, and then it's created.

[Bubble99]

Originally Posted by ralfyman

The government doesn't order its agencies to create money. Rather, someone borrows money, and then it's created.

Can the government borrow from the federal reserve?

[Hoonose]

Originally Posted by Bubble99

Can the government borrow from the federal reserve?

Absolutely!

https://fred.stlouisfed.org/series/TREAST

[Bubble99]

Originally Posted by Hoonose

Absolutely!

https://fred.stlouisfed.org/series/TREAST

How does this work?

[Hoonose]

Originally Posted by Bubble99

How does this work?

For instance:

https://www.newyorkfed.org/markets/t...hases-faq.html

[Bubble99]

Originally Posted by Hoonose

For instance:

https://www.newyorkfed.org/markets/t...hases-faq.html

Are you saying the government sells treasury securities?


What is the difference of the government selling treasury securities than say selling bonds?