Quote:
Originally Posted by nation-x
Then you really don't understand how the system works. Every dollar that is printed costs us interest... it's a scheme created by bankers to keep us indebted. There is no way to ever pay it back.
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When the Fed prints dollars it purchases T-bills. Yes, the government pays interest on the T-bils. However, when the Fed holds T-bills they give the money back to the Treasury. If you like I can actually dig thought the Treasury balance sheets and find it for you.
The reason the Fed buys T-bills is that is when you need to inject massive cash into the economy it's the most rational way to do it. I guess they cold just drop cash from helicopters in Times Square... that would be a lot more fun.
There is no conspiracy.