tag:blogger.com,1999:blog-502356674750161309.post2089353038021981369..comments2009-03-28T15:50:36.879-07:00Eric deCarbonnelhttp://www.blogger.com/profile/08023745289801416061noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-502356674750161309.post-29317731553260118402009-03-28T15:50:00.000-07:002009-03-28T15:50:00.000-07:00To keep interest rates low (stabilize the market) the Fed purchases US Treasuries. This added demand from the Fed keeps the interest rates from rising due to lack of demand. Instead of actually printing Federal Reserve Notes (cash) and giving them to the US Treasury, it simply credits the US Treasury's account. The US Treasury now has money in its account to bail out another insolvent company. The US Treasury appears to have borrowed the money, but in reality the money was created out of thin air.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-502356674750161309.post-17731001213168046102009-03-27T23:38:00.000-07:002009-03-27T23:38:00.000-07:00Question:<BR/><BR/>"(Actually these days the money is created in the form of new bank deposits--checkbook money--but the net result is exactly the same as if bills were printed.)"<BR/><BR/>What does this mean? Does the "printing of money" not mean that money is actually printed? How does the creation of bank deposits have the same effect as printing money? Where are the bank deposits deposited? In the federal government's bank account?<BR/><BR/>Regards,<BR/><BR/>D.B.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-502356674750161309.post-78404529147780264662008-12-07T04:03:00.000-08:002008-12-07T04:03:00.000-08:00On another blog, a discussion group includes the blogger conducting a study of "The Great Depression." The text for study was Murray Rothbard's <A HREF="http://mises.org/rothbard/agd/contents.asp" REL="nofollow">America's Great Depression</A>. You can get a free .pdf if you follow the link I provided, or if you wish, buy the book outright.<BR/><BR/>In one of the discussions, a commenter stated that his understanding was that a "depression" was simply a "healing process" necessary from malinvestment brought on by overspeculation precipitated by inflation from "fractional-reserve" banking practices.<BR/><BR/>I responded to said commenter in agreement, but added that any "healing process" means nothing, if one does not recognize the mistake of forsaking "sound money" and returning to it. For if one does not, he can be sure that he and his progeny will be experiencing more "healing processes" to come.<BR/><BR/>You don't need to read the entire treatise of Rothbard's <I>Depression</I>. Just read one of his five introductions, and you will be heads and heals over the average person on economics, and particularly why the "Great Depression" of 1929-1939 needn't be, or at the very least not as protracted and severe.<BR/><BR/>If you would decide to ingest his entire tome, believe you will be the better for it. If not for yourself specifically, but certainly for the benefit of your progeny. If you combine this study together with F. Tupper Saussy's timeless and seminal <A HREF="http://tuppersaussy.com/museum/html/writings/constitution/moms.html" REL="nofollow"> The Miracle On Main Street</A>, which teaches one the history and purpose of "sound [Constitutional] money," you will be way ahead of the curve of the average citizen on both civics and true capitalism.fooser77http://www.blogger.com/profile/11896368046429483789noreply@blogger.com