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The US government paying off the national debt by borrowing more money, and/or printing more US bonds and selling them. This is an over simplification, but when these existing US bonds come due, the US government redeems these bonds with US dollars that are raised by selling more freshly printed new...
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I think that President Obama plans to borrow more US dollars back from the Foreigners that earned the US dollars manufacturing US consumable products and then provide temporary jobs for unemployed US citizens to construct "Pork Barrel" projects, or rake leaves, or dig a hole today and then...
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[quote user="limitgov"] Q1: In essence Bank of America has its own notes as does chase and now markets have to pay for the overhead in maintaining such a number of different currencies and prices of goods have to be constantly changed per the currency you hold as in buying a can of beans may...
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I just finished the lecture course by Peter Klein and Joe Salerno, the Causal-Realist Approach to Economics, and the last lecture on banking and the business cycle was very fascinating. However, I was confused when Mr. Salerno said that the costs go up in the capital goods industry. Firstly, bank reserves...
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[quote user="TelfordUS"] But once those banks die, wouldn't others take its place? [/quote] Exactly. There is no reason not to abolish the Federal Reserve.
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[quote user="Okooka"]But isn't the problem with FRB as well? Banks give out multiplied ammount of credit based on deposits, so when a crisis hits and people start to default, the money supply contracts. Do I have anything wrong with seeing it like that? Admittedly I still don't quite...
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Hello, I am in the middle of a rather verbose 'conversation' with an aquaintance, and his most recent response to me contained the following paragraph: Evidently you have fallen victim to recent propaganda about the Community Reinvestment Act. The CRA actually restrained subprime lending. I urge...
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I work for a 20 person company. I make around $50k/yearas do most of my coworkers. I asked my boss if he ever had to take a loan to make payroll. He told me that he has enough money in a account to cover pay for six months. So we started talking economics a somemore. I am very comfortable with my job...