It took me a while to figure it, but government don't print money, they print bonds, which they sell to corporations and other governments in exchange for money which they can spend.
Those bonds pay interest to the holder and after a defined period are redeemed for the original face value from the government.
This means new bonds need to be printed and sold to raise this money and so the cycle continues.
Replies (7)
Central banks print money.
And for me, they'd need to outpace inflation. I think things get yeety when they don't. I don't know much about bonds. Only enough to know I don't fucking want them.
Correct. Except that while governments have the authority to print money, they've handed it over to central banks.
All banks who create loans in a fractional reserve system print money. European and American banks print money with every loan they write.
And the FED is the buyer of last resort if no one else wants the garbage.
Check also the Tucker Carlson podcast with the guy who wrote princes of the Yen. Additionally if it’s between countries for example the IMF loan. The IMF itself doesn’t send any money form the US. A bank from the country will generate the money, something that the country itself could have done xD
You probably read his work, Richard Werner. I recommend him if you haven't yet. If yes, just ignore me LOL 🤣
