Re: What does the government receive in return for increased money supply.
- From: hal@xxxxxxxxxx
- Date: Thu, 31 Jan 2008 14:00:08 GMT
On Wed, 30 Jan 2008 13:28:06 -0800 (PST), rnott@xxxxxxxxxxx wrote:
Hi,
I have a question that probably many on this group are able to
answer. Sorry if this is very basic, but I'm just a humble computer
guy trying to make sense of the bigger world.
My assumptions first. The government increases the money supply
depending on what they think the GDP growth rate is. This new money
covers the newly created goods and services in the country.
Here is the question:
- Suppose the government coins/mints or prints new money, then who
gets this new money, and what does the recipient of that new money
provide back to the government in return?
(The government can't just hand out the new money for free, can they?)
- What other alternative methods does the government use to increase
the money supply, and what do the recipients of the new money in this
case provide back to the government
If you think this question is way too basic to be worthy of this list,
perhaps then you could please point me to another source of
information where I can read up (other groups, Web links, etc.).
Thanks to all respondants,
Wolfgang, CA
one thing you might want to understand before wrapping your brain
about any more of this:
The Federal Reserved is NOT an entity of the US government. Congress
nor the executive have any control whatsover over them. It is a bank
solely owned by private individuals that does whatever the hell they
want. It is a bank owned by the ultra wealthy that manages said bank
for their personal benefit and nothing else. So whenever they print
money of us to use, it costs us money. They profit from the interest
they charge us for the right to use their money. So whenever "The
Fed" prints more money, the rich get richer while average Americans
get poorer and more in debt.
Hal
.
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