>who’s gonna pay for it?
Can we agree this question is null and void since the $1.5 trillion printing that occurred this week?
>who’s gonna pay for it?
Can we agree this question is null and void since the $1.5 trillion printing that occurred this week?
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>Who is going to pay for it
The receivers of the loan. It is literally a loan.
Money is a literal meme
They have never paid that off, they still haven't paid off 2008
>I don't understand how lender of last resort works
Of course they paid it off.
Nobody.
That's the gist, isn't it? Everything is free and is grown on trees in Imaginationland!
How come people borrow money and bet on the stock market get bailed out with 1.5 trillion for a 15 minute uptick, but people shackled for life for borrowing for education don't?
So long as you can hold the world’s energy trade a virtual hostage through force of arms....yeah kind of
Those were loaned to banks so they can buy all the crashed stock.
WHAT'S THE POINT OF A BUST IF YOU CAN'T BUY PENNIES/DOLLARS?
Because student debt is already done. Like, the product is there and the people are paid. These loans are given as essentially emergency loans to keep the lights on because many large companies are over-leveraged.
>Why is this a bad thing?
It causes a cascade effect. Ford closes doors, so their lenders close doors because bankruptcy is poison, so other businesses that once got loans from that lender do, etc,etc. Until you get a deflationary spiral, and a huge amount of money just evaporating.
INCOME
TAX
PAYS
THE
INTEREST
ON
THE
LOAN
YOU
STUPID
SHEEP
everyone who uses the 'federal reserve note' aka USD is paying for it. their purchasing power has been reduced, and jews have profited.
No it doesn't.
The government doesn't have to pay off its debts like its some blue-collar peasant. Violence is the ultimate currency and the U.S.A. has a full account.
Yes it does retard. The gov spends by borrowing from private banks, and your taxes are used to fill degenerate traders and kikes pockets. This is the (((free))) market. Enjoy.
heard that in italy they just took some money from people bank accounts. heard they usually tax people with over 100K because it wouldn't make a big difference. not sure if it's true but some user should check it up
>they aren’t actually printing any money!
>They are just injecting 1.5 trillion into the economy on the books!
Y tho
The federal reserve isn't part of the government. And if the fed doesn't recoup the money it brr'd then you will pay for it through inflation.
kek
>Fed loans money as needed to institutions needing last resort liquidity
>These banks could potentially buy government treasuries
I guess? If so, it's not only, and there are non-banks buying government debt.
>I don't understand how any of this works, but I still want free stuff, so...
>fiscal and monetary policy are the same thing
>How come Wall Street gets federal loans that they have to pay back but I also get federal loans that I have to pay back and not free money?
Why do libshits keep bringing pointing this out as though they think there’s a contradiction?
Won't 1.5 trillion tank the value of the USD? I see a very minor uptrend in a few currencies but nothing even remotely in line with what a 1.5 trillion injection should look like, yet the stock market hasn't improved either.
It's my understanding that bankruptcy in the US is a free pass to get rid of your debts if you're a company and you never have to ever pay anything yourself. Pure profit.
yeah, it might make the USD as worthless as that plasticy stuff you leafs call money
No, it's not. For individuals its typically more generous than businesses. For businesses, you typically have to accept some amount of stewardship to actually go bankrupt which might not be in anyone else's best interest.
>E.g., Popeyes decides to declare bankruptcy because they're fucking retarded.
>The investigation concludes that the business is just run poorly, not necessarily worth more in assets than future potential.
>The bank now is a major share holder of the company, and completely guts it to be more profitable to get their money back
Or
>Company like Bear Sterns goes bankrupt
>Investigation decides its not actually profitable to run.
>Company is forced to sell itself to the bank for debt relief
>Company is then sold to other companies, parted out for the office furniture, whatever holdings, etc
>banks
>paying anything back
I really wish I was this naive.
It's not very complicated. Banks not only HAVE to pay back the FED, but they want to. The FED is really easy to pay back, hence why it's not allowed on the open market.
If they fail to pay back the FED bad stuff happens.
>lender of last resort
Doesn't borrowing from that mean your shit's hitting the fan?
The working goyim pay for it by devaluating the currency
Yes. It's really, really fucking bad. It means literally no one else will lend you the money you need to keep you afloat.
Likewise, this is why when FED does bailouts like in 2008, it lended to everyone so that people didn't see the loans going to Bank of America and say
>SHIT SENPAI, WE SHOULD STOP WORKING WITH BOFA BECAUSE THEY NEEDED FED MONEY.
So, you had banks like US Bank, who really didn't have much financial issues because they were local and less involved getting huge FED loans to keep opaqueness in the market.
>>who’s gonna pay for it?
>Can we agree this question is null and void since the $1.5 trillion printing that occurred this week?
Like in 2008, right?
>>The bank now is a major share holder of the company, and completely guts it to be more profitable to get their money back
I don't see the problem for the CEO and rest of the board, they all come out scott-free don't they? Remember that company money is not personal money, a solo investor investing on behalf of his company is paying himself whatever salary he wants regardless of profit. This is undeniable money, the bank can't take it back; it can only stop future payouts, including by firing the guy.
I'm obviously not an expert on the topic so correct me if I'm wrong though.
YES
IT
HAS
SINCE
1933
YOU
RETARDED
SLAVE
Investment banking and personal banking need to be separated again by law
banks don’t pay back dumbfuck.
you actually believe they do?
HoLy sHIT
>who’s gonna pay for it?
The receivers of the loan, brainlet.
The Fed is loaning that money to small banks and credit unions for 1-14 days at low interest so the major banks don’t take advantage of the situation Jew them into failing.
And if the small bank doesnt pay the loan back, the Fed had already taken treasury bonds as collateral, which reduces the national debt.
God, Fedposters are retards
you are the dumbest fuck in this thread right now
>Won't 1.5 trillion tank the value of the USD?
Only if people don’t believe it can be paid back. The 1.5T isn’t just free money thrown at the market to pump it up, it’s a federal loan that allows companies more financial flexibility to operate during a financial crisis.
Corporations don’t typically just keep a huge pile of cash sitting around like Scrooge McDuck, whatever profit they make is usually reinvested in to expanding their business, so whenever a financial crisis happens, they need fluid money to cover the inevitable costs. The alternative would be forcing companies to have to downsize just to handle a crisis which is expected to be only temporary.
They actually DID pay those back, as weird as it sounds to Yas Forums. It's really easy to pay the FED.
>The problem for the board and the CEO
So, here is the problem; people aren't dumb. If you're taking control of companies to run them into the fucking dirt and go bankrupt, then you're pretty much out of a job because everyone who would hire you thinks you will kill the company who pays them. This is also why failing companies pay huge amounts and give parachutes to their board and CEO because it's in his best interest to avoid this shitshow. This is also why there is so much interest in not having companies taken over and parted out for office furniture.
Also, if you're a board member and your stock is forcibly bought by the bank, it's going to be bought for pretty much nothing. Or the bare minimum price it can be whereas if you managed to improve the company, your stock would be much more valuable.
Because it's not an individual's fault that corona is sweeping the world and the stock market tanks.
However, it is an individuals fault that they spent $100k+ on useless college degrees that don't translate into getting a job that will allow them to pay it back.
>They have never paid that off, they still haven't paid off 2008
The Fed is taking more treasury bonds (National debt) as collateral than the loan is worth. If they “don’t pay it back”, then it’s literally paying off the national debt and helping balance the budget.
Please tell me you’re just uninformed and aren’t actually this retarded.
Americans think money grows from trees lmao
shill buzzwords and terms wrt central banking and debt based economies:
flexibility
growth
fluid
safe
trustworthy
prevents stagnation
Probably
>THIS IS HOW IT WORKS BECAUSE I SAY IT'S HOW IT WORKS
Y'know, the FED could be run by the fucking Rothchilds and supply Soros with infinite stolen organs, but that's not what the charter says.
What the Fed offered was to buy $1.5T worth of government securities, if and only if the seller signs a contract agreeing to buy back the government securities the very next day. That's what a repurchase agreement, or "repo" is. It is really just an overnight thing.
It is true that the Fed makes that money out of nowhere. Banks borrow money that doesn't exist from the federal reserve, and lend that money out for a profit. But without that system, the interest rates would be 20-30%, and it would be impossible to get a mortgage or a student loan. Money is affected by supply and demand just like anything else: central banking system supresses the price of money by lending out money that "does not exist". On the whole, it benefits people without money by reducing the interest rate. You can borrow for less, and rich people earn less interest from being rich. The alternative is helping the rich.
The government sells bonds to finance itself. Anyone can buy bonds, including you and banks. The government has no trouble paying for itself:
>Person A pays a profit from owning bonds, that is taxed by the government (Capital gains tax)
>Person A spends what remains of that profit after taxes to buy stuff, which is taxed by the government(Sales tax)
>Person A bought stuff from Company A, and Company A made a profit, which is taxed by the government. (Corporate tax)
>Company A also pays a wage to its employee Person B, which is taxed by the government (Payroll tax)
>Person B recieved his wage, which is taxed by the government (income tax)
>Person B spends what remains of that profit after taxes to buy stuff, which is taxed by the government(Sales tax)
>Person B bought stuff from Company B, and Company B made a profit, which is taxed by the government.
>Company B also pays a wage to its employee Person C, which is taxed by the government (Payroll tax)
>Person C recieved his wage, which is taxed by the government (income tax)
>...
>...
>...
>could be
you're really clueless.
The Crown Temple owns the national debt, they're also the center of all law as well, and the roastingchild are one of 13 families that run the world from within.
This has been true since the 13th century.
Why don't you know this?
Good post, user. Unfortunately, brainlets won’t have the attention span to make it through.
I don't give a fuck, to be frank. I'm telling you what exactly the story is.
You can say the story is space reptiles working with the knights templer, but it doesn't fucking matter because it's not what the paperwork says.
doh you shillblue faggots accidentally clicked on same image in your "try to fit in on 4chins" folder.
oh dear user who knows all where do the treasury bonds come from?
you don't give a fuck?
why bother posting in this thread then you lying retarded child
Glass Steagall created the most stable economy in centuries then when it was removed we went back to mega booms and busts
the muricans
>OP is being stupid
>Why am I jacking off with basic monetary policy questions
Why are you so fucking stupid, you leaf?
Please anyone explain a brainlet why does le government print money, what does this imply and why is it important? thanks
point out where I was being stupid and I'll keep reminding you about how ignorant you are about your own system
But then it's back to the original premise: the ceo comes out a winner with more money than he'll use in 20000 lifetimes, why would he care that he can't get a job anymore?
Bank in principle wants the company to turn a profit to make their money back, which benefits the board. If they fail, it's little skin off the board's back (in the first place they're the ones that effectively decided it was best to sell to the bank and they typically get a lump sum payment from this as their shares are usually partially or fully purchased and/or they usually have acceleration meaning the company MUST purchase their shares at the time of buyout should they choose this). It's unthinkable that an investor isn't making 1000-1m TIMES their initial investment in such a scenario, because they would have otherwise either left much earlier, or they came in so late they were retarded from day one and don't matter for the sake of the argument.
It means there's 1.5t more in circulation regardless of how it's used for. This means that for every, say, cannuckistani monopoly money, there's, say, 2 USD in circulation, whereas there used to be 1 USD. Wouldn't deflationary repayment require purchase of each USD using foreign currency (i.e. the exact opposite of what typically happens), and shouldn't this then cause bids to fall to approximately half their usual value, based on a usual 1.5t circulating USD volume? It wouldn't be capitalistic to refuse all such bids so as to guarantee the USD does not deflate in value.
It's not, when the entire world is telling them it's a useful degree with jobs, and research would show the same (the reason the jobs aren't there being outsourcing, so all job growth statistics are incorrectly calculated vs what the individual SHOULD have been looking at, but that's in no way the individual's fault unless you assume telepathy should be a prerequisite for survival).
>this is how the FED works. This is what the charter says they do, and basic monetary policy. Actual information about a sometimes weird subject. All this information is available freely, and agreed upon.
>WHAT ABOUT THE FACT THAT ZOG CONTROLS THE FED?
Thanks for the info, makes sense now.
the law of incorporation is the keystone to this entire empire.
everything is incorporated, from cities, to currencies and even all our names unless your parents never signed a birth certificate that is.
I asked the all knowing burgeranon where treasury bonds come from but got no answer, well here it is:
youtube.com
>If they “don’t pay it back”, then it’s literally paying off the national debt and helping balance the budget.
>not paying it back means it makes more money goyim
Tell me how a degree in women's or african american studies is useful in the job market ? Or any liberal arts degree for that matter.
>Why would they care they can't get a job anymore?
Is this why rich people immediately retire? How did they get to this point to begin with?
>There is 1.5t more in circulation
Yes, but it's tied to a debt. Also, the market lost a huge amount of theoretical money. If this money was "free money" it would do what you're saying.
But because it's lent, it means that those company themselves need to lend out this money or otherwise get a return on their own money to pay back the FED. This also hopefully increases the velocity of the system as it creates more money.
>Deflationary payments
Eh... deflation is bad in common monetary theory. The goal is to just curtail it with this initial loan that can be adjusted as needed.
>why is my name capitalized on my driver's license
>When your name is in all caps it signifies that you are a corporation of the United States of America, not a natural born human being, and likewise void of any rights.
this has been true since 1913 because it was in the Federal Reserve Act that made every citizen's name a corporation that can be borrowed against, and whose income tax will pay the interest on the loan. That last part wasn't enacted until 1933 when the US government was bankrupt and Roosevelt signed the Emergency Banking Act which gave control of government to the receivers of the debt.
Yes.