And since the Federal Reserve is no longer tied into the gold standard, what are they basing these loans on? Credit worthiness of the US?
http://biz.yahoo.com/ap/070830/fed_borrowing.html?.v=2
2007-08-30 10:50:47 · 11 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
Big: The issue being is, that this money doesn't magically appear from thin air. So what is the loan based on?
2007-08-30 10:58:29 · update #1
US Bureau of Printing and Engraving
2007-08-30 10:55:22 · answer #1 · answered by Brer Buffalo 6 · 3⤊ 0⤋
When a bank goes to the Federal Reserve to borrow money, they go through steps to make sure all transactions are legitimate and in many cases, that they are backed by leins, collateral, etc.. If everything checks out alright, then someone pushes a few buttons and the computer tranfers some numbers over to the bank's computer. That's it in a nut shell. The Federal Reserve does regulate how much "money" is floating around at any given time, but the days where every dollar bill, or every number on paper was backed by gold, silver, or property, are long gone.
2007-08-30 18:33:25 · answer #2 · answered by Voice of Liberty 5 · 0⤊ 0⤋
Well, it's not like we could base money on gold anymore.
There is just not enough gold, to even base the US economy on it, more or less the rest of the world.
Gold prices would have to be $3,600 an oz, just to cover the US economy.
And thats if the US owned all the gold in the world.
Thjere is only about 2 trillion dollars worth of gold, worldwide.
At current market values.
2007-08-30 18:06:52 · answer #3 · answered by jeeper_peeper321 7 · 0⤊ 1⤋
Another bureau physically prints it, but the Fed creates money by putting it into circulation. It's main function is controlling the money supply.
2007-08-30 17:56:00 · answer #4 · answered by Biggg 3 · 0⤊ 0⤋
from nowhere it has no backing. By the way President Kennedy took us out of the federal reserve , printed u.s. currency and was dead 60 days later. the 1st day LBJ was president he put us back into the fed. reserve, !!!!
2007-09-03 09:36:34 · answer #5 · answered by Anonymous · 0⤊ 0⤋
This is where China, Japan and Saudi Arabia comes in. They now own in excess of 20% of America. They are the Globalists and they don't care who pays.
2007-08-30 17:58:49 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The 'full faith and credit of the United States". In other words, out of thin air.
2007-08-30 17:59:37 · answer #7 · answered by Anonymous · 0⤊ 0⤋
banks are required by law to keep a certain percentage of all of their deposits in the federal reserve.
2007-08-30 18:04:09 · answer #8 · answered by nostradamus02012 7 · 0⤊ 0⤋
Is coming from the same place paper and ink come from, with the difference that paper and ink has more value than the dollar.
2007-08-30 18:33:34 · answer #9 · answered by Jose R 6 · 0⤊ 0⤋
the photo copier. they just keep printing and printing.
they should at the least print it in yen! LOL
just sign our paychecks over to wall mart (aka china)
2007-08-30 18:10:36 · answer #10 · answered by Anonymous · 0⤊ 0⤋