Quote:
Originally Posted by **********
Only the US Treasury can print money, not the Federal Reserve. Printing money would cause deflation. The more money in circulation the less it is worth. The carton of milk that cost $1.00 yesterday would cost $100 today which clearly is not the case.
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Printing money causes inflation, not deflation lol. The main reason we aren't feeling the effects of the inflation yet is because it is being exported.
And I think you might be confused by the term "printing," only a tiny percentage of U.S. dollars in the total money supply are actual paper bills, the rest are simply digits on a computer screen which originate from the Federal Reserve, not the Treasury.
So when you hear people talking about the Federal Reserve "printing" $85 Billion new dollars per month with their "quantatative easing" programs they are not talking about physical paper money.