$300 billion was added last week by the FED, is Excessive Money Printing back?
$300 billion was added last week by the FED, is Excessive Money Printing back?
Funny how 36 hours ago I made this post about having to choose between magic internet money which is Crypto and Monopoly money which is Fiat currency that can be printed as much as the government wants or choose to print when they need it, now a few hours later after I made that post, I read about the Federal Reserve System (FED) added $300 billion into circulation last week while banks where crashing down, the report did not specify if it was to save the banks and provided liquidity for them, but doubt it was the case because I also read yesterday that Silicon Valley Bank has officially filed for Chapter 11 Bankruptcy.
That is why I said I strongly doubt the $300 billion was to save banks, so I might agree with those who under the post comment section said the $300 billion were loans from the Bank Term Funding Program (BTFP), not exactly money printing as I and many others thought but no one is sure, although it was reported that it was immediately injected into the money supply
Bank Term Funding Program
The Federal Reserve Board, on March 12, 2023, announced the creation of a new Bank Term Funding Program (BTFP). The BTFP offers loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par.
As I said no one is 100% sure the government money printing machining is back online but the news, either way, is good for crypto and It sounds like bullish news to me, It is Interesting how the investor in the crypto market will react to such news, and I guess they reacted to it positively because, within the last 15 hours, Bitcoin has pumped like crazy.
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They are not creating US dollars so presenting it as such is misleading.
People need to understand how the money supply operates and what can be done with what the Fed creates.
The Fed can only create banknotes as legal tender. These programs are not legal tender, hence not dollars.
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Thanks for clarifying that.
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One way or another they are printing more fiat, as they tell us everything is ok. They do not have to tell us when they print and give it to their friends. Who would believe anything they say at this point? The dollar is toast!
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I understand your point buddy