http://economy.solved.at/economic-crisis/federal-reserve-4 Economy for common man Sat, 31 Jul 2010 04:39:56 -0600 http://wordpress.org/?v=2.8.5 hourly 1 http://economy.solved.at/economic-crisis/federal-reserve-4/comment-page-1#comment-189 robert_dod Thu, 11 Feb 2010 00:18:58 +0000 http://economy.solved.at/economic-crisis/federal-reserve-4#comment-189 The Federal Reserve Bank is a federal institution. However, in order to avoid simply printing its own money, it borrows money from the Federal Reserve Bank (listed as a debt to the government, and an asset to the Fed) so that the books balance. It is necessary for accounting purposes. IF the government does not receive enough income from taxs and fees etc., it borrows from the Fed. The Fed loans the money. It can then issue securities (loans) purchased by others (savings bonds, etc.), purchased by private citizens, US and internationally, which it must repay..Currently, China owns the most such securities ... to the tune of 800 billion dollars. The Federal Reserve Bank is a federal institution. However, in order to avoid simply printing its own money, it borrows money from the Federal Reserve Bank (listed as a debt to the government, and an asset to the Fed) so that the books balance. It is necessary for accounting purposes. IF the government does not receive enough income from taxs and fees etc., it borrows from the Fed. The Fed loans the money. It can then issue securities (loans) purchased by others (savings bonds, etc.), purchased by private citizens, US and internationally, which it must repay..Currently, China owns the most such securities … to the tune of 800 billion dollars.

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