You can’t trust the media to understand and relate financial concepts — although from time to time you do see reference to “creating money out of thin air” most journalists and other ignorant parties talk about “printing money” regarding the Federal Reserve and the various bailout and stimulus/quantitative easing funds that were spent.
Here are some examples from CBS news where they reference printing money:
(Inflation Could Be Coming To A U.S. Dollar Near You)
(Inflation Fears Grow After Fed Prints $1.2 Trillion)
At least the second report mentions “every dollar electronically printed” and then CBS goes on to make claims about how economic programs affect the marketplace when they really do not grasp, or do not relay that the idea of physically printing $1.2 trillion dollars is silly — worldwide there is approximately 850 billion dollars in total US currency… so, how can CBS and other news organizations be trusted to analyze and accurately report on government and important financial market changes?
So, where does the money come from that enters the financial system?
That’s the magic of the banking system and the Federal Reserve — ask CBS and see if they can come up with the answer.
Hint: money is created out of thin air.
With regard to deficit spending I think the US has sustained a deficit of at least $1.2 trillion from the early 1980s with trillions of dollars more added ever since. The aggregate amount of debt now approaches annual GDP!
But we wouldn’t be doing it unless someone was making money, right?
