General Discussion
In reply to the discussion: Bernie Sanders Fed Audit (prepare yourself to be ticked off) [View all]quaker bill
(8,226 posts)No institution could loan or give away 16 trillion "US Tax Dollars". The entire US economy produces 13 to 14 trillion dollars a year (GDP). If everything was taxed at 100%, it would not be enough money.
What the Fed actually did was substitute forms of money people had stopped believing in with forms of money people still believe in. It was a Jedi mind trick. The 16 trillion dollars did not exist before it was used. The Fed materialized it out of thin air using 4 people sitting in cubicles at workstations clicking mouse buttons. They actually have the power to do that.
People like to think of money like matter in terms of physics, in that matter cannot be created or destroyed, all of it had to come from somewhere (like taxes). In fact money is nothing at all like that, it can be created or destroyed with mouse clicks, this happens everyday. The 16 trillion was an unusually large move.
They are now talking about "Quantitative Easing III". The quantity being increased in QE III is the quantity of money, just like it was in QE I and QE II. The Fed makes new money and buys treasuries with it on the concept that flooding the market with money will free up investment funds for businesses.