Is The Federal Reserve Printing Money? | How Banks and Central Banks Print Money

How the Federal Reserve and commercial banks create money and how reserves factor in to banks’ lending decisions. How much has the money supply increased as a result of bank lending and Federal Reserve action. What are M1 and M2 monetary aggregates. How Federal Reserve bond buying increased liquidity but not national wealth.

Money For the Rest of Us is a personal finance channel on money, investing and the economy with new videos released every Monday and Wednesday.

[boulevarda.aladetoyinbo]

What a magic fiat money world we live in!

[roguecow]

Thanks. Great breakdown and better yet, I understood it.

[GreatCreamy]

Great stuff as always David! Big fan of the podcast :)

[putinscat]

The same way BitCoin requires you to burn a GPU to get a coin, banks lend money and get interest. That money is paid back over time by people doing work. In the end, the bank ends up with more money than it started with, and someone has to make more electronic money to cover that. Unless things are always bought and sold or bartered, currency over time has to grow, since most of it is in lending.

[abdiqani]

What about the money that gets injected into the economy, and I mean by that the money which commercial banks request to be printed for stimulating the economy. And what does that mean?

[MMAjsf]

Wouldn’t it be the treasury department that is creating money then? Because they are selling treasury assets to banks, which the central bank (fed) buys?

[eagleartillery]

I can't believe. Is that a question yet?