Could the Federal Reserve ever go bankrupt literality run out of money my guess is no

[tradeunionsupporter]

Could the Federal Reserve ever go bankrupt literality run out of money my guess is no since they can just print more Money if they ever run out ? This question is really about Central Banks in general not just the Federal Reserve if the world ran out of paper money to print could we switch to gold and silver or some other currency ?
　

Karl Marx and Frederick Engels
Manifesto
of the Communist Party
1848
II -- PROLETARIANS AND COMMUNISTS

5. Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.

http://www.anu.edu.au/polsci/marx/classics/manifesto.html

[RGacky3]

www.wikipedia.org (http://www.wikipedia.org),

www.google.com (http://www.google.com)

[Revolution starts with U]

I know, really. To explain whether the FED could go bankrupt would require 2 six week courses: one on the FED, and another on how governments operate.

Just do some research and think it out Trade. We "appreciate" you coming around (tho it is perplexing just who you are and what your purpose is). But we'd like to see more engagement.

[Sadena Meti]

They have a process called "quantitative easing", which basically means printing more money. So no, they can't go bankrupt.

[Rooster]

You can't just print more money to make more. Money relates to value of real world things. It also allows for circulation, that's what quantitative easing is. Your post is kinda confusing, really. Did you just ask if we ran out of paper then could money be represented as something else? Don't you have credit cards or coins where you live?

[Sadena Meti]

Quantitative Easing:
the practice of increasing the supply of money in order to stimulate economic activity It can cause inflation, but it will prevent the Federal Reserve from going "bankrupt."

[#FF0000]

www.wikipedia.org (http://www.wikipedia.org),

www.google.com (http://www.google.com)

gacky shut the fuck up

christ

[Rooster]

Quantitative Easing:
the practice of increasing the supply of money in order to stimulate economic activity It can cause deflation, but it will prevent the Federal Reserve from going "bankrupt."

Well yes, it puts more money to encourage circulation causing deflation because no real, or additional, wealth is being created. That doesn't mean that central banks can't go bankrupt.

[Gorilla]

Could the Federal Reserve ever go bankrupt literality run out of money my guess is no since they can just print more Money if they ever run out ?

Correct.


This question is really about Central Banks in general not just the Federal Reserve if the world ran out of paper money to print could we switch to gold and silver or some other currency ?　

If other central banks ran out of money it could be a problem, since many foreign countries have to repay their national debt using dollars or euros. So when they run short on dollars or euros, it's a big problem even if they have plenty of the local currency on hand (which they do, because they print it.)

Not even capitalists want to switch back to gold and silver. Except the dumb ones like Peter Schiff.



Karl Marx and Frederick Engels
Manifesto
of the Communist Party
1848
II -- PROLETARIANS AND COMMUNISTS

5. Centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.

http://www.anu.edu.au/polsci/marx/classics/manifesto.html


What's the point of that? The Fed does not have an exclusive monopoly on issuing credit; other banks do it all the time.

[Sadena Meti]

Well yes, it puts more money to encourage circulation causing deflation because no real, or additional, wealth is being created. That doesn't mean that central banks can't go bankrupt.

Yes it does. See, with quantitative easing, each new dollar printed steals a tiny bit of value from all the existing dollars in circulation (because the total value (GDP) remains fixed). Thus it's like making everyone who has money deposit some value into the central bank.

Do this over and over and you get rampant inflation and money has no more value to be stolen. See Zimbabwe, which in August 2008 reached 11,200,000% inflation. They couldn't print money fast enough.

[Revolution starts with U]

gacky shut the fuck up

christ

It was a valid answer, especially considering Trade's post record. This ^ is a blatant personal attack.

[IcarusAngel]

No, they can't go bankrupt. You need to take an economics course to understand why, as Revolution starts with U said. I could possibly try to elaborate, though, if you want.

[Sadena Meti]

It was a valid answer, especially considering Trade's post record. This ^ is a blatant personal attack.
Well Gacky DOES do that A LOT.

[IcarusAngel]

Well yes, it puts more money to encourage circulation causing deflation because no real, or additional, wealth is being created. That doesn't mean that central banks can't go bankrupt.

Printing more money causes deflation? Prices would fall?

[Sadena Meti]

Printing more money causes deflation? Prices would fall?

I mistakenly wrote deflation instead of inflation, then someone quoted me, then someone quoted him, and now everyone is saying deflation. I went back and edited my post to hide my sins.

[RGacky3]

Well Gacky DOES do that A LOT.

Only to Bud, who's a known troll and has'nt contributed anything to the board.