|
Yakk,
When the Federal Reserve wants to increase the supply of money they buy government bonds and credit the accounts of the sellers without actually having the money. In effect they are "printing" money but no cash actually trades hands. They do the reverse when they want to decrease it buy selling off the bonds they have and then "destroying" the money they receive. So even though they don't print up money and give it away, they do create money that didn't exsist before.
__________________
"Don't touch my belt, you Jesus freak!" -Mr. Gruff the Atheist Goat
|