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View Diary: New IRS report confirms upcoming retirement crisis (95 comments)

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  •  The Fed Reserve can either give banks reserves, or (1+ / 0-)
    Recommended by:
    Auburn Parks

    can lend them reserves.  That's a policy decision.

    Banks make loans first, then if they don't have enough reserves, they find them.

    Either through overnight interbank lending or through the Fed acting as lender of last resort.

    Sort of the opposite of what most people think and say.

    But...  my point is that the Fed creates reserves out of thin air through simply marking up the accounts of it's member banks.

    We could do away with retirement savings and simply mark up the accounts of the elderly.

    Cuz dollars, coins, bonds and reserves are all created out of thin air.

    Cuz fiat currency is simply an accounting mark, keeping account of how many dollars are  in the private sector.

    It's a score.

    And like the bowling alley, the points don't come from anywhere other than the score keeper's desire to take note.

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