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Mike Norman’s show

Wednesday, July 16, 2008 @ 10:20 EST

Houston Area: Houston 1110 AM KTEK
Dallas / Fort Worth Area: DFW 1110 AM KJSA


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3 Responses

  1. Was listening sounds great you need more exposure. Liked your comment: “where does the dollar in your pocket come from”

    Seems to me another misconception is who “prints money”.
    Why does everyone think the FED prints money when in fact its the treasury via the spending channel. As far as I can tell from the teachings of this site, the Fed swaps reserves for bills and notes and vice versa, no new assets are created.

  2. Check that, I guess when the treasury pays interest on those bills and notes new money is created without spending.

  3. right and right and thanks!

    except the fed ususally sells tsy secs it holds when it sells something, so the tsy pays interest to the public instead of to the fed.

    with repos, if the fed is paying interest it’s earning interest from the tsy on its secs.

    but of course fed/tsy distinction is just accounting on ‘their’ side of the ledger and of no consequence to the non gov sectors

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